Author: openjargon

Shares in Computershare Ltd (ASX: CPU) are seesawing on Tuesday after the company delivered its half-year FY26 results.

At the time of writing, the Computershare share price is down 0.28% to $32.21.

That leaves the stock around 6% lower so far in 2026, even after management upgraded guidance and lifted the interim dividend.

Let’s take a dive into what happened today.

A good result, but not enough to excite

For the six months ended 31 December 2025, Computershare delivered steady results in a lower interest rate environment.

Management revenue rose 3.9% to US$1.6 billion, while management earnings per share (EPS) increased by the same margin to 67.9 US cents. Excluding margin income, EBIT jumped 12% to US$190.8 million, with margins expanding by 70 basis points to 16%.

Return on invested capital climbed to a very healthy 36.1%, underlining the capital-light nature of the business.

The softer spot was margin income, which fell 5.4% to US$372.9 million. This was expected, given that cash rates sharply declined across key markets during the half.

The company said the net impact of lower interest rates was limited to around US$8 million, or just 1.5% of profit before tax, thanks to Computershare’s natural hedge.

Balance sheet strength shines through

One of the key takeaways was the strength of the balance sheet.

Net debt leverage was reduced to just 0.3 times EBITDA, giving the company plenty of flexibility. That strength supported a 22.2% increase in the interim dividend to 55 cents per share, 30% franked.

The group said buying back shares would currently be tax inefficient, signalling that dividends and reinvestment remain the preferred use of capital for now.

On the operations front, Issuer Services delivered the fastest revenue growth across the group, supported by new client wins and a recovery in corporate action activity. Corporate Trust also benefited from higher client balances, while Employee Share Plans posted solid growth, driven by higher client fees and transactional revenues.

Outlook lifted for FY26

Computershare upgraded its FY26 outlook, now expecting management EPS of around 144 US cents. That implies growth of roughly 6% year-on-year, an improvement on the initial guidance provided in August.

Lower interest rates are expected to support higher client balances in the second half, while cost discipline and operating leverage continue to support margins.

Management reiterated its focus on delivering consistent earnings growth and increasing shareholder returns through the cycle.

Foolish takeaway

Despite the upgraded outlook and dividend hike, the market response has been lukewarm.

After a strong run over recent years, expectations for Computershare remain high. With margin income still under pressure and broader equity markets volatile, some investors appear to be taking a wait and see approach.

That said, the result supports Computershare’s reputation as a high-quality, cash-generative business with a long-term growth track record.

The post Why Computershare shares are wobbling despite a solid half appeared first on The Motley Fool Australia.

More reading

• Computershare lifts outlook and dividend after solid 1H26 earnings
• 3 quality ASX shares to buy after hitting a 52-week low
• Where I’d invest in ASX shares if the RBA increases the interest rate
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.4% to 8,994.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are jumping:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is up 9% to $9.65. Investors have been buying this energy giant’s shares following the release of its half-year results. Although AGL posted a decline in underlying net profit, it has updated its guidance for FY 2026. The company now expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. This compares to its previous range of $1.92 billion to $2.22 billion. Its underlying net profit guidance was also tightened to $580 million to $680 million, from the previous range of $500 million to $700 million. This reflects improved consumer margins and lower than previously indicated operating costs due to disciplined cost management.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is up 8% to $171.38. This has been driven by the release of the banking giant’s half-year results this morning. CBA reported a 6% increase in cash net profit to $5,445 million and lifted its interim dividend by 4% to $2.35 per share. CBA’s CEO, Matt Comyn, said: “Economic growth strengthened during the half, driven by increases in consumer demand and rising investment in AI and energy infrastructure.”

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 3% to $22.99. This follows news that the pizza chain operator has appointed its new CEO. Domino’s has named experienced global quick service restaurant executive Andrew Gregory as its incoming group CEO and managing director. The company notes that Mr Gregory will start with Domino’s once his obligations to his current employer have been discharged. This will be no later than 5 August 2026. He most recently served as McDonald’s senior vice president of global franchising, development and delivery in the US.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is up 12% to $37.20. Investors have been buying this building materials company’s shares following the release of its third-quarter update. The company reported a 30% jump in sales to US$1,239.8 million and a 26% lift in adjusted EBITDA to US$329.9 million. This growth was driven largely by the addition of the AZEK business following its recent acquisition. James Hardie’s CEO, Aaron Erter, said: “In the third-quarter, we achieved or exceeded each of our financial commitments despite a mixed macro backdrop. We are taking actions to address the current market environment, including optimizing our manufacturing footprint and better aligning our cost structure with the slower, but stabilizing, pace of demand.”

The post Why AGL, CBA, Domino’s, and James Hardie shares are jumping today appeared first on The Motley Fool Australia.

More reading

• CBA share price jumps 8% on strong half-year results
• Why Aussie Broadband shares are soaring 13% today
• Why AGL shares are jumping 8% on results day
• James Hardie shares rocket higher after earnings beat expectations
• Here’s everything you need to know about the new CBA dividend

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I look at where long-term wealth is likely to be created over the next decade, I keep coming back to one simple idea: owning the world’s best businesses, across many countries, at low cost, and holding them patiently.

That’s why I think the Vanguard MSCI Index International Shares ETF (ASX: VGS) is a particularly strong buy in 2026.

Rather than trying to guess which single country or sector will outperform, this exchange-traded fund (ETF) gives exposure to global growth engines that Australia simply doesn’t have in meaningful size.

This Vanguard ETF offers a genuinely global portfolio

The VGS ETF holds around 1,300 stocks across developed markets, excluding Australia. That means meaningful exposure to the US, Europe, Japan, the UK, Canada, and parts of Asia.

This matters because the Australian share market is heavily concentrated in banks and resources. This ETF fills the gaps by giving investors access to sectors like global technology, healthcare, industrial automation, and consumer brands that operate at enormous scale.

A look at its holdings

While the largest holdings include familiar US names like Apple and Microsoft, the depth of the portfolio is where the Vanguard MSCI Index International Shares ETF really shines. Many of its most interesting exposures sit outside the US.

One of the most strategically important companies inside the ETF is ASML Holding.

It is a Dutch company with a near-monopoly on extreme ultraviolet lithography machines, which are essential for producing the world’s most advanced semiconductors. These machines are so complex and specialised that no competitor has been able to replicate them at scale.

Every cutting-edge chip used in AI, high-performance computing, and advanced electronics relies on ASML’s technology. That gives it extraordinary pricing power, long-term visibility, and a competitive moat that is almost unmatched globally.

Another standout holding is Nestlé, the Swiss consumer giant.

Nestlé owns a vast portfolio of food, beverage, and nutrition brands that are embedded in daily life across the globe. Its strength isn’t just brand recognition, but distribution, scale, and pricing power across both developed and emerging markets.

What I like about Nestlé as part of the VGS ETF is how it balances growth and defensiveness. It may not deliver explosive returns in any single year, but it compounds steadily through economic cycles, which is exactly what you want inside a core ETF.

Why the VGS ETF works so well as a core holding

What makes this Vanguard ETF particularly attractive to me is that it doesn’t rely on any single theme working perfectly. It owns thousands of companies across regions, sectors, and economic conditions.

It also does this at very low cost, which quietly but powerfully boosts long-term returns. Over decades, minimising fees and staying invested often matters far more than trying to time markets or rotate between trends.

For investors building wealth in 2026 and beyond, VGS offers global diversification, exposure to world-class businesses, and a structure that rewards patience.

Foolish takeaway

I see Vanguard MSCI Index International Shares ETF as a cornerstone investment. It gives access to companies like ASML and Nestlé, alongside hundreds of other global leaders, in a single, low-cost ETF.

For anyone looking to grow wealth over the long term without overcomplicating things, I think this Vanguard ETF is a very strong buy in 2026.

The post Why I think this Vanguard ETF is a strong buy in 2026 appeared first on The Motley Fool Australia.

More reading

• How ETFs can help investors build significant passive income
• How I would aim to build a $500,000 ASX retirement portfolio
• 3 Vanguard ETFs I think deserve a spot in most portfolios
• How could I turn $500 a month into $50,000 with ASX shares?
• Passive income: How much do you need to invest to make $500 per month?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Apple, and Microsoft. The Motley Fool Australia has recommended ASML, Apple, Microsoft, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I’m choosing high-conviction shares to back, I’m not looking for clever trades or short-term themes. I’m looking for businesses I feel genuinely comfortable owning, adding to, and holding through different market environments.

Right now, three ASX 200 shares sit firmly in that category for me. They operate in very different industries, but each stands out as a company with a clear strategy, strong execution, and the kind of business model I want exposure to over the long term.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster strikes me as a business that has been quietly building while the spotlight has been elsewhere.

Yes, the broader housing and consumer backdrop hasn’t been ideal, but what stands out to me is how well positioned the company looks when conditions do improve. Temple & Webster operates a highly scalable, asset-light model that allows it to adapt quickly without the burden of physical store networks or heavy fixed costs.

Its brand is well established, its customer data is deep, and its technology-driven merchandising gives it a level of agility that traditional retailers simply can’t match. Rather than stretching for growth, management has focused on improving efficiency, margins, and execution, exactly what you want to see during a tougher cycle.

When housing turnover lifts and discretionary spending starts to flow again, Temple & Webster doesn’t need a major strategic reset. The platform is already there. It just needs demand to do what it naturally does over time.

From my perspective, this feels like a business that’s well placed to benefit disproportionately when conditions turn more favourable.

Catapult Sports Ltd (ASX: CAT)

Catapult is one of those ASX 200 shares where the product does most of the talking.

Elite sports teams don’t adopt performance analytics platforms lightly, and once they do, they rarely switch providers. Catapult’s technology is deeply embedded in how teams train, manage athlete workloads, and make tactical decisions. That creates a level of stickiness that isn’t always obvious from the share price alone.

What makes now interesting is the growing focus on profitability rather than just customer growth. Catapult has reached a scale where incremental revenue is starting to matter, and margins are becoming a bigger part of the conversation.

I see this as a business moving from proving the model to harvesting the model. When that transition happens smoothly, the market often re-rates the stock faster than expected.

Zip Co Ltd (ASX: ZIP)

Zip is a very different kind of opportunity. The buy now, pay later company has spent the last couple of years doing the unglamorous work of fixing its balance sheet, tightening credit standards, and exiting less attractive markets. That reset hasn’t been exciting, but it has been necessary.

What stands out to me now is that the ASX 200 share is not even being priced like a business that has turned a corner. Despite stabilising operations and improving unit economics, I believe the share price still reflects a lot of past fear.

Buy now, pay later isn’t disappearing. It’s evolving. And Zip’s leaner cost base and more disciplined approach leave it positioned for sustainable growth.

For investors willing to look past the scars of the last cycle, the risk-reward profile here feels far more balanced than the price suggests.

Foolish takeaway

For me, high-conviction investing is about identifying businesses I genuinely believe have strong long-term potential and backing them with patience.

Temple & Webster, Catapult, and Zip each stand out as companies with clear strategies, scalable models, and management teams focused on execution. They’re different businesses solving different problems, but all three strike me as stocks I’d be happy to own and add to from here, with a long-term mindset.

The post 3 of my high-conviction ASX 200 share picks for February appeared first on The Motley Fool Australia.

More reading

• Zip shares climb 10% higher this week. Can they keep going?
• Here are the top 10 ASX 200 shares today
• 3 reasons to buy Zip shares today
• 3 ASX 200 shares to buy: experts
• Bell Potter names the best ASX shares to buy in February

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s fair to say investors weren’t too excited by Amotiv Ltd (ASX: AOV)’s results released earlier this week, with the company’s shares drifting lower since they were announced.

That might not be much of a surprise, as the results were fairly unremarkable: revenue grew just 3.3% for the half compared with the same period the previous year, and underlying net profit was 1.3% higher at $59.7 million.

In the 4WD accessories and trailering division, revenue was up 5.5% to $189.6 million, while underlying EBITDA fell 15.2% to $26.2 million.

The lighting, power and electrical division grew its profit by 9.4% to $37.1 million, while the powertrain and undercar division grew earnings by 6.7% to $39.9 million.

Where to from here?

On the all-important outlook, the company said its guidance was unchanged, with group revenue growth expected – albeit no specific figure given – and underlying EBITA of about $195 million, “in what is likely to remain a challenging environment”.

So what did the analysts think of the result? We’ve had a look at three research notes published since the results were announced, and they’re quietly confident that Amotiv shares will perform well over the next 12 months.

Firstly, UBS, which has a price target of $11.40 on the stock, upgraded from $11 following the results release.

UBS said it was a credible result, and “better than feared” given the challenging consumer environment and cost inflation.

They added:

New contract wins and geographic diversification, along with solid cost control (Amotiv Unified program) helped offset some 1H26 headwinds. Looking to 2H26, pricing increases and further cost benefits should help offset potentially more challenging conditions in 4WD. We see risk of further deterioration within new car sales (especially on further interest rate increases), which we have partly factored in.

They noted that management was also targeting a $5 million cost reduction program.

On the current share price, which was $7.62 at the time of writing this article, they said, “we continue to see valuation as undemanding”.

Over at Morgans, the analyst team has downgraded Amotiv from a buy rating to accumulate, noting that their profit report was in line with expectations.

They added:

Whilst we view the valuation as undemanding (about 9.5x PE), we see limited near-term catalysts for the stock to re-rate and expect patience will be required as offshore investments are realised.   

Morgans has a price target of $9.15 on the stock.

And finally, over at Macquarie, the team there has a bullish share price target of $11.90 on Amotiv shares.

They said the result was “solid despite soft new vehicle sales, which had created downside risk concerns in the market”.

They said they saw several tailwinds, especially out to FY27, “including further successful execution of the offshore growth strategy”.

The post Are Amotiv shares a buy, hold or sell following the company’s half-year results? appeared first on The Motley Fool Australia.

More reading

• Is this why Amotiv shares are stuck in neutral after today’s results?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Aussie Broadband Ltd (ASX: ABB) share price is rocketing on Wednesday after the company announced a transformational telco deal.

In late morning trade, the Aussie Broadband share price is up 13.25% to $5.13, making it one of the strongest performers on the ASX today.

Here is what investors need to know.

What was announced today

According to the release, Aussie Broadband has signed an agreement to acquire the AGL Energy Limited (ASX: AGL) Telco business. The transaction includes AGL’s broadband, mobile, and voice customer base, along with supporting systems and assets.

At completion, the deal is expected to add approximately 350,000 broadband and mobile connections to Aussie Broadband, along with approximately 46,000 voice services. The acquisition is expected to be completed in June 2026, with customer migration to follow during the first half of FY27.

As part of the arrangement, the 2 companies have also agreed to an exclusive long-term partnership. Under this structure, AGL will continue to market telecommunications services under the AGL brand, while Aussie Broadband will provide the network, services, and customer experience.

How the deal is being paid for

AGL will receive $115 million worth of Aussie Broadband shares on completion, based on the volume-weighted average price (VWAP) prior to the announcement.

A further up to $10 million in shares may be issued over time, subject to meeting agreed connection growth targets. These additional shares would be issued in tranches and are linked to performance outcomes.

Aussie Broadband said the acquisition is expected to be earnings per share (EPS) accretive in the first year after migration of customers.

Expected financial contribution

In the first full year after customer migration, the agreement is expected to deliver around $235 million in revenue and around $21 million in underlying EBITDA.

Over time, Aussie Broadband expects the number of AGL Telco connections, excluding voice services, to grow to more than 500,000 over 5 years. Management believes the transaction will strengthen its position as one of Australia’s largest NBN service providers.

About the business

Aussie Broadband provides broadband, mobile, and voice services to residential, business, and wholesale customers across Australia. The company is known for its Australian-based customer support and focus on service quality.

Following this transaction, Aussie Broadband expects to service close to 400,000 mobile connections across its segments once migration is complete.

What investors are watching next

Aussie Broadband is due to report its half-year results on Monday, 23 February 2026.

The update will be closely watched for earnings performance, guidance, and further details on integration plans.

The post Why Aussie Broadband shares are soaring 13% today appeared first on The Motley Fool Australia.

More reading

• Why AGL shares are jumping 8% on results day
• AGL Energy posts 1H26 profit and narrows FY26 earnings guidance
• 3 beaten-down ASX 200 shares to pick up in February
• 3 top ASX energy stocks dividend investors should watch
• Top Australian shares to buy right now with $2,000

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Bravura Solutions Ltd (ASX: BVS) are down 1.7% today (at the time of writing) following the release of the company’s first-half results, but that modest pullback comes after a 31% surge earlier this week, triggered by the company’s surprise upgrade to FY26 guidance.

In that context, today’s move looks less like disappointment and more like consolidation after a sharp re-rating.

What did Bravura report?

For the half year ended 31 December 2025, Bravura announced a result that broadly validated the optimism in Monday’s guidance upgrade.

Key highlights included:

• Underlying revenue from customers of $140.0m, up 9.8% year on year
• Underlying Cash EBITDA of $34.2m, up $14.2m versus 1H25, equating to a 24.4% margin
• Underlying NPAT of $25.9m, more than double the prior period
• Cash balance of $64.5m, with no debt

All figures exclude the impact of the FY25 license agreement with Fidelity International.

Revenue growth was driven by pricing improvements and increased professional services activity across its existing client base. Meanwhile, operating costs were well controlled, allowing more of that revenue growth to flow through to profit.

Recurring revenue, which includes maintenance, support, and hosting income, remained a significant contributor to the business. This provides a level of stability that investors have been looking for after a more volatile period in prior years.

Bravura also declared an interim dividend of 5.77 cents per share and a special dividend of 4.46 cents per share, bringing total dividends for the half to 10.23 cents per share. The ordinary dividend represents 100% of underlying NPAT for the period.

Importantly, management reaffirmed the recently upgraded FY26 guidance. The midpoint of that guidance implies stronger profitability in the second half compared to the first, suggesting confidence in continued momentum.

Foolish bottom line

After a 31% rally earlier in the week, the market may have already priced in much of the good news, and today’s decline appears modest given the scale of the prior move.

The key takeaway is that Bravura’s improved guidance is now backed by solid first-half numbers. Revenue is growing, margins are expanding, cash generation is strong, and the balance sheet remains debt-free.

The next test will be delivery in the second half. If management can meet its upgraded targets, this week’s re-rating may prove justified.

The post Bravura shares ease after first-half result, but remain up 30% this week appeared first on The Motley Fool Australia.

More reading

• Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher
• Bravura shares soar 23% on guidance upgrade

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are up 0.76% in early morning trade on Wednesday. At the time of writing, the shares are trading at $50.64 each.

That puts the shares 10.66% higher for the year to date and 16.22% above where they were this time last year.

The iron ore mining giant’s shares have rocketed higher this year, following its first-half production update last month. It revealed that its iron ore production had risen 2%, to 134 million tonnes, over the first half of FY26, thanks to record shipments at its Western Australia Iron Ore (WAIO) operation.

I don’t think it would take much for the miner’s share price to push higher this year, especially if the Australian dollar continues to strengthen this year or the resources and commodities boom accelerates.

But there is another ASX mining stock which I think could outpace BHP gains over the next 12 months.

The ASX 200 share that could beat BHP

South32 Ltd (ASX: S32) shares are also trading higher on Wednesday morning. At the time of writing, the metals miner’s shares are 0.33% higher at $4.60 a piece. For the year to date, the shares have stormed an impressive 29.72% higher, and they’re now up a huge 34.26% for the year. The gains are significantly higher than those from BHP.

South32 has benefited from a perfect storm of strong central bank buying, falling US interest rates, and dwindling expectations for the US dollar. These have all driven investors to safe-haven commodities like gold, silver, and copper. 

The company mines and produces commodities, including bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese, and metallurgical coal, so it has been well-positioned to absorb the uptick in demand across several minerals and metals.

South32’s exposure to the commodities and precious metals, which are enjoying strong demand, could help the miner deliver faster earnings growth than BHP’s iron-ore-heavy portfolio.

Its diversity across a range of markets could also support stronger price growth. It could also help protect the share price from supply-and-demand fluctuations across different markets. 

It’s not just the miner’s diversity that could help it outpace BHP this year. South32 has also been enjoying strong operational momentum over the past six months. Last month, the miner announced that it had exceeded expectations for first-half production. Alumina production was up 3% in the first half. Meanwhile, aluminium production was up 2%, zinc up 13%, and manganese up 58%. Overall, the company’s results were ahead of consensus. 

If this momentum continues, alongside a continued uptick of commodity demand and prices, I think South32 could grow at a faster pace than BHP in 2026. And I think its shares could well follow suit.

What do analysts expect from the two stocks this year?

BHP shares are forecast to increase up to 10.43% over the next 12 months, to $56.01. South32 shares are tipped to rise up to 13.03% from the current share price, to $5.21 a piece.

The post Here’s an ASX 200 share that I think could beat BHP in 2026 appeared first on The Motley Fool Australia.

More reading

• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• Should you buy BHP, CSL, and DroneShield shares? Here’s my take
• Will BHP shares soar past $55 this year?
• Argo Investments reports record profit and dividend
• With global valuations stretched here are 3 great income ASX ETFs

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AGL Energy Limited (ASX: AGL) shares are surging on Tuesday morning.

At the time of writing, the energy giant’s shares are up 8% to $9.58.

This follows the release of a solid first-half result and an update to its full-year earnings guidance.

AGL shares surge on results day

For the six months ended 31 December 2025, AGL reported flat underlying EBITDA of $1.09 billion and a 6% decline in underlying net profit after tax of $353 million.

At first glance, those numbers look unexciting. But the market response suggests investors were focused more on what comes next than what has already happened.

Guidance narrowed

The biggest positive from today’s release was the narrowing of its FY 2026 guidance.

AGL now expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. This compares to its previous range of $1.92 billion to $2.22 billion.

The company’s underlying net profit guidance was also tightened to $580 million to $680 million, from a much wider range of $500 million to $700 million.

Management advised that the narrowing of FY 2026 guidance reflects strong first half performance driven by consumer margins, lower than previously indicated operating costs due to disciplined cost management, and lower than previously indicated depreciation due to greater water price certainty on the future rehabilitation of Loy Yang.

Dividend increase

Despite its profit decline during the first half, the AGL board elected to increase its interim dividend.

The company declared a fully franked interim dividend of 24 cents per share, which is up 4.3% from 23 cents per share a year earlier.

This will be paid to eligible shareholders next month on 26 March 2026.

What happened during the half?

Management said its first-half performance was driven by improved customer margins, helped by growth in AGL’s customer base and a return to more sustainable pricing conditions.

AGL’s managing director and CEO, Damien Nicks, said:

The strength of our first half result was delivered by our excellent operational performance. In Customer Markets we saw an improvement in customer margins, driven by growth in our customer base and a return to more sustainable margins.

The improved availability and flexibility of our generation asset portfolio, including the continued strong performance of our batteries, helped mitigate a period of low price volatility in the NEM, which was driven by milder weather, and lower transmission constraints.

The post Why AGL shares are jumping 8% on results day appeared first on The Motley Fool Australia.

More reading

• Why Aussie Broadband shares are soaring 13% today
• AGL Energy posts 1H26 profit and narrows FY26 earnings guidance
• 3 beaten-down ASX 200 shares to pick up in February
• 3 top ASX energy stocks dividend investors should watch
• Top Australian shares to buy right now with $2,000

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in James Hardie Industries Plc (ASX: JHX) have jumped more than 10% in early trade after the company’s third-quarter profit exceeded expectations.

The building products maker said in a statement to the ASX that its net sales rose 30% to US$1.2 billion, while operating income was US$176 million.

The net sales figure was, however, inflated by the contribution of AZEK, which James Hardie bought mid-last year.

Better than expected earnings

RBC Capital Markets said in a note to their clients that the company handily beat expectations on adjusted EBITDA, which came in at US$330 million, posting results 6.6% ahead of consensus.

They added that the company’s guidance for earnings for the fourth quarter was unchanged, “although updates on synergy capture were solid”, referring to the savings James Hardie expects to capture following the AZEK takeover.

James Hardie Chief Executive Officer, Aaron Erter, said it was a solid result.

In the third-quarter, we achieved or exceeded each of our financial commitments despite a mixed macro backdrop. We are taking actions to address the current market environment, including optimizing our manufacturing footprint and better aligning our cost structure with the slower, but stabilizing, pace of demand. These actions will improve near-term profitability and better position the Company to profitably grow when conditions improve.

Adjusted net sales in the siding and trim division were down 2%, stripping out the contribution from AZEK; however, Mr Erter said the EBITDA margin improved significantly, driven by pricing and cost reduction measures.

Mr Erter added:

Our confidence in the combination of James Hardie and AZEK continues to be strong as customers respond to our differentiated products, leading brands, focus on innovation and investment across the value chain. We continue to make progress on the integration and have surpassed our FY26 cost synergy goal. Our progress to date reaffirms our confidence in hitting our US$125 million cost synergy target. On the commercial front, our early wins with dealers, contractors and homebuilders will drive meaningful revenue synergies in FY27 and beyond, demonstrating our potential to accelerate material conversion across exteriors and outdoor living.

Outlook upgraded

In terms of the outlook, the company’s chief financial officer Ryan Lada said in the siding and trim market “conditions remain challenged, consistent with our prior expectations”.

Mr Lada said they expected the broader exteriors market to remain “mixed” in the near term, while in the deck, rail and accessories division growth in the mid-single digits had carried through from the third quarter into the early fourth quarter.

The company upgraded its full year adjusted EBITDA guidance from US$1.2-US$1.25 billion to US$1.23-US$1.26 billion, and also upgraded the net sales outlook for both the siding and trim, and deck rail and accessories divisions.

James Hardie shares traded as high as $37.60 in early trade before settling back to be 12.2% higher at $37.34.

The post James Hardie shares rocket higher after earnings beat expectations appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.