Author: openjargon

The James Hardie Industries plc (ASX: JHX) share price is in focus today as the company reported a 30% rise in third-quarter net sales to US$1.24 billion, helped by its recent AZEK acquisition, while adjusted EBITDA grew 26% to US$330 million.

What did James Hardie report?

• Net sales up 30% to US$1,239.8 million (Q3 FY26)
• Adjusted EBITDA up 26% to US$329.9 million (margin: 26.6%)
• Net income down 52% to US$68.7 million
• Adjusted net income of US$142.2 million, down 7%
• Operating cash flow US$455 million (nine months)
• Free cash flow US$260.8 million (nine months)

What else do investors need to know?

James Hardie’s strong net sales were largely driven by the addition of AZEK, with organic sales flat overall but down 2% for legacy Siding & Trim in North America due to softer demand. Deck, Rail & Accessories sales ticked up 2% on a comparable basis, reflecting steady momentum in material conversion and channel expansion.

The company is progressing ahead of schedule on integration and synergy targets following the acquisition, already surpassing its full-year cost synergy goal and aiming for a combined US$125 million run rate. Operating margin improvements were notable in Siding & Trim, with a sequential lift of about 500 basis points, even as volumes softened in key US markets.

James Hardie’s balance sheet was reshaped by the AZEK acquisition, resulting in increased debt and goodwill, but the business generated solid cash and maintained strong profitability across geographies.

What did James Hardie management say?

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. These actions will improve near-term profitability and better position the Company to profitably grow when conditions improve.

Siding & Trim organic net sales were down modestly in the quarter, while Adjusted EBITDA margin improved nearly 500 basis points sequentially primarily driven by price / mix favorability and our actions to drive Hardie Operating System savings. Deck, Rail & Accessories delivered mid-single-digit sell-through growth, demonstrating our ability to drive material conversion through channel expansion and new product initiatives.

What’s next for James Hardie?

Looking ahead, James Hardie has modestly raised its FY26 guidance to reflect a stronger Q3 result. The company now sees full-year Siding & Trim net sales of US$2.95–3.0 billion and Adjusted EBITDA of US$939–962 million, both slightly higher than previous forecasts. Guidance for Deck, Rail & Accessories was also nudged higher, with net sales of US$787–800 million and EBITDA of US$219–224 million.

Management is remaining cautious in the near term given ongoing softness in residential construction in key US regions. However, the business expects to unlock further value as AZEK is fully integrated, with synergies and channel momentum setting the platform for growth when housing demand improves.

James Hardie share price snapshot

Over the past 12 months, James Hardie shares have declined 37%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post James Hardie lifts Q3 sales 30% on AZEK acquisition appeared first on The Motley Fool Australia.

More reading

• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CSL half-year earnings: profit drops but guidance reaffirmed
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

For long-term investors, the real challenge is finding investments that can quietly compound wealth over many years.

Exchange traded funds (ETFs) can be well suited to this task, offering diversification, transparency, and low ongoing effort.

With that in mind, here are three ASX ETFs that could be particularly attractive for buy and hold investors:

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF takes a quality-first approach to global investing. Rather than simply owning the biggest stocks, it focuses on 150 businesses with strong balance sheets, high returns on equity, and stable earnings.

Some of its largest holdings include Lam Research (NASDAQ: LRCX), ASML (NASDAQ: ASML), and Costco (NASDAQ: COST). These are companies with entrenched competitive positions and long histories of profitability.

What makes the Betashares Global Quality Leaders ETF appealing for buy and hold investors is its built-in discipline. By screening for financial strength and earnings stability, the ETF naturally tilts away from weaker or more speculative businesses. Over long periods, this quality bias has the potential to reduce downside risk while still delivering solid growth. It was recently recommended to investors by Betashares.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is about as simple as buy and hold investing gets. It tracks the S&P 500 Index, giving investors exposure to 500 of the largest and most influential companies in the United States. Among its top holdings are Microsoft (NASDAQ: MSFT), Visa (NYSE: V), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), and Nvidia (NASDAQ: NVDA). These are businesses that sit at the centre of global technology and innovation.

The key attraction of this ASX ETF is consistency. Over decades, the US share market has been driven by productivity growth, innovation, and strong corporate profitability. The iShares S&P 500 ETF allows investors to harness those forces without needing to guess which company will lead the next wave.

For buy and hold investors, this fund works well as a core portfolio building block and offers broad diversification, low fees, and exposure to stocks that reinvest heavily in growth.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Finally, the Betashares Global Cash Flow Kings ETF could be worth considering if you are a buy and hold investor.

It focuses on stocks that generate strong and consistent free cash flow. Some of its notable holdings include Alphabet (NASDAQ: GOOG), Palantir (NASDAQ: PLTR), and Visa (NYSE: V).

Free cash flow matters because it gives companies flexibility. It allows them to reinvest, pay dividends, reduce debt, or buy back shares. Over long periods, businesses with strong cash generation often prove more resilient during economic downturns. It was also recently recommended by analysts at Betashares.

The post Why these ASX ETFs could be perfect for buy and hold investors appeared first on The Motley Fool Australia.

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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 positions in and has recommended ASML, Alphabet, Apple, Costco Wholesale, Lam Research, Microsoft, Nvidia, Palantir Technologies, Tesla, Visa, and iShares S&P 500 ETF. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Lam Research, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is a wide array of opportunities available on the ASX stock market – any of them can produce good investment returns, not just the most popular ones.

The funds management team at Wilson Asset Management have identified a few different names in its WAM Research Ltd (ASX: WAX) portfolio that could be good ideas.

WAM Research is a listed investment company (LIC) that looks to invest in the most compelling undervalued growth opportunities in the Australian market.

Let’s look at two ASX stocks that WAM believes are buys at the current share prices.

Generation Development Group Ltd (ASX: GDG)

WAM describes Generation Development Group as a provider of wealth and retirement-related products and services across platforms, including managed accounts and investment bonds.

The fund manager noted that the ASX stock released its update for the three months to December 2025 last month, which showed “strong underlying operating momentum”, including total funds under management (FUM) of $34.5 billion (up 36% year over year) and record quarterly gross inflows of $393 million (up 57% year over year).

This growth was driven by Generation Life, one of the company’s three divisions, which offers investment bonds and lifetime annuities.

WAM noted that the Generation Development Group’s share price fell sharply after delivering its quarterly update.

The fund manager believes that market commentary suggested the reaction was driven less by the headline growth numbers and more by “pre-existing investor positioning and valuation levels ahead of the results, coupled with investor sensitivity to the timing of inflows within the Evidentia Group business.”

WAM then explained why it sees this as an opportunity and why it thinks it’s a buy:

While lumpier in nature versus the traditional investment bonds business, we believe momentum within Evidentia Group remains strong and view the current weakness as opportunity to add to our position given our conviction in the medium-term growth profile.

Supply Network Ltd (ASX: SNL)

The other ASX stock highlighted within the WAM Research portfolio was Supply Network, an automotive parts distributor that’s focused on specialist undercarriage parts for the independent repair market.

The fund manager noted that in late January, the business released an earnings forecast for the six months to 31 December 2025, leading to a rise in the Supply Network share price.

That forecast included expected overall sales revenue of $200 million, as well as net profit after tax (NPAT) guidance of $22.9 million. The company also announced a fully-franked interim dividend of 36 cents per share, which will be paid on 2 April 2026.

Aside from the numbers, why was this such a promising update from the ASX stock? WAM wrote:            

The update reinforced confidence in the business’ earnings momentum heading into its half -year result expected in late February, with the fully franked dividend also highlighting balance sheet strength and cash generation.

The post Experts reckon both of these ASX stocks are good buys today! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Supply Network Ltd. The Motley Fool Australia has recommended Generation Development Group and Supply Network Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The HomeCo Daily Needs REIT (ASX: HDN) share price is in focus today after the company posted half-year FFO per unit growth and reaffirmed its FY26 guidance, powered by positive property revaluations and strong portfolio performance.

What did HomeCo Daily Needs REIT report?

• First-half FY26 FFO per unit of 4.4 cents, up from 4.3 cents a year ago
• First-half FY26 distribution per unit (DPU) steady at 4.3 cents
• Net asset value (NTA) per unit of $1.55, up 5.4% since June 2025
• Dec-25 proforma gearing at 34.6%, within management’s 30–40% target
• Asset revaluations delivered a $219 million gross uplift (+4.5%) on June 2025 values
• FY26 guidance reaffirmed: FFO of 9.0 cents per unit and DPU of 8.6 cents per unit

What else do investors need to know?

HomeCo Daily Needs REIT maintained occupancy and cash rent collections above 99% since its IPO, demonstrating ongoing tenant demand and stable cashflow. The REIT also reported $87 million of asset disposals during the half, locking in a 1.6% premium to book value and providing flexibility for future acquisitions and developments.

The company has a development pipeline exceeding $650 million, targeting a return on invested capital of around 7%. Active projects worth $100 million are currently underway, aiming to drive earnings and future growth. Management highlighted disciplined asset recycling, focusing on high-quality centres and tenant-led opportunities.

What did HomeCo Daily Needs REIT management say?

Managing Director and CEO Sid Sharma said:

HDN has delivered another strong half, with robust top-line revenue growth driving an increase in FFO per unit and continued NTA growth. Operational excellence remains the cornerstone of our performance, with occupancy and cash collections above 99%, consistently positive leasing spreads and comparable NOI growth of 4%.

What’s next for HomeCo Daily Needs REIT?

Looking ahead, HomeCo Daily Needs REIT remains focused on delivering sustainable income growth for investors, leveraging its well-capitalised balance sheet and active development pipeline. The trust intends to continue strategic asset recycling and reinvesting in neighbourhood centres that support future valuation upside and improved earnings quality.

Management reaffirmed full-year FY26 guidance for FFO and distributions, underpinned by stable rental income and disciplined capital deployment. The portfolio’s exposure to leading national tenants and high-growth metropolitan areas supports HomeCo Daily Needs REIT’s strategy for resilient, long-term growth.

HomeCo Daily Needs REIT share price snapshot

Over the past 12 months, HomeCo Daily Needs REIT shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• CSL half-year earnings: profit drops but guidance reaffirmed
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The CSL Ltd (ASX: CSL) share price is in focus today after reporting underlying NPATA of US$1.9 billion, down 7% on the prior period, with total revenue falling 4% to US$8.3 billion.

What did CSL report?

• Total revenue: US$8.3 billion, down 4% (constant currency)
• Underlying NPATA: US$1.9 billion, down 7%
• Reported NPAT: US$401 million, down 81%
• Interim dividend: US$1.30 per share (steady year-on-year)
• Cash flow from operations: US$1.3 billion, up 3%
• Share buy-back expanded from US$500 million to US$750 million

What else do investors need to know?

CSL’s first-half results were weighed down by government policy changes, one-off restructuring costs, and asset impairments of around US$1.1 billion, mainly relating to CSL Vifor and CSL Seqirus. Despite these headwinds, transformation programs achieved around 60% of targeted cost savings for FY26, driven by simplifying operations and reducing R&D and infrastructure expenses.

The company announced a US$1.5 billion expansion of its US plasma manufacturing and highlighted strong revenue growth in CSL Vifor (up 12%). However, CSL Behring’s revenue declined 7%, and Seqirus faced a dip following non-recurring avian influenza revenue last year.

What did CSL management say?

CSL’s Chief Financial Officer Ken Lim said:

We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward. Our first-half results were also adversely impacted by a number of factors including government policy changes, one-off restructuring costs and impairments. In the second half we have an ambitious growth plan, driven by immunoglobulin (Ig), albumin and our newly launched products. We continued to advance our broader transformation strategy, making strong progress on our cost‑efficiency initiatives and strengthening the foundations of the business. We invested in growth opportunities including our strategic collaboration with VarmX. This will deliver enhanced growth, profitability and shareholder returns.

What’s next for CSL?

CSL has reaffirmed its FY26 guidance for 2–3% revenue growth and 4–7% NPATA growth, excluding one-off items and at constant currency. The second half is expected to benefit from growth in immunoglobulin, albumin, and new products. Seqirus will see lower contributions due to flu seasonality, while Vifor’s growth may be offset by continued generic competition.

Management remains focused on transformation and efficiency, with more than half the targeted cost savings for FY26 already achieved. Initiatives such as expanding manufacturing capacity and investing in innovative collaborations are intended to position CSL for longer-term value creation.

CSL share price snapshot

Over the past 12 months, the CSL shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post CSL half-year earnings: profit drops but guidance reaffirmed appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX Ltd (ASX: ASX) released a market update last night outlining changes to its senior leadership structure.

The announcement comes just ahead of the company’s half-year financial results, which are due to be announced on Thursday.

ASX shares finished Tuesday’s session 0.52% higher at $56.35, with details released after the close of trade.

ASX is Australia’s primary market operator, providing trading, clearing and settlement services across equities, derivatives and debt markets. The group also earns revenue from listings, data products and technology services used by market participants in Australia and overseas.

CEO departure confirmed

In its announcement, ASX confirmed that managing director and chief executive officer Helen Lofthouse will step down from the role in May 2026. Her tenure includes more than 10 years with the group and almost 4 years as chief executive.

Lofthouse was appointed in 2022 during a period of increased focus on the exchange, particularly around the failed CHESS replacement program. Since then, ASX has reset its technology strategy, cancelled the original blockchain based proposal and committed to a staged rebuild of its core clearing and settlement platform.

The first phase of the refreshed CHESS system is scheduled to go live in April. The board said the transition follows completion of key groundwork and positions the business for its next phase of leadership.

ASX has engaged an executive search firm to conduct a global process to identify its next chief executive. No successor or interim appointment has been named, and Lofthouse is expected to remain in the role until her departure.

Share price context

ASX shares remain well below their highs from earlier in 2025 but have rebounded from recent lows. Over the past year, the stock has faced pressure from regulatory oversight, technology execution risk and broader market volatility.

Despite this, the business continues to benefit from its position as critical national market infrastructure. Revenue is largely driven by trading volumes, listings activity and post trade services rather than direct exposure to market direction.

While the CHESS reset was generally supported, investor confidence has been affected by longer timelines and higher costs.

Half-year results due Thursday

ASX is scheduled to release its half-year results for the six months ended 31 December 2025 on Thursday 12 February. The update will be closely watched for revenue trends, cost control and progress on technology investment.

Investors will also be looking for commentary around market activity levels, capital expenditure and any changes to full year guidance.

While the leadership transition is a notable development, the upcoming earnings result is likely to be the main focus for the market.

The post Why ASX leadership is back in focus ahead of results appeared first on The Motley Fool Australia.

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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.

Building to a $50,000 ASX share portfolio can feel like a big milestone, especially if you’re starting from scratch.

The good news is that it doesn’t require a huge upfront investment.

What it does require is consistency, patience, and an understanding of how compounding works over time. When those pieces come together, progress can be far quicker than it first appears.

Here’s how an Australian investor could realistically build a $50,000 portfolio using ASX shares.

Start small

The hardest part of investing is not picking ASX shares, it is getting started. But the sooner you start, the sooner you can build wealth.

Small, regular investments matter far more than waiting for the perfect moment. Even modest monthly contributions can add up meaningfully when combined with time and growth. What matters is building the habit of investing and sticking with it through market ups and downs.

Unleash compounding

Compounding is an investor’s best friend. It is what happens when you generate returns on top of returns.

At first, progress can feel slow. In the early years, most of the portfolio’s growth comes from your own additions rather than your investment returns. But in time, compounding begins to take over and the portfolio can accelerate almost quietly in the background.

This is why patience matters. Many new investors give up just before compounding really starts to show its power.

Where to focus

When building a portfolio from zero, it pays to focus on quality.

That can mean starting with high-quality ASX shares that have strong and sustainable business models and positive long-term outlooks. Companies like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), and REA Group Ltd (ASX: REA) are examples of businesses that have rewarded patient shareholders over long periods.

In addition, exchange traded funds (ETFs) can be helpful when starting out.

Examples of strong ETFs are the Vanguard Australian Shares Index ETF (ASX: VAS) or the Betashares Nasdaq 100 ETF (ASX: NDQ).

The goal is not to find the next big winner, but to own assets that can steadily grow over time.

Getting to $50,000

Based on a 10% per annum return, which is not guaranteed but achievable, it would take 10 years of investing $250 per month to grow an ASX share portfolio to $50,000.

But here’s the thing. You don’t have to stop there. If you continued this for a further 10 years, you would see compounding really start to work its magic.

After that period, all else equal, you would have an ASX share portfolio valued at approximately $180,000.

Foolish takeaway

Going from zero to $50,000 with ASX shares is about starting small, investing regularly, aiming for steady long-term returns, and giving compounding time to work.

With patience and discipline, what starts as a modest portfolio can quietly grow into something far more meaningful.

The post How to go from zero to $50,000 with ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Goodman Group, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price is in focus after its half-year profit climbed 5% to $5.41 billion, and the bank announced an interim fully franked dividend of $2.35 per share.

What did Commonwealth Bank of Australia report?

• Statutory net profit after tax (NPAT): $5,412 million, up 5% from 1H25
• Cash NPAT: $5,445 million, up 6% on the prior year
• Pre-provision profit: $8,131 million, up 5%
• Interim dividend: $2.35 per share, fully franked, up 4%
• Net interest margin: 2.04%, steady on an underlying basis
• Return on equity (ROE): 13.8%, up 10 basis points

What else do investors need to know?

CBA grew its lending and deposit volumes in core businesses, helping offset a squeeze on margins from competition and higher operating expenses, particularly as investments in technology continued. The bank’s credit quality strengthened, with loan impairment expense down to $319 million and home loan arrears falling during the half.

The balance sheet remains robust, with a Common Equity Tier 1 capital ratio at 12.3%—well above regulatory minimums. Deposit funding accounted for 79% of total funding, while liquidity and funding ratios exceeded required levels. The bank also provided over $25 billion in business loans and returned $4.4 billion to shareholders.

What’s next for Commonwealth Bank of Australia?

Looking ahead, the bank notes that economic growth picked up, led by consumer demand and investment in AI and energy infrastructure. However, capacity constraints could keep inflation above target, putting upward pressure on interest rates. Commonwealth Bank plans to keep supporting customers, accelerate its technology modernisation, and bolster capabilities in areas like generative AI and cyber security.

The leadership remains positive on Australia’s economic outlook, with a commitment to balancing customer support, digital innovation, and capital strength to drive long-term value for shareholders and communities.

Commonwealth Bank of Australia share price snapshot

Over the past 12 months, CBA shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post CBA half-year results: profit lifts, dividend grows, tech spend ramps up appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CSL half-year earnings: profit drops but guidance reaffirmed
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The SGH Ltd (ASX: SGH) share price is in focus after the company posted a robust half-year FY26 result, with EBIT holding steady at $844 million and NPAT rising 2% to $518 million. Operating cash flow jumped 32% to $1.1 billion, and a 7% higher fully franked interim dividend of 32 cents per share was declared.

What did SGH report?

• Revenue of $5.4 billion, down 2% from 1HY25
• EBIT of $844 million, flat year-on-year, up 22% on 2H FY25
• NPAT of $518 million, up 2% on the prior corresponding period
• EBITDA of $1.1 billion, up 1%
• Operating cash flow of $1.1 billion, up 32%
• Interim fully franked dividend of 32 cents per share, up 7%

What else do investors need to know?

SGH saw EBIT margin expand 30 basis points to 15.6%, mainly driven by Boral and WesTrac performing strongly thanks to operating leverage and cost initiatives. Boral posted a 10% EBID growth, while continued focus on cash generation helped lower the adjusted net debt to EBITDA ratio to 1.9x, giving SGH extra financial flexibility.

Safety remains a top priority, with the company reporting a 36% reduction in Lost Time Injury Frequency Rate and further progress on operational safety across its businesses. The group also refinanced debt, securing longer maturities and reducing funding costs, with over $2.2 billion in liquidity available at the end of December.

What did SGH management say?

Managing Director & CEO Ryan Stokes said:

We are pleased to deliver a strong result for the first half of FY26. It demonstrates the strength and resilience of our diversified industrial businesses. In a dynamic market, we delivered earnings growth in our core Industrial Services segment, expanded our margins, and generated significant growth in operating cash flow.

What’s next for SGH?

SGH heads into the second half of FY26 with solid operational momentum and a balanced outlook across its sectors. The company is sticking with its “SGH Way” operating model, focusing on sales execution, efficiency, and innovation.

Management reiterated guidance for “low to mid single-digit EBIT growth” for FY26, supported by balanced market exposures and ongoing cost control. Investors can expect ongoing investment into key projects and disciplined capital management.

SGH share price snapshot

Over the past 12 months, SGH shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post SGH delivers strong first-half FY26 earnings with higher dividend appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CSL half-year earnings: profit drops but guidance reaffirmed
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The team at Bell Potter has been busy this week assessing options for Aussie investors.

Three ASX shares that have fared well and are being recommended by the broker to its clients are named below.

Here’s why the broker is bullish on these names:

Dexus Convenience Retail REIT (ASX: DXC)

Bell Potter believes that Dexus Convenience Retail REIT offers a compelling mix of defensive income and valuation support.

The broker highlights DXC’s high-quality portfolio of service stations and convenience retail assets, leased to long-term, non-discretionary tenants. This includes tenants such as 7-Eleven, Ampol (ASX: ALD), and Chevron. This provides stable cash flows and resilience through the cycle.

Importantly, Bell Potter sees scope for valuation upside as capitalisation rates stabilise. It said:

Petrol stations are typically a low volatility asset class given long term leases with strong covenants, however higher debt base rates are likely to see cap rate expansion ahead. Asset valuations however at a 6.3% portfolio cap rate do not look demanding to us vs. industry transactions and peer REITs.

Bell Potter has a buy rating and price target of $3.25 on Dexus Convenience Retail REIT’s shares. Based on its current share price of $2.82, this implies upside of more than 15%. That’s before factoring in a forecast dividend yield of around 7.5%.

Orica Ltd (ASX: ORI)

Orica is an ASX share to buy this week according to Bell Potter.

The broker points to strong structural tailwinds driven by increased production of iron ore, copper, and gold, which should underpin long-term demand for blasting services. It notes that Orica’s scale, global footprint, and pricing discipline position it well to benefit from this trend. The broker said:

We expect EBIT growth momentum to be sustained in the short-to-medium term underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth is expected to be supported by further premium product uptake, robust facility performance across AN and sodium cyanide supply networks and commercial discipline.

Bell Potter has put a buy rating and $28.50 price target on Orica shares. Based on its current share price of $25.38, this implies potential upside of 12% for investors.

Sonic Healthcare Ltd (ASX: SHL)

Finally, Bell Potter believes Sonic Healthcare offers an appealing combination of income and share price upside.

The broker expects Sonic to return to double-digit earnings growth in FY 2026, driven largely by acquisitions, particularly in pathology, and steady demand across its diagnostics businesses. While cost control and execution remain key risks, Bell Potter believes much of this is already reflected in the share price. It said:

While SHL has outperformed the XHJ, it has materially underperformed the broader market, reflecting concerns with growth and cost control. If the new CEO can impress investors with financial performance and strategy, we believe upside remains in SHL.

Bell Potter has a buy rating and $28.50 price target on Sonic Healthcare’s shares. Based on its current share price of $21.82, this suggests that upside of 30% is possible. In addition, the broker is forecasting a dividend yield of approximately 5% in FY 2026.

The post Broker names 3 ASX shares to buy this week appeared first on The Motley Fool Australia.

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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 recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.