Author: openjargon

A decade is a long time in the share market.

Plenty will change between now and 2036. Interest rates will move, economic cycles will turn, and investors will fall in and out of love with different sectors.

That is why I think it makes sense to focus on S&P/ASX 200 Index (ASX: XJO) shares with strong positions, useful products, and room to keep growing.

Three that I would be happy to buy and hold for the next decade are named in this article.

REA Group Ltd (ASX: REA)

REA Group is one of the most powerful digital businesses on the ASX.

Its main asset, realestate.com.au, sits at the centre of Australia’s property search market. That gives the company a valuable position in a market that attracts huge attention from buyers, renters, sellers, agents, and advertisers.

I think the strength of REA is that property search is highly concentrated.

When Australians want to see what is for sale or rent, they often start with the largest platforms. Agents then want to list where the audience is. That creates a loop that helps protect REA’s market position.

Over the next decade, I think REA can keep growing by doing more for agents, consumers, and advertisers. Listings are only part of the opportunity. Data, premium marketing, property insights, finance leads, and digital tools could all help the business become more valuable.

The share price will still move with the property cycle, but I think the platform itself is exactly the kind of asset I would want to own until 2036.

Goodman Group (ASX: GMG)

Goodman Group is another ASX 200 share I think could be much bigger in 10 years.

The company owns, develops, and manages industrial property around the world. Its assets are used for logistics, warehousing, e-commerce, supply chains, and, increasingly, data centres.

I like Goodman because it is tied to the physical side of several major trends.

Online shopping needs fulfilment space. Businesses want more efficient supply chains. Data centres need well-located sites with power access. These are not short-term fads. They are structural changes in how goods move and how digital infrastructure is built.

Goodman has also shown a willingness to recycle capital and focus on higher-value opportunities. That discipline is important in property, where excessive debt or poor development decisions can quickly erode returns.

The valuation can look expensive, and interest rates will remain a factor. But I think Goodman’s asset base, development pipeline, and data centre opportunity make it one of the more attractive long-term growth stories on the ASX.

Xero Ltd (ASX: XRO)

Xero gives investors exposure to the digital backbone of small businesses.

The company started with cloud accounting, but its opportunity is broader than that. Small businesses need help with invoices, payments, payroll, tax, cash flow, reporting, and decision-making. Xero can bring more of those tools into one platform.

That is powerful because small business owners are usually time-poor. Software that saves time, reduces admin, and gives clearer financial information can become very hard to replace.

I also like Xero’s global opportunity. Australia and New Zealand are strong markets, but the UK and US could provide meaningful growth over the next decade if management executes well.

Artificial intelligence could also make the platform more useful. Accounting and finance involve repetitive tasks, data entry, reconciliation, and reporting. If Xero can automate more of that work, the product should become even more valuable to customers.

Foolish Takeaway

I think REA Group, Goodman, and Xero have the right ingredients for a 10-year holding period.

They are already strong businesses, but their best years may not be behind them.

REA can keep building around property search, Goodman can benefit from logistics and data infrastructure demand, and Xero can become more central to how small businesses manage their finances.

There will be weaker periods along the way. But if I were building a portfolio for 2036, these are three ASX 200 shares I would be very happy to own.

The post 3 amazing ASX 200 shares I’d buy and forget about until 2036 appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX 200 blue-chip shares to buy now
• How to build a $150,000 ASX share portfolio from scratch
• 4 ASX All Ords shares tipped to rise 60% to 75%
• 2 ASX shares tipped to grow 50% or more in the next 12 months
• 5 ASX shares that could bounce back in the second half of 2026

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 Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

S&P/ASX 200 Index (ASX: XJO) stock Dalrymple Bay Infrastructure Ltd (ASX: DBI) is marching higher today.

Shares in the infrastructure company – which owns the Dalrymple Bay Coal Terminal (DBCT) in Queensland – closed yesterday trading for $5.33. In morning trade on Wednesday, shares are swapping hands for $5.52 apiece, up 3.6%.

This sees the company commanding a market cap of $2.7 billion, and once more outperforming the benchmark index.

Indeed, at time of writing, the ASX 200 is down 0.6%, taking its one-year gains down to 2.5%.

Over this same time, Dalrymple Bay shares have gained 34.6%. And that’s not including dividends. Unlike many dividend shares, the ASX 200 stock makes quarterly payments. It currently trades on a partly franked 4.5% trailing dividend yield.

Here’s what’s catching investor interest today.

ASX 200 stock jumps on passive income boost

Investors are bidding up Dalrymple Bay shares after the company announced a first-quarter (Q1 FY 2026) dividend of 6.75 cents per share. That’s up 14.4% from the Q1 2025 payout.

The ASX 200 stock also looks to be getting a boost after management increased dividend guidance for FY 2026/27 by 8.5%. The company now expects to pay out 28.62 cents a share in dividends for the full year.

The increased payout is supported by an 8.1% increase in Dalrymple’s forecast Terminal Infrastructure Charge to around $4.02 per tonne.

And passive income investors will have been pleased at the company’s reaffirmation of its annual dividend growth target of 3% to 7% “for the foreseeable future”.

Dalrymple Bay Annual General Meeting

The ASX 200 stock is also hosting its Annual General Meeting (AGM) today.

“With a low-risk business model and predictable cashflows, DBI is well positioned to deliver growing distributions and sustainable long-term value”, Dalrymple Bay chairman David Hamill noted.

Taking a look back at the company’s achievements in FY 2025, Dalrymple Bay CEO Michael Riches noted that the company managed to grow revenue, profits, and dividends “whilst maintaining a safe workplace”.

Digging into the numbers, Riches said:

EBITDA [earnings before interest, taxes, depreciation and amortisation] rose 5.2% year-on-year to $294.3 million and our funds from operations, or FFO, increased 10.6% to $173.3 million…

We continued to invest back into the growth of our business, with committed capital projects at 31 December 2025 of approximately $429.6 million…

The strong financial performance resulted in a distribution of 24.625 cents per security being returned to securityholders during FY-25, an 11.9% increase on the prior year.

The post Why this $2.7 billion ASX 200 stock is charging higher in Wednesday’s sinking market appeared first on The Motley Fool Australia.

More reading

• Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout
• Buy, hold, sell: Civmec, LGI, Dalrymple Bay Infrastructure shares
• 5 ASX 200 shares downgraded by experts this week
• Why did this ASX 200 stock just get downgraded by Morgans?
• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation

Motley Fool contributor Bernd Struben 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.

If you are hunting some new portfolio additions, then it could be worth listening to Morgans.

That’s because its analysts have just named three ASX shares as buys. Here’s what you need to know about them:

ALS Ltd (ASX: ALQ)

Morgans is feeling bullish on this testing services company following its FY 2026 results release.

In response to the result, the broker has reiterated its buy rating with a $27.20 price target. It commented:

Our forecast changes are negligible, and we still view risk to our forecasts as skewed firmly to the upside, absent a material supply disruption scenario. We forecast Commodities revenue growth of +25%, while our raisings data points to geochemistry volumes up +35-45% during 1H, corroborated by the sample flows chart which already shows volumes tracking +25-30% in April. The stock is now trading on just 23x FY27 PE as it enters a bullish commodities cycle with a gold-plated balance sheet (leverage 1.5x). Reiterate BUY.

Elders Ltd (ASX: ELD)

This agribusiness company’s results were short of expectations due to its systems modernisation.

Nevertheless, given significant share price weakness, the broker has retained its buy rating with a reduced price target of $7.90. It said:

While ELD’s 1H26 result was up strongly on the pcp, it missed consensus estimates due to materially higher Corporate Services costs associated with Systems Modernisation. Outlook comments were relatively optimistic despite the BOM’s dry outlook. We have revised our forecasts for higher costs and the divestment of Killara. After material weakness, we maintain a BUY recommendation. A significant rerating requires delivering consensus estimates and deleveraging.

Qualitas Ltd (ASX: QAL)

Morgans has responded positively to a recent update from this alternative real estate investment manager.

This has seen the broker upgrade the ASX share to a buy rating with an improved price target of $3.50.

Commenting on its buy recommendation, Morgans said:

Following QAL’s recent 3QFY26 update, the announced changes to residential real estate investment in the Federal Budget and the sale of a further interest in the comparable Metrics Credit, we have upgraded QAL to a BUY with a $3.50/sh price target. Our valuation and recommendation change was driven almost entirely by a reduction to our discretionary valuation discount (+75 cps), reflecting our lower perceived risk as a) the company reiterates that FUM commitments continue to increase and b) FUM deployments set new records.

The post 3 ASX shares Morgans rates as buys this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Webjet Group Ltd (ASX: WJL) shares are being smashed on Wednesday after investors were hit with another difficult update.

At the time of writing, the Webjet share price is down 15.31% to 41.5 cents.

This adds to what has already been a brutal year for shareholders. The ASX travel stock is now down 28% over the past month and 52% since the start of the year.

The fall comes after Webjet updated investors on its commercial arrangements with Virgin Australia Holdings Ltd (ASX: VGN).

It also released its FY26 results, which showed a business still dealing with softer trading conditions, higher investment, and pressure on margins.

Virgin revenue hit

The main issue today is Webjet’s update on its agreement with Virgin Australia.

Webjet said its Webjet Marketing subsidiary has been receiving commission payments from Virgin Australia Airlines and Virgin Australia International Airlines.

These payments relate to the sale of Virgin flights and ancillaries, along with specified performance targets.

Virgin has now told Webjet it will substantially reduce its commission streams and commercial arrangements from 1 July 2026.

Webjet said the change would have had a financial impact of around $3 million on FY26 revenue if it had applied from the start of the year.

While the amount isn’t huge, investors are unlikely to welcome another revenue hit when the business is already facing a tougher FY27.

Webjet is already dealing with softer demand in parts of its online travel agency business, higher airfare pressure, and weak consumer confidence.

Losing revenue from a major airline partner would add another headwind going into FY27.

Profit falls despite higher revenue

Webjet’s FY26 result had some positives, but investors appear to be focused on the weaker parts.

Revenue rose 1% to $136.4 million, while statutory net profit after tax (NPAT) increased 85% to $3.7 million.

However, underlying EBITDA fell 20% to $28.1 million, and underlying NPAT dropped 24% to $13.6 million.

Bookings fell 7% to 1.4 million, while total transaction value declined 3% to $1.46 billion.

The Webjet OTA business remained the biggest earnings contributor, with EBITDA of $38.7 million. But even there, bookings were down 9%, and EBITDA fell 18%.

The Cars and Motorhomes division held up better, lifting EBITDA to $4.3 million from $1.6 million.

Webjet also declared a final fully-franked dividend of 2 cents per share.

This takes FY26 dividends to 4 cents per share, which was above 100% of underlying NPAT.

A tough year ahead

Webjet said FY27 trading is expected to be materially affected by lower airline commissions, RBA surcharging regulation changes, and lower variable revenue items.

It also said operating conditions remain fluid and challenging, with geopolitical conflict, inflationary pressure, and low consumer sentiment weighing on demand.

Management pointed to cost control, automation, AI, capital discipline, and balance sheet strength as key priorities.

The balance sheet is still in decent shape, with $93.9 million in net cash and no borrowings at 31 March.

The post Webjet shares crash 15% as Virgin Australia blow hits outlook appeared first on The Motley Fool Australia.

More reading

• Why this ASX travel stock is halted after crashing 44% in 2026
• 5 ASX All Ords shares downgraded by brokers this week
• Webjet and Web Travel Group: Are these ASX travel shares a buy?

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.

If you gave me a choice between good, high-yield ASX dividend shares and a good term deposit, I’d take the shares every time.

That’s because I really like the potential of a higher income return, potential payout growth and possible long-term capital growth.

When I think about two ideas with very high yields, growing payouts and the potential for capital growth, the following two names are ones that spring to mind.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is an almost unique listed investment company (LIC) which is invested in a portfolio of funds from more than a dozen fund managers who all work for free so that the LIC can donate 1% of its net assets each year to youth charities.

I like the investment strategy of the LIC to give more exposure to small and medium businesses than the S&P/ASX 300 Index (ASX: XKO) because I think those companies can deliver stronger long-term earnings growth (and hopefully share price growth).

Impressively, Future Generation Australia is invested in more than 400 shares across different sectors, so it does give investors pleasing levels of diversification, in my view.

As a LIC, Future Generation Australia has control over the size of the dividend that it declares, as long as it has the profit reserve to do so.

The ASX dividend share has increased its payout each year since 2015 – a decade of dividend increases! Its 2025 payout translates into a grossed-up dividend yield of close to 8%, including franking credits. I think that’s a great starting yield.

WAM Microcap Ltd (ASX: WMI)

WAM Microcap is another LIC, though this one offers much more specific investment exposure. It focuses purely on small-caps, which can be some of the most little-known, exciting opportunities on the ASX.

I think WAM Microcap’s portfolio of shares could be both undervalued and have lots of growth potential.

It’s invested in dozens of shares, though not quite as many as Future Generation Australia.

In its April update, WAM Microcap said that its portfolio had delivered an average return per year of 14.2% since inception in June 2017, excluding fees, expenses and taxes. That’s double the return of its benchmark.

Since FY18, the ASX dividend share has increased its payout almost every year, aside from FY24 when it maintained the annual dividend.

Its projected dividend for FY26 is 10.7 cents per share, which translates into a grossed-up dividend yield of 10.3%, including franking credits.

With that level of yield, I’m only expecting slight annual dividend growth for the foreseeable future, but that’d be exceptional levels of passive income each year.

The post Get paid huge amounts of cash to own these ASX dividend shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wam Microcap. 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.

RBC Capital Markets has initiated coverage of SGH Ltd (ASX: SGH), which is a diversified industrial company that owns Boral, Coates, Westrac, and various gas-producing investments.

The broker is bullish on the company’s shares and has an outperform rating on them. We’ll get to the specifics of their share price target later.

Firstly, let’s look at why they’re keen on the company’s prospects.

Sum of the parts more valuable

RBC says the company is well diversified across infrastructure, building, resources, energy (including through part-ownership of Beach Energy Ltd (ASX: BPT)), and media.

Key to a re-rating in the stock, however, is the company’s interest in the Crux project in Western Australia, which is a joint venture with global giant Shell.

As RBC says in a report published this week:

We believe SGH is likely to make an announcement on Crux, a gas project that it has a 15.5% stake in (Shell owns the balance) that will begin backfilling volumes in the Prelude Floating LNG terminal, which we believe will act as a positive catalyst for the stock. We conservatively expect the project to start producing gas in late (2H28), and have taken the view that it will hit full production in FY30.

RBC estimates that Crux would generate $350 to $375 million in EBITDA to SGH each year, “yet consensus forecasts show no step-change in group earnings through the ramp period”.

RBC has valued the Crux stake at $1.2 billion, or $3.20 per share.

The broker also says the company’s exposure to infrastructure nationally remains well-positioned.

RBC said:

Concern around an East Coast infrastructure slowdown is reasonable, however overdone in our view. Whilst VIC is particularly weak and unlikely to change in the short to medium term, NSW infrastructure is expected to be stable whilst QLD is growing. Whilst the infrastructure sector may be in an Airpocket, we do not think the business will suffer from debilitating indigestion, such that 15.6 PE presents an attractive entry point.

SGH also owns Westrac, which is the exclusive Caterpillar dealer in Western Australia and New South Wales.

RBC said SGH is currently trading at a discount to its peer group, indicating there should be some upside in the stock.

RBC said:

We have valued SGH through both a short- and long-term lens. The construction market that SGH is exposed to through Boral and Coates is inherently cyclical, as is the resources sector that WesTrac is exposed to. On top of that, SGH’s energy exposures through Beach and Crux also introduce year-to-year volatility that must be captured through a short term, Sum of the Parts valuation. Separately, the business has longevity whose assets must be recognized via a net present value valuation – Boral’s quarries, WesTrac’s highly sought after exclusive contract with Caterpillar, Coates’ dominant market position with key customers and in key geographies.

RBC has calculated a price target of $47 for SGH shares, compared with $40.82 currently. The company also pays a 1.6% dividend yield.

SGH is valued at $16.36 billion.

The post How high does RBC Capital think SGH shares will go? 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.

Core Lithium Ltd (ASX: CXO) shares are charging higher today.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 31.5 cents. In early morning trade on Wednesday, shares are changing hands for 32.5 cents apiece, up 3.2%.

For some context, the All Ords is down 0.4% at this same time.

This outperformance follows a big announcement from the miner this morning.

Here’s what we know.

Core Lithium shares jump as mining resumes at Finniss

Investors are bidding up the ASX lithium stock after the miner reported that mining operations have recommenced at the Finniss Lithium Operation, located in the Northern Territory.

Core’s flagship Finniss project was placed into care and maintenance in January 2024. That followed the global lithium price crash, which made mining at Finniss unprofitable and sent Core Lithium shares into a tailspin at the time.

But with global lithium prices having rocketed over the past year, blasting and excavation works have kicked off at Grants open pit, situated within Finniss.

Core Lithium is engaged in a staged return to production. With the recommencement of mining operations, management said that the company is on track for near-term production and cash flow generation.

Finniss is expected to re-enter the spodumene market (a lithium bearing ore) in the near term, with the company targeting the first spodumene concentrate shipment in the December quarter.

What did management say?

Commenting on the Finniss restart that’s helping to boost Core Lithium shares today, managing director Paul Brown said, “The commencement of mining at Grants marks the start of Finniss returning to production, with first ore expected to be processed in the September quarter and first shipment targeted for the December quarter.”

Brown added:

In less than three months since FID, we have secured funding, awarded key mining contracts and transitioned to active mining, demonstrating disciplined execution.

Grants provides a low-risk, near-term ore source to underpin early production and cashflow, while BP33 continues to progress as the long-term foundation of the operation. Our focus remains on safe, reliable execution and delivering Finniss back into production on schedule and on budget.

With today’s intraday gains factored in, Core Lithium shares are up a whopping 249.5% since this time last year, smashing the 2.5% one-year returns delivered by the All Ords.

But the ASX lithium stock has a long way to go yet before retaking the highs set back in November 2022, when shares were trading for $1.67 apiece.

The post Up 250% in a year, Core Lithium shares surging again today on big Finniss news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

TechnologyOne Ltd (ASX: TNE) shares are rebounding on Wednesday.

In morning trade, the enterprise software provider’s shares are up over 6% to $29.59.

This has wiped out yesterday’s post-results decline and added some more.

The catalyst for this could have been a broker note out of Bell Potter, which recommended investors snap up the ASX 200 tech stock while it was down.

What is the broker saying?

Bell Potter was pleased with the company’s performance during the first half of FY 2026, highlighting that its result was in line with expectations and slightly ahead of consensus estimates. It said:

[First half] FY26 PBT of $89.1m was in line with our forecast of $89.4m and c.1% ahead of VA consensus of $88.4m. Revenue of $318m was 3% below our forecast of $328m but was made up at PBT with a higher-than-expected margin of 27.6% vs our forecast of 26.7%. ARR of $598m was modestly below our forecast of $600m but close to in line with VA consensus of $599m.

Technology One noted the result was negatively impacted by forex and, for instance, ARR on a constant currency basis would have been $604m and the growth would have been 19%. Similarly the NRR would have been c.200bps higher at 116% vs 114% and the PBT margin would also have been c.50bps higher at 28.1% vs 27.6%.

Looking ahead, management’s guidance for the full year was also in line with expectations. It adds:

Technology One reiterated its FY26 guidance of 18-20% PBT growth and 16-18% ARR growth. The company said it was targeting the top end of both ranges. We were already at the top end of both ranges so there is little change in our FY26 forecasts albeit we have reduced our revenue forecast by c.1% but offset this with an increase in our PBT margin forecast from 31.8% to 32.3% (which is also consistent with the guidance of a c.200bps increase in the margin relative to 30.3% in FY25).

We have similarly downgraded our FY27 and FY28 revenue forecasts by c.1% but offset this with increases in our margin estimates so there is little change at PBT. Notably we continue to forecast PBT of 20% in each of FY26, FY27 and FY28.

Should you buy TechnologyOne shares?

In response to the results, Bell Potter has reaffirmed its buy rating and $32.25 price target on TechnologyOne’s shares.

Based on its current share price, this implies potential upside of approximately 9% for investors over the next 12 months.

In addition, a 1.2% dividend yield is expected, boosting the total potential return to around 10%.

Commenting on its buy recommendation, the broker said:

With little change in our forecasts there is no change in our TP of $32.25 and we maintain our BUY recommendation. There is perhaps a lack of short term catalysts for the stock but we believe the stock should continue to perform well given it is in our view the best positioned tech stock on the ASX to benefit from rather than be disrupted by AI. We also see very little if any downside risk to the guidance given the high level of SaaS and recurring revenue (c.93% of total revenue in H1), good visibility and strong pipeline.

The post Does Bell Potter think TechnologyOne shares are a buy? appeared first on The Motley Fool Australia.

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

James Hardie Industries PLC (ASX: JHX) shares are having a tough session on Wednesday.

At the time of writing, the ASX 200 share is down over 3% to $25.90.

James Hardie shares fall on results day

Investors have been selling the building materials company’s shares this morning following the release of its fourth quarter and full year results.

According to the release, for FY 2026, James Hardie reported net sales of US$4.84 billion, up 25% from US$3.88 billion in FY 2025. However, this was largely supported by the contribution from the AZEK acquisition. On an organic basis, net sales declined 2% for the year.

The newly acquired Deck, Rail & Accessories division contributed net sales of US$795.2 million and adjusted EBITDA of US$224.8 million for the year.

In Siding & Trim, net sales increased 3% to US$2.96 billion. However, adjusted EBITDA fell 5% to US$951.4 million, with margins declining to 32.1% from 35% in FY 2025.

Management said full-year exterior product volumes fell high single digits, with single-family volumes down low double digits as softer construction conditions weighed on demand.

Group operating income fell 32% to US$447.6 million, while adjusted EBITDA rose 17% to US$1.27 billion.

Finally, statutory net income fell 75% to US$104.0 million, compared with US$424 million in FY 2025.

Management commentary

Commenting on the year, James Hardie’s CEO, Aaron Erter, said:

Fiscal 2026 was a transformational year for James Hardie, highlighted by the closing of the AZEK acquisition. As we integrate the businesses, we are seeing continued progress across both cost and commercial synergies, further strengthening our belief in the long-term value creation opportunity from the combination.

For the full fiscal year, we delivered solid financial performance despite a challenging operating environment. Despite our markets declining mid-to-high single digits for the year, our organic net sales declined just 2% year over year.

Outlook

Unfortunately, James Hardie is not assuming a market recovery in FY 2027.

However, it is still targeting pro forma adjusted EBITDA growth of 4% to 8%.

The company’s chief financial officer, Ryan Lada, explained:

The operating environment remains uncertain. We are not assuming a market recovery. What gives us confidence is execution — synergy realization, our enhanced go-to-market model, manufacturing cost actions taken in FY26, and disciplined capital allocation. In forming our fiscal year 2027 outlook, we assessed a broad range of macroeconomic indicators, including commentary from large homebuilders, repair and remodel market trends, channel inventory levels across our distribution network, and broader consumer sentiment.

The post James Hardie shares tumble on FY26 profit crunch 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 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.

Catapult Sports Ltd (ASX: CAT) shares are jumping on Wednesday.

In morning trade, the ASX 300 tech stock is up 18% to $3.41.

ASX 300 tech stock jumps on results

Investors have been bidding the sports technology company’s shares higher today following the release of a strong full-year result.

According to the release, Catapult’s annualised contract value increased 28% in constant currency to US$133.8 million in FY 2026.

Excluding acquired ACV from Perch and IMPECT, ACV increased 18%, which management said was also a record level of incremental ACV growth.

Revenue increased 19% in constant currency to a record US$140.7 million. This was driven by SaaS revenue of US$118.6 million, which was up 21% in constant currency. SaaS and other recurring revenue now represents 95% of total revenue, highlighting the recurring nature of the ASX 300 stock’s business model.

In Performance and Health, ACV increased 23% in constant currency, supported by geographic expansion, growth in soccer across EMEA and Central America, and continued traction in North American college sports.

In Tactics and Coaching, ACV rose 40%, with the acquisition of IMPECT a key contributor alongside continued growth in the Pro Video Suite.

Catapult added 576 new professional teams during the year, while average ACV per professional team increased 10% in constant currency to more than US$30,000 for the first time. Retention also increased to more than 96%.

As for earnings, the ASX 300 tech stock revealed that management EBITDA increased 67% to US$24.7 million, reflecting strong revenue growth and disciplined cost management.

Its contribution margin increased to 53% from 49%, while the operating profit margin expanded to 18% from 13%.

How does this compare to expectations?

The result appears to have beaten expectations across several key measures.

Bell Potter had forecast management EBITDA of US$23 million, while noting consensus appeared to be closer to US$22.4 million. Catapult delivered US$24.7 million, which was ahead of both.

The broker was also looking for ACV of US$133.6 million, compared with the actual result of US$133.8 million.

Free cash flow excluding transaction costs also came in ahead of Bell Potter’s estimate at US$6.5 million.

Management commentary

The ASX 300 tech stock’s CEO, Will Lopes, appeared to be pleased with the year. He said:

FY26 was a transformational year for Catapult. We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them. These results reflect the efforts of every person at this company, and to the world-class sports teams who trust us with their performance every day.

What I am most proud of is how we achieved it. Disciplined cost management, combined with strong top-line growth, drove our Rule of 40 to a record high, clear evidence that our operating model is scaling the way we designed it to.

Outlook

Looking ahead, Catapult expects strong ACV growth, low churn, continued margin improvement, and higher free cash flow in FY 2027. Lopes said:

At Catapult, our compass remains fixed: be an invaluable partner to our customers, and deliver strong, profitable growth. As we enter FY27, we expect strong ACV growth, low churn, continued margin improvement towards our targets, and higher free cash flow, all consistent with our Rule of 40 focus.

The post Why are Catapult Sport shares jumping 18% today? 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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.