Author: openjargon

More than half a billion dollars has been wiped off the value of uranium enrichment technology company Silex Systems Ltd (ASX: SLX) after it missed out on a major US contract.

The company said in a statement to the ASX on Tuesday that Global Laser Enrichment, which was the exclusive licensee of its uranium enrichment technology, had been selected for an award of up to US$28 million “to advance next generation laser-based uranium enrichment technology”.

Passed over for contract

While that was a positive, the licensee company was not selected for an award under a separate US$900 million program focused on “low enriched uranium”.

Silex owns a 51% stake in GLE, with major uranium producer Cameco Corporation owning the remainder.

Silex’s system utilises laser technology to enrich uranium, and the company stated in a recent investor briefing that this technology is anticipated to be lower in cost than other processes, with higher efficiency and throughput.

The company has validated the process at the pilot plant scale but has not yet deployed it on a commercial scale.

Forward plan still bright

Silex said on Tuesday it was actively pursuing the next steps to advance its Paducah Laser Enrichment Facility (PLEF) in Kentucky, “and commercial deployment of its laser enrichment technology”.

The company went on to say:

The significantly higher enrichment efficiency and throughput of the Silex technology places GLE in a very strong position relative to competitors using second generation centrifuge technology.

Silex said in terms of its path forward, it intends to “re-enrich” depleted uranium tailings from the US Department of Energy at the Paducah facility.

The company said further:

This would generate up to 5 million pounds of uranium and 2,000 metric tonnes of conversion capacity annually for up to three decades – enough domestic supply to fuel around 10% of current US nuclear reactor demand. This represents a nearly ten-fold increase in domestic natural uranium output, significantly enhancing US national energy security and fuel independence.

Silex also reaffirmed its commitment to commercialising its technology, saying it was the “world’s most advanced enrichment technology”.

The company added:

Subject to various factors, including industry and government support, a feasibility study for the PLEF, and supportive market conditions, the Silex uranium enrichment technology could become a major contributor to nuclear fuel production for the world’s current and future nuclear reactor fleet, through the production of uranium in several different forms.

Silex shares jumped on Monday, likely in anticipation of the contract announcement, but plunged more than 29% on Tuesday morning to be changing hands for $6.93.

The company was worth $2.71 billion at the close of trade on Monday.

The post This previously hot uranium technology stock has been sold down heavily after a contract snub appeared first on The Motley Fool Australia.

More reading

• 9 ASX All Ords shares upgraded to strong buy ratings for the new year
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• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200

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 Cameco. 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.

Orthocell Ltd (ASX: OCC) shares are having a good session on Tuesday.

In morning trade, the small cap ASX share has risen 3% to $1.13.

Why is this small cap ASX share charging higher?

Investors have been buying the regenerative medicine company’s shares following the release of a quarterly update.

According to the release, the small cap ASX share achieved record quarterly revenue of $3.2 million for the three months ended 31 December 2025. This was the seventh quarter in a row of record sales and represents a 7% increase over the previous quarter and a 45.2% increase on the prior corresponding period.

Importantly, this record revenue performance was primarily driven by increased market penetration in existing markets, particularly in Australia. Approximately $90,000 in Remplir U.S. sales were generated in December, which was in line with expectations.

North America entry

Management appears to believe that it won’t be long until its US sales start to become more meaningful.

The small cap ASX share revealed that its early U.S. results indicate that its hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum.

It also notes that the anticipated growth in Remplir adoption by U.S. surgeons represents the potential for a strong increase in revenue going forward, with momentum expected to build through 2026.

In addition, growth in Remplir sales is expected to be further supported by its entry into the Canadian market. Following the recent appointment of a second Canadian distributor, initial sales are targeted for the March quarter of FY 2026. It expects market adoption to grow steadily throughout 2026.

The small cap ASX share also highlights that with $49.4 million in cash reserves, no debt, and an R&D tax incentive refund of approximately $3.0 million expected soon, it is well-positioned to drive rapid product adoption and deliver a step change in revenue in FY 2026.

Commenting on the quarter, Orthocell’s CEO and managing director, Paul Anderson, said:

The seventh consecutive record revenue result for the December quarter is particularly pleasing, driven by strong performance in existing markets and early Remplir unit sales in the U.S. Early U.S. results show our hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum. With the U.S. momentum building and Canada coming online, we see significant upside as we replicate the successful Australia and Singapore approach on a larger scale in the U.S.

The post This exciting small cap ASX share just delivered its 7th consecutive record quarter appeared first on The Motley Fool Australia.

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• Guess which ASX healthcare stock is jumping 7% on big news

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

Do you own iShares Core S&P/ASX 200 ETF (ASX: IOZ)?

Or perhaps iShares S&P/ASX 20 ETF (ASX: ILC) or iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)?

BlackRock has just announced the estimated distributions (dividends) for its ASX iShares exchange-traded funds (ETFs).

BlackRock will pay its next round of dividends on 19 January.

If you own any of these ETFs and want to top up your holdings ahead of this round of payments, you’d better be quick.

The ex-dividend date is tomorrow.

How much will iShares ASX ETF investors receive?

Here are the estimated dividends that investors will receive on 19 January.

The amounts will be finalised on Thursday, which is the record date.

ASX ETF	Distribution
iShares 15+ Year Australian Government Bond ETF (ASX: ALTB)	64.66 cents per unit
iShares Core Cash ETF (ASX: BILL)	34.26 cents per unit
iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (ASX: GLIN)	16.7 cents per unit
iShares Core FTSE Global Property Ex Australia (AUD Hedged) ETF (ASX: GLPR)	19.5 cents per unit
iShares Core Composite Bond ETF (ASX: IAF)	77.01 cents per unit
iShares Core Corporate Bond ETF (ASX: ICOR)	103.31 cents per unit
iShares Core MSCI Australia ESG ETF (ASX: IESG)	10.36 cents per unit
iShares Treasury ETF (ASX: IGB)	64.36 cents per unit
iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)	14.52 cents per unit
iShares Core MSCI World ex Australia ESG (AUD Hedged) (ASX: IHWL)	26.69 cents per unit
iShares Government Inflation ETF (ASX: ILB)	42.58 cents per unit
iShares S&P/ASX 20 ETF (ASX: ILC)	19.91 cents per unit
iShares Core S&P/ASX 200 ETF (ASX: IOZ)	18.42 cents per unit
iShares Edge MSCI Australia Minimum Volatility ETF (ASX: MVOL)	63.61 cents per unit
iShares World Equity Factor ETF (ASX: WDMF)	25.08 cents per unit
iShares Enhanced Cash ETF (ASX: ISEC)	36.29 cents per unit
iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)	4.78 cents per unit
iShares Yield Plus ETF (ASX: IYLD)	38.02 cents per unit
iShares Core MSCI World ex Australia ESG ETF (ASX: IWLD)	30.38 cents per unit

Prefer to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of the ASX iShares ETFs above.

A DRP allows investors to reinvest their distributions automatically each time dividends are paid.

It’s a helpful set-and-forget option for investors seeking compounding returns over the long term.

BlackRock will be accepting DRP elections up until 5pm today.

The post Own ASX IOZ or other iShares ETFs? Dividends just announced! appeared first on The Motley Fool Australia.

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• How to build a beginner portfolio in 2026 with just two ASX ETFs
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BlackRock. 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.

Life360 Inc (ASX: 360) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $31.97. In late morning trade on Tuesday, shares are swapping hands for $31.31 apiece, down 2.1%.

For some context, the ASX 200 is up 0.1% at this same time.

Here’s what’s happening.

Life360 shares slip on completed acquisition

Before market open this morning, Life360 announced that it has completed the acquisition of United States-based advertising technology company Nativo for around $120 million. This sum is comprised of 65% in cash and 35% in Life360 shares.

The company said the acquisition will help brands reach families with more relevant messages in more relevant places. And not just inside the Life360 app, but also across connected TV, mobile, and premium digital environments.

Life360 now has more than 50 million monthly active users (MAU) in the US. The company highlighted that this is in line with some of the US most popular media platforms, including Netflix Inc (NASDAQ: NFLX), Spotify Technology (NYSE: SPOT), and Pinterest Inc (NYSE: PINS).

Life360 shares could garner longer-term support as the company continues to expand its operations beyond its primary family connection and safety business and taps into more advertising revenue.

The ASX 200 tech stock noted that the acquisition of Nativo extends its insights into how families move, offering advertisers a single system for targeting creative messages.

What did management say?

Commenting on the completed acquisition that has yet to boost Life360 shares today, CEO Lauren Antonoff said, “Surpassing 50 million monthly active users in the US is a significant milestone that speaks to the trust families place in Life360.”

Antonoff added:

Families make countless decisions every day as they move through the world, and this partnership helps brands show up in those moments with relevance and respect. Together with Nativo, we’re building a differentiated advertising platform that connects brands to real families, in real moments, with real results.

Justin Choi, founder and CEO of Nativo, said that combining Life360’s “incredibly rich and accurate first-party insights” with Nativo’s platform “activates them in a way that rivals the advertising superpowers of the leading social media networks, while cultivating transparent, brand-safe, and meaningful connections to families”.

Choi concluded, “Nativo’s ad technology is purpose-built to unlock this opportunity in a way that enhances the user experience for Life360’s members.”

At the current Life360 share price, the company commands a market cap of AU$7.3 billion, well below that of the major US social media networks.

The post Up 38% in a year, Life360 shares sliding today on $120 million US acquisition 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 positions in and has recommended Life360, Netflix, Pinterest, and Spotify Technology. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Netflix and Pinterest. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investors think about artificial intelligence (AI), they often picture chipmakers, software developers, or companies training large language models. What tends to get overlooked are the businesses that make AI work at scale. These are the infrastructure providers that connect data, compute, and users in real time.

That’s why I think Megaport Ltd (ASX: MP1) could be one of the most underrated AI stocks on the ASX in 2026.

Megaport isn’t building AI models. Instead, it provides the digital plumbing that allows AI workloads to function efficiently, and that role is becoming increasingly important.

AI demand is an infrastructure problem

Artificial intelligence is incredibly data-intensive. Training models, running inference, and moving large datasets between clouds and data centres all require fast, reliable, and flexible connectivity. This is where Megaport comes in.

The company operates a network-as-a-service platform that allows customers to dynamically connect to cloud providers, data centres, and enterprise networks on demand. Rather than relying on fixed, long-term contracts, customers can scale bandwidth up or down as their needs change.

As AI workloads grow more complex and distributed, that flexibility becomes a competitive advantage.

Expanding beyond connectivity

What makes the Megaport story more interesting is that it’s no longer just about connectivity.

The company has expanded its product offering to include compute through its newly acquired Latitude platform, which provides dedicated infrastructure designed for high-performance workloads.

This broadens Megaport’s role from simply moving data to helping customers process it more efficiently.

Importantly, this expansion builds on Megaport’s existing customer base and network footprint, rather than requiring an entirely new go-to-market strategy. Customers who already rely on Megaport for connectivity can now access additional infrastructure services within the same ecosystem.

That kind of expansion increases wallet share and deepens customer relationships, which is a key ingredient for long-term growth.

A large and growing end market

AI isn’t a short-term trend, and neither is the demand for the infrastructure that supports it.

Data volumes continue to rise, cloud architectures are becoming more complex, and enterprises are looking for ways to optimise performance while managing costs.

Infrastructure models that sit between traditional on-premise systems and public cloud, offering flexibility without excessive overhead, are increasingly relevant.

Megaport’s platform is designed specifically for this environment. While it may not attract the same attention as more obvious AI plays, it sits directly in the path of long-term digital infrastructure spending.

Why it’s an overlooked ASX AI stock

Part of the reason that I think Megaport feels underrated is that its role isn’t immediately obvious.

It doesn’t sell AI software. It doesn’t manufacture chips. And its revenue growth can be influenced by customer usage patterns rather than headline announcements. But that doesn’t make the opportunity any less real.

In fact, some of the best investment outcomes come from businesses that quietly become more important as industries evolve. And with this ASX AI stock down 32% since early November, now could be a good opportunity to invest.

Foolish Takeaway

Artificial intelligence needs more than algorithms to succeed. It needs infrastructure that can move, connect, and process data efficiently.

Megaport sits at the heart of cloud, connectivity, and compute, all of which are becoming more critical as AI adoption accelerates.

While it may not be the first stock investors think of when they hear “AI”, that’s exactly why I believe it could be one of the most underrated AI opportunities on the ASX in 2026.

For investors willing to look beyond the obvious, I think Megaport is a stock worth paying attention to.

The post This might be the most underrated artificial intelligence ASX stock to own in 2026 appeared first on The Motley Fool Australia.

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• 3 reasons to buy Megaport shares today

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 Megaport. 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.

The copper price has reached a new all-time high in London trading, surpassing US$13,000 per tonne, as demand for the metal, which is crucial for electrification, remains strong.

There are some key Australian-listed stocks that provide good exposure to copper, but more on that later.

Firstly, why is demand for copper so strong, and what’s the outlook for this year?

Outages and demand bolstering price

MineLife director Gavin Wendt recently issued a research note on copper and said the rally in the copper price over 2025 reflected mine supply disruptions and distortions of trade flows caused by President Trump’s tariff policies.

In terms of the disruptions, an incident at Freeport McMoran‘s Grasberg mine in Indonesia, which was producing about 4% of global supply, would continue to have an impact this year.

As Mr Wendt said:

Grasberg is the world’s second-largest copper mine, contributing around 4% of global production. Two minor mining areas recovered production as planned in November, while the main area, which is responsible for 70% of output, is expected to slowly resume operations next year. A full recovery is expected in 2027. The disruption at Grasberg has added to the already high number of supply disruptions this year, including the flooding of the Kamoa-Kakula mine in the Democratic Repunlic of Congo in May and an accident hitting the El Teniente mine in Chile in July.

Mr Wendt said the copper supply chain was “under strain”, with mines in Chile struggling with falling ore grades, and refined metal flows being disrupted by tariff risks and unusually high US stockpiles.

He said:

The refined copper balance for 2026 is now showing a deficit of around 600,000 tonnes for 2026, following a deficit of 200,000 tonnes in 2025.

Stocks in focus

In terms of Australian-listed companies set to benefit, Wilsons Advisory issued a research note in early December, naming Sandfire Resources Ltd (ASX: SFR) as its preferred pick in the sector.

The Wilsons teams said:

As the only pureplay ASX 100 copper producer, Sandfire has a best-in-class track record of operational delivery, which continues to underpin reliable leverage to the copper price.

Sandfire shares hit a new record high of $18.45 on Monday and have more than doubled from 12-month lows of $8.05.

Australian mining giant BHP Group Ltd (ASX: BHP) is also highly leveraged to copper, with its three South Australian mines and its major Escondida mine in Chile contributing to the company’s production of more than two million tonnes of copper for the first time in FY25. BHP has boosted copper production by 28% since 2022, according to the company’s annual report.

Rio Tinto Ltd (ASX: RIO) is also highly leveraged to copper, having recently upgraded its copper production guidance to 860,000-875,000 tonnes for 2025, up from its previous guidance of 780,000-850,000 tonnes.

Wilsons also said in early December that outside of the majors, copper exposure could be had from the $14.5 billion Capstone Copper Corp (ASX: CSC), while at the junior end, South Australian miner Hillgrove Resources Ltd (ASX: HGO) was a pure-play copper company.

The post With the copper price hitting a new record, how can you get exposure? appeared first on The Motley Fool Australia.

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• This ASX 200 company is celebrating its second major contract win in as many months
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• Own Rio Tinto shares? They just hit a new record high

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

Monadelphous Group Ltd (ASX: MND) shares are trading higher after the company announced it had won a major contract with BHP Group Ltd (ASX: BHP), continuing the company’s bullish run in recent months.

The company said it had been awarded the construction contract for a car dumper project at Finucane Island in Port Hedland, Western Australia, which was part of BHP’s iron ore operations.

Monadelphous went on to say:

The contract, valued at approximately $175 million, includes civil, structural, mechanical, piping and electrical works associated with the replacement of key equipment during a planned major shutdown.

Monadelphous Managing Director Zoran Bebic said the contract win reflected the company’s deep experience in delivering such projects, built up over many years.

He added:

We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.

ASX mining stock backing up another recent win

The new contract is the second major contract win in as many months for Monadelphous, which in December announced it had been awarded a $250 million contract with Rio Tinto Ltd (ASX: RIO) for the Brockman Syncline 1 iron ore development.

The company said at the time:

The multidisciplinary contract, valued at approximately $250 million, includes fabrication and supply, detailed earthworks and concrete, structural, mechanical, piping and electrical and instrumentation works associated with the construction of a new primary crusher and overland conveyor, as well as modifications to existing plant. Work under the contract will commence immediately and is expected to be completed in 2027.

ASX mining stock outlook strong

At the company’s AGM in late November, chair Rob Velletri said the company had in 2025, secured about $2.3 billion in new contracts and contract extensions, which was a record, plus had added another $570 million since the end of the financial year.

Mr Bebic said at the time the company was forecasting revenue for the half year ending December 30 of about $1.5 billion, with full-year revenue expected to be about 20% to 25% higher than the previous year.

Shares in Monadelphous Group have more than doubled over the past year, and were changing hands for $27.09 on Tuesday morning, up 0.3%.

The stock has increased from lows of $13.36 over the past year. The company was valued at $2.7 billion at the close of trade on Monday.

The post This ASX 200 company is celebrating its second major contract win in as many months appeared first on The Motley Fool Australia.

More reading

• Monadelphous awarded $175 million BHP contract: Key details for investors
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Insurance Australia Group Ltd (ASX: IAG) shares are in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $7.85. In morning trade on Tuesday, shares are changing hands for $7.80 apiece, down 0.6%.

For some context, the ASX 200 is up 0.2% at this same time.

Here’s what investors are mulling over today.

IAG shares dip on Queensland news

On 1 September 2025, IAG reported it had completed its acquisition of the Royal Automobile Club of Queensland (RACQ) for the tidy sum of $855 million, with IAG owning 90% of RACQ shares.

“Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG, and strengthening our commitment to Queensland,” IAG CEO Nick Hawkins said at the time.

IAG shares closed up 0.6% on the day.

Today, the ASX 200 insurance company announced the successful integration of RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements, and aggregate stop-loss protection.

IAG also revealed that it has expanded its WAQS arrangements to now cover 35% of the consolidated business. Management reiterated that they have maintained RACQI’s separate standalone reinsurance program that comprised quota share and catastrophe protections.

Cutting to the chase, IAG shares could gain longer-term support with its RACQI branch now also covered by the catastrophe reinsurance program for the 2026 calendar year.

IAG’s total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

The company noted that RACQI’s quota shares have now been replaced by IAG’s WAQS arrangements, adding that the total proportion ceded has increased by 2.5% to now represent 35% of IAG’s combined business.

What did management say?

Commenting on the reinsurance program integration that has yet to lift IAG shares today, chief financial officer William McDonnell said, “We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies.”

McDonnell added:

Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.

How have IAG shares been tracking?

With today’s intraday dip factored in, IAG shares are down 8.5% over the past 12 months.

The ASX 200 insurance stock also trades on a 3.9% partly franked trailing dividend yield.

IAG is scheduled to announce its half-year results for the six months to 31 December on 12 February.

The post Why are IAG shares slipping today? appeared first on The Motley Fool Australia.

More reading

• IAG integrates RACQ Insurance into reinsurance
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• Which ASX insurance stocks performed best this year?
• Investing in a higher-for-longer world and the ASX sector built to cope
• ACCC blocks Insurance Australia Group’s RAC Insurance acquisition: What investors need to know

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.

BlueScope Steel Ltd (ASX: BSL) shares are charging higher on Tuesday morning.

At the time of writing, the steel products company’s shares are up 20% to $29.22.

This compares favourably to the ASX 200 index, which is up 0.2% in early trade.

Why are BlueScope shares charging higher?

Investors have been scrambling to buy the company’s shares this morning following the release of an announcement after the market close on Monday in response to takeover speculation in the media.

Well, it turns out that the speculation was correct, with BlueScope revealing that it has received four takeover offers since 2024 from the same suitor.

According to the release, on 12 December it received an unsolicited, non-binding, and indicative proposal from an Australian and US consortium to acquire all BlueScope shares by way of a scheme of arrangement.

The consortium, which comprises SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD), has tabled an offer of $30.00 cash per BlueScope share.

The company notes that the indicative proposal would see SGH acquire all of BlueScope’s shares and then on-sell BlueScope’s North American businesses to Steel Dynamics.

The proposal is subject to a number of conditions. This includes exclusivity, due diligence, no material adverse change in BlueScope’s business, a unanimous recommendation from the BlueScope board, approval of BlueScope shareholders, no further share buy-backs, final approvals from SGH and Steel Dynamics’ boards, and necessary regulatory approvals.

BlueScope also highlights that the indicative proposal includes highly conditional debt funding support.

What’s next?

BlueScope is yet to make a decision on this proposal and is considering the offer.

However, it is worth noting that after rejecting previous offers of $24.00 per share, $27.50 per share, and $29.00 per share “as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes”, it remains to be seen whether this latest proposal will be enough to get a deal over the line.

Commenting on the offer, SGH’s managing director and CEO, Ryan Stokes, said:

We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.

Steel Dynamics’ CEO, Mark Millett, adds:

We believe the acquisition of BlueScope’s North American Assets will be highly complementary to our existing operations and further expands our capabilities domestically. The combination of BSL’s North American teams and assets with SDI would be an excellent fit in every sense and create value for all stakeholders.

The post BlueScope shares jump 20% on takeover news appeared first on The Motley Fool Australia.

More reading

• SGH confirms $13.2 billion acquisition offer for BlueScope Steel
• BlueScope fields $30-per-share takeover bid from SGH, Steel Dynamics
• 5 things to watch on the ASX 200 on Tuesday
• 3 reasons to buy BlueScope Steel shares now
• All systems go for BlueScope Steel shares

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 recommended Steel Dynamics. 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.

2025 was a year of disappointment for CSL Ltd (ASX: CSL) shares and shareholders.

The biotechnology leader was amongst the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline that shocked the investment world.

The question now is whether this high-quality laggard from last year can outperform that benchmark in 2026 as fundamentals stabilise and sentiment improves.

Looking ahead, I believe the setup is quietly improving, which raises a genuine case for CSL to outperform the ASX 200 Index.

Why CSL shares fell so hard in 2025

At a headline level, CSL’s FY25 result was not a disaster. Group earnings came in slightly ahead of expectations, helped by lower tax and operating costs. The problem was where the growth came from, and where it didn’t.

The market had been positioning CSL Behring, the key plasma therapies division, as the engine room of long-term growth.

Instead, that business barely grew in the second half of FY25. Revenue at CSL Behring increased just 1% in the second half, with flagship immunoglobulin sales declining by 1%. This was deeply disappointing given that Behring had been expected to drive double-digit earnings per share growth for much of the coming decade.

Adding to the pain, management cut its FY26 guidance in the following months, reducing expected revenue growth to around 3% and net profit growth to roughly 6% at the midpoint. The key driver was weaker-than-expected influenza vaccination rates in the US, which weighed on the Seqirus vaccines business. CSL also delayed plans to demerge Seqirus, choosing to wait for conditions in the US vaccine market to improve, and warned of albumin weakness in China.

The core of the investment case remains intact

At its heart, CSL is a plasma powerhouse. It is one of just three tier 1 plasma therapy companies globally, along with Grifols and Takeda, operating in an oligopolistic and highly consolidated market. Plasma collection is the key constraint in production, and CSL is exceptionally well-positioned, owning roughly 30% of global plasma collection centres after years of heavy investment.

That scale matters. It creates high barriers to entry, supports pricing power, and allows CSL to benefit disproportionately as plasma supply conditions normalise.

Encouragingly, plasma efficiency initiatives are already underway with the Horizon project. Management expects plasma gross margins to recover meaningfully by 2028, with the bulk of that improvement driven by faster and larger plasma collections. These benefits have not yet fully flowed through earnings, which means 2026 could mark the beginning of visible margin recovery.

Why 2026 could look better than 2025

For CSL to outperform the ASX 200 in 2026, it doesn’t need everything to go right. It just needs less to go wrong.

Expectations are now firmly lower. The vaccines business is now a smaller part of the earnings mix than many assume. Plasma margins are likely to improve as efficiency initiatives take hold. And long-term demand drivers for immunoglobulins remain intact.

I don’t think sentiment needs to return to peak optimism for CSL shares to beat the index. A combination of stabilising earnings, early signs of margin recovery, and improved sentiment could be enough to drive relative outperformance from a reset base.

What could still go wrong

That said, CSL is not without risk. Gene therapy remains the biggest long-term threat to plasma-derived treatments, aiming to cure rather than treat disease. Adoption may be slow due to cost, but the risk is real. Competition in haemophilia and hereditary angioedema also continues to pressure certain segments.

And research and development (R&D) outcomes are, by nature, uncertain.

However, I believe that CSL’s long track record of disciplined capital allocation and commercial-focused R&D reduces the risk of further value destruction.

Foolish Takeaway

If the ASX 200 delivers a solid return in 2026, I think CSL shares have a credible path to doing better.

The business remains a global leader with competitive advantages, improving plasma economics, and long-term growth drivers that have not gone away.

After a painful reset in 2025, expectations are lower, its valuation is more reasonable, and the risk-reward looks more balanced. I wouldn’t expect fireworks. But if margins begin to recover and sentiment improves even modestly, CSL shares could beat the ASX 200 in 2026 and remind investors why the company has been a long-term winner in the first place.

The post Could CSL shares outperform the ASX 200 in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.