Author: openjargon

WiseTech Global Ltd (ASX: WTC) shares were under pressure on Wednesday.

The logistics software company’s shares ended the session 10% lower at $40.89.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about the fallen star.

What is the broker saying?

Bell Potter notes that WiseTech delivered a result that was in line with its forecasts but slightly below consensus estimates. It said:

FY26 revenue and EBITDA of US$1,396m and US$558m were in line with our forecasts of US$1,394m and US$561m but slightly below VA consensus of US$1,406m and US$569m. NPAT of US$179m was 11% ahead of our forecast of US$160m and driven by a lower tax rate (19% vs BPe 25%). Cash flow was strong with underlying OCF up 46% and a conversion rate of 100%. The final dividend of US8.8c ff was ahead of our forecast of US8.0c and was driven by the beat in EPS.

Looking ahead, management’s guidance for FY 2027 was better than it expected according to the broker. But once again, it was softer than consensus estimates. It adds:

WiseTech provided FY27 revenue guidance of US$1.48 – 1.54bn which was consistent with our forecast of US$1.53bn but slightly below VA consensus of US$1.55bn. The company shifted to providing EBITDA guidance on an underlying basis and gave a range of US$725 – 780m which was consistent with VA consensus of US$761m. This implied guidance for the underlying EBITDA margin of 49-51%.

In response, Bell Potter has made both upgrades and downgrades to its near-term estimates. The broker explains:

We have downgraded our FY27 and FY28 revenue forecasts by c.2% and now forecast FY27 revenue of US$1,507m which is around the middle of the guidance range. We have, however, upgraded our FY27 underlying EBITDA forecast by 3% but left our FY28 forecast close to unchanged. We now forecast FY27 underlying EBITDA of US$745m which is more towards the lower end of the guidance range. That is, we forecast a margin of 49.4% which is towards the low end of the range.

Should you buy WiseTech shares?

According to the note, Bell Potter has retained its buy rating on WiseTech shares with a trimmed price target of $65.00 (from $71.75).

Based on its current share price, this implies potential upside of almost 60% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

The post Why cheap WiseTech shares could rise almost 60% appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 dividend shares that just hiked their payouts
• Why I’d buy the dip on DroneShield and WiseTech shares
• Why are WiseTech shares crashing 8.5% today?
• WiseTech Global share price: FY26 earnings soar 79% on e2open acquisition
• 5 things to watch on the ASX 200 on Wednesday

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 9,127.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

It looks set to be a soft session for Australian investors on Thursday following a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points lower this morning. In the United States, the Dow Jones fell 0.2%, the S&P 500 was a fraction lower, and the Nasdaq edged 0.1% lower.

ASX 200 result releases

Earnings season continues on Thursday with another group of ASX 200 shares due to release their results. This includes Bunnings owner Wesfarmers Ltd (ASX: WES), airline operator Qantas Airways Ltd (ASX: QAN), mining and mining services company Mineral Resources Ltd (ASX: MIN), diversified miner South32 Ltd (ASX: S32), and fund manager Magellan Financial Group Ltd (ASX: MFG).

Oil prices fall

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$81.89 a barrel and the Brent crude oil price is down 1.3% to US$87.45 a barrel. This was driven by positive developments in the Middle East.

Buy DroneShield shares

DroneShield Ltd (ASX: DRO) shares are in the buy zone according to analysts at Bell Potter. This morning, in response to the counter-drone technology company’s half-year results, the broker has retained its buy rating with a trimmed price target of $2.40. It said: “We expect RFRecon and new high-moat next gen products to drive continued contract wins, particularly from Europe where DRO has a leading presence in the CUAS EW vertical. Top end of CY26 revenue guidance looks achievable. Retain Buy.”

Gold price falls

It could be a poor session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,647.8 an ounce. Traders were selling the precious metal following the release of US inflation data.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Down 48% in 2026: Have DroneShield shares finally bottomed out?
• Here are the top 10 ASX 200 shares today
• Higher for longer? Why the ASX 200 just turned negative
• South32, Woolworths, BHP shares reach 52-week high: Buy, sell or hold?
• Inflation falls again, but could the RBA still raise interest rates?

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

While the Rio Tinto Ltd (ASX: RIO) share price has bounced around over the last few years, the dividend yield has remained attractive.

Dividends aren’t guaranteed, but the company usually tries to pay investors a sizeable payout with a rewarding dividend payout ratio.

Rio Tinto’s earnings aren’t as volatile as they used to be thanks to its diversified commodities strategy. It has significantly increased its exposure to copper, built a presence in lithium and continued its strong performance with Australian iron ore. Plus, it’s part of a massive iron ore project in Africa called Simandou.

Let’s take a look at what the dividend yield is at the current Rio Tinto share price.

Potential dividend for FY26

The business is projected to deliver a larger dividend payout for shareholders for the 2026 financial year.

Rio Tinto’s FY26 half-year result included a number of impressive growth numbers. Revenue rose 15% to US$31 billion, 28% growth of underlying operating profit (EBITDA) to US$14.8 billion, underlying earnings growth of 43% to US$6.85 billion, net profit growth of 47% to US$6.7 billion and free cash flow growth of 75% to US$3.8 billion.

All of those growth numbers allowed the business to increase its interim payout by 43% to US$2.11 per share.

Based on the dividend projection on Commsec, the business could pay a dividend yield of 3.7% excluding franking credits and 5.3% including franking credits.

That’s certainly not the largest dividend yield the business has had in the last few years.

The Rio Tinto share price has risen by 55% over the past year, which has dramatically impacted the dividend yield on offer. When the share price rises by 10%, the dividend yield is reduced by a tenth, so the huge rise for the ASX mining share isn’t helpful for prospective investors.

Is the Rio Tinto share price a buy?

The company had a very strong period in the first six months of 2026, which may make it seem appealing.

However, mining companies can be very cyclical because of how significantly resource prices can change and how much that can affect earnings due to the operating leverage, both positively and negatively.

If I were choosing when the right time is to invest in Rio Tinto shares, I wouldn’t necessarily choose a period of strength to invest. The best buying price usually appears when commodity prices are beaten down.

But, its exposure to copper and lithium is certainly paying off for the business with strengthening prices for both of those commodities. I think Rio Tinto’s earnings are on a good trajectory for the long-term.

According to Commsec, there are currently 15 ratings on the business, with seven of those being a buy and eight being a hold. While it’s been a good run for existing shareholders, I think future investors are more likely to achieve market-beating returns by waiting for a lower valuation. I’d look at other ideas today.

The post Is the Rio Tinto share price a buy for its 5% dividend yield? 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 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.

Xero Ltd (ASX: XRO) shares are having quite the year. The ASX tech stock is down 5% to $84.26 on Wednesday, but that’s after a stunning 33% gain over the past month. Over 12 months, however, Xero shares remain down 49%.

So, what’s behind the wild ride?

Xero shares stage a dramatic rebound

Xero shares suffered a major sell-off late last year that continued into early 2026. Like much of the technology sector, the company was caught up in a broad market sell-off after investors questioned whether some tech stocks had run too far following the sector-wide rally of late 2025.

The result was painful for Xero shareholders. The shares fell as low as $61.58 in late July — around a seven-year low. Since then, however, they’ve staged a remarkable recovery.

At the time of writing, Xero shares have rebounded around 38% from that low. They’re also up 33% over the past month, although they remain down 26% year to date.

That volatility raises an obvious question: has the market become too pessimistic about Xero’s long-term growth prospects?

Xero has a huge global opportunity

Australia and New Zealand provided Xero shares with its foundation, while the UK has developed into another substantial market.

The company finished FY26 with 4.92 million customers globally.

That’s an impressive customer base for a company that began in New Zealand less than two decades ago. Yet Xero estimates its total addressable market at around 100 million small and medium-sized businesses worldwide.

The United States could therefore be crucial to Xero’s next phase of growth. The company had approximately 424,000 US customers at the end of FY26, giving it plenty of room to expand in one of management’s three most important markets.

AI could add another growth engine

Xero’s proposition has also expanded significantly. The combination of accounting, payments and payroll gives customers more reasons to stay within the Xero ecosystem.

Accounting software can also be highly sticky because businesses may find it increasingly inconvenient to move their financial information, invoicing and payroll processes elsewhere. That stickiness can support recurring revenue, retention and opportunities to increase customer spending over time.

Xero is also developing JAX, its artificial intelligence platform, to automate more financial tasks and help customers make better decisions using the data already sitting inside the platform.

There are risks linked to Xero shares, of course. Xero faces formidable competition in the US, while successfully integrating Melio, a US bill pay platform, will be crucial.

Are Xero shares a buy?

TradingView data shows five of seven analysts currently have a buy or strong buy rating on Xero shares.

The average $113.33 price target implies potential upside of around 34% from $84.56. The most bullish target sits at $149.44, suggesting potential upside of approximately 77%.

After such a dramatic rebound, Xero shares clearly aren’t without risk. But with millions of customers, a huge global addressable market and an expanding AI-powered product ecosystem, the recent volatility may be giving investors another look at the long-term opportunity.

The post What on earth’s going on with Xero shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Construction and related services company Acrow Ltd (ASX: ACF) delivered record revenue for the full year, with broker Shaw and Partners convinced the company is set up for strong share price growth.

This will be good news for shareholders who have weathered a 4.4% fall in the value of their shares over the past year.

Before we get to the broker’s share price forecast, let’s have a look at the company’s recently-released full year results.

Revenue strong but profits lower

Acrow reported revenue of $336 million, up 27% on the previous year, while underlying net profit fell 20% to $27.6 million.

The company also paid a lower final dividend, reducing it from 2.95 cents per share to 1.42 cents.

In terms of the outlook for FY27, the company is expecting revenue to grow 30% and EBITDA to be 37% higher.

Towards the end of the financial year the company announced the proposed acquisitions of Preston’s SuperDeck platform system business and AGIS, with the acquisitions funded by a $70 million capital raise and a $16 million share purchase plan.

One of the main drivers for the company going forward will be the Queensland Olympics, with the company saying:

[It] presents a substantial multi-year pipeline for Acrow, with major venue projects progressing toward builder awards in Jul-Dec 2026 and construction ramp-up from Jan-Mar 2027. Acrow is well positioned across all Olympic venues, athletes’ villages and associated infrastructure, with strong alignment to its formwork, falsework, Jumpforms, screens and industrial access systems. The scale and duration of the program – from initial works through peak delivery between 2027 and 2031 offers a significant long-term growth opportunity in Queensland.  

Acrow Chief Executive Officer Steven Boland said regarding the results:

The Company has experienced a period over the past two to three years of stagnated profits, primarily due to the downturn in construction activity across the Queensland construction market. During this period, we have invested strategically to expand our national Jumpform, Screens and, most notably, our Industrial Access businesses. Today, Industrial Access generates more than $200m in revenue and has significantly enhanced the quality, stability and resilience of our earnings base. Our Construction Services division has now turned the corner with the second half revenue reaching a record level for any half yearly period, with most of the growth experienced in Q4. This momentum has continued into FY27. Looking ahead, we see significant opportunities across both our Industrial Access and Construction Services businesses.

Shares are looking cheap, broker says

In a note to clients, Shaw and Partners said that Acrow had finished the year strongly and was well-positioned heading into FY27.

The broker has a price target of $1.35 on Acrow shares, which is materially above the current share price of 97 cents.

The company is also expected to pay a dividend yield of 4% this year.

The post This ASX builder is well positioned for 40% share price growth: Broker 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.

Superannuation is more than just a savings pot to fund your retirement. 

Your super offers the bonus of concessional tax rates, and you can grow your balance through compounding.

But that’s not all.

Did you know that you can also earn a passive income off your balance once you transition to retirement?

But how much superannuation do you need to accumulate to target the passive income amount that you want to receive?

Here’s a breakdown, using a target of $50,000 per year in passive income as an example.

How much do I need in my superannuation to get $50,000 per year in passive income?

The calculation is straightforward. 

You need to divide your annual passive income by the dividend yield of your overall portfolio and it’ll tell you how much you need to invest.

For example, $50,000 ÷ 3% = $1.66 million (that’s the superannuation portfolio size you’d need).

The catch is that the answer varies significantly depending on what yield you pick.

But the good news is that as your portfolio’s dividend yield increases, the superannuation balance needed to earn the same passive income decreases. 

That means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Break it down for me by yield

We already know what portfolio size you’d need to earn $50,000 per year off a 3% yielding account.

But if your overall portfolio has a slightly higher dividend yield of around 4%, you’ll need a balance of around $1.25 million to earn the same $50,000 per year in passive income.

If the yield of your portfolio is higher still, at around 5% for example, your balance would need to be closer to $1 million to earn the same dividend income.

For a 6% yielding portfolio, you’d need a balance of closer to $834,000 to earn the same amount again.

Increase that to a 7%, 8%, or 9% dividend yield, and you’re looking at closer to $714,000, $625,000 or $556,000, respectively. 

And so on…

You’d still earn $50,000 per year in passive income from each of these superannuation balance sizes.

What ASX shares can I buy with my superannuation around a 3-4% yield?

There are plenty of options, but here are some good options to get you started.

Lovisa Holdings Ltd (ASX: LOV), Lottery Corporation Ltd (ASX: TLC), Eagers Automotive Ltd (ASX: APE), Telstra Group Ltd (ASX: TLS), and National Australia Bank Ltd (ASX: NAB) all yield around 3% to 4% at the time of writing.

What about the middle ground, closer to a 5-6% yield?

If you’re looking for a higher yield, something like long-standing ASX dividend stock APA Group (ASX: APA) is a good option, as is Sonic Healthcare Ltd (ASX: SHL) and Metcash Ltd (ASX: MTS). These ASX shares all yield between 5% and 6% at the time of writing.

And what are my options for high-yielding shares?

There are also some higher-yielding shares around the 8% level, or even higher. However, it’s worth noting that these come with more risk. For high-yielding options, I’d stick with something like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), or a defensive ASX share like IPH Ltd (ASX: IPH).

The post How much superannuation is needed to target a $50,000 annual passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, IPH Ltd , Lovisa, Sonic Healthcare, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the big earnings results winners this season was ASX financials stock HMC Capital Ltd (ASX: HMC). 

Investors were gobbling up this stock following its full-year results. 

During FY26, HMC Capital expanded across all major verticals. 

Included in the results yesterday:

• Operating EPS (pre-tax) of 40.4 cents per share, in line with FY26 guidance
• Underlying EPS (pre-tax) of 30.2 cents, excluding discontinued operations
• Fee-generating AUM grew 15% to $16.9 billion
• Recurring funds management revenue up 22% to $165.5 million
• FY26 dividend declared at 12.0 cents per share
• Tangible assets and undrawn debt capacity of $1.9 billion. 

Investors were seemingly pleased with this ASX financials stock as its share price rose over 11% on the back of the announcement. 

Despite the rise, HMC shares still sit well below yearly highs. In good news for prospective investors, the team at Bell Potter see yesterday’s gain of a sign of what’s to come in the next 12 months. 

Great results 

Bell Potter’s view is very positive, essentially arguing that the FY26 result sets up a stronger FY27 and that there is further upside beyond current guidance.

This ASX financials stock delivered FY26 pre-tax EPS of 40.4c, slightly ahead of Bell Potter’s expectations and well above consensus. 

More importantly, management guided to FY27 underlying EPS of at least 35c, versus 30.2c in FY26, implying roughly 16% underlying earnings growth.

The broker also highlighted that the balance sheet provides another potential upside lever. 

HMC has around $500m of undrawn debt capacity, while its FY27 guidance does not assume any further capital recycling. 

Given HMC has previously generated significant earnings from recycling its investments, Bell Potter believes there could be another $25–50m of underlying earnings upside if capital is deployed or recycled effectively.

As a result, Bell Potter has increased its FY27-FY29 post-tax EPS estimates by 25-30%.

Buy rating retained for this ASX financials stock

Based on this guidance, Bell Potter has retained its buy recommendation for this ASX financials stock. 

The broker has also upgraded its price target $4.20 (previously $3.85), which indicates an upside potential of approximately 29%. 

We recently upgraded HMC to Buy, with today’s result giving us confidence that HMC is turning the corner from an earnings momentum perspective, and indeed HMC has articulated a clear message that earnings upside to items not included in guidance (eg capital recycling) exist. As headwinds turn to tailwinds, HMC screens inexpensively trading at just 9.3x 1yr forward underlying earnings.

The post This ASX financials stock just soared 11% on results and is tipped to keep rising appeared first on The Motley Fool Australia.

More reading

• After crashing 6% on results, what is Bell Potter’s view on Domino’s shares?
• HMC Capital share price on watch as FY26 earnings meet guidance, FY27 growth targeted
• Attention! This ASX 300 stock could be set to rise 50% and has a 7% yield
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Motley Fool contributor Aaron Bell 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.

Just a few years ago, Domino’s Pizza Enterprises Ltd (ASX: DMP) was the bell of the ball. During the pandemic, Domino’s shares were trading for over $160 each. 

However COVID-era growth proved unsustainable and inflation, higher interest rates, weaker franchisee economics and disappointing international expansion hurt profits.

Fast forward to 2026, and Domino’s shares have hovered around $20 per share – a huge pullback from pandemic levels. 

Yesterday, the popular pizza franchise released its full-year results, prompting a heavy sell-off among investors. 

What did Dominos report?

As reported by The Motley Fool yesterday, the company’s FY26 results showed an 11% decline in revenue to $2,046.1 million and a statutory net loss after tax of $134.2 million.

Other results included: 

• Underlying NPAT: $121.6 million, up 4.0%
• EBITDA: $325.4 million (underlying, down 6.1%)
• Final dividend: 32.5 cents per share, unfranked (total FY26 dividend 57.5 cents, down 25.3%)
• Net tangible assets per share: $5.04. 

Investors were clearly not impressed with the result, as the share price dipped 6%. 

However, the team at Bell Potter has a more balanced view moving forward. 

What is Bell Potter’s view on Dominos shares?

Bell Potter viewed Domino’s result as broadly in line with expectations, with underlying NPAT of at the top end of guidance, supported by cost reductions and lower interest costs. 

Free cash flow of $164.1m was also strong, helped by lower capex, working capital improvements, capital management and favourable tax timing.

The main negative was weaker sales, with network sales down 4% and FY26 same-store sales growth (SSSG) declining 4.1%, led by Asia, ANZ and Europe. 

More concerning were the first eight weeks of FY27, when SSSG fell 5.8%, a significant deterioration from the -0.9% seen in FY26 and -1.3% in FY25, which likely contributed to the sharp share price decline.

Bell Potter has downgraded its revenue and EBITDA forecasts for FY27-29 to reflect the ongoing weak sales environment and softer consumer conditions, although it expects sales to recover to low single-digit growth by FY28. 

Despite the revenue downgrades, lower expected interest costs have led Bell Potter to raise its NPAT forecasts by 7%/6%/5% for FY27/28/29, respectively.

Hold recommendation for Domino’s shares

Based on this guidance, the team at Bell Potter has retained its hold recommendation on Domino’s shares. 

However, the broker raised its price target to $20.15 (previously $18.50). 

This updated target indicates roughly 7% upside. 

Without SSSG, operating leverage remains limited; and without leverage, temporary cost-out measures can only support earnings for so long before underlying operating profits come under pressure. We therefore remain HOLD rated pending clearer evidence of a sustained improvement in trading.

The post After crashing 6% on results, what is Bell Potter’s view on Domino’s shares? appeared first on The Motley Fool Australia.

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• Domino’s shares crash 12%: Are the shares a buy, sell or hold today?
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• Domino’s Pizza Enterprises posts FY26 loss but boosts franchise profitability
• 5 things to watch on the ASX 200 on Wednesday
• Attention! This ASX 300 stock could be set to rise 50% and has a 7% yield

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

DroneShield Ltd (ASX: DRO) shares were hit hard again on Wednesday after the counter-drone company released its half-year results.

The DroneShield share price finished the day down 11% to $1.74.

It continues what has been a pretty rough run for shareholders. The stock is now down around 17% over the past month and 48% since the start of 2026.

That’s a big change from where DroneShield was trading last year, when the shares were attracting plenty of attention.

With the share price now back near its lowest levels of the year, investors may be wondering whether the worst of the sell-off is finally behind it.

So, have DroneShield shares finally found a bottom?

Revenue growth continues as profits slip

Looking at the headline numbers, there was plenty to like on the revenue side.

DroneShield reported record first-half revenue of $125.8 million, up 74% from the same period last year.

Recurring revenue also rose 229% to $11.5 million, supported by a growing number of software-enabled devices in the field.

However, this came in below the $14.2 million estimate DroneShield provided in July.

Profitability also went backwards.

Underlying EBITDA came in at a $12.4 million loss, compared with an $8 million profit a year earlier.

DroneShield also reported a statutory net loss after tax of $32.2 million, while gross margin slipped to 60% from 65%.

The company said it has been investing heavily to support future growth, including in production, systems and staff.

There are still some good signs

Despite the first-half loss, there were still a few positives to take away from the result.

DroneShield had $240 million of committed FY26 revenue as at 21 August, up 36% from the same time last year.

That already covers between 89% and 96% of its full-year revenue guidance of $250 million to $270 million, giving the company a decent head start heading into the second-half.

There is also another $43 million of committed revenue for FY27 and beyond.

DroneShield is in a strong position financially as well, finishing June with $180 million in cash and term deposits and no debt.

This gives the company plenty of room to keep investing as it ramps up production and brings new products to market.

Have DroneShield shares bottomed out?

Calling the bottom isn’t easy, as you’re essentially trying to predict what every buyer and seller in the market is going to do.

Even the best investors in the world can’t pick the exact bottom every time.

Nonetheless, there are a few reasons to think much of the bad news could already be reflected in the share price.

There is still plenty going right in the business. Revenue is growing quickly, committed revenue continues to build and the balance sheet remains strong.

But investors will also want to see more of that growth flow through to margins and earnings, particularly after the first-half loss.

If DroneShield delivers on guidance and improves profitability in the second-half, investors could take another look.

The post Down 48% in 2026: Have DroneShield shares finally bottomed out? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy the dip on DroneShield and WiseTech shares
• Are DroneShield shares a buy, sell or hold following their half-year FY26 results today?
• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday
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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 positions in and has recommended DroneShield. 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 Plato Income Maximiser Ltd (ASX: PL8) share price is in focus after the company reported a 54% fall in revenue to $50.6 million and a 50% decrease in earnings per share to 5.6 cents for the full year.

What did Plato Income Maximiser report?

• Revenue from ordinary activities dropped 54.1% to $50.57 million
• Net profit after tax (NPAT) fell 49.9% to $41.83 million
• Basic and diluted earnings per share both down 50% to 5.6 cents
• Monthly fully franked dividends of 0.55 cents per share paid throughout FY26
• Net tangible asset backing per share (including tax on realised gains only) at $1.144, slightly down from $1.153

What else do investors need to know?

Plato Income Maximiser continued its policy of consistent monthly dividend payments, delivering 12 fully franked dividends during the period and flagging continued payouts post year-end. The company reaffirmed that it does not operate a dividend reinvestment plan.

Net tangible asset backing edged slightly lower year on year, reflecting the impact of market movements and realised gains. No changes in control of entities, associates, or joint ventures occurred during the period.

What’s next for Plato Income Maximiser?

Looking ahead, Plato Income Maximiser intends to maintain its monthly dividend payments, subject to future earnings and market conditions. Investors have already been notified of continued monthly payouts into the next financial year.

The company has not provided detailed forward guidance, but the focus remains on delivering reliable income and managing assets prudently within changing market dynamics.

Plato Income Maximiser share price snapshot

Over the past 12 months, Plato Income Maximiser shares have risen 4%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Plato Income Maximiser: FY26 profit slips, dividends steady appeared first on The Motley Fool Australia.

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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.