Author: openjargon

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is in focus today after the company reported FY26 results highlighted by revenue down 11.2% to $2,046.1 million and a statutory net loss after tax of $134.2 million.

What did Domino’s Pizza Enterprises report?

• Revenue: $2,046.1 million, down 11.2% year on year
• Statutory NPAT: Loss of $134.2 million (impacted by significant non-cash items)
• 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) (FY25: $(6.41))

What else do investors need to know?

Domino’s statutory loss included $255.7 million in non-cash write-downs and impairments, mainly for its France and Taiwan businesses, along with technology assets and some underperforming corporate stores. Underlying profit increased, reflecting efforts to boost franchisee profitability, cut costs, and reset pricing strategies.

Same store sales fell 4.1% globally, with Australia and New Zealand down 4.7%, Europe down 2.2%, and Asia down 6.7%. The company will close up to 60 stores across regions to sharpen the network’s overall health, with anticipated $11 million in annual EBIT benefit. Meanwhile, franchisee profitability improved, and net leverage improved to 1.86x following cost reductions and reduced net debt.

What’s next for Domino’s Pizza Enterprises?

The company is aiming to return to profitable growth in FY27 after a period of resetting its store network and business model. Building on positive trials in Western Australia, Domino’s plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting.

Domino’s remains committed to improving operational efficiency and supply chain resilience, preparing to meet ongoing consumer and regulatory changes. New CEO Andrew Gregory has taken the reins, signalling a focus on both network expansion and disciplined execution.

Domino’s Pizza Enterprises share price snapshot

The Domino’s share price has modestly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 4%.

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The post Domino’s Pizza Enterprises posts FY26 loss but boosts franchise profitability appeared first on The Motley Fool Australia.

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

Australia’s property market has spent years making homeowners feel wealthier. Now, that powerful tailwind may be starting to reverse.

National home values fell 0.7% in July, according to Cotality, marking the sharpest monthly decline since December 2022. Sydney and Melbourne led the falls, but the downturn also spread to Brisbane and Adelaide.

More importantly for retailers, values across the most expensive quarter of the housing market dropped 3.2% over the three months to July.

That could have consequences well beyond the property sector.

How the wealth effect works

The wealth effect describes the tendency for households to spend more when their assets rise in value.

Homeowners do not need to sell their property or withdraw equity to feel richer. A rising valuation can provide the psychological permission to upgrade the television, replace the lounge, renovate the kitchen, or book an overseas holiday.

Research from the Reserve Bank of Australia found a positive and persistent relationship between household wealth and consumption. The effect was strongest across motor vehicles, durable goods, and other discretionary purchases.

The RBA estimated that a permanent 1% increase in housing wealth lifted the long-term level of consumption by around 0.16%.

However, the relationship can work in reverse.

Falling property prices do not necessarily create an immediate financial problem for homeowners. But they can weaken confidence and encourage households to defer purchases that are not essential.

That puts furniture, electronics, appliances, and other big-ticket categories near the front line.

Two quality ASX retailers under pressure

That backdrop helps explain the recent weakness in two long-term retail winners.

JB Hi-Fi Ltd (ASX: JBH) suffered its worst single-session decline on record earlier this month. The JB Hi-Fi share price crashed 12.3%, despite the company reporting record FY26 sales of over $11 billion and a 6% increase in statutory net profit to $489.9 million.

The concern was not the year just completed. It was the direction of current trading.

Comparable sales at JB Hi-Fi Australia declined 0.8% during the fourth quarter before falling another 1.4% in July. Comparable sales also declined at The Good Guys.

Management noted that customers were increasingly seeking value and concentrating their spending around major promotional events. That could place pressure on margins if deeper discounting is required to maintain sales volumes.

Furniture retailer Nick Scali Ltd (ASX: NCK) is exposed to a similar dynamic. The Nick Scali share price is down more than 35% over the past 12 months, at the time of writing.

Yet its FY26 results hardly resembled a business in distress. Group revenue increased 4.3% to $516.7 million, while net profit after tax rose 22% to $75.7 million on an underlying comparison.

The warning was again in the outlook. Written sales orders across Australia and New Zealand were flat during the first five weeks of FY27, following softer trading during the second half.

What should investors watch?

A weaker housing market does not automatically make JB Hi-Fi or Nick Scali poor businesses.

Both companies have strong brands, experienced management teams, healthy balance sheets, and long records of rewarding shareholders. Quality retailers can also use difficult conditions to win market share from weaker competitors.

Australia’s strong employment market and rising household incomes could provide another important cushion. The RBA has previously found that falling wealth is less damaging to consumption if jobs and income growth remain firm.

Still, investors may want to watch comparable sales, store traffic, inventory levels, gross margins, and the depth of promotional activity over the coming months.

The wealth effect helped support discretionary spending while Australian property prices climbed. If that effect is now reversing, retailers selling the purchases that households can postpone may feel the pressure first.

For long-term investors, the key question is whether recent share price declines reflect temporary weakness in the consumer cycle or something more permanent in the underlying businesses.

The post Are falling house prices hurting ASX retail shares? appeared first on The Motley Fool Australia.

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

The Worley Ltd (ASX: WOR) share price is in focus today after the engineering services company reported a statutory NPATA of $306 million for FY26, with aggregated revenue largely unchanged at $12.0 billion.

What did Worley report?

• Aggregated revenue of $12,023 million, stable on the prior corresponding period
• Underlying EBITA fell 10.8% to $734 million
• Underlying NPATA down 16.8% to $395 million; statutory NPATA down 35.6% to $306 million
• Final unfranked dividend of 25 cents per share declared
• $500 million share buyback completed; additional $24 million spent on new buyback
• Bookings rose 23% to $15.5 billion; backlog increased 9% to $13.8 billion

What else do investors need to know?

Worley’s FY26 underlying earnings were impacted by ongoing conflict in the Middle East and foreign currency movements, as well as $120 million in transformation and restructuring costs. Revenue growth remained strongest in the Americas, while challenges in Europe and the Middle East held back some regions.

The group continues to deliver cost savings, achieving $132 million in cost-out initiatives, which surpassed their target. Strong project wins were recorded across energy, resources, and key growth areas such as energy transition materials. Sole-sourced wins made up 44% of bookings, reflecting customer confidence in Worley’s capabilities.

What did Worley management say?

Commenting on the results, Worley’s CEO, Chris Ashton, said:

While activity levels remained strong in some parts of the business, particularly in the Americas; the Middle East conflict, and softer market conditions have affected growth in other regions. Notwithstanding this, solid demand drivers in the markets where we operate, together with our growing pipeline, strong customer relationships and disciplined focus on delivery, continue to underpin growth and we expect mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27.

What’s next for Worley?

Looking ahead, Worley is optimistic about continuing growth, with management guiding for mid to high single-digit increases in both aggregated revenue and underlying EBITA in FY27. The company expects stronger activity in the second half, especially as delayed Middle East projects progress.

Worley is focused on expanding project delivery capability, investing in AI and digital platforms, and targeting high-growth sectors including integrated gas and energy transition materials. Strategic partnerships and further investment are planned to build scale in markets such as power, data centres and critical infrastructure.

Worley share price snapshot

The Worley share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 12%.

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The post Worley FY26 earnings: profit down, pipeline up 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is in focus after the company posted record interim revenue of $125.8 million, up 74% on the prior corresponding period, though it reported a statutory after-tax loss of $32.2 million.

What did DroneShield report?

• Revenue jumped 74% to $125.8 million (1H 2025: $72.3 million).
• Recurring revenue increased 229% to $11.5 million (1H 2025: $3.5 million).
• Statutory net loss after tax of $32.2 million, versus a $2.1 million profit a year earlier.
• Underlying EBITDA loss of $12.4 million (1H 2025: $8.0 million profit).
• Net tangible assets per share: $0.28 (31 December 2025: $0.33).
• No interim dividend declared.

What else do investors need to know?

The interim period saw DroneShield expand both its product range and geographic footprint, with over half of its revenue coming from Europe and the UK. The company completed its new Sydney production facility and launched European operations, underpinning its growth strategy.

Higher operating costs followed increased staff numbers and strategic investments in software and next-generation hardware, contributing to the reported loss. Cash and term deposits at 30 June stood at $180 million, while inventory was built up to support upcoming product launches.

Significant governance changes occurred during the half-year, including a new CEO, Angus Bean, after Oleg Vornik’s departure, and the appointment of Hamish McLennan as Chairman.

What’s next for DroneShield?

Looking ahead, DroneShield is preparing to launch new AI-enabled hardware and software solutions, aiming to grow its subscription and recurring revenue streams. The company is focused on production scale-up, ongoing research and development, and capitalising on increased demand for counter-drone solutions globally.

Management expects that strategic partnerships and regional expansion, particularly in high-demand regions like Europe and the US, will continue to play a pivotal role in future growth.

DroneShield share price snapshot

The DroneShield share price has been sold off over the past 12 months and is down 45% over the past 12 months. This compares to a modest gain by the S&P/ASX 200 index (ASX: XJO).

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

The Koala Company Ltd (ASX: KOA) share price will be in focus after the company delivered a $24.6 million net profit for FY26, swinging strongly back to profitability, on revenue up 20.1% to $332.3 million.

What did The Koala Company report?

• Revenue rose 20.1% to $332.3 million (up 24.4% in constant currency)
• Net profit after tax (NPAT) improved from a $4.6 million loss to $24.6 million profit
• Pro forma EBITDA rose 139% to $27.9 million at an 8.4% margin, beating IPO Prospectus targets
• Group ended the year debt-free, holding $71.2 million in net cash
• Gross margin expanded to a record 65.3% (+2.9 percentage points over FY25)
• No dividends declared for FY26

What else do investors need to know?

FY26 was Koala’s first reporting period as an ASX-listed company following its March 2026 debut. The business delivered results ahead of Prospectus forecasts, driven by double-digit growth across all core geographies—Australia, Japan, and the US. Koala also entered the UK, marking its fourth market, using its capital-light global expansion model.

During the year, the company deepened its focus on product innovation, highlighted by launches such as the Torquay and Tamarama modular sofas, and upgraded best-sellers like the Koala Sofa Bed. Strong gross and contribution margin growth reflected disciplined cost control and stable marketing ratios. Koala also accelerated its supplier diversification program to strengthen supply chain resilience.

What did The Koala Company management say?

Co-Founder and CEO Dany Milham said:

We have built a repeatable model that enables us to create category-winning products, strengthen our brand equity, scale efficiently across global markets and generate the cash required to fund future growth. To our shareholders, thank you for backing us. To our customers, thank you for choosing Koala. And to our people, suppliers and partners, thank you for continuing to build alongside us.

What’s next for The Koala Company?

Koala expects to deliver further growth in sales and profits over the coming years by expanding ranges, driving innovation, and growing in both existing and new markets. Immediate priorities include strengthening its core product lineup, launching new bedroom and sitting furniture, entering Canada and priority European markets, and boosting brand equity. The company also plans to expand its physical retail footprint and deliver its first stand-alone sustainability report in FY27 in line with new climate reporting standards.

Koala remains focused on scaling its direct-to-consumer and product innovation model, aiming to further expand market share outside Australia.

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The post The Koala Company jumps to profit in FY26: Earnings highlight strong growth 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.

The ASX stock L1 Long Short Fund Ltd (ASX: LSF) is one of my favourite ideas for passive income due to its rapid growth in quarterly payouts for shareholders amid impressive investment performance.

The listed investment company (LIC) is already one of the larger players in the LIC sector, with a market capitalisation of around $3 billion, according to the ASX. I wouldn’t be surprised if it became the largest in Australia one day, given its growth trajectory.

The investment team from L1 Group Ltd (ASX: L1G) have delivered great portfolio returns which has unlocked share price growth and dividends.  

Let me explain why the LIC is such an attractive pick to unlock $500 per week of passive income.

Compelling investment process

Before I talk about the returns, it’s important to keep in mind that past performance is not a guarantee of future performance. Plus, we should judge fund managers based on long-term returns, not just an excellent single year.

The LIC’s portfolio has delivered an average net return per year of 17.9% over the last three years, 16.1% per year in the past five years and 20% per year in the prior seven years. Since the start of the L1 long-short strategy in September 2014, it has returned an average of 19.9% per year.

It invests in both ASX shares and international shares, using both long-term investing and short selling (betting that a share price could go down) strategies. By investing in different markets and stocks for both gains and declines, it has been able to match the ASX in positive months and significantly outperform during market downturns.

The LIC’s latest commentary on its portfolio highlights its process for picks, which are sometimes contrarian:

We continue to focus on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments. We believe the portfolio looks well placed at present, with the median long position trading on 10x P/E, supported by double-digit EPS growth and modest debt levels.

Great dividend payouts

Given those investment returns, the business has been steadily increasing its passive dividend income to shareholders.

The business has increased its annual payout each year since it started paying its dividend in 2021. It changed to a quarterly payment frequency last year rather than half-yearly payouts. The ASX stock’s quarterly payout has been hiked each quarter since the shift last year.

Over the next four quarters, I expect the dividend will be at least 15.8 cents per share, which currently translates into a dividend yield of 3.3% excluding franking credits and 4.75% including franking credits.

I think that’s a great starting point for the yield considering the dividend could significantly increase in the coming years.

$500 of passive income per week

The LIC doesn’t pay every single week, but we can think of the weekly goal as an annual, or annualised, goal. With $500 per week, we’re talking about an annual goal of $26,000.

With a potential 15.8 cents per share in the year ahead, it would take 164,557 L1 Long Short Fund shares to unlock the desired income goal.  

The LIC does have a diversified portfolio itself, so I wouldn’t mind investing significantly into the LIC. However, I do think it would be a good idea to own a diversified portfolio rather than put all of that money into one name, so I’d want to buy additional stocks to generate returns.

The post I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Group and L1 Long Short Fund. 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.

The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus today after the company delivered FY26 results showing revenue rose 0.8% to $2,636.3 million and group EBITDA climbed 10.3% to $431.7 million.

What did Tabcorp report?

• Group revenue: $2,636.3 million, up 0.8% on FY25
• Group EBITDA: $431.7 million, up 10.3% on FY25
• Net profit after tax (before significant items): $71.1 million, up 43.6% on FY25
• Final dividend: 1.5 cents per share, unfranked; full year dividend: 3.0 cents, up 50%
• Net debt at 30 June 2026: $533 million; leverage reduced to 1.2x EBITDA
• Wagering & Media EBITDA: $361.8 million, up 9.9%; Integrity Services EBITDA: $69.9 million, up 12.0%

What else do investors need to know?

Tabcorp highlighted a strong focus on executing its transformation strategy, including cost discipline and a differentiated wagering product. The retail commercial model was updated, new betting terminals rolled out, and TAB LIVE in-play launched in pubs and clubs across approved states.

After the reporting period, Tabcorp announced an agreement to acquire BetMakers Technology Group, aiming to modernise its wagering technology and expand global B2B operations. This acquisition is expected to support further growth and efficiency once completed.

The company also extended and diversified its funding, issuing $300 million in notes and lengthening loan maturities. Liquidity stood at $1,161 million at 30 June 2026, and the company declared a 3.0 cent full-year dividend with a 58% payout ratio.

What did Tabcorp management say?

Gillon McLachlan, Managing Director & Chief Executive Officer, said:

Midway through our turnaround journey, we’re executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth. The first two stages of our transformation were to get fit and operationalise our game plan. We’ve done that and we’re ready to enter the growth phase of our transformation. Our proposed acquisition of BetMakers will accelerate our strategy, allowing us to release products faster and more cheaply while using BetMakers’ complementary global assets to grow our international revenue opportunities.

What’s next for Tabcorp?

Tabcorp expects domestic wagering turnover growth in FY27 to be broadly consistent with FY26, with further benefits anticipated from the Next-Gen terminal rollout and commercial model changes. Ongoing cost control and continued investment in strategic initiatives remain priorities.

Completion of the BetMakers acquisition, expected in the third quarter of FY27 and subject to regulatory conditions, is set to further modernise Tabcorp’s operations and create new global growth opportunities. The company’s strong balance sheet is expected to support its strategic goals.

Tabcorp share price snapshot

The Tabcorp share price has outperformed the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a strong gain of around 27%.

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The post Tabcorp lifts FY26 profit, unveils new tech acquisition 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The WiseTech Global Ltd (ASX: WTC) share price is in focus today after the company reported a record 79% surge in revenue to US$1,395.9 million and a 54% jump in guidance EBITDA, both driven significantly by the e2open acquisition and strong AI productivity gains.

What did WiseTech Global report?

• Total revenue up 79% to US$1,395.9 million, within guidance
• Guidance EBITDA of US$585.8 million, up 54%; Reported EBITDA of US$558.4 million, up 46%
• Underlying EBITDA of US$644.5 million, up 56%; margin at 46%
• Underlying NPAT rose 29% to US$313.5 million; Statutory NPAT down 11% to US$178.7 million
• Final fully franked dividend increased 14% to 8.8 US cents per share
• Free cash flow up 43% to US$410.7 million; Underlying free cash flow up 67% to US$489.6 million

What else do investors need to know?

The e2open acquisition was a major contributor to WiseTech’s growth story this year, bringing in US$541.2 million revenue. Cost-saving programs delivered around US$115 million in annualised savings, including efficiencies from adopting AI in operations. Notably, more than 95% of CargoWise customers have transitioned to the new Value Packs commercial model, helping boost new signings—especially among SME customers.

WiseTech made strategic moves, such as acquiring FRDM.ai to expand its compliance offering (VerifyWise), and launched innovation-driven initiatives. The board also revised its structure to strengthen governance, welcoming a new permanent CEO and shifting to an independent Chair model.

What did WiseTech Global management say?

WiseTech Global’s CEO, Zubin Appoo, commented:

This was a transformational year for WiseTech. We acquired e2open to expand our offerings into adjacent markets, launched our new commercial model with more than 95% of CargoWise customers now on CargoWise Value Packs, and adopted AI across our own operations. We secured government agreements, delivering customs solutions for both the New Zealand Customs Service and the New Zealand trade community.

We added to our VerifyWise solution, acquiring FRDM.ai to accelerate supply chain compliance for exporters, importers and banks, and we continue to build out our CargoWise AI Workflow Engine and AI Management Engine to reduce the cost of global trade and logistics for our customers.

What’s next for WiseTech Global?

Looking to FY27, WiseTech is forecasting total revenue growth of 6% to 10% (US$1.48 billion to US$1.54 billion) and underlying EBITDA growth between 12% and 21%, with a margin uplift to 49%–51%. Management’s attention remains on integrating e2open, further rolling out the new commercial model, accelerating AI-driven product development, and driving margin expansion and debt reduction.

Priorities for FY27 include migrating the remaining legacy customers to Value Packs, launching new AI solutions, delivering additional regulatory solutions, and maintaining investment in R&D. The company remains committed to operating discipline and revenue quality improvement, supported by innovation and product enhancement.

WiseTech Global share price snapshot

The WiseTech Global share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the last 12 months with a decline of over 60%.

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The post WiseTech Global share price: FY26 earnings soar 79% on e2open acquisition appeared first on The Motley Fool Australia.

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

The Kelsian Group Ltd (ASX: KLS) share price is in focus after the company announced that SeaLink Rottnest will no longer be sold as part of its planned $161 million Tourism Portfolio transaction. The original deal with Journey Beyond has now been revised, with the remaining Tourism Portfolio considered for sale at $145.8 million.

What did Kelsian Group report?

• SeaLink Rottnest has been removed from the assets to be divested to Journey Beyond.
• The revised agreed consideration for the Tourism Portfolio sale is $145.8 million.
• Sale completion remains subject to ACCC and FIRB approvals and other conditions.
• Kelsian continues to operate SeaLink Rottnest as a standalone, profitable commuter ferry business.

What else do investors need to know?

Kelsian’s decision means SeaLink Rottnest will stay within the group, continuing to operate alongside other marine ferry services across Australia. This adjustment follows feedback in the regulatory approval process and aims to strengthen the case for ACCC approval of the remaining transaction.

The sale of the updated Tourism Portfolio, valued at $145.8 million, is still subject to standard regulatory and contractual consents. Kelsian is working with Journey Beyond to satisfy these conditions and expects the sale process to complete in the first half of FY27.

What did Kelsian Group management say?

Kelsian Group CEO, Graeme Legh said:

SeaLink Rottnest is a profitable standalone, commuter ferry business with a strong brand. Kelsian intends to continue to operate SeaLink Rottnest alongside its other marine ferry operations across Australia, including the Transperth commuter ferry operation in Western Australia, which was not part of the original Tourism Portfolio sale

Having removed SeaLink Rottnest from the transaction perimeter, we are confident we have a compelling case for ACCC approval of the remaining Tourism Portfolio transaction. We continue to expect the sale to complete in 1HFY27.

What’s next for Kelsian Group?

Looking ahead, Kelsian remains focused on finalising the Tourism Portfolio divestment, minus SeaLink Rottnest, as well as maintaining and growing its ferry operations. Keeping SeaLink Rottnest allows Kelsian to further leverage its strong position in marine transport, supporting the group’s broader strategy.

The company will continue to work closely with regulators and partners to achieve all required approvals and deliver value to shareholders through its refreshed portfolio.

Kelsian Group share price snapshot

Over the past 12 months, Kelsian Group shares are flat, slightly trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Kelsian Group updates Tourism Portfolio sale, retains SeaLink Rottnest 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.

The Lovisa Holdings Ltd (ASX: LOV) share price is in focus after the company posted full year revenue of $938.8 million, up 17.6%, and net profit after tax rising 10.7% to $95.6 million.

What did Lovisa Holdings Limited report?

• Total revenue increased 17.6% to $938.8 million
• Comparable store sales rose 2.0%
• EBIT grew 14.1% to $158.2 million
• Net profit after tax climbed 10.7% to $95.6 million
• Operating cash flow up 21.0% to $294.5 million
• Full year dividend increased 11.7% to 86 cents per share

What else do investors need to know?

Lovisa opened 160 new stores during the period, finishing the year with a total of 1,136 stores across more than 50 markets. Store expansion was strongest in Europe, with 76 new stores including 34 in the UK and 20 in Germany.

The company closed 43 underperforming stores and relocated 12, signalling ongoing focus on store profitability and optimisation. Investment continued in technology, supply chain, and global retail operations to support expansion, all fully funded by existing cash flows.

What did Lovisa Holdings management say?

Lovisa’s Global Chief Executive Officer, John Cheston, said:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance. I would like to share my appreciation to the global team for their hard work in delivering these outstanding results and continuing the global momentum of the business.

What’s next for Lovisa Holdings?

Looking ahead to FY27, Lovisa reported a solid start with total sales up 16.4% (on a constant currency basis) and comparable store sales up 3.0% in the first 8 weeks. The company aims to keep expanding its physical and digital presence, supported by a strong balance sheet and steady cash flows.

Management says they remain focused on store rollout momentum, particularly in both established and new markets, with structures in place to drive growth and enhance shareholder returns.

Lovisa Holdings share price snapshot

The Lovisa share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 33%.

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The post Lovisa Holdings FY26 earnings: Profit and sales keep growing appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. 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.