Author: openjargon

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is pushing higher today after the company released a fresh update to the market.

At the time of writing, the Neuren share price is up 6.37% to $13.52.

Let’s take a closer look at what is driving the move.

Sales forecast points higher

According to the release, Neuren confirmed that updated projections for DAYBUE suggest global net sales could reach around US$700 million by 2028.

DAYBUE is approved in the United States for the treatment of Rett syndrome, a rare neurological disorder that mostly affects young girls. It remains the first and only approved treatment for this condition.

Neuren does not sell the drug itself. Instead, it earns royalties from Acadia on sales. That means when sales increase, Neuren receives a larger share of revenue without having to fund manufacturing or marketing.

Recent quarterly updates from Acadia have shown solid growth in DAYBUE sales. Quarterly revenue has exceeded US$100 million, and royalty income to Neuren has continued to increase year over year.

Pipeline adds longer-term potential

While DAYBUE is currently the main source of revenue, Neuren also has another drug candidate in development called NNZ 2591.

This treatment is being studied for several rare childhood neurological disorders, including Phelan McDermid syndrome, Pitt Hopkins syndrome and Angelman syndrome.

Earlier this month, Neuren began a Phase 3 clinical trial in the United States for Phelan McDermid syndrome. Phase 3 studies are typically the final stage before a company seeks regulatory approval.

If successful, NNZ 2591 could open the door to additional commercial products and new royalty streams.

However, it is important to remember that drug development carries significant risk. Clinical trials take time, and outcomes are never guaranteed.

Europe remains a watchpoint

Neuren shares have been volatile in recent weeks.

Earlier this month, challenges emerged in the European approval process for trofinetide, the active ingredient in DAYBUE. That update weighed heavily on the stock, which shed around 25% in a matter of days.

Although the long-term opportunity remains significant, regulatory decisions in major markets such as Europe can have a meaningful impact on sentiment.

Foolish bottom line

The lift in the Neuren share price reflects renewed confidence in the growth outlook for DAYBUE and the strength of the company’s royalty model.

With rising United States sales and a late-stage pipeline advancing through trials, Neuren stands out among ASX biotechnology companies.

That said, shareholders should expect continued volatility. Updates on sales performance, regulatory decisions and clinical trial results are likely to influence the next moves in the share price.

The post Why Neuren shares are jumping more than 6% today appeared first on The Motley Fool Australia.

More reading

• Neuren Pharmaceuticals shares paused ahead of company announcement
• These 2 ASX healthcare shares could jump well over 80%
• Why Neuren shares are edging lower on Thursday
• Neuren Pharmaceuticals unveils on-market buy-back supported by strong cash flows
• These ASX 200 shares could rise 30% to 75%

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Cettire Ltd (ASX: CTT) have fallen more than 18% today. This comes after the online luxury goods retailer posted a net loss for the first half due to weaker sales during what is traditionally its busiest period.

Cettire shares were changing hands for 36.5 cents on Thursday, down 18.9% on the day and well down on the high-water mark over the past 12 months of $1.14.

The company reported sales revenue of $382.8 million, down from $394 million for the previous corresponding period, and a net loss of $1.1 million, down from a $4.7 million profit.

Warning signs

The company also included a “going concern” statement in its financial accounts, warning that its net current asset deficiency – its net current assets versus liabilities, which will fall due within 12 months – was $51.6 million in the red.

The accounts went on to say:

The net current asset deficiency and the net loss after tax for the current period gives rise to a material uncertainty in relation to going concern that may cast significant doubt on the Group’s ability to continue as a going concern and to realise its assets and settle its liabilities in the ordinary course of business. Despite these material uncertainties, the directors have considered the performance and position of the Group and consider that the going concern basis is appropriate.

This view was based on several reasons, including the fact that the company had a net operating cash flow of $37.1 million and cash and cash equivalents of $61.4 million.

US law changes are not helping

Commenting on the first half result, chief executive officer Dean Mintz said it had been a challenging period.

The global luxury market has continued to face headwinds throughout H1-FY26, with persistent inflation pressure and subdued consumer confidence. Despite this backdrop, we have remained focused on executing our plan to grow Cettire’s share of the global personal luxury goods market while remaining self-funding. During the half year, the impact from the removal of the de minimis exemption in the US contributed to ongoing challenges in our largest market. Notwithstanding this, the overall business was broadly stable year on year, supported by strong growth in regions outside of the US, which grew 13% year on year, further diversifying our global business.

The de minimis exemption was a loophole in US customs law that exempted goods valued at less than US$800 from duties and taxes.

Mr Mintz said on an underlying basis, the business had achieved a significant turnaround of more than $20 million in EBITDA, which was also a positive.

Regarding the outlook, the company said the global luxury trade remained uncertain, and its third-quarter gross revenues to date were down 13%, due to less promotional activity this year.

Cettire said it expected full-year sales revenue to be broadly similar to FY25.

The post This luxury ASX retailer’s shares are being slammed after the books sank into the red appeared first on The Motley Fool Australia.

More reading

• ASX retail shares: Experts rate 2 to buy and 2 to sell
• Dressed for success or fashion fail: Is Cettire a buy right now?

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.

We’re currently smack bang in the middle of earnings season on the ASX. Or as I like to call it, dividend season. Whenever a dividend-paying share (which is most shares on the ASX) announces its latest earnings, it also tends to reveal the value of its latest dividend payment. This dynamic makes earnings season an exciting time for dividend investors. Today, we heard from one ASX 200 stock that has revealed a major dividend hike.

That ASX 200 stock is Cleanaway Waste Management Ltd (ASX: CWY).

Cleanaway is, as its name implies, one of the ASX’s largest waste management stocks. It provides an extensive network of waste management services across Australia.

As we covered this morning, this ASX 200 stock reported some pretty impressive numbers for the six months ending 31 December 2025.

Cleanaway revealed that it enjoyed revenues of $1.88 billion over the period, which was a 13% rise over the same period in 2024. Underlying earnings were up 16.9% to $228.2 million, while underlying net profit after tax surged 17.8% to $109.7 million.

Clearly, investors were impressed, seeing as the Cleanaway stock price is currently up a robust 7.92% at $2.59.

But it’s the new Cleanaway dividend that might be the most impressive metric in this earnings report.

This ASX 200 stock just hiked its dividend by 20%

Cleanaway has just revealed that its interim dividend for 2026 will be worth 3.35 cents per share. This is a significant payout for a few reasons. Firstly, it represents a happy 19.6% rise over 2025’s interim dividend, which was worth 2.8 cents per share. It’s also an increase over last year’s final dividend of 3.2 cents per share.

This dividend is also the largest Cleanaway has paid out in almost two decades. Considering the company was a very different beast back in 2008 (the last time Cleanaway paid out a dividend larger than the one announced today), we could arguably say this is the ASX 200 stock’s largest-ever dividend.

Cleanaway’s latest payout will be fully franked. It represents a payout ratio of 68.4% of Cleanaway’s underlying profits.

Cleanaway shares will trade ex-dividend on 11 March for this payment. The dividend will then land in eligible shareholders’ bank accounts on 16 April.

Today, Cleanaway shares are trading at a trailing dividend yield of 2.32% (at the time of writing). However, this new dividend means we can now give this ASX 200 stock a forward dividend yield of 2.53%.

The post This ASX 200 stock just boosted its dividend by 20% appeared first on The Motley Fool Australia.

More reading

• Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance
• This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away?

Motley Fool contributor Sebastian Bowen 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.

The S&P/ASX 200 Index (ASX: XJO) is on form again on Thursday and charging higher. In afternoon trade, the benchmark index is up 0.6% to 9,182.2 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Accent Group Ltd (ASX: AX1)

The Accent share price is up a further 13% to $1.13. Investors have been scrambling to buy this footwear retailer’s shares this week following the release of its half-year results. The Platypus and HypeDC owner reported a 2.4% increase in sales to $865.2 million and a net profit after tax of $28.1 million. Accent’s board elected to declare a 3.25 cents per share fully franked dividend for the half. Another positive was that it has “successfully opened the first Sports Direct store and website with pleasing early trade.” In response, Morgans upgraded its shares to a buy rating with a $1.30 price target.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 10% to $3.73. This has been driven by news that the counter-drone technology company has won a series of contracts from a reseller to Western military customers. The package of six contracts has a total value of $21.7 million and covers dismounted counter-drone systems, spares, and software. Delivery is expected to take place during the first quarter of 2026. It notes that over the past seven years, prior to this contract, DroneShield had received 39 contracts from this reseller totalling over $17.8 million.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up 14% to $5.23. Investors have been buying the heavily shorted language testing and student placement company’s shares following the release of its half-year results. For the first half, revenue declined 6% to $462.2 million as lower student placement and language testing volumes weighed on performance. Things were worse for its net profit after tax, which declined 25% to $48.6 million. However, management has lifted its FY 2026 adjusted EBIT guidance to a range of $120 million to $130 million. This is up from its prior guidance of $115 million to $125 million.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is up 6% to $3.17. This has been driven by the release of the Chemist Warehouse owner’s half-year results. The company reported a 14.9% increase in revenue to $5.5 billion, with Chemist Warehouse branded store sales in Australia growing 17.2% to reach $5.1 billion. On the bottom line, Sigma recorded a 19.2% increase in normalised net profit after tax to $392 million. Sigma’s CEO and managing director, Vikesh Ramsunder, said: “Our first half performance reinforces the strength of Sigma. As an integrated healthcare business we see long-term opportunities for growth, headlined by sustained performance across our core domestic market, led by CW branded stores. This has continued to be a consistent feature of the CW business over the past two decades.”

The post Why Accent Group, DroneShield, IDP Education, and Sigma shares are jumping today appeared first on The Motley Fool Australia.

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• Why are Droneshield shares flying 8% higher today?
• IDP Education shares surge 12% on upgraded FY26 guidance
• Sigma shares jump 7% on results and Chemist Warehouse expansion
• DroneShield wins $21.7m in western military contracts
• Sigma Healthcare shares: 1H26 profit and sales leap

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

S&P/ASX All Ords Index (ASX: XAO) shares are 0.6% higher at 9,415 points as earnings season continues on Thursday.

The ASX All Ords reached a new record of 9,436.1 points in earlier trading.

However, this rising market tide is not lifting all boats.

The following three ASX All Ords shares hit new 52-week lows this week.

Experts say they are a buying opportunity.

Here’s why.

Insurance Australia Group Ltd (ASX: IAG)

This ASX All Ords financial share hit a 52-week low of $6.57 this week.

The IAG share price has fallen 15% over 12 months.

After poring over the insurance giant’s 1H FY26 report, Jefferies maintained its buy rating on IAG shares.

The broker has a 12-month price target of $9.20, suggesting a possible 40% capital gain over the next year.

Seek Ltd (ASX: SEK)

This ASX All Ords communications share tumbled to a 52-week low of $15.63 this week.

The Seek share price has fallen 31% over 12 months.

After reviewing the company’s 1H FY26 report, Morgans upgraded Seek shares to a buy rating.

Morgans said:

SEK’s 1H26 result was largely as per expectations with net revenue (+12% on pcp), Adjusted EBITDA (+19% on pcp) and adjusted NPAT (+35% on pcp) all broadly in line with Visible Alpha consensus and MorgansF.

We make only marginal adjustments to our forecasts taking into account the updated guidance.

The broker added that Seek “still many questions to answer on the AI threat”.

Morgans kept its 12-month share price target at $27.50.

This implies an attractive potential upside of 75% over the next year.

Suncorp Group Ltd (ASX: SUN)

Fellow insurance giant Suncorp also fell to a 52-week low this week.

The ASX All Ords financial share reached a low of $14.21 on Tuesday.

The Suncorp share price has declined by 27% over 12 months.

Morgans maintained its accumulate rating after seeing Suncorp’s 1H FY26 numbers.

The broker said:

SUN’s 1H26 NPAT (A$263m) was well down on the pcp ($1.1bn) due to bad weather, but it was only -2% below consensus ($268m).

Overall, we saw this as a reasonable result, albeit similar to key peer IAG, SUN did deliver a mild downgrade to FY26 top-line growth guidance.

We make relatively nominal changes to our SUN FY26F/FY27F EPS of -2%/+1% on a review of our earnings assumptions.

The broker slashed its 12-month share price target on Suncorp from $19.28 to $17.01.

This still suggests a possible 20% upside over the next year.

The post Experts say IAG shares and 2 other stocks are buys at 52-week lows this week appeared first on The Motley Fool Australia.

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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 positions in and has recommended Jefferies Financial Group. 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.

Both Helloworld Travel Ltd (ASX: HLO) and Flight Centre Travel Group Ltd (ASX: FLT) delivered solid first-half results this week, but the real question is, are the stocks worth buying at current levels?

We’ve had a look at the broker reports, and the good news is that the shares in each company look like a good buy at the moment, at least according to the brokers we’ve checked in with.

So let’s look a bit closer at what they’re saying.

Helloworld Travel

This company reported its first-half results this week and said that its total transaction volume came in at $2.1 billion, “with strong forward bookings for the remainder of FY26 and well into FY27”.

The company said it was on track to achieve its full-year guidance, and the underlying EBITDA for the half of $30.5 million was up 12.1% on the previous corresponding period.

Chief Executive Officer Andrew Burnes said it was a “solid performance in the first half, underpinned by continued investment in the business”.

He added:

We progressed the expansion of our retail networks, our technology offering and wholesale product range, while further strengthening our core capabilities in air ticketing and consolidation. Helloworld remains the largest network of independent travel agents and brokers across Australia and New Zealand. We continue to leverage our scale, industry expertise and strong partner relationships to drive sustainable long‑term growth.

The team at Shaw & Partners ran the ruler over the Helloworld result and likes what they see. They have a $2.80 per share price target on the company, compared with $1.79 currently, and reminded their clients that the company also pays a dividend yield of 6.3%.

Flight Centre Travel Group

This company is more than 10 times the size of the former, but the growth story is much the same.

Flight Centre this week reported an underlying profit before tax of $125 million, “above expectations”, on revenue of $1.411 billion, up 6%.

Flight Centre said the expectation had been for a “broadly flat” profit, and it had surpassed this “comfortably”.

The company’s total transaction value hit a record $12.5 billion, up 7%, and it had a record-low cost margin of 9.6%, “reflecting disciplined cost management and productivity gains”.

Interestingly, the company also said it was investing in artificial intelligence, which is seen as a major driver for the business going forward.

The team at Canaccord Genuity had a look at this week’s result and has maintained its price target of $16 on Flight Centre shares, compared with $12.66 currently.

The analysts said this week’s results were “modestly stronger” than expected and that the company can hit its targets for the second half.

The team over at Macquarie have an even more bullish price target of $17.95 for Flight Centre shares.

The Macquarie team said the company was “well on track to deliver FY26 guidance, with solid total transaction volume growth across both segments”.

They added:

Valuation (is) attractive, and we see material upside to the current share price over a 12-month view.

The post Brokers think these two travel shares could take off appeared first on The Motley Fool Australia.

More reading

• Why Domino’s, Flight Centre, Mader, and Paragon Care shares are falling today
• After a solid profit result, brokers say Flight Centre shares are looking cheap
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• Analysts say these ASX dividend shares are buys for income investors

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in BlueScope Steel Ltd (ASX: BSL) have fallen after the company’s board again rebuffed a takeover offer from SGH Ltd (ASX: SGH) and Steel Dynamics Inc (NASDAQ: STLD).

The takeover consortium initially launched the conditional bid for BlueScope in January at $30 per share, which was quickly rejected by the BlueScope board as too low.

The consortium came back with a revised bid for BlueScope on February 18, offering $32.35 per share, which was, they argued, equivalent to $34 per share once BlueScope’s interim and special dividends were added back in.

Bid still too low

The board on Thursday responded to the revised offer, saying it was really only worth $31 per share, given that it planned to pay shareholders $1.65 per share plus another $1.35 in distributions.

The board added:

On this basis, the board has assessed that the scheme consideration would be only $31 per share given that no transaction with the consortium could be completed prior to the payment of the further distributions already announced by BlueScope. If a transaction completed in calendar year 2027, that would cause a further reduction in the offer price below $31 per share.

The board said in its statement that it stood by comments made prior to the increased bid being offered, that the proposal “significantly undervalued the company”.

It added:

The board maintains its view on the fundamental value of BlueScope. The revised proposal does not adequately address our valuation concerns. Consequently the offer price is not sufficient for the board to recommend a scheme of arrangement to its shareholders.

Value could be increased

The board said that despite the revised bid being a “best and final” offer, “we consider that there are various ways to increase the vale that BlueScope shareholders could receive”.

They added:

The board remains open to a transaction at a price that reflects the fair value of BlueScope.

The board said they were happy to look at the assumptions made in the financial modelling of the proposed acquirers and provide feedback.

The board of BlueScope also said there were onerous conditions to the proposed takeover, one of which was the requirement for “hard” exclusivity, meaning BlueScope could not engage with other potential bidders.

They also considered it onerous that the bidders wanted a unanimous recommendation from the board in favour of the bid before due diligence had started.

BlueScope shares were trading lower on Thursday, down 3.1% at $27.50. The company was valued at $12.4 billion at Wednesday’s close.

The post BlueScope shares on the slide as takeover again rebuffed appeared first on The Motley Fool Australia.

More reading

• SGH Ltd confirms $32.35 per share BlueScope bid
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• Is there more to come from BlueScope shares after 34% jump?

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 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.

The Karoon Energy Ltd (ASX: KAR) share price is sinking on Thursday following the release of the company’s full-year results.

In early afternoon trade, the oil and gas producer’s shares are down 4.28% to $1.565.

Let’s take a closer look at what was reported for the year ended 31 December 2025.

Profit eases as oil price softens

Karoon generated sales revenue of US$628.6 million in 2025, down from US$776.5 million in the prior year. The decline reflected lower realised oil prices and slightly lower sales volumes.

Underlying EBITDAX came in at US$388.8 million, down 21% year on year.

Underlying net profit after tax (NPAT) was US$107.5 million, compared with US$214 million in 2024. Statutory NPAT was US$125.5 million.

Despite the earnings decline, unit production costs improved. On a net working interest basis, costs fell 3% to US$13.20 per barrel of oil equivalent (boe).

Production steady, efficiency improves

Total production for the year was 10.3 million boe, broadly in line with 2024.

The Bauna Project in Brazil contributed 7.7 million barrels of oil equivalent (MMboe), while Who Dat in the US delivered 2.6 MMboe.

Bauna FPSO efficiency improved to 95.1%, up from 84.5% in 2024. During the year, Karoon completed the acquisition of the Bauna FPSO.

At Who Dat, production remained in line with expectations, with the E6ST sidetrack brought online in the fourth quarter.

Reserves also increased. Proved and probable reserves rose 7% to 72.8 MMboe, while 2C contingent resources increased 34% to 163 MMboe.

Strong cash flow and balance sheet

Karoon reported operating cash flow of US$251.4 million.

Liquidity at 31 December 2025 stood at US$546.1 million, including US$206.1 million in cash and access to its reserves-based lending facility.

Net debt at year end was US$143.9 million.

During the year, the company returned US$80.4 million to shareholders through dividends and share buybacks.

The board declared a final dividend of 3.1 cents per share, fully franked. This brings the total 2025 dividends to 5.5 cents per share.

Shares will trade ex-dividend on 5 March 2026, and payment is scheduled for 31 March 2026.

2026 expected to be a transition year

Karoon expects total production in 2026 to be between 8.1 and 9.2 MMboe.

Guidance reflects planned investment and maintenance activities in the first half, which management has described as a year of two halves.

Unit production costs are forecast at US$12 to US$15 per boe.

Total capital expenditure is expected to range between US$110 million and US$135 million.

Management said planned investment and maintenance work will reduce production in the first half of 2026. Higher output is expected in the second half, subject to oil prices and how smoothly operations run.

The post Why the Karoon Energy share price is falling today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence might grab headlines for disrupting software and productivity, but the real-world buildout is happening in concrete, cables, switchboards, and server racks.

As hyperscalers expand data centres and governments invest in electrification and transport upgrades, billions of dollars are flowing into the physical backbone that powers AI. For investors, that opens the door to companies that build and wire the infrastructure rather than design the software.

Here are three ASX-listed ideas exposed to that trend.

Southern Cross Electrical Engineering 

Southern Cross Electrical Engineering Ltd (ASX: SXE) is an electrical, instrumentation, and communications services provider with exposure to infrastructure, resources, energy, and increasingly, data centres.

In December, the company announced it had secured approximately $90 million in new contracts across data centres and rail. That included works at DigiCo Infrastructure REIT (ASX: DGT)’s SYD1 data centre project in Sydney’s inner west, where the facility is being expanded with additional levels and increased power capacity.

The company’s subsidiary, Heyday, was awarded design and construct works for low-voltage switchboards, busways, generators, UPS systems, and general power systems. On the rail side, Southern Cross secured electrical and communications works linked to Sydney Metro’s St Marys Station Project.

As data centres scale up to handle AI workloads and transport infrastructure modernises, companies like Southern Cross are directly involved in delivering the power and systems that make it all work.

SKS Technologies 

SKS Technologies Group Ltd (ASX: SKS) is another contractor positioned at the heart of the digital infrastructure buildout.

The company provides structured cabling, audiovisual, electrical, and communication solutions, with a growing footprint in data centres. While it is smaller than some industrial peers, its exposure to mission-critical infrastructure projects makes it a leveraged play on data centre expansion.

As AI models become more complex, demand for high-performance computing infrastructure continues to rise. That means more server rooms, more connectivity, and more integrated systems. Contractors like SKS sit at the implementation layer, helping deliver the physical networks and environments that support these facilities.

Rather than betting on which AI platform dominates, SKS offers exposure to the broader theme: more data, more processing power, and more infrastructure to house it.

Global AI Infrastructure ETF 

For investors seeking diversified exposure, the Global X AI Infrastructure ETF (ASX: AINF) provides a different angle.

The ETF is designed to track companies globally that build and enable AI infrastructure. That can include data centre operators, semiconductor manufacturers, networking hardware providers, and power and cooling specialists.

Instead of selecting individual stocks, AINF spreads exposure across the ecosystem supporting AI’s growth. That may help reduce single-company risk while still capturing the broader structural theme.

As global investment in AI infrastructure accelerates, including new data centres and upgrades to energy and grid capacity, the ETF offers a way to participate in that buildout through a single ASX-listed vehicle.

The Foolish big picture

AI and electrification are not overnight stories. They are multi-year, potentially multi-decade shifts that require vast physical infrastructure.

While software companies may capture much of the attention, the engineering firms installing switchboards and cabling, and the global suppliers of servers and semiconductors, are integral to the process.

Of course, project-based businesses can face margin pressure and cyclical swings, and thematic ETFs can be volatile. Still, as capital continues flowing into data centres and grid upgrades, investors may keep a close eye on who is being paid to build the backbone of the AI age.

The post 3 ASX shares riding the AI infrastructure buildout 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 Sks Technologies Group and Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Ridley Corporation Ltd (ASX: RIC) have jumped more than 18% after the company reported a large increase in first-half net profit and revenue.

In a statement to the ASX on Thursday, the company said revenue had increased 55.8% to $1.026 billion, while net profit was up 137.4% to $52.7 million.

Shareholders rewarded

Ridley also boosted its interim dividend, paying 5.1 cents per share for the first half, up from 4.75 cents for the same period the previous year.

Earnings per share for the company jumped from 6.7 cents for the first half of FY25 to 14 cents per share for the most recent half.

Breaking the result down by divisions, Ridley said the bulk stock feeds division contributed EBITDA of $27.1 million, up 24.8% on the previous corresponding period.

The company added:

The increase in segment earnings was driven by improved volumes across the majority of monogastric and ruminant species. Volumes sold in the dairy, beef and sheep sectors improved compared to the previous corresponding period, and poultry volumes were higher on a ‘like-for-like’ basis after adjusting for the impact of the lost Wasleys volumes following the sale of that plant in June FY25. Procurement margins also improved, as a result of buying strategies across the network. Improved efficiency was experienced across our manufacturing sites, supported by de bottlenecking projects completed in recent years.

The packaged feeds and ingredients division contributed EBITDA of $25.6 million, which was a 28.5% decline.

Ridley said this was driven by lower commodity prices for key ingredient recovery products such as meals, oils, and tallow.

The Incitec Pivot Fertilisers Distribution (IPF) business was acquired by Ridley on September 30, and contributed $10.3 million in earnings from that date.

The company added:

The contribution relates to what is seasonally a low demand quarter. The contribution of $10.3m compares with $8.6m1 (for the adjusted distribution business under previous ownership) in the previous corresponding period, despite lower sales volumes. The business continues to focus on margin management and cost control, which were the key drivers of the improved operating result.

Books looking solid

Ridley said its balance sheet remained strong.

Despite the acquisition of IPF (net assets acquired of $489.5m), the net debt only increased by $321.2m in the six month period, with the business benefitting from an improvement in working capital, adjusted by the increase in dividends, capex, tax and interest, primarily associated with the acquisition. The strong cashflow and debt position has supported the proposed increase in the interim dividend to 5.10 cps, fully franked.

On the outlook, the company said it would provide more details in early March; however, it expected earnings growth to be driven by a full contribution from the IPF business, increased market share and volume-related efficiency in the bulk stock feeds division, and processing improvements in the packaged feeds and ingredients division.

Ridley Corporation shares were 18.3% higher in early trade at $2.91. The company was valued at $922 million at Wednesday’s close.

The post Which rural products company’s shares are up almost 20% on solid results? 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.