Author: openjargon

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.

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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 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.

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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 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.

Droneshield Ltd (ASX: DRO) shares are soaring in morning trade on Thursday. At the time of writing, the drone operator’s stock is up 8.26% to $3.67 a piece. The increase comes on the back of a new contract announcement out of the company, posted ahead of the ASX opening this morning.

The latest uptick means the shares have climbed 9.31% year to date and are now a huge 328.24% higher than this time last year.

What did Droneshield report this morning?

In a note to the ASX, Droneshield announced that it has secured six standalone contracts, valued at $21.7 million, via an in-country reseller for delivery to a Western military end customer. 

The contracts are for the supply of dismounted counter-drone systems, spare kits, and software subscriptions. 

The company said that all items are readily available from its existing inventory and that delivery is expected in the first quarter of 2026, with payment expected in the second quarter of 2026. 

Droneshield confirmed that the reseller is a wholly owned subsidiary of a multi-billion-dollar, publicly listed, global company that is required to distribute the products to the end customer. 

Over the past seven years, prior to this contract, DroneShield has received 39 contracts from this reseller, totalling over $17.8 million. There are no obligations for any additional contracts from this reseller or end customer.

What’s next for the defence stock this year?

The news comes on the back of the company’s full-year earnings results for FY25, which it posted yesterday. It announced an impressive 276% revenue uplift for the 12 months to 31st December, and its EBITDA came in at $4.5 million, up from a loss of $8.6 million in 2024. 

In its announcement yesterday, the company said it has a $2.3 billion sales pipeline, up 92% from the last 12 months.

DroneShield also said it is scaling up its production capacity from $500 million a year in 2025 to $2.4 billion by the end of 2026, via new facilities in Australia, the United States, and Europe.

What do analysts think of Droneshield shares?

According to TradingView data, analysts currently have a consensus strong buy rating on Droneshield shares. They also agree on a target price of $5 a piece over the next 12 months. That implies a 36.99% upside for investors at the time of writing.

The post Why are Droneshield shares flying 8% higher today? 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 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.

Qantas Airways Ltd (ASX: QAN) shares are losing altitude on Thursday.

At the time of writing, the airline operator’s shares are down almost 6% to $10.04.

Why are Qantas shares falling?

Investors have been selling the Flying Kangaroo’s shares this morning after it released its half-year results.

According to the release, Qantas delivered a 6.3% increase in revenue to $12.9 billion for the six months.

This was driven by a 5% increase in Qantas Domestic revenue to $4.2 billion, a 5% lift in Qantas International (including Freight) revenue to $4.9 billion, an 8% increase in Jetstar Group revenue to $3.1 billion, and a 19% jump in Qantas Loyalty revenue to $1.4 billion.

On the bottom line, the company recorded a 5.1% increase in underlying profit before tax to $1,456 million. This was around 2% ahead of consensus estimates.

This has allowed the Qantas board to declare a fully franked interim base dividend of 19.8 cents per share. This is a return of $300 million and represents a 20% increase on the prior corresponding period.

But the returns won’t stop there. The company intends to undertake an on-market share buyback of up to $150 million.

Management commentary

Qantas Group’s CEO, Vanessa Hudson, was pleased with the half. She said:

By consistently delivering strong earnings growth we’re able to continue investing in the largest fleet renewal in our history. We’re already seeing the benefits from the next generation aircraft that are flying, which along with strong demand, our dual brand strategy and expanding Loyalty business, helped us deliver another strong result. These new aircraft are not only improving the experience for our customers and opening up new opportunities for our people, they’re also helping drive our financial performance.

Around 60 per cent of Jetstar’s increase in profitability in the half was driven by its new aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes. This gives us confidence in the benefits that will flow once Qantas’ new aircraft reach scale. We’ve already started to see an acceleration in deliveries for Qantas, with six new aircraft arriving in the half and a further 30 arriving over the next 18 months.

Outlook

Qantas expects strong travel demand across the portfolio in the second half. However, it warns that the evolving economic environment in the US will continue to be monitored.

Group Domestic unit revenue is expected to increase by approximately 3% in the second half compared to the previous year. While Group International unit revenue is expected to increase by 1-3 per cent. This is inclusive of higher capacity mix from Qantas International.

The post Qantas shares tumble 6% despite first-half earnings beat 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.

What a week it is turning out to be for the S&P/ASX 200 Index (ASX: XJO) and ASX 200 shares. Fresh from minting yesterday’s all-time high of 9,130.3 points, investors have decided the new high wasn’t good enough.

After closing at 9,128.3 points yesterday afternoon, the index quickly climbed as high as 9,202.9 points soon after market open this morning. That’s obviously a new record.

At the time of writing, investors have pulled back a little, but the ASX 200 remains up a comfortable 0.4% at 9,165 points.

This latest rise puts the index up 2.5% over just the past month, up a healthy 5% since the start of 2026, and up 11.3% over the past 12 months.

In yesterday’s coverage of that session’s all-time high, we looked at the ASX 200 shares that were largely responsible for pushing the index to its new record. It’s only fair that we do the same today.

Which ASX 200 shares are pushing the index to its record high?

Well, at first glance, it seems the market isn’t getting any help from the major bank stocks. In stark contrast to yesterday’s high, all four of the major banks are going backwards this Thursday. National Australia Bank Ltd (ASX: NAB) is leading the charge with its 1%-plus decline. But Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have also both dropped by more than 0.5% at present.

As the big four banks collectively make up about a quarter of the ASX 200’s weighting, this is a big deal, and it tells us that other major ASX 200 constituents are making up the difference and more.

We don’t have to look too far to find those other major ASX 200 constituents. Mining shares are on fire today. Take the ASX 200’s largest single stock, BHP Group Ltd (ASX: BHP). BHP shares are having another cracker today, currently up a massive 2.8% at $58.10 after hitting their own new record high of $58.29 this morning.

BHP alone accounts for almost 11% of the entire ASX 200 portfolio, so investors largely have the Big Australian to thank for today’s latest index record.

Although BHP’s fellow miner, Rio Tinto Ltd (ASX: RIO), doesn’t quite have that level of index sway, its 3.65% surge today thus far wouldn’t be hurting either. Yep, Rio has also minted a new high of its own this session, topping out at $169.50 a share this morning.

So while yesterday’s new ASX 200 record was a joint effort between the banks and miners, today’s is a one-sector show.

The post 9,200 points: ASX 200 hits fresh new record high appeared first on The Motley Fool Australia.

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

The Objective Corporation Ltd (ASX: OCL) share price is in focus after the company posted a 9% lift in revenue to $66.7 million and a 10% increase in net profit after tax, reaching $18.7 million for the first half of FY2026.

What did Objective Corporation report?

• Group revenue rose 9% to $66.7 million
• Adjusted EBITDA increased 11% to $25.9 million
• Net profit after tax was up 10% to $18.7 million
• Annualised recurring revenue (ARR) grew 12% to $120 million
• Operating cash flow rose to $21.7 million, up from $12.6 million in 1HY2025
• Interim unfranked dividend of 13 cents per share declared

What else do investors need to know?

The company continued its strong investment in research and development, spending $16.6 million in the half—equivalent to 28% of software revenue. Over half of this, $8.7 million, was capitalised to support long-term product innovation.

Objective finished the period with a healthy cash balance of $95.1 million and no external borrowings, highlighting a robust balance sheet. The acquisition and full integration of Isovist during the half supported growth in the Planning and Building business line, which posted a 39% increase in revenue.

What did Objective Corporation management say?

CEO Tony Walls commented:

Through 1HY2026 we have built a solid foundation for the remainder of the year, and well into FY2027. While acknowledging there is work yet to do, we approach the second half with confidence. We will continue investment to support the strong momentum in each of our lines of business while delivering strong profit and cash flow margins, to sustain the flywheel of Innovation that underpins our long-term business success. For FY2026, we expect ARR growth to be in the range of 10-14%, on a constant currency basis, recognising that Objective Build in Australia will most likely contribute modestly this year, but provide a strong platform for FY2027. We continue to invest in-line with our internal growth target of 15% annual ARR growth.

What’s next for Objective Corporation?

Objective expects annualised recurring revenue growth between 10% and 14% in FY2026. The company is focusing on increasing its investment in go-to-market capability and further deepening its domain expertise to drive sales growth across its core business areas.

Ongoing investment in both organic development and strategic M&A is part of the company’s plan to build on recent momentum and deliver sustainable returns to shareholders. Management remains optimistic about achieving its 15% annual ARR growth target over time.

Objective Corporation share price snapshot

Over the past 12 months, Objective Corporation shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Objective Corporation 1H FY26: profit climbs, dividend declared 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 positions in and has recommended Objective. The Motley Fool Australia has positions in and has recommended Objective. 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 Monash IVF Group Ltd (ASX: MVF) share price is tumbling in early morning trade on Thursday. At the time of writing, the shares are down 6.88% The latest price movement follows the company’s half-year results, which it posted ahead of the ASX open this morning.

This morning’s decrease means the stock is now 14.4% lower for the year to date and down 45.13% over the year.

What did Monash IVF report?

Here’s what the specialist assisted reproductive services provider posted for the six months ending 31st December 2025:

• Revenue down 1.8% to $137.9 million
• Underlying EBITDA down 15.3% to $30.2 million
• Underlying EBIT down 27.5% to $17.5 million
• Underlying NPAT down 34% to $10.4 million
• Fully-franked dividend of 1.2 cents per share

What happened in the first half of FY26?

Monash IVF Group has announced a group revenue of $137.9 million for the first half of FY26, down 1.8% from the prior corresponding period (pcp). The company said the decrease was largely driven by industry softness and domestic IVF market-share loss, and occurred despite consistent IVF pricing across key states. 

Revenue was also partly offset by price growth and an increase in international revenue.

The company’s underlying EBITDA dropped 15.3% to $30.2 million, and its underlying EBIT declined 27.5% to $17.5 million. This was largely driven by a 2.5% decline in market share. Domestic and international EBITDA dragged on the results. 

Monash IVF’s underlying net profit of $10.4 million was down 34% for the first half of the financial year, aligning with previous guidance. 

The board has declared a fully-franked interim dividend of 1.2 cents per share for investors. 

What else did Monash IVF report?

The company confirmed that its recruitment process for a new Chief Financial Officer is still underway and progressing well. The board expects to provide a further market update once an appointment has been finalised. Malik Jainudeen will continue in his role as Chief Financial Officer during this transition period to ensure continuity and stability.

What’s ahead for the company this year?

Looking ahead, Monash IVF anticipates underlying net profit of approximately $20 million for FY26. 

Capital expenditure for the full year is anticipated to be $16 to $17 million, noting the completion of the new clinical infrastructure program during Q4 FY26.

Net debt at 30 June 2026 is expected to be approximately $95 million, and a net leverage ratio of 2.0x, which is well below banking covenant requirements of below 3.5x.

The post Monash IVF shares tumble 7% off the back of its half-year results 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 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.