Author: openjargon

The Cleanaway Waste Management Ltd (ASX: CWY) share price is in focus after the company reported a 13.0% increase in net revenue to $1,875.3 million and a 16.9% rise in underlying EBIT to $228.2 million for the half-year ended 31 December 2025.

What did Cleanaway Waste Management report?

• Net revenue up 13.0% to $1,875.3 million
• Underlying EBIT up 16.9% to $228.2 million
• Underlying net profit after tax up 17.8% to $109.7 million
• Underlying EBIT margin improved by 40 basis points to 12.2%
• Interim fully franked dividend of 3.35 cents per share, up 19.6%
• Statutory EBIT down 21.2% to $137.2 million due to significant one-off items

What else do investors need to know?

The company’s upgraded FY26 underlying EBIT guidance, now expected between $480 million and $500 million, reflects strong operational momentum and early integration benefits from the Contract Resources acquisition. The Solid Waste Services segment delivered earnings and margin growth, supported by robust price discipline, labour productivity improvements, and lower fleet costs.

Cleanaway rolled out advanced AI pedestrian detection technology and in-vehicle monitoring systems across its fleet, furthering its focus on health, safety, and efficiency. The company maintained its capital expenditure guidance and remains on track with key projects, including integrating recent acquisitions.

What did Cleanaway Waste Management management say?

Cleanaway CEO & Managing Director Mark Schubert said:

We are pleased to upgrade our FY26 underlying EBIT guidance to between $480 million and $500 million following a robust first-half and outlook. This upgrade to guidance demonstrates both the underlying strength of our business and the delivery on commitments we have made to shareholders to build a stronger, more profitable business. Our core solid waste business delivered earnings growth and margin expansion. Price increases, strong contract management, improved labour productivity and lower fleet costs drove the result. The period included a five-month contribution from Contract Resources that exceeded our expectations. Having built positive momentum in the first half, we are confident that earnings and free cash flow will accelerate in the second half.

What’s next for Cleanaway Waste Management?

Looking ahead, Cleanaway expects positive earnings growth in the second half of FY26, driven by organic volume and price growth, benefits from recent acquisitions, and the first phase of indirect cost reduction. The company will continue to focus on strategy execution, efficiency improvements, and synergy delivery from acquisitions. An investor strategy briefing is planned for April 2026, with the aim of sustaining free cash flow growth and returns through 2030.

Cleanaway Waste Management share price snapshot

Over the past 12 months, Cleanaway Waste Management shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance appeared first on The Motley Fool Australia.

More reading

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• Elders sells Killara Feedlot in $195.8m deal
• Super Retail Group lifts sales, grows club members in 1H26 earnings
• Perpetual posts higher earnings and tight cost control for 1H26

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.

Shares in IDP Education Ltd (ASX: IEL) have surged 12% on Thursday (at the time of writing) after the international education provider upgraded its FY26 earnings guidance, signalling confidence in its transformation strategy despite ongoing pressure in global student markets.

The rally comes even as student placement volumes remain under strain across key international markets.

What did IDP report?

For the half-year ended 31 December 2025, revenue declined 6% to $462.2 million as lower student placement and language testing volumes weighed on performance.

Student Placement volumes fell 25%, while English Language Testing volumes were down 7%. However, IDP Education continued to drive strong yield growth, with Student Placement yield up 15% and Language Testing yield up 8%.

Adjusted EBIT came in at $87.5 million, down 14% year on year, while adjusted NPAT declined 25% to $48.6 million. Statutory NPAT fell 65% to $23.5 million.

The board declared an interim dividend of 3 cents per share.

So why are shares up on the news?

The key positive was upgraded guidance.

IDP Education lifted FY26 adjusted EBIT guidance to a range of $120 million to $130 million, up from its prior $115 million to $125 million forecast.

Management remains on track to deliver a $25 million net reduction in the cost base in FY26 as part of its transformation program. Direct costs were down 6% and adjusted overhead costs fell 2% in the half, reflecting headcount reductions and tighter spending discipline.

Cash conversion remained solid at 59%, and net leverage stood at 2.5x (2.0x on a borrower group basis), comfortably within covenant limits.

Importantly, revenue outperformed volume declines, reflecting a shift toward profitable growth and higher-value placements.

What did management say?

CEO Tennealle O’Shannessy said the company continues to execute strongly on its transformation agenda while reinforcing its position as a trusted partner for students and institutions.

She highlighted the acceleration of digital and AI-enabled tools to improve conversion, productivity, and student outcomes.

What’s next for IDP?

IDP Education expects FY26 market volumes to decline 20% to 30% versus FY25, assuming no further policy changes in major international markets.

Whether that is the correct assumption for investors to make is hard to tell because student migration policy changes remain a core risk for IDP Education. Governments in Australia, Canada, the UK, and the US are likely to continue to adjust visa and immigration settings, creating ongoing uncertainty.

However, the upgraded guidance suggests management believes cost control, yield growth, and operational improvements can offset much of the volume pressure.

Notably, despite today’s sharp rebound, IDP shares are still down roughly 80% over the past five years, reflecting persistent investor concerns around tightening visa policies and international student migration.

Today’s share price reaction, however, indicates investors may be reassessing whether the worst of the earnings reset has already been priced in.

The post IDP Education shares surge 12% on upgraded FY26 guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

Sigma Healthcare Ltd (ASX: SIG) shares are having a strong start to the day.

In morning trade, the Chemist Warehouse owner’s shares are up 7% to $3.20.

This follows the release of another strong half-year result from the retail pharmacy franchisor and pharmaceutical wholesaler and distributor.

Sigma shares jump on results day

For the six months ended 31 December, Sigma delivered strong financial performance, continued expansion of the Chemist Warehouse (CW) branded network in both domestic and international markets, and solid progress on its integration and synergy delivery.

The company posted a 14.9% increase in revenue to $5.5 billion, with CW branded store sales in Australia growing 17.2% to reach $5.1 billion. Management notes that it benefitted from an expanding network and strong customer engagement.

Like-for-like sales across the CW branded store network were up 15%, which management believes demonstrates a pharmacy model and value proposition that continues to resonate with customers.

In addition, it notes that total sales also benefited from the structural uplift from the sale of GLP-1 class of medicines like Ozempic and Mounjaro and the strategic decision to distribute online orders directly from stores.

Thanks to a combination of operating leverage, synergy benefits, and product mix, Sigma recorded a 34 basis points increase in its normalised EBIT margin.

This ultimately led to the company posting a 19.2% increase in normalised net profit after tax to $392 million.

In light of this, a 2 cents per share fully franked interim dividend was declared.

Management commentary

The company’s CEO and managing director, Vikesh Ramsunder, was pleased with the half. He 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.

CW branded store sales in Australia grew 17.2% for the half to reach $5.1 billion, benefiting from an expanding network and strong customer engagement. LFL sales across the CW branded store network were up 15.0%, demonstrating a pharmacy model and value proposition that continues to resonate with customers. Total sales also benefited from the structural uplift delivered from the sale of GLP-1 class of medicines and the strategic decision to distribute online orders directly from stores.

Outlook

Sigma has started the second half positively. It revealed that year to date trading, including the first seven weeks of the second half, has seen growth momentum continue.

During this period, Australian CW branded store sales are up 16.6% and like for like sales are up 14.4%. Growth in its international retail network continues.

The post Sigma shares jump 7% on results and Chemist Warehouse expansion 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.

I like to regularly invest and build my portfolio, and a significant portion of my portfolio is ASX dividend stocks.

I’m investing in businesses that I think can generate strong total shareholder returns (TSR) – that’s the combination of dividend payments and the capital growth combined.

A growing business can provide rising payments because it’s the profit that funds the dividend payments, in accounting terms. A business I’ve recently invested in is MFF Capital Investments Ltd (ASX: MFF).

It’s not the first time I’ve invested in this ASX dividend stock and it won’t be the last. Additionally, Chris Mackay, the leader of the business, recently bought shares too. I think it’s a good buy signal for us when Mackay (a very skilled investor) decides to buy MFF shares, suggesting the business is good value.

Strong ASX dividend stock credentials

The business has a great history of strong dividend growth over the last several years. Its regular annual dividend per share has increased each year since 2018, which I think is an impressive record.

But, it’s not just the fact that the dividend has been rising. It has been soaring higher.

In the last several results, it has increased its annual dividend per share by 1 cent compared to the result six months before (and a 2-cent per share increase year-over-year).

In the FY26 half-year result, MFF grew its half-year payout to 10 cents per share (a 25% increase year-over-year).

The ASX dividend stock is expecting to increase its FY26 final dividend per share to 11 cents per share, a year-over-year increase of 22%.

That means the FY26 annual dividend translates into a potential grossed-up dividend yield of 6.3% (at the time of writing), including franking credits. I think that’s a great starting point for a yield and the business seems determined to continue raising the payout in the coming years.

Great set up for investment returns

MFF’s main operation is acting as a listed investment company (LIC) that invests in a portfolio of high-quality, mostly international shares.

The business aims to invest in advantaged businesses that, in MFF’s view, have “high probabilities of maintaining their competitive advantages and achieving above average levels of profitable growth over the medium to long term.”

It usually owns these high-quality businesses for the long-term while also seeking new opportunities that it considers to be advantaged “over the long term and offer attractive investment fundamentals.”

At the end of January 2026, the ASX dividend stock’s largest positions included Alphabet, Mastercard, Visa, Meta Platforms, Bank of America and Amazon.

Pleasingly, over the past ten years, its post-tax net tangible assets (NTA) return (including franking credits) has been an average of 14% per year – that’s a useful measure of the portfolio’s investment performance.

Additionally, MFF recently acquired a fund manager called Montaka. This broadened the investment team and unlocked more research insights, reducing the key person risk of relying solely on Chris Mackay. Additionally, if Montaka’s funds under management (FUM) grows, this can boost MFF’s earnings.   

Overall, I think this is a great dividend-paying business to own for the long-term.

The post Why I just bought this 6%-yielding ASX dividend stock and plan to buy even more appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Meta Platforms, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Elders Ltd (ASX: ELD) share price is in focus today after the company announced it has agreed to sell its Killara Feedlot business to Australian Meat Group for approximately $195.8 million. Killara contributed $12.1 million to underlying EBIT in FY25, and the sale is expected to deliver significant balance sheet benefits.

What did Elders report?

• Entered into agreement to sell 100% of Killara Feedlot for a total consideration of ~$195.8 million
• Killara contributed $12.1 million to underlying EBIT in FY25
• Non-working capital assets valued at $45.5 million as at 30 September 2025
• Elders holds $107.4 million in carried forward capital tax losses, fully offsetting any capital gain from the sale
• Sale expected to complete before 30 June 2026, subject to regulatory approval

What else do investors need to know?

The agreement covers 100% of shares in Killara Feedlot Pty Ltd, which operates on 1,402 hectares and can process up to 62,000 head of cattle annually. The deal includes $122.0 million cash and normalised working capital, mainly cattle inventory, valued at $73.8 million at 30 September 2025.

Elders plans to use the sale proceeds to reduce net debt, targeting a return to sub 2.0 times accounting leverage. The company forecasts the annualised impact on its earnings per share will be less than a 1% reduction. Upon completion, Killara will be reported as a discontinued operation and asset held for sale in Elders’ HY26 statements.

What did Elders management say?

Elders Managing Director and Chief Executive Officer, Mark Allison said:

Killara has long been a successful and valuable part of Elders’ Products and Services Portfolio. We feel for Killara to continue to grow and develop as a blue chip operation, it is appropriate for it to move to a more natural owner, and we have found this in AMG. The sale at this time supports our value creation strategy for Elders’ shareholders. We thank Killara management and its employees for their contribution to Elders.

What’s next for Elders?

Completion of the Killara sale is subject to approval from the Foreign Investment Review Board and ACCC, with Elders expecting this to finalise before 30 June 2026. Once completed, the company will apply proceeds to lower its net debt, improving future balance sheet flexibility.

Elders notes that its core strategy remains focused on value creation for shareholders. The company’s operational structure will adjust to reflect the divestment, and management has highlighted minimal impact on ongoing earnings.

Elders share price snapshot

Over the past 12 months, Elders shares have risen 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Elders sells Killara Feedlot in $195.8m deal 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 recommended Elders. 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.

Shares in Yancoal Australia Ltd (ASX: YAL) are under pressure on Thursday after the coal producer released its full-year results for 2025.

In late morning trade, the Yancoal share price is down 10.55% to $5.51. Despite today’s pullback, the stock remains up around 10% in 2026 amid more supportive coal prices.

Here is what the company reported for the year ended 31 December 2025.

Record output, but prices weigh on earnings

Yancoal delivered record production in FY25. Run-of-mine coal production rose 7% to 67 million tonnes on a 100% basis. Attributable saleable production increased 5% to 38.6 million tonnes, toward the top end of guidance.

However, lower realised coal prices drove weaker financial results.

Revenue fell 13% to $5.95 billion. The average realised coal price declined 17% to $146 per tonne, reflecting softer thermal and metallurgical coal markets compared to the prior year.

Operating EBITDA dropped 44% to $1.437 billion, with the margin contracting to 24%. Net profit after tax (NPAT) came in at $440 million, down 64% year on year.

The company noted that lower prices flowed through directly to EBITDA and net profit.

Costs remain controlled

While prices fell, costs were stable.

Cash operating costs were $92 per saleable tonne, down 1% from FY24 and below the midpoint of guidance. The implied cash operating margin was $39 per tonne.

Management said higher production volumes, mine plan optimisation, and equipment utilisation helped offset cost inflation and temporary shipping-related costs earlier in the year.

Looking ahead to 2026, Yancoal has guided to attributable saleable production of 36.5 to 40.5 million tonnes. Cash operating costs are expected to range between $90 and $98 per tonne, allowing for some inflation.

Strong balance sheet supports dividend

Yancoal ended the year with $2.1 billion in cash and no interest-bearing loans. Net cash has been maintained since the end of 2022 following significant debt repayments in prior years.

Operating cash flow for FY25 was $1.26 billion.

The board declared a fully-franked final dividend of $0.1220 per share, representing $161 million. This brings total dividends for FY25 to 55% of full-year profit after tax.

The dividend is scheduled to be paid on 15 April 2026.

Coal market backdrop

Thermal coal markets were marked by strong supply and relatively soft demand conditions through much of 2025. Metallurgical coal demand was also subdued, partly due to softer global steel conditions.

However, management pointed to improving coal price benchmarks more recently. Industry forecasts continue to show resilient demand across parts of Asia, with supply growth constrained by reserve run-down and limited new project development.

Given its scale, low-cost operations, and net cash balance sheet, Yancoal is well placed to manage ongoing price volatility.

Whether today’s share price weakness proves temporary may depend on how coal prices track through 2026.

The post Why Yancoal shares are sinking 10% despite record production in FY25 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.

The Super Retail Group Ltd (ASX: SUL) share price is in focus after the company reported first-half sales climbing 4.2% to $2.2 billion, while normalised NPAT declined 6.8% to $121.9 million.

What did Super Retail Group report?

• Group sales up 4.2% to $2.2 billion
• Group like-for-like sales rose 2.5%
• Normalised NPAT down 6.8% to $121.9 million; statutory NPAT of $104.1 million
• Segment EBITDA up 2.2% to $402 million
• Fully franked interim dividend of 32 cents per share
• Online sales up 9% to $312 million

What else do investors need to know?

Super Retail Group’s brands delivered varied performances, with Macpac outpacing the group at 13.1% sales growth, while BCF saw modest gains amid challenging weather conditions in some regions. Active club membership grew 8% to 13 million, now accounting for a bigger share of sales, pointing to growing customer engagement.

Store network changes saw 16 new openings and 10 closures, with ongoing investment in omni-channel capabilities and a new national distribution centre in Truganina, Victoria, expected to drive future efficiencies. The balance sheet remains solid with no drawn bank debt and $108 million cash.

What did Super Retail Group management say?

Group Managing Director and CEO Paul Bradshaw said:

Super Retail Group delivered first half sales growth of four per cent—a solid outcome considering the competitive retail environment and challenging conditions, notably for rebel and BCF, during the period. We were pleased with the continued momentum from Supercheap Auto, delivering steady growth, market share gains in its core auto category, and benefiting in market from the new Spend & Get loyalty program… I would like to acknowledge the dedication and contribution of our 16,000 team members, whose efforts have been central to delivering this result.

What’s next for Super Retail Group?

The company is planning 12 new store openings in the second half of FY26 and is progressing major projects such as the new distribution centre and HR/payroll systems. Early trading in the second half has seen positive sales momentum, with like-for-like sales up 3.5% and total sales rising 5% over the first eight weeks, suggesting ongoing resilience.

Super Retail Group targets capex of $155 million in FY26, focused on network expansion and digital investment. Management remains confident its strong balance sheet positions it well for both investment opportunities and navigating competitive market dynamics.

Super Retail Group share price snapshot

Over the past year, the Super Retail Group shares have risen 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Super Retail Group lifts sales, grows club members in 1H26 earnings appeared first on The Motley Fool Australia.

More reading

• 9,200 points: ASX 200 hits fresh new record high
• Objective Corporation 1H FY26: profit climbs, dividend declared
• Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance
• Elders sells Killara Feedlot in $195.8m deal
• Perpetual posts higher earnings and tight cost control for 1H26

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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.

NextDC Ltd (ASX: NXT) shares are pushing higher in morning trade on Thursday.

At the time of writing, the ASX 200 tech stock is up 5% to $14.71.

Why are NextDC shares rising?

The ASX 200 tech stock is gaining ground this morning after releasing its half-year results following the market close on Wednesday.

According to the release, the data centre operator reported record half-year revenue, with net revenue rising 13% to $189.2 million and total revenue increasing 13% to $231.8 million.

Underlying EBITDA climbed 9% to $115.3 million, while the company reduced its net loss after tax by 8% to $39.4 million.

A key highlight was the surge in contracted utilisation, which increased 137% over the past 12 months to 416.6MW. The company’s forward order book now stands at 296.8MW, which management expects will progressively ramp into billing between FY 2026 and FY 2029, underpinning future revenue and earnings growth.

NextDC’s CEO, Craig Scroggie, described the step change in activity as the culmination of years of positioning the company to capture extraordinary demand. He commented:

The step change in the scale of the Company’s activities over the past six months represents the culmination of many years of work to position NEXTDC to capture the unprecedented demand and reflects our reputation for delivering on time and at scale. Our record forward order book is expected to drive a material uplift in revenues and earnings as we deliver this capacity across the period to FY29.

Expansion accelerating

NextDC revealed that it invested $1.285 billion in capital expenditure during the half, focused on developments including S3 Sydney, M3 Melbourne, and KL1 Kuala Lumpur, as well as other expansion activities.

Importantly, the company upgraded total planned capacity at key projects, including M3 Melbourne from 200MW to 225MW and S4 Sydney from 300MW to 350MW.

The company also added 33MW of built capacity during the half across NSW/ACT and Victoria.

With liquidity of $4.2 billion at 31 December and plans to launch a subordinated notes offering in the coming days, NextDC appears well funded to continue its expansion.

Outlook

NextDC has reaffirmed its guidance for FY 2026. It continues to expect net revenue of $390 million to $400 million and underlying EBITDA of $230 million to $240 million.

However, it upgraded capital expenditure guidance to a range of $2.4 billion to $2.7 billion, up from the previous $2.2 billion to $2.4 billion range, reflecting the acceleration of its planned inventory expansion.

Mr Scroggie adds:

NEXTDC remains on track to deliver another record financial performance in FY26 on the back of exceptional sales and strong financial performance in 1H26. With total liquidity of A$4.2 billion, record forward order book and record sales pipeline, the Company remains in an outstanding position to take advantage of further customer growth opportunities.

The post This ASX 200 tech stock is up 5% on results and ‘unprecedented demand’ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc. 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 Perpetual Ltd (ASX: PPT) share price is in focus today after the company reported a 12% lift in underlying profit after tax (UPAT) to $112.7 million and a 2% rise in revenue for the half year ended 31 December 2025.

What did Perpetual report?

• Operating revenue of $697.9 million, up 2% on 1H25
• Underlying profit after tax (UPAT) of $112.7 million, up 12%
• Net profit after tax (NPAT) of $53.9 million, up 349% year-on-year
• Interim dividend of $0.59 per share, unfranked
• Asset Management UPBT of $106.9 million (up 4%), Corporate Trust UPBT of $49.0 million (up 11%)
• Simplification Program delivered $60 million in annualised cost savings so far

What else do investors need to know?

Perpetual kept expense growth tightly controlled at 1%, and its Board reaffirmed full-year expense guidance at 1–2%. Cost savings from the company’s Simplification Program are on track for $70-80 million annually by FY27, with $60 million already achieved.

Talks with Bain Capital Private Equity for the potential sale of the Wealth Management business are advancing, though there’s no binding agreement yet. Meanwhile, Wealth Management’s funds under advice grew 6% despite profit pressure.

What did Perpetual management say?

Perpetual CEO and Managing Director Bernard Reilly said:

Perpetual delivered a solid first half, with revenue and double-digit underlying profit growth driven by the strength of our diversified business model including Asset Management and Corporate Trust, while Wealth Management continued to show resilience as the sale process continued.

What’s next for Perpetual?

Looking ahead, Perpetual plans to keep simplifying its operations to increase focus and reduce costs, supporting sustainable long-term growth. The company remains disciplined in expense management, while investing in new products and innovation within Asset Management.

Discussions with Bain Capital about selling the Wealth Management division are ongoing, with the company committed to keeping shareholders informed as things progress.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Perpetual posts higher earnings and tight cost control for 1H26 appeared first on The Motley Fool Australia.

More reading

• 9,200 points: ASX 200 hits fresh new record high
• Objective Corporation 1H FY26: profit climbs, dividend declared
• Cleanaway Waste Management reports half-year profit and upgrades FY26 guidance
• Elders sells Killara Feedlot in $195.8m deal
• Super Retail Group lifts sales, grows club members in 1H26 earnings

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.

There are a few ASX dividend stalwarts that I’d suggest putting in a passive income-focused portfolio. One of those is the business L1 Long Short Fund Ltd (ASX: LSF).

L1 Long Short Fund Ltd is a listed investment company (LIC) that is managed by the fund manager L1 Group Ltd (ASX: L1G). LICs generate accounting profits for their financials by making investment returns from a portfolio of shares.

L1 Long Short Fund invests in both ASX shares and international shares, while utilising both long-term investing and short-selling strategies. Short-selling means betting that a share price will go down.

Using that strategy, the ASX dividend stalwart is able to generate returns regardless of whether the market is going up or down.

Excellent investment returns

Past returns are not a guarantee of future returns, of course. But, at the same time, an investment manager with a history of strong outperformance is worth paying attention to.

I’d describe L1 Long Short Fund as being a contrarian investor with a willingness to invest in businesses with a lower price/earnings (P/E) ratios accompanied by confidence of solid earnings growth.

As of January 2026, the sectors that had delivered the most returns using this investment strategy were (in order of biggest returns): ASX mining shares, then industrials, communication services, utilities and financials. Considering the recent performance of many tech names, it’s probably a good thing the LIC has largely avoided long-term investing in the technology sector.

Giving its latest view on the ASX share market and global stock market, L1 wrote in the January 2026 update:

We believe the Australian equity index is relatively fully valued, with several large cap stocks, particularly within the ASX20, trading well above historical multiples and global peers. Encouragingly, we are continuing to find numerous undervalued stocks, where we see a far more compelling combination of strong earnings growth, shareholder-friendly management, conservative balance sheets and significant valuation support.

We continue to believe that infrastructure, gold, U.S. cyclicals, uranium and ‘quality value’ stocks provide some of the best opportunities globally. Given the enormous outperformance of high P/E stocks in recent years and over the past decade, we are finding more compelling opportunities in ‘Value’ stocks. We believe low P/E stocks will strongly outperform high P/E stocks (in general) over the coming 1-2 years, which the portfolio is well positioned to benefit from.

I like getting exposure to a range of investments to generate my investment returns, and I like that this ASX dividend stalwart looks at a variety of sectors that may not necessarily be my own preferred hunting ground.

Since inception in April 2018 to January 2026, the LIC’s portfolio delivered an average return per year of 15.1%. Over the seven years to January 2026, it returned an average of 21.5%. I’m not expecting the returns to be that strong in the years ahead, but it shows how well the LIC has been able to perform.

These returns have funded pleasing dividends.

ASX dividend stalwart credentials

It has increased its half-year dividend per share each year since FY21 and it’s aiming to increase its dividend each year for investors. It has already built up a large accounting profit reserve that can fund rising dividends for years to come.

The business recently switched to paying quarterly dividends to investors, providing more frequent cash flow for bank accounts.

Its combined FY26 first quarter and second quarter dividend (totalling 7.1 cents per share) is 13.6% higher than the FY25 first-half dividend. If the business continues increasing its FY26 quarterly dividend by 0.1 cents per share in the next two quarters, its FY26 annual payout will be 14.6 cents per share, translating into a grossed-up dividend yield of 4.7%, including franking credits.

That’s not a huge starting dividend yield, but I think the payout will progressively grow from here, making it a very appealing ASX dividend stalwart for the long-term.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in 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.