Author: openjargon

The MGX Resources Ltd (ASX: MGX) share price is in focus as the company reported a net loss after tax of $30.2 million and completed a major transition from iron ore to gold during FY26.

What did MGX Resources report?

• Sales revenue of $204.0 million, down from $330.5 million the previous year
• Iron ore sales of 2.68 million tonnes, including 1.81 million tonnes of low-grade material
• Profit before tax and impairments was $29.1 million
• Reported net loss after tax of $30.2 million, narrowing from $82.2 million loss in FY25
• Cash and investments of $412.1 million at 30 June 2026
• Koolan Island divestment agreement for at least $20.2 million plus revenue share and rehabilitation cost assumption

What else do investors need to know?

The year was a turning point for MGX Resources as it repositioned its business from iron ore towards precious metals. The company completed the Koolan Island low-grade iron ore sales program, generating positive cash flow and fully funding site rehabilitation and wind-down activities.

MGX executed a binding agreement to divest Koolan Island to Crestlink, helping preserve its strong, debt-free balance sheet. The company also acquired a 50% interest in the Central Tanami Project Joint Venture, fast-tracking its entry into Australian gold production.

What did MGX Resources management say?

MGX Resources CEO Peter Kerr said:

MGX completed a successful transitional year with the low-grade sales program at Koolan Island surpassing expectations to generate positive cashflow to fully fund site rehabilitation and ramp-down activities

Together with the recently announced agreement to divest Koolan Island to logistics proponent Crestlink, this helped MGX preserve its strong debt-free balance sheet which will enable the business to focus on accelerating the high-grade Central Tanami Gold Project towards a development decision.

MGX is well positioned to utilise its hard-earned iron ore cash reserves to realise substantial shareholder value as it seeks to create a new high-quality Australian gold production business.

What’s next for MGX Resources?

Looking ahead, MGX will focus on completing the Koolan Island divestment and fully transitioning operations to gold. The company is accelerating work at the Central Tanami Gold Project, including resource definition drilling, infrastructure upgrades, and pushing towards a development decision.

MGX plans to leverage its significant cash reserves and mining expertise to develop the Tanami project and grow its footprint in Australian gold production.

MGX Resources share price snapshot

Over the past 12 months, MGX Resources shares have declined 8%, trailing the All Ordinaries Index (ASX: XJO), which is flat over the same period.

View Original Announcement

The post MGX Resources narrows FY26 loss as it moves from iron ore to gold appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The James Hardie Industries plc (ASX: JHX) share price is in focus today after the company announced the divestiture of its European operations, including the sale of Fermacell to Holcim for €840 million (around $980 million USD).

The deal is expected to speed up debt reduction and support the return of capital to shareholders, with a new $250 million share repurchase program also unveiled.

What did James Hardie report?

• Firm has agreed to sell its European sustainable walling and flooring business Fermacell to Holcim for €840 million in cash.
• Proceeds will be used to repay about $600 million in debt and to fund a $250 million share buyback.
• The transaction is expected to be accretive to the company’s margin profile and return on invested capital (ROIC) post-completion.
• James Hardie also plans to close its European fiber cement operations, sharpening focus on its core growth markets.
• The deal is targeted to close in the first half of calendar 2027, subject to regulatory and employee procedures.

What else do investors need to know?

James Hardie’s strategic shift is part of a broader plan to align its portfolio with long-term growth opportunities and market leadership in core regions. The funds from the Fermacell sale will reduce James Hardie’s net leverage toward a target of below 2.0x by September 2027.

Additionally, the Board’s $250 million share buyback authorisation demonstrates a commitment to delivering shareholder returns. The closure of the European fiber cement business, while significant, also signals a more focused approach to investment and innovation in key growth markets such as North America and Asia-Pacific.

What did James Hardie management say?

James Hardie’s CEO, Aaron Erter, commented:

The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities. We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership. We are deeply grateful to our talented team members across Europe, whose expertise and hard work have made meaningful contributions to James Hardie, and we are committed to supporting impacted European fiber cement employees.

What’s next for James Hardie?

James Hardie expects the transaction to be completed in the first half of 2027, pending usual closing conditions. The focus post-sale will be on reducing debt further and potentially more capital management initiatives, including share buybacks.

The divestment and business closure will allow James Hardie to direct resources toward markets and segments with the most potential for sustainable growth and improved returns. Management has indicated a continued appetite for innovation and investment in these core markets.

James Hardie share price snapshot

It has been a strong 12 months for the James Hardie share price. During this time, the company’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of almost 50%.

View Original Announcement

The post James Hardie sells European business, launches share buyback appeared first on The Motley Fool Australia.

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• 5 ASX shares attracting upgraded ratings this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Fisher & Paykel Healthcare share price is front and centre today after the company issued upbeat guidance, forecasting first-half revenue of NZ$1.24 billion and net profit after tax (NPAT) of NZ$280 million for the 2027 financial year.

What did Fisher & Paykel Healthcare report?

• Forecast first-half revenue of approximately NZ$1.24 billion, up 14% on the prior corresponding period
• Expected first-half NPAT of around NZ$280 million, up 24% (excluding US tariff refunds)
• Full-year operating revenue guidance: NZ$2.47 billion to $2.57 billion
• Full-year NPAT guidance: NZ$525 million to NZ$565 million (including $23 million in US IEEPA tariff refunds)
• Improvement in gross margin and operating efficiencies anticipated

What else do investors need to know?

Fisher & Paykel Healthcare saw particularly strong demand in its Hospital product group for the start of FY27, driven by adoption of its latest hardware devices and increased consumable sales stemming from changing clinical practices. The company’s positive momentum is also underpinned by continuous improvement activities that are delivering results in gross margin and operating efficiency.

The updated guidance assumes current global tariff rates will remain in place for the financial year. Fisher & Paykel Healthcare’s annual shareholders’ meeting is set for 25 August 2026, offering an opportunity for investors to engage with leadership on strategy and performance.

What did Fisher & Paykel Healthcare management say?

The company’s CEO, Lewis Gradon, said:

We have had a strong start to our first half, particularly in our Hospital product group, as a result of continued strong demand for our latest range of hardware devices and ongoing change in clinical practice driving consumable sales. It is also pleasing to see the progress we are making with our continuous improvement activities and the impact on our gross margin and other operating efficiencies.

What’s next for Fisher & Paykel Healthcare?

Looking ahead, Fisher & Paykel Healthcare plans to keep investing in innovation to support clinicians and adapt to evolving healthcare needs. Management expects continued improvement in gross margin while progressing ongoing projects to sustain the company’s growth momentum.

The current outlook remains subject to changes in global tariffs and foreign exchange conditions, but management remains confident in the strong demand outlook and ability to deliver operating efficiencies.

Fisher & Paykel Healthcare share price snapshot

The Fisher & Paykel Healthcare share price is marginally outperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of around 3%.

View Original Announcement

The post Fisher & Paykel Healthcare shares: Earnings outlook upgraded for FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers in 2026.

Since the start of the year, the radiopharmaceutical company’s shares have risen a sizeable 53%.

While this still leaves its shares well short of their 2025 highs, one leading broker is calling time on the rally.

What is the broker saying?

Bell Potter notes that it recently met with the company and spoke about the prospects of its Pixclara product, which is seeking FDA approval. It commented:

Following a tough year in CY25, Telix continues to control the controllable factors and is now on the cusp of a major step forward with the pending approval of Pixclara. We recently met with the company at Bioshares (Queenstown), coming away encouraged with the prospects for Pixclara’s approval based on the company’s extensive engagement with the FDA. 

Pixclara is included on the NCCN guidelines for disease management, virtually ensuring commercial success if approved. The resubmission of the NDA for Pixclara included extensive new data which the company expects will satisfy the FDA’s efficacy concerns.

The broker has also been looking at Telix’s half-year results and was pleased with what it delivered. And while it expects the launch of a competing product to impact fourth-quarter revenue, Bell Potter still believes that its guidance is achievable. It explains:

1H26 increased by 22% to $477m, dominated by US sales of PSMA imaging agents. FY26 revenue guidance range is unchanged at $950m – $970m with the company guiding to the upper end. We expect the launch of a competitor product (TruVu – Lantheus) will impact 4Q26 revenues, nevertheless, the top end of the guidance is realistic. We do not anticipate a change in guidance irrespective of 3Q26 revenues.

Telix shares downgraded 

Despite the positives, Bell Potter believes that Telix shares are now approaching fair value.

As a result, the broker has downgraded them from a buy rating to a hold rating with a steady price target of $19.00. This implies potential upside of approximately 9% for investors from current levels.

Commenting on its investment thesis, Bell Potter said:

The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.

The post Why were Telix shares just downgraded? appeared first on The Motley Fool Australia.

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

Investing in AI stocks on the ASX is harder than it looks because our market lacks “no-brainer” stocks like Nvidia and Microsoft.

Our local Aussie index is dominated by banks, miners and supermarkets.

But that does not mean there are no opportunities. What it does mean is that we need to look at the plumbing and the applications driving AI rather than the AI chips themselves.

The Motley Fool has previously covered how to invest in artificial intelligence locally.

Here are three ASX companies I think give you strong exposure to the AI theme.

Why ASX AI stocks look different to Wall Street

Australia does not manufacture semiconductors.

What we do have is land, power and regulated demand for sovereign data storage, and that has turned the local artificial intelligence trade into an infrastructure trade first and a software trade second.

NextDC: the purest infrastructure play

NextDC Ltd (ASX: NXT) builds and operates the data centres that artificial intelligence workloads run inside.

The company’s scale is now hard to ignore.

In an April update, contracted utilisation reached 667MW as at 31 March 2026, a 60% increase, while the forward order book jumped 83% to 544MW.

Contracted earnings from existing agreements now exceed $1 billion.

Chief executive Craig Scroggie did not undersell the shift:

The scale of this increase in contracted utilisation and the resulting uplift in the Company’s pro forma Forward Order Book are unprecedented, underscoring the record levels of demand we continue to experience.

The catch is cost.

NextDC guided to FY26 capital expenditure of $2.7 billion to $3.0 billion with roughly $5 billion forecast for FY27, and it funded part of that through a $1.5 billion entitlement offer priced at $12.70 per share.

Investors are still debating whether the AI boom is only getting started for NextDC shares.

The company reports its FY26 result on 27 August.

Pro Medicus: one of the few profitable AI stocks

Pro Medicus Ltd (ASX: PME) sells medical imaging software to United States hospital networks.

Its FY26 result delivered revenue of $261.7 million, up 22.9%, while underlying net profit after tax rose 24.1% to $144.7 million.

The underlying earnings before interest and tax margin reached 74.9%.

Dividends climbed 25.5% to 69 cents per share fully franked, and the company signed 10 new contracts worth at least $407 million.

Chief executive Sam Hupert framed the AI opportunity in terms of access:

We are the gatekeeper for image-based AI to now 11% of the market in the U.S. and growing.

That gatekeeper position represents the premium the market pays for.

Shares jumped more than 10% on results day, although they remain down roughly 11% for the calendar year.

Macquarie Technology: the small-cap option

Macquarie Technology Group Ltd (ASX: MAQ) runs data centres, cloud and cybersecurity services for government and corporate customers.

The company is a fraction of NextDC’s size, with a market capitalisation of roughly $1.6 billion.

The company delivered its 22nd consecutive half of EBITDA growth in the first half of FY26, with EBITDA of $57.9 million and full-year guidance of $114 million to $117 million.

Its IC3 Super West facility in Sydney is the real prize.

Phase one delivers 6MW, with a pathway to 19MW and an option over a Sydney campus site above 150MW.

Macquarie Technology also reports on 27 August.

The risks with ASX AI stocks

None of these businesses is cheap.

Pro Medicus trades on a price-to-earnings ratio near 88, which leaves no margin at all for a missed contract or a slower implementation schedule.

NextDC has never reported a statutory profit, and its capital intensity means further raisings are possible.

Macquarie Technology is small, thinly traded and spending heavily ahead of revenue.

Buying AI stocks means accepting that the market has already priced in a great deal of future growth.

Foolish takeaway

I would not put an entire portfolio into this single theme.

But a modest allocation across infrastructure and applications gives you two very different ways to win, because the companies building the capacity and the companies monetising it rarely peak at the same moment.

NextDC and Macquarie Technology sell the shovels.

Pro Medicus sells the software that makes the data useful.

For investors who want exposure to AI stocks without leaving the ASX, that is where I would start.

The post Investing in AI stocks on the ASX? Here’s what you should buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Microsoft, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have been in the spotlight this week after the mining giant released its FY 2026 results.

Are its shares a buy? Let’s see what analysts at Bell Potter are saying about the miner.

What is the broker saying?

Bell Potter notes that Fortescue released a mixed result this week, with revenue and EBITDA slightly ahead of expectations, but net profit and dividends falling short. It said:

FMG reported mixed FY26 results, with revenue and EBITDA slightly ahead of our forecasts and consensus but NPAT and dividend a miss. Key metrics included revenue of US$16,966m (vs BPe US$16,491m, up 9% YoY), underlying EBITDA of US$8,635m (vs BPe US$8,382m, up 9% YoY) and underlying NPAT of US$3,458m (vs BPe US$3,723m, up 3% YoY). Statutory NPAT was impacted by an impairment of US$750m (Iron Bridge) and a US$104m (Yindjibarndi compensation) for US$598m post tax cost and statutory NPAT of US$2,870m, down 15% YoY.

Speaking about its dividend and outlook, Bell Potter adds:

FMG’s declared a final dividend of A46cps (vs A60cps YoY) for total FY26 dividends of A108cps at a 6.0% fully franked yield, a key support for the FMG share price. This was lower (A110cps YoY) despite higher production and a higher iron ore price. FY27 guidance was reiterated, for shipments of 197-207Mt at C1 cost US$20.50- US$21.75/wmt, implying +13% YoY cost inflation and that margins and earnings will remain under pressure. 

Adding downside risk is pricing pressure from centralised Chinese buying group CMRG. FMG provided limited commentary on the progress of ongoing negotiations, but stated that all it seeks is a return to “fair and proper market practices”, implying that is not currently what’s on offer.

Should you buy Fortescue shares?

According to the note, in response to the results, Bell Potter has retained its hold rating on Fortescue shares with a trimmed price target of $17.10.

Based on its current share price of $17.95, this implies potential downside of around 5% for investors over the next 12 months.

However, Bell Potter expects a 3.3% dividend yield in FY 2027, reducing the total potential negative return.

Commenting on its recommendation, the broker said:

There are no material EPS changes in this report. FMG’s core iron ore operations continue to perform well. However, broad input cost inflation, subdued iron ore price fundamentals, a rising AUD and potential impacts to price realisation all put pressure on our earnings and dividend forecasts. We retain our Hold rating and do not yet see the positive catalysts to re-enter the stock. Our NPV-based valuation is lowered 2%, to $17.10/sh.

The post Are Fortescue shares in the buy zone after its results? appeared first on The Motley Fool Australia.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 9,083.8 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a subdued session on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 25 points or 0.3% lower this morning. On Wall Street, the Dow Jones was down 1.3%, the S&P 500 fell 0.9%, and the Nasdaq dropped 1%.

Oil prices jump

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 2.7% to US$88.15 a barrel and the Brent crude oil price is up 2% to US$93.45 a barrel. This was driven by renewed concerns around Middle East tensions.

Telix shares downgraded

Telix Pharmaceuticals Ltd (ASX: TLX) shares will be on watch on Friday after being downgraded by analysts at Bell Potter. This morning, the broker has cut its rating on the radiopharmaceutical company’s shares to hold (from buy) with a $19.00 price target. It said: “The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.”

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.65% to US$4,574.8 an ounce. This appears to have been driven by easing interest rate hike expectations.

Temple & Webster downgraded

Bell Potter has downgraded Temple & Webster Group Ltd (ASX: TPW) shares despite their heavy decline over the past 12 months. This morning, the broker has cut its rating on the online retailer’s shares to hold with a reduced price target of $4.50. It said: “While the share trades towards 3-year lows, we see multiple risks related to the revenue recovery from current levels over the next few months in this current macroeconomic context, competitive landscape and following TPW’s 4Q26 profit optimisation initiatives.”

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

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

ASX ETFs have become the default starting point for new Australian investors, and for good reason.

They give you dozens or hundreds of companies in a single trade.

You do not need to pick winners, and you do not need a large starting balance.

Not all ASX ETFs are built the same, though.

Here are three I would happily build a first portfolio around in 2026.

Why ASX ETFs suit first-time investors

The biggest mistake new investors make is buying one or two speculative stocks and hoping for the best.

Exchange-traded funds remove that single-company risk almost entirely, because a poor result from one holding is diluted across the rest of the portfolio.

They also cost very little to own.

Fees on the three funds below range from 0.07% to 0.38% a year, which works out to somewhere between $7 and $38 annually on a $10,000 investment.

You buy and sell them through a broker exactly as you would an ordinary share.

Vanguard Australian Shares Index ETF (VAS)

Vanguard Australian Shares Index ETF (ASX: VAS) is the most widely held fund on the ASX.

The ETF tracks the S&P/ASX 300 Index and holds 321 securities.

The fee is just 0.07% per annum, and the ETF now manages $26.2 billion.

Returns have been solid without being spectacular.

The fund delivered 5.79% over the year to 31 July 2026, and 8.92% annually across the past decade.

My colleagues looked at exactly how VAS performed across FY26.

The fund also carries an equity yield of 3.1%, and because distributions have been close to 80% franked this year, that income serves to boost the headline return figure.

Vanguard MSCI International Shares ETF (VGS)

Vanguard MSCI International Shares Index ETF (ASX: VGS) addresses the lack of geographic diversification in VAS.

Australia represents less than 2% of global sharemarket value, and VGS holds 1,247 companies across developed markets, with the United States making up 73.2% of the portfolio and roughly $17.2 billion invested in the ETF.

Its largest holdings are Nvidia, Apple, Alphabet, Microsoft and Amazon, with annual management fees of 0.18% a year.

Returns have been strong, at 13.79% annually over the past ten years.

The yield is much lower at 1.4%, because global companies tend to reinvest their earnings rather than pay them out to shareholders.

Betashares Nasdaq 100 ETF (NDQ)

Betashares Nasdaq 100 ETF (ASX: NDQ) is the most aggressive option of the three.

The ETF holds the largest non-financial companies listed on the Nasdaq, and technology accounts for 58.2% of the portfolio.

The returns have been remarkable, averaging 20.87% a year over the past decade.

Management costs are 0.38% per annum and distributions are paid twice a year.

In many ways, this ETF is the best way to capture the artificial intelligence boom from Australia.

The trade-off is concentration risk. Nvidia, Apple and Microsoft alone account for more than 21% of the fund.

How to combine these ASX ETFs

A simple approach is to weight VAS and VGS as the core of the portfolio.

That gives you Australian franking credits alongside global diversification, which is the combination most local investors are missing when they start out.

NDQ then becomes a smaller satellite position for growth.

Rebalancing once a year is usually enough: the point of ASX ETFs is that they do not need constant attention.

Foolish takeaway

There is no single perfect fund.

VAS gives you income and franking, VGS gives you the world, and NDQ gives you growth with a good deal of volatility attached.

Between them, these three ASX ETFs cover most of what a first portfolio needs.

Start with regular contributions, keep the fees low, and let compounding handle the rest.

The post Top 3 ASX ETFs for a first-time investor in 2026 appeared first on The Motley Fool Australia.

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• 20% a year: Is this the ASX’s best index fund?
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• A200 vs NDQ: one Betashares ETF is the clear winner

Motley Fool contributor Mark Verhoeven 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 Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday, cancer diagnostics company Pacific Edge Ltd (ASX: PEB) reported a net loss after tax of $35.8 million, up 19.5% on FY25, and operating revenue down 47.4% to $11.5 million for the year ended 31 March 2026.

What did Pacific Edge report?

• Operating revenue: $11.5 million, down 47.4% from FY25
• Net loss after tax: $35.8 million, up 19.5% year on year
• Commercial test volumes: 18,783, down 23.8% on FY25
• Cash burn (2H FY26): $2.4 million per month, down 27.7% on 1H FY26
• APAC operations contributed $2.0 million in FY26 and moved closer to profitability on a direct cost basis
• Post-balance date $36.1 million capital raising completed

What else do investors need to know?

Pacific Edge’s FY26 was a year of strategic delivery, with the company advancing key regulatory and commercial milestones despite the impact of Medicare non-coverage in the US market. Notably, in May 2026, Medicare contractor Novitas published a draft Local Coverage Determination proposing coverage for Cxbladder Triage and Triage Plus—marking a “company-defining milestone”.

In the US, commercial payers covering 10.5 million lives have already adopted medical policy for Pacific Edge’s tests, and operating efficiency improved via reduced cash burn. In the Asia Pacific, the company continues to grow, achieving a 25% lift in average revenue per test after repricing, and APAC operations are now edging toward profitability.

What did Pacific Edge management say?

Chairman Simon Flood said:

Our work is incomplete in this regard, but the draft LCD is a huge step forward and a hard-won recognition for the years of work put in by our Team led by Pete Meintjes. The LCD remains draft, and disciplined execution remains essential as we await confirmation of a final LCD which we hope to receive before the end of this year. The difference that the draft LCD makes is that it gives Pacific Edge a clearer reimbursement pathway and a legitimacy that confirms Cxbladder as the leader in its field, and that’s a great place for us to start rebuilding sales momentum.

What’s next for Pacific Edge?

Management expects the final Medicare coverage decision for Cxbladder Triage and Triage Plus by the end of 2026, which is anticipated to drive higher test volumes and improved unit economics. The company will focus on shifting its US customer base to higher-margin Triage Plus orders, strengthening commercial payer policy, and expanding in APAC and other international markets as regulatory pathways are secured.

Pacific Edge’s ongoing clinical trials and product pipeline are expected to further build clinical evidence and unlock new opportunities. Looking ahead, emphasis remains on disciplined cost control, commercial execution, and innovation to convert its strong position into sustainable profitability and growth.

Pacific Edge share price snapshot

Over the past 12 months, Pacific Edge shares have risen 91%, significantly outperforming the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Pacific Edge FY26: Loss widens but Medicare draft boost lifts outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend share APA Group (ASX: APA) could be one of the best ideas for passive income in the S&P/ASX 200 Index (ASX: XJO).

APA describes itself as a leading energy infrastructure business. It operates a portfolio of more than $20 billion of assets. This includes gas transmission, processing, compression, and storage assets, with 15,000km of owned gas pipelines being the key asset. It also owns wind farms, solar farms, battery storage, and electricity assets.

Impressively, the business delivers around half of the country’s gas usage, so it’s an integral player in the Australian economy.

With its important assets and growing cash flow, I think it has a great future for the next 10 years and beyond.

Pleasing FY26 result

APA reported a solid set of numbers in the 2026 financial year report.

Total statutory revenue, excluding pass-through revenue, grew 1.9% to $2.76 billion.

The ASX dividend share’s underlying operating profit (EBITDA) climbed 8.3% to $2.18 billion, beating the mid-point of its guidance. There were contributions from newly commissioned assets, inflation-linked tariff escalations, and business-wide cost reduction efforts.

Free cash flow grew 3.2% to $1.1 billion, driven by strong operating cash flow, despite higher tax and interest costs.

APA noted $546 million of capital investment in growth projects, including the Brigalow Peaking Power Plant and pipeline, its East Coast gas grid expansion, and the Sturt Plateau pipeline.

The ASX dividend stock said its organic growth development pipeline has increased to $3.5 billion, up from $3 billion. There’s capacity to fund the investments from the existing balance sheet and the distribution reinvestment plan (DRP).

APA also said it’s progressing a number of attractive long-term growth opportunities, including Beetaloo gas transmission pipelines, contracted gas-powered generation, remote grid power generation, and integrated energy solutions to support the data centre industry. It’s going through the process to advance these plans.

Pleasingly, the business provided underlying EBITDA guidance for FY27 of between $2.26 billion and $2.34 billion, representing year-over-year growth at the mid-point of 5.4%.

That guidance is supported by inflation-linked tariff escalations, a contribution from the new Sturt Plateau pipeline, the conversion of Basslink to a regulated asset, and the annualised benefit of cost reductions.

Why the ASX dividend share is so appealing

The business has provided guidance that it will increase its FY27 distribution to 59 cents per security, which balances rewarding investors with its funding requirements for the organic growth pipeline and the need to maintain its investment-grade credit rating.

With that potential distribution, it would provide a distribution yield of 5.8% at the time of writing.

Impressively, the business increased its annual distribution for the 22nd consecutive year in FY26, which is the second-longest dividend growth streak on the ASX. I think consistency and reliability are extremely important as an ASX dividend share.

In my view, this is one of the best ASX dividend shares to own for the long term. Energy is always needed, and domestically produced energy could become even more important in the years ahead.

The post I think this is one of the best ASX dividend shares to own for the next 10 years appeared first on The Motley Fool Australia.

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