Author: openjargon

G8 Education Ltd (ASX: GEM) shares were trading lower on Wednesday after the company reported a slide in full-year revenue and a large net loss blown out by one-off write downs.

The company said in a statement to the ASX that revenue for the year had come in at $948.2 million, 7.2% lower than the previous corresponding period.

The company’s net loss came in at $303 million, which was impacted by a $349.1 million write down of goodwill.

On an underlying basis, EBIT was $93.3 million, down 18.9%.

Economic headwinds

The ASX 300 childcare company said occupancy was lower than the previous year, “with affordability and the macro environment, including sector challenges, continuing to impact families and enquiries”.

G8 Education Managing Director Pejman Okhovat said it had been a challenging period.

Occupancy continued to be affected by tough market conditions with falling birth rates, increased supply, trust and confidence in the sector impacted by media coverage and families experiencing sustained affordability pressures, resulting in lower occupancy than the previous corresponding period. Despite the fall in occupancy levels, our cost base remained well controlled. Our statutory Earnings Before Interest and Tax (EBIT) resulted in a loss of $234.7 million, with a Net Loss After Tax of $303.3 million, primarily reflecting a non-trading goodwill impairment expense recognised during CY25. We remain committed to balancing our operational needs with shareholder returns and delivered a fully franked total dividend of 2 cents per share paid in October 2025 with no final dividend being paid.

In terms of the outlook, the company said that as at February 15, group occupancy was 54.4%, 7.5% lower than the previous corresponding period and 57.2% year to date, 7.8% lower.

The company said the challenging trading environment was further exacerbated by significant changes to national laws and the regulatory environment, “requiring additional focus and resources”.

The company added regarding the outlook:

Near term operating conditions remain challenging, with ongoing cost of living pressures and no material relief from inflation or interest rates.

The company said other factors affecting demand included the female work participation rate starting to flatten, more supply coming into the sector, cost-of-living issues, and the costs associated with attracting talent.

G8 said over the medium to long term, the market dynamics were encouraging, with state and federal governments looking to create more equitable and affordable early childhood education, and supply starting to decline, with some operators likely to exit the sector.

G8 shares were 2.7% lower in early trade at 35.5 cents.

The ASX 300 childcare company was valued at $282 million at the close of trade on Tuesday.

The post Why are shares in this ASX 300 childcare company on the slide?       appeared first on The Motley Fool Australia.

More reading

• Why Coronado, G8 Education, Megaport, and Perenti shares are dropping today
• School’s in: Are these ASX education shares making the grade?
• Why Amplitude Energy, G8 Education, Pmet Resources, and Steadfast shares are sinking today

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.

The Light & Wonder Inc (ASX: LNW) share price is in focus today after the company delivered its full-year 2025 result, with revenue lifting 4% to US$3,314 million and adjusted NPATA climbing 18% to US$567 million.

What did Light & Wonder report?

• Full-year revenue up 4% to US$3,314 million
• Consolidated AEBITDA rose 16% to US$1,443 million, with margins expanding to 44%
• Adjusted NPATA up 18% to US$567 million
• Earnings per share (EPSa) increased 27% year-on-year, reaching US$6.69
• Free cash flow grew 42% to US$452 million
• Returned US$877 million to shareholders through share repurchases

What else do investors need to know?

Light & Wonder’s earnings were underpinned by strong growth in its Gaming and iGaming segments, offsetting a slight revenue dip at SciPlay. The company finalised its acquisition of Grover Gaming, which added over 11,600 units to its installed base and contributed US$102 million in revenue for the year.

The business also transitioned to a sole ASX primary listing, returning most of its available capital to shareholders while maintaining a net debt leverage ratio at 3.5 times AEBITDA—well within its target range. Recurring revenue represented 67% of overall sales, demonstrating the benefits of an ongoing focus on high-quality, stable earnings streams.

What’s next for Light & Wonder?

Looking ahead, the company expects to again deliver strong adjusted NPATA and EPSa growth in FY26, emphasising recurring revenue and ongoing expansion in both hardware and digital content. Strategic investment will continue, with a focus on launching new cabinets in Australia and New Zealand, further integrating Grover, and delivering more first-party iGaming content.

Light & Wonder also aims to reduce debt levels over 2026, following major legal settlement payments, and will remain disciplined with capital management. Management maintains confidence in achieving its ambitious 2028 targets of US$2 billion AEBITDA and over US$10.55 per share in EPSa.

Light & Wonder share price snapshot

Over the past 12 months, Light & Wonder shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Light & Wonder FY25 profit rises on Gaming and iGaming strength appeared first on The Motley Fool Australia.

More reading

• Centuria Capital Group lifts profit and upgrades FY26 outlook
• Tabcorp FY26 half-year result: Earnings grow, dividends rise
• SiteMinder: Smart Platform powers H1FY26 growth
• WiseTech Global FY26 earnings: Robust revenue growth, AI strategy in focus
• Domino’s Pizza Enterprises lifts dividend and franchise profitability in first-half reset

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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is flying higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed yesterday trading for $3.01. In early morning trade on Wednesday, shares are changing hands for $3.09 apiece, up 2.7%.

For some context, the ASX 200 is up 0.6% at this same time.

This follows the release of DroneShield’s full-year earnings results for calendar year 2025.

Here are the highlights.

DroneShield share price lifts on profit surge

For the 12 months to 31 December, DroneShield reported revenues of $216.5 million, up 276% from 2024.

And the company continues to ramp up its SaaS (software as a service) revenue, which increased 312% over the year to $11.6 million. Management said they are continuing to target 30% of revenue from SaaS within five years.

And the DroneShield share price is marching higher today, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at $4.5 million, up from a loss of $8.6 million in 2024.

On the bottom line, profit after tax was up 367% year on year to $3.5 million.

Turning to the balance sheet, DroneShield held $210 million in cash and term deposits as at 31 December, down 4% year on year. The company has no debt and boasts three consecutive quarters of positive operating cash flow.

Looking at what could impact the DroneShield share price in the months ahead, the company has a $2.3 billion sales pipeline, which represents a 92% increase in the last 12 months.

The ASX 200 drone defence stock also highlighted its growth potential and capabilities, with the company’s global team growing to 450 (from 250) over the year. That includes more than 350 hardware and software engineers.

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

2025 also saw DroneShield join the ASX 200 in September.

What did management say?

Commenting on the full-year results helping to boost the DroneShield share price today, Peter James, independent non-executive chairman, said:

Sadly, the Ukraine war recently entered its fifth year. While there is expectation of continued sales to Ukraine for DroneShield in 2026, the vast majority of sales are not directly related to this location, and the company has sales globally with particular focus on United States, Western Europe, Asia-Pacific (excluding China) and South America.

Looking to 2026, James noted:

FY 2026 already has $104 million in secured revenue of which $22 million has been recognised to date. Secured SaaS in FY 2026 is at $22 million, of which $2 million has been recognised to date, and SaaS expected to increase further as additional sales are secured.

DroneShield shares are now up more than 286% since this time last year.

The post DroneShield share price lifts off on 367% full-year profit surge appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares below $5 with huge potential
• Zip, CSL and BHP among CommSec’s most-traded ASX shares
• Should I invest $1,000 in DroneShield shares?
• 3 beaten down ASX shares I’d load up on at these prices
• What to do if your ASX investments just crashed

Motley Fool contributor Bernd Struben 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.

The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus after reporting group revenue of $1,344.9 million, up 1% on the prior period, and a 14.3% lift in EBITDA to $217.4 million for the half year ended 31 December 2025.

What did Tabcorp report?

• Group revenue: $1,344.9 million, up 1% on 1H25
• EBITDA (before significant items): $217.4 million, up 14.3%
• NPAT (before significant items): $35.7 million, up 61.5%
• Wagering & Media EBITDA: $181.4 million, up 15.8%
• Interim dividend: 1.5 cents per share (unfranked), up 50%
• Net debt as at 31 Dec 2025: $631.2 million; leverage ratio 1.5x

What else do investors need to know?

Tabcorp’s operating expenses decreased by 1.1%, reflecting ongoing cost discipline and efficiencies. The growth in earnings resulted in a 190 basis point improvement in EBITDA margin to 16.2%, delivering positive operating leverage over the period.

The company successfully completed a $300 million issue of five-and-a-half year Australian medium term notes, which improved funding diversity and extended average debt maturity to 5.4 years. Tabcorp says its balance sheet is healthy and positioned for growth.

Tabcorp also highlighted the execution of key strategic initiatives, including new retail and in-play product launches, and ongoing integration of its digital, retail, and media assets.

What did Tabcorp management say?

Managing Director & Chief Executive Officer Gillon McLachlan said:

Our 1H26 results highlight that we are a more consistent company, with greater capability… There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond.

What’s next for Tabcorp?

Looking ahead, Tabcorp expects trading conditions in the second half of FY26 to be similar to the first. The focus remains on executing its strategy and further advancing omnichannel customer experiences.

The company will continue emphasising cost control to partly offset inflation. Additional spending of about $5 million is planned for promotion and marketing around the 2026 FIFA World Cup, and capital spending is expected between $120 million and $140 million in FY26. The interim dividend remains unfranked due to limited franking credits.

Tabcorp share price snapshot

Over the past 12 months, Tabcorp shares have risen 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Tabcorp FY26 half-year result: Earnings grow, dividends rise appeared first on The Motley Fool Australia.

More reading

• SiteMinder: Smart Platform powers H1FY26 growth
• WiseTech Global FY26 earnings: Robust revenue growth, AI strategy in focus
• Domino’s Pizza Enterprises lifts dividend and franchise profitability in first-half reset
• Growthpoint Properties Australia lifts guidance
• Flight Centre Travel Group delivers record 1H earnings and dividend boost

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 Jumbo Interactive Ltd (ASX: JIN) share price is pushing higher on Wednesday. This follows the company’s release of its half-year results for the 6 months ended 31 December 2025.

In early trade, Jumbo shares are up 1.37% to $9.59. Despite today’s gain, the stock remains down roughly 10% over the past month.

Here’s what the lottery software and digital gaming group reported.

Revenue jumps 29% following acquisitions

Jumbo reported revenue of $85.3 million for the half, up 29% on the prior corresponding period.

Total transaction value rose 15.6% to $524.1 million, reflecting continued demand across its lottery and managed services segments.

Statutory net profit after tax (NPAT) came in at $15.5 million, down 13.4% year on year. However, underlying NPAT increased 22.6% to $22.8 million, highlighting the impact of acquisition-related and other non-recurring items.

Underlying EBITDA climbed 22.6% to $37.5 million, with the underlying EBITDA margin holding above 40%.

The company declared a fully-franked interim dividend of 12 cents per share, representing a 49% payout ratio. The dividend will be paid on 18 March 2026.

Dream Giveaways delivers strong contribution

A key driver of growth during the half was the Dream Giveaways business in the UK and the US.

The UK operation delivered strong revenue and EBITDA performance, with management noting it is tracking ahead of expectations. The US business is progressing in line with plan following its October acquisition.

The Managed Services segment also contributed positively, with Canada guidance upgraded. Underlying EBITDA growth in Canada is now expected to be between 20% and 25% in FY26.

Meanwhile, the core Australia Lottery Retailing business remained resilient despite a softer jackpot environment compared with the prior period.

Strong cash generation and balance sheet flexibility

Operating cash flow rose 9% on a 4-year compound basis, with the company reporting a cash conversion ratio of 129%.

Jumbo finished the half with $44.7 million in available cash and $57.8 million in available funds, including undrawn debt facilities.

Net leverage remains conservative at 0.8x, and management confirmed it continues to pursue an on-market share buyback alongside dividend payments.

FY26 outlook upgraded

Jumbo upgraded guidance for parts of its business, particularly Dream Giveaways UK and Canada Managed Services.

For Australia, underlying EBITDA margin guidance remains between 46% and 50%.

Dream Giveaways UK is now expected to deliver underlying EBITDA of 8 million to 8.3 million pounds in FY26. Meanwhile, the US business is forecast to contribute between US$2.7 million and US$3 million.

Foolish Takeaway

Jumbo delivered solid underlying earnings growth in the first half, supported by recent acquisitions and continued momentum across its platform businesses.

Although statutory profit fell due to acquisition-related costs, underlying earnings improved, and management lifted guidance for parts of FY26.

The post Jumbo reports half-year results. Here’s what investors need to know appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares tipped to grow 50% (or more) in 2026
• Morgans names 2 ASX shares to buy now
• Is this ASX consumer discretionary stock a buy after yesterday’s crash?
• Why Hot Chili, Jumbo, PYC, and Xero shares are sinking today
• ASX 300 stock tumbles despite 22% profit jump

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

The leader of a particular industry can be an appealing investment due to its market share, profit margins and brand power. The ASX blue-chip share Medibank Private Ltd (ASX: MPL) is an appealing ASX dividend share because of the impressive dividend yield.

Medibank is the leading private health insurance business in Australia, with its Medibank and ahm brands.

The recent FY26 half-year result showed a number of positive growth numbers, which bodes well for long-term growth of its dividend payouts.

ASX blue-chip share’s earnings recap

A key driver of value for the business is policyholder growth. Net resident policyholders grew by 1.9% (or 38,300) and net non-resident policy unit growth was 1,500 (or 0.4%).

The policyholder growth helped group revenue from external customers increase by 5.5% to $4.5 billion.

Health insurance operating profit rose 3.5% to $361.5 million, Medibank Health (a separate division) saw operating profit increase 28.5% to $48.3 million. This led to group operating profit increase 6% to $381.7 million.

Net profit after tax (NPAT) declined 11% to $302.9 million, though that was largely because of a reduction in the ASX blue-chip share’s net investment income.

This helped fund a 6.4% increase in the interim dividend per share to 8.3 cents.

Is it a buy for the solid dividend yield?

The business continues growing its operating profit and this is a key driver for the dividend payments.

For the company, it’s also pleasing to see that Medibank Health is growing with an “increase in community and acute reflecting strong volume growth and increase in ownership of Amplar Health Home Hospital and growth in wellbeing in line with increased Live Better members and financial wellbeing policies.” The business has unlocked another growth avenue that offers defensive earnings.

Medibank is aiming to grow its market share in FY26 in a “disciplined way” in the resident health insurance market, though the industry is expected to see slower growth in FY26 compared to FY25. Non-resident health insurance aims to deliver solid gross profit growth.

Broker UBS is expecting steady earnings per share (EPS) and dividend growth from the business over the next few years. The broker forecasts that the annual dividend per share could be 19 cents in FY26, which translates into a potential grossed-up dividend yield of 6.2%, including franking credits.

The payout could rise again to 20 cents per share in FY27. This would be a grossed-up dividend yield of 6.5%, including franking credits.

For a ASX blue-chip share that’s steadily growing the payout, I think this ASX blue-chip share is a solid opportunity.

The post Is this ASX blue-chip share a buy for its 6.5% dividend yield? appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares to buy for passive income this week
• 2 more ASX 200 blue chip stocks that increased dividends this week
• Why Goodman, Lovisa, Medibank, and Zip shares are falling today
• Medibank just raised its dividend. Here’s what you need to know
• Medibank Private lifts profit and dividend in first half 2026

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 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 SiteMinder Ltd (ASX: SDR) share price is in focus today after the hotel commerce platform reported strong half-year growth. Revenue jumped 25.5% to $131.1 million, while adjusted EBITDA more than doubled to $12.3 million as momentum in its Smart Platform continued.

What did SiteMinder report?

• Total revenue up 25.5% to $131.1 million (23.0% growth on constant currency and organic basis)
• Annualised recurring revenue (ARR) increased 29.7% to $280.3 million
• Adjusted EBITDA more than doubled to $12.3 million from $5.3 million
• Adjusted net loss narrowed to $3.9 million from $9.0 million a year ago
• Free cash flow improved to $2.7 million from ($0.6) million
• Gross margin rose to 67.8%, up 98bps, with subscription margins at 86.7%

What else do investors need to know?

SiteMinder’s Smart Platform initiatives continued to scale, with Channels Plus now used by 7,000 hotels and Dynamic Revenue Plus managing over 20,000 rooms. Transactional revenue growth surged 39.1%, driven by increased product adoption and new distribution use cases.

The company added 2,900 net properties during the half, taking the total to 53,000. Average revenue per property (ARPU) lifted 11.3% to $435, reflecting strong uptake of subscription and transaction products. LTV/CAC improved to 6.7x, indicating greater efficiency in customer acquisition and retention.

What did SiteMinder management say?

CEO and Managing Director Sankar Narayan said:

Our performance in H1FY26 reflects the accelerating contribution of the Smart Platform. While we remain in the early stages of the adoption and monetisation curve, the platform is contributing meaningfully to growth and margins, reinforcing our confidence in the long-term opportunity as we continue to execute across go-to-market and invest in product development.

What’s next for SiteMinder?

SiteMinder is targeting continued strong growth in annual recurring revenue through the second half of FY26, underpinned by further Smart Platform adoption. Management expects ongoing improvements in adjusted EBITDA, free cash flow, and operational metrics, supported by ongoing cost discipline and operating leverage.

The company aims to keep scaling its AI-driven products, capitalising on demand for more dynamic and complex hotel distribution. Medium-term, SiteMinder is aiming for 30% revenue growth while maintaining profitability improvements and optimising its Rule of 40 performance.

SiteMinder share price snapshot

Over the past 12 months, SiteMinder shares have declined 48%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post SiteMinder: Smart Platform powers H1FY26 growth appeared first on The Motley Fool Australia.

More reading

• Tabcorp FY26 half-year result: Earnings grow, dividends rise
• WiseTech Global FY26 earnings: Robust revenue growth, AI strategy in focus
• Domino’s Pizza Enterprises lifts dividend and franchise profitability in first-half reset
• Growthpoint Properties Australia lifts guidance
• Flight Centre Travel Group delivers record 1H earnings and dividend boost

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 SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Australia’s transport sector is a mixed bag right now. Some stocks are taking off, others are facing delays and one or two you might rather not board at all. Here’s a look at three very different ASX transport plays and whether they are a buy right now.

Transurban Group (ASX: TCL)

Transurban, while arguably not the most exciting stock, is a consistent one. It owns and operates major toll roads. It also holds long-term government contracts to finance and build major roads, which also cover toll operations. This cash flow and revenue predictability has seen it become popular amongst investors.

It stands to benefit from some solid structural tailwinds too. With major roads playing a critical role as metro populations expand, Transurban is well positioned to deliver.

On the flipside, road projects often face delays and cost blow-outs. For example, Transurban delivered Melbourne’s long awaited West Gate Tunnel in 2025 at a cost of $10.2 billion against a plan for 2022 delivery at $5.5 billion, with Transurban covering $2 billion of the additional cost. That said, Transurban has a history of disciplined cash flow management that has enabled it to wear one-off costs like this.

Its most recent results demonstrate why it’s worth considering. It delivered $2.02 billion in proportional total revenue (up 6%) and $343 million in statutory profit after tax. In addition, its dividend guidance for 2026 is $0.69 per share, up 6.2% on 2025, which should keep investors content.

Is Transurban a buy?

For me, it is. At current prices, Transurban isn’t likely to skyrocket your portfolio. Some analysts are predicting a small upside right now, but nothing to get excited about. However, it is likely to keep delivering stable returns and measured growth for long-term investors.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon is a national rail-freight operator, hauling bulk commodities and freight for industries such as mining and manufacturing. It operates Australia’s largest coal rail system, the 2,670km Central Queensland Coal Network. The network offers critical mine to port transportation to over 50 mines in the region.

Its significant footprint in the mining industry includes a partnership with BHP Copper SA to deliver an integrated rail, road, and port solution that will shift copper transport from road to rail along the Pimba to Port Adelaide corridor.

Aurizon delivered some stronger-than-expected results in HY26, including 16% growth in underlying net profit after tax and EBITDA growth across all its business units. Its bulk business saw the highest growth at 39%, largely driven by increased rail volumes and the first freight moved under the BHP Copper SA contract.

Where I’m caught on this one is valuation. With current share prices around the $4 mark and a price-to-earnings (P/E) ratio of circa 23, I think there is too much risk of downside. I’m also cautious about its heavy exposure to coal mining, while noting that it has begun to diversify in recent years.

Is Aurizon a buy?

Right now, it’s a wait-and-watch story, in my opinion. I don’t think it is delivering the returns to justify its present valuation. But I think it will keep delivering growth, so I’m adding it to the watchlist. If the share price falls, it could be a winner.

Virgin Australia Holdings Ltd (ASX: VGN)

Domestic and international carrier, Virgin Australia, returned to the ASX in June 2025, after delisting in 2020 amidst the COVID crisis. Its Q1 FY26 update reported domestic capacity uplift of 5% on the prior corresponding period. It also reaffirmed that revenue per available seat kilometre (RASK) should meet expected growth of 3% to 5% in HY26.

But there are potential pitfalls ahead. While Virgin Australia enjoys a duopoly on major domestic routes across Australia, it doesn’t inoculate it from economic headwinds. Although Australians love to travel, as budgets continue to tighten, changes in discretionary spending could prove challenging. Additionally, the relatively thin margins in the airline industry leave it sensitive to operating cost changes, from fuel to labour.

As we await HY26 results on Friday, this one has me thinking. I’m uncomfortable with its more recent corporate history – multiple restructures, ownership changes, and strategic resets. And I am not sure even great results would be enough to convince me just yet.

Is Virgin Australia a buy?

For me, it’s a not a buy right now. Some analysts have said they see upside at current prices, however, so I may be going against the grain on this one. But I think Virgin needs longer to show it has truly recovered from a challenging period.

The post Planes, trains and automobiles: Which of these ASX transport stocks has fuel in the tank? appeared first on The Motley Fool Australia.

More reading

• How to build an ASX share portfolio you can stick with long term
• What is Morgans saying about APA, Bega Cheese, and Transurban shares?
• 3 ASX dividend shares with business models built for uncertain times
• Transurban posts higher 1H26 profit and revenue as key projects open
• Here are the top 10 ASX 200 shares today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. 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.

Following the release of HY26 earnings last week, retailers JB Hi-Fi Limited (ASX:JBH) and Wesfarmers Limited (ASX:WES) hit roughly the same share price, as one rose and the other fell. Two retailers, very different investment profiles. In a challenging market, which retail share is the better buy?

The case for JB Hi-Fi

JB Hi-Fi is a high-growth, lean retail business that has shown real momentum since the early 2000s, becoming one of Australia’s largest and most successful speciality retailers.

It’s HY26 results were impressive, including:

• Revenue up 7.3% on the prior corresponding period (PCP) to $6.1 billion
• Net profit after tax up 7.1% to $305.8 million
• 32% growth in its New Zealand business
• Dividends up 23.5% to $2.10

Its share price has experienced some volatility lately, perhaps driven by slower than expected growth in The Good Guys brand, softer January sales and consumer spending headwinds.

Its January sales drop off has been attributed to a combination of temporary stock shortages and the impact of Black Friday pulling sales forward to November. And this shift in peak season aligns with CommBank IQ retail data. The data shows that sales peaked over the 2-week Black Friday period, up 4.6% year on year, and up 19.5% on the fortnightly average for Australian retailers.

Many analysts are seeing upside at current prices, and I tend to agree.

Over the last six months, its share price has dropped circa 28%, but if you Zoom out, it is up some 92% over the last five years. I think this is a better indicator of the retailer’s performance. While consumer spending decline is a risk for this business, its strong branding as a discount retailer will keep it top of mind for budget conscious consumers

The case for Wesfarmers

Wesfarmers is one of Australia’s largest and most diversified retailers. It may not have the growth momentum of JB Hi-Fi, but it is a solid operator, demonstrating consistent earnings performance and disciplined capital management throughout multiple economic cycles.

This is reflected in its HY26 results, which showcased stability in a challenging retail climate, including:

• Revenue up 3.1% on PCP to $24.2 billion 
• EBIT up 8.4% to $2.49 billion 
• Net profit after tax up 9.3% to $1.6 billion
• Dividends (fully franked) up 7.4% to $1.02

Wesfarmers share price has also experienced some volatility, likely off the back of consumer spending decline and pressure on its lower-performing Target and Officeworks brands. Retail leaders Kmart and Bunnings both pick up their share of the slack, with both showcasing strong growth in the first half of FY26.

It’s notable that Wesfarmers has delivered consistent growth in revenue, profit and dividends throughout the 2020s, a decade that is proving a challenge for retailers.

Wesfarmers is parent company to over 35 brands that extend out of the retail sector, too. This wide footprint gives it exposure to a range of markets and a defensive business mix. It’s brands outside the retail sector include online healthcare provider, Instascripts, data powerhouse, FlyBuys, natural gas provider, Kleenheat, and lithium miner, Covalent Lithium (a 50/50 joint venture with Mt Holland Lithium Project).

As with JB Hi-Fi, it’s worth looking at the bigger picture for Wesfarmers. Over the last six months, its share price has fallen some 12% but has grown 65% over a 5-year period. For a business of this quality and scale, I think current prices can be considered a short-term dip.

The verdict

Both are good options, so it really depends on what you want to achieve.

JB Hi Fi has significant upside right now. So, in my view, it’s the one to buy if you’re looking for a growth share with exciting momentum and your risk appetite will allow for some temporary volatility.

Wesfarmers remains a compelling, if not a hugely exciting, buy. Its scale, defensive business mix and track record of disciplined execution make it a reliable performer. Its fully franked dividend is also appealing. So, for me, it’s the one to buy if you want a steady investment to hold long-term.

The post JB Hi-Fi vs.Wesfarmers: Which retail stock deserves a place in your portfolio? appeared first on The Motley Fool Australia.

More reading

• Aged under 40? Here are 3 financial moves that could set you up for life
• Experts name 3 ASX dividend shares to buy
• Why are Wesfarmers shares tumbling today?
• How to build a $40,000 ASX share portfolio in 5 years
• Is Wesfarmers stock a post-earnings buy?

Motley Fool contributor Melissa Maddison 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Your late-40s are the sweet spot between where superannuation balances are large enough to gather some good momentum, but at a time when there are still enough years left before retirement to fix any mistakes.

After all, by the time you reach your late-40s, many Aussies are at or nearing the peak of their earnings potential. By this age, most people have enough experience, seniority and pay rises under their belt to bring in a higher wage. And the higher the wage, the bigger your superannuation balance can be.

Here’s a breakdown of the average superannuation balance of Aussies aged 40, and the balance you need by retirement.

What is the average superannuation balance at age 49?

According to Rest Super, the average superannuation balance for Australian men aged 45-49 is $193,501 and for women it is $147,146.

Although at the age of 49, you could probably assume that the average superannuation balance is closer to the age 50-54 bracket above. For men aged 50-54, the average super balance is $254,071, and for women it’s $190,175.

The problem is, while learning about the average superannuation balance at age 49 is interesting, it doesn’t paint the picture of exactly how much you should have at this age to get the retirement of your dreams.

So how much superannuation should I really have at age 49?

According to the latest ASFA Retirement Standard, the benchmark for a comfortable retirement, is just over $54,000 per year for a single person and $76,000 per year for a couple.

To support that level of spending, ASFA estimates you’ll need a super balance of roughly $595,000 as a single and $690,000 as a couple by the age of 67.

The figures also assume that you own your own home outright and assume you’re receiving the age pension.

In order to reach that number, ASFA calculates that at the age of 49, Aussies should have a superannuation balance of around $297,500.

Worrying, that is significantly below the average superannuation balance for men and women aged 45-49. It’s also far below the average balance for both men and women aged 50-54.

It means the average Aussie is already behind on their superannuation. 

The problem…

The problem is that compulsory employer superannuation contributions aren’t enough. Many Aussies think that because their superannuation is invested in a diversified portfolio, which is often benchmarked to broad market indices like the S&P/ASX 200 Index (ASX: XJO), it’ll look after itself.

But the reality is that, while the Super Guarantee helps Aussies build savings for retirement, it will never be able to fund the lifestyle that they want. This is especially the case while the cost of living continues to accelerate.

In fact, leaving your superannuation on autopilot is one of the biggest superannuation mistakes that many Aussies in their 40s are making.

By leaving your superannuation on autopilot, what might be a $5 loss today could easily snowball into $100,000 by retirement after you take compound growth into account.

The post Average superannuation balance at age 49 versus what you really need appeared first on The Motley Fool Australia.

More reading

• WiseTech Global FY26 earnings: Robust revenue growth, AI strategy in focus
• Domino’s Pizza Enterprises lifts dividend and franchise profitability in first-half reset
• Growthpoint Properties Australia lifts guidance
• Flight Centre Travel Group delivers record 1H earnings and dividend boost
• Fortescue delivers record shipments and a bigger dividend in H1 FY26 earnings

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.