Category: Stock Market

When I talk about shares trading at a discount, I’m not always referring to low price-to-earnings (PE) ratios.

Sometimes the discount is relative to long-term growth potential. Sometimes it reflects temporary uncertainty. And sometimes it’s simply the result of sentiment getting ahead of fundamentals.

Right now, I believe three quality ASX 200 names fit that description: Xero Ltd (ASX: XRO), Treasury Wine Estates Ltd (ASX: TWE), and Catapult Sports Ltd (ASX: CAT).

Xero shares

Xero isn’t conventionally cheap. It still trades on a premium multiple compared to the broader market. But I think the market may be underestimating its long-term growth engine.

The accounting software company has been caught up in global tech weakness and concerns around AI disruption. There are also ongoing debates around its US expansion and the integration of major acquisitions.

But when I look at the core business, I see strong subscriber growth, improving margins, and increasing operating leverage as scale builds.

Xero’s ecosystem is deeply embedded in small and medium-sized businesses and accounting firms. Switching costs are meaningful. Integrations with payroll, payments, and other tools reinforce stickiness.

In my view, this is not a fragile growth story. It’s a global platform still expanding into a large addressable market. If execution remains solid, I think today’s valuation could look conservative over a five- to ten-year horizon.

That’s why I see it as trading at a discount to its long-term potential, even if the headline multiple doesn’t scream cheap.

Treasury Wine Estates shares

Treasury Wine Estates is a more obvious discount candidate.

The share price has been hit hard over the past year, reflecting softer demand, inventory challenges, and uncertainty in key markets. Investor confidence has clearly taken a knock.

But I believe the market may be pricing in too much pessimism.

This ASX 200 share owns a portfolio of premium wine brands with strong global recognition. While earnings can be cyclical and sensitive to consumer demand, brand strength and distribution scale provide long-term value.

In my view, this looks less like a permanently impaired business and more like a cyclical downturn that has been heavily punished. If its new management team executes on its strategy and demand normalises, the re-rating potential could be meaningful.

Catapult Sports shares

Catapult is another stock that isn’t cheap on traditional valuation metrics. But I think it may be undervalued relative to what it could become.

The company provides performance analytics and wearable technology to professional and collegiate sports teams globally. Its platform spans coaching, scouting, athlete monitoring, and analytics.

What I find compelling is the scalability of the model. Recurring software revenue is growing, margins are expanding, and the company has been pushing toward the coveted Rule of 40 profile, where growth plus profitability exceed 40%.

Catapult operates in a niche with limited direct competition at scale. As more teams adopt data-driven decision-making, the addressable market remains significant.

If revenue continues compounding at strong double-digit rates and margins expand as expected, today’s valuation may understate the earnings power of the business three to five years from now.

Foolish takeaway

Discounts don’t always show up in a simple multiple. Sometimes they appear when sentiment is weak. Sometimes when growth is misunderstood. And sometimes when the market focuses on short-term noise instead of long-term opportunity.

I believe Xero, Treasury Wine Estates, and Catapult Sports each fit that description right now. None are without risk. But for investors willing to think beyond the next quarter, I think these quality ASX 200 shares are trading below what they could ultimately be worth.

The post Why I think these quality ASX 200 shares are trading at a discount appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Catapult Sports, Treasury Wine Estates, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, Treasury Wine Estates, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Paladin Energy Ltd (ASX: PDN) are in a trading halt on Friday after the uranium producer requested a pause just before market open.

The company’s shares last traded at $13.23 on Thursday’s close. Even amid recent volatility in the uranium sector, Paladin shares are up almost 40% year to date.

According to the ASX notice, trading will remain halted pending the release of an announcement. The update relates to an approval in relation to the Patterson Lake South (PLS) Project in Canada.

Unless released earlier, trading is expected to resume by Tuesday, 24 February.

Here’s what we know.

Halt linked to Canadian project approval

Paladin has not provided additional details on the nature of the approval. However, the reference to the PLS project in Saskatchewan suggests the announcement could relate to a regulatory or development milestone.

The PLS asset is seen as a potential long-term growth project for the company. Any material approval could influence development timelines, funding requirements, or future production expectations.

The halt will remain in place until the announcement is released or normal trading resumes next week.

Recent results showed strong momentum

Earlier this month, Paladin released its December 2025 half-year results to the market.

For the 6 months ended 31 December 2025, the company reported:

• U3O8 sold: 1.96 million pounds

• Average realised price: US$70.5 per pound of uranium

• Sales revenue: US$138.3 million

• Gross profit: US$26.0 million

• Loss after tax: US$6.6 million

The result shows production at the Langer Heinrich Mine in Namibia is continuing to increase after its restart. Although the company is still reporting a net loss, higher revenue and gross profit suggest sales volumes are improving, helped by firm uranium prices.

Paladin finished the period with US$121 million in cash and total liquidity of US$278 million. This position was strengthened by a recent equity raising and share purchase plan.

What investors will be watching

The Patterson Lake South project is viewed as a key growth asset for Paladin over the long term.

Uranium prices remain well above levels seen in recent years. At the same time, governments are backing nuclear energy as part of their decarbonisation plans, so any project approval could lift Paladin’s future production outlook.

Investors will want details on exactly what has been approved and how it affects development timing, funding needs, and expected output.

Foolish Takeaway

Paladin shares have rallied strongly in 2026, supported by improving uranium fundamentals and better operational performance.

With trading suspended, attention now turns to what the PLS decision means for Paladin’s next stage of development.

The post Paladin share price on ice pending major announcement 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.

Shares in Inghams Group Ltd (ASX: ING) have tumbled 13% on Friday (at the time of writing) after the poultry producer reported sharply lower interim earnings and downgraded its full-year guidance.

While management flagged a stronger second half, investors appeared focused on the scale of the first-half earnings decline and elevated leverage.

What did Inghams report?

Inghams delivered revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year on year.

However, profitability deteriorated significantly. EBITDA fell 33.8% to $139.2 million, while net profit after tax (NPAT) slumped 64.9% to $18.1 million.

On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period. Underlying NPAT pre AASB 16 fell 60.4% to $21.3 million.

Core poultry volumes declined 0.7% year on year, although net selling prices increased 1.4%, partly offsetting the volume weakness.

The board declared a fully-franked interim dividend of 4 cents per share, down from 11 cents in the prior period.

What else do investors need to know?

The earnings decline was driven primarily by higher operating costs in Australia.

Key cost headwinds included excess inventory management ($19 million), incremental supply chain and logistics costs ($6.7 million), lower farming performance ($3.8 million), and transition inefficiencies at Ingleburn ($1.8 million).

Total costs rose 5% versus the prior period, reflecting both these operational pressures and broader inflation across labour, ingredients, utilities, and packaging.

Encouragingly, inventory levels declined by $24.3 million during the half, supporting a return to normalised production settings into the third quarter.

Cash conversion improved to 113.1%, driven by working capital improvements, but net debt increased to $466.1 million. Leverage rose to 2.4x underlying EBITDA pre AASB 16, above the company’s target range of 1 to 2 times.

What did management say?

CEO Ed Alexander described the first-half result as “disappointing,” citing higher operational costs and inefficiencies associated with supply chain changes and customer onboarding.

He said inventory levels had returned to desired levels and that measures were in place to restore unit cost performance through the second half, including supply chain stabilisation and improved planning.

What’s next for Inghams?

Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.

Management expects earnings to be weighted to the second half, with improved production settings, stabilised supply chains, and stronger wholesale pricing supporting a rebound into FY27.

Share price snapshot

After today’s result, Ingham shares are now down 16% so far in 2026 and down 35% over the last 12 months.

The post Inghams shares plunge 13% as earnings slump and FY26 guidance cut appeared first on The Motley Fool Australia.

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• Megaport shares tumble despite record results
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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.

AIC Mines Ltd (ASX: A1M) reported its first-half results this week, and analysts from two broking houses were impressed, assigning bullish price targets on the company’s shares.

So let’s have a look at the results first.

Profit surging

AIC reported revenue of $110.6 million, up 19% on the previous corresponding period, and a net profit of $17.4 million, up 114%.

The company’s Eloise mine produced 6526 tonnes of copper in the first half at an all-in sustaining cost of $4.92 per pound.

The company said the result met its production and cost guidance and “was underpinned by disciplined cost control and strong gold and silver credits”.

The increase in revenue was underpinned by improved copper and gold prices during the half, with the company receiving $15,845 per tonne of copper, up from $13,576 in the previous corresponding period and $5839 per ounce of gold, up from $4506.

The company also said regarding an ongoing expansion project:

The Eloise expansion project is progressing well and although it is still early in the construction period, it remains on schedule at the end of the period. Earthworks and concrete works were well advanced during the period, with structural and mechanical construction to commence shortly in the March 2026 quarter. Detailed engineering design continues to progress well and was 70% complete at the end of the period. Engineering design work has also commenced for the stage two expansion to 1.5Mtpa.

The company is also developing the Jericho deposit, 4km south of the Eloise processing plant and said that during the half, the Jericho access drive continued, with that drive to connect the deposit directly to the Eloise decline.

The company said its financial position remained strong with $44.9 million in cash on hand at the end of the half-year period.

Shares looking cheap

Analysts from both Shaw and Partners and Bell Potter had a look at this week’s results, and they all like what they see.

Shaw said in a note to clients that Eloise has had an “outstanding couple of years” and reiterated its price target of $1.10 per share for AIC, compared with 58.5 cents currently.

The Shaw team said the demand thematic for copper would remain strong.

As they said:

Coupled with supply fragility throughout 2025 as mudslides at Grasberg and labour strikes in Chile vaporised the global supply surplus, copper market deficits appear likely in 2026 according to the International Energy Agency following decades of chronic underinvestment. In fact, we recently posited in our Copper price upgrade note … that the sheer scale of the energy transition and AI-demand all but ensures long-term structural deficits.

The Bell Potter team also likes AIC shares, increasing their price target from 67 cents to 80 cents.

They also said the company had more growth options.

AIC’s regional exploration shows high potential for success across a large scale, strategic tenement package. The current share price, in our view, represents attractive value for a well-managed, Australian-based copper producer.

The post This copper company’s shares are looking cheap brokers say appeared first on The Motley Fool Australia.

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

Shares in Latitude Group Holdings Ltd (ASX: LFS) are trading higher after the company announced a significant jump in full year profit.

In a statement to the ASX on Friday morning the company said net profit was up 208% year-on-year to $94.4 million, and it had boosted its final dividend, from 3 cents per share to 5 cents per share.

Good growth across the board

The company said it had booked record new credit card spend and loan originations of $9.1 billion, up 10% year-on-year, with total application volumes up 13%, with 307,000 new customers acquired.

Latitude said it had also expanded its retail partner network across core categories, “including home furniture, personal electronics and whitegoods, adding new partners such as E&S Trading and Adairs Retail Group (Focus on Furniture and Mocka), and renewing key partnerships including Harvey Norman”.

Managing director Bob Belan said:

This is a solid result for the company, with FY25 cash NPAT of $105.1 million reflecting the strategic work undertaken over the past two and a half years to simplify and sharpen our focus on what we do best across our core markets. Record volumes of $9.1 billion drove receivables to $7.2 billion, their highest levels in five years. Importantly, net interest margins continued to improve, up 104bps YoY, reflecting targeted pricing initiatives and the benefit of lower funding costs. In the Money Division, new lending of $1.6 billion drove a 10% increase in receivables to a record $3.3 billion, while net interest margin expanded to 11.1% (+109bps YoY), supported by product enhancements, variable rate loan growth outperformance and broker distribution network expansion.

Mr Belan said the company’s balance sheet was further strengthened during the year, with $1.5 billion in new term funding locked in, and $1.5 billion in private facilities refinanced at better terms.

He added:

The group’s performance demonstrates the ability to achieve strong growth while maintaining margins, disciplined credit outcomes and operating efficiency, supporting sustainable long-term value creation.

Future looking bright

On the outlook the company said it expected to benefit from “strategic initiatives” implemented over the past year to focus on its core consumer segments.

The company said:

Latitude expects credit performance to remain within targeted ranges, underpinned by disciplined underwriting and active portfolio management, while continuing to reflect macro-economic conditions within its core markets. Strong and sustained profit performance and disciplined balance sheet management are expected to create the capacity to prudently return capital to shareholders.

Latitude shares were 6.6% higher in early trade at 93 cents.

The company was valued at $907.2 million at the close of trade on Thursday.

The post Latitude shares jump on surging profit appeared first on The Motley Fool Australia.

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

Mineral Resources Ltd (ASX: MIN) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $54.09. In morning trade on Friday, shares are changing hands for $56.36 apiece, up 4.2%.

For some context, the ASX 200 is down 0.2% at this same time.

This outperformance follows the release of the miner’s half-year results for the six months to 31 December (H1 FY 2026).

Here’s what we know.

Mineral Resources shares jump on record results

Mineral Resources shares are catching plenty of investor interest after the miner reported record half year earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.2 billion. That’s up 286% from H1 FY 2025.

Revenue of $3.1 billion, up 33% year-on-year, also marked a new all-time half year high.

The ASX 200 mining stock credited the strong result to an “outstanding operational performance”.

The company cited improved lithium recoveries, record earnings from its Mining Services division, and Onslow Iron sustaining its 35 million tonne per annum (Mtpa) nameplate capacity since August as driving the record results.

Mining Services hit record production of 166 million tonnes with EBITDA of $488 million, up 29% year-on-year.

Over the six months, the miner generated free cash flow of $293 million after capital expenditure of $587 million.

On the bottom line, Mineral Resources shares are catching tailwinds today with underlying net profit after tax (NPAT) of $343 million, up 275% year on year. Reported NPAT for H1 FY 2026 came in at $573 million, up 171%.

On the balance sheet, the company held cash of $638 million as at 31 December, up 55%. The six months saw liquidity strengthening to $1.4 billion and net debt cut by $471 million to $4.9 billion.

Looking ahead, the ASX 200 miners reaffirmed its full year FY 2026 volume and cost guidance.

What did management say?

Commenting on the results helping boost Mineral Resources shares today, managing director Chris Ellison said, “I’m pleased to report that MinRes has delivered the strongest six-month period in the company’s history.”

According to Ellison:

The result – which was driven by operational performance rather than extraordinary commodity prices – validates the strategic decisions we’ve made over recent years and demonstrates the quality and resilience of our asset base.

The transformation of this business is now evident with Onslow Iron at nameplate capacity. This would not have been possible without our world-class Mining Services business.

Turning to the miner’s lithium division, Ellison said:

Our lithium operations have proven their quality through a challenging market cycle, generating EBITDA of $167 million. Wodgina achieved a milestone 70% processing recovery rate in the December quarter, with further improvements expected as we access more fresh ore towards the end of the calendar year.

With lithium prices having recovered strongly, we are well positioned to capture the upside as market fundamentals continue to improve.

Factoring in today’s intraday moves, Mineral Resources shares are up 118.2% in 12 months, smashing the 8.9% one-year gains posted by the ASX 200.

The post Mineral Resources shares leaping higher on record smashing $3.1 billion revenue appeared first on The Motley Fool Australia.

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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 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.

Megaport Ltd (ASX: MP1) shares are under pressure on Friday.

In morning trade, the network-as-a-service provider’s shares are down 4% to $10.51.

This follows the release of its half-year results.

Megaport shares fall on results day

For the six months ended 31 December, Megaport reported a 26% increase in revenue to a record of $134.9 million. This comprises Megaport network revenue of $129.1 million and Latitude.sh revenue of $5.8 million (from 26 November 2025).

Annual recurring revenue (ARR) was up 16% over the prior corresponding period to $263.4 million.

This growth was driven by a 15% increase in large customers, a 17% lift in total services, and net revenue retention of 110%.

Also growing strongly was Megaport’s EBITDA. It delivered EBITDA growth of 28% to a record of $35.3 million.

However, on the bottom line, the company posted an underlying net loss of $3.3 million. This excludes acquisition costs of $15.8 million that were incurred during the half.

Nevertheless, at the end of the period, Megaport had a cash balance of $177 million.

Commenting on its performance, the ASX 200 tech stock’s CEO, Michael Reid, said:

Our global business continues to scale, with the United States delivering exceptional momentum, pushing the Americas to 24% YoY ARR growth. This performance was driven by rising NRR and consistent new logo acquisition.

We are also seeing strong adoption of our newer products, alongside a clear shift toward larger bandwidth commitments, more complex global routes, and longer-term contracts. Together, these trends demonstrate expanding wallet share and Megaport’s growing strategic importance within our customers’ infrastructure stack.

Reid also spoke positively about the recently acquired Latitude business. He said:

With Latitude.sh now part of Megaport, we’re accelerating our vision of a global platform where network and compute converge. This is the logical extension of what we’ve always done: automating infrastructure to power the cloud, AI, and data centre ecosystems. By combining private, on-demand connectivity with high-performance, optimised compute, we’re enabling customers to deploy and scale critical workloads anywhere in the world, instantly. This is a new chapter for Megaport, and we’re just getting started.

Outlook

Megaport has updated its guidance to reflect the acquisitions of Latitude.sh and Extreme IX, as well as a weaker US dollar.

It is guiding to revenue of $302 million to $317 million, an EBITDA margin of 21% to 24%, and capex of $90 million to $100 million.

Michael Reid said:

Our updated guidance reflects the strategic expansion of the Group through the acquisitions of Latitude.sh and Extreme IX, as well as the impact of foreign exchange movements. Importantly, we have raised the lower end and tightened the range of our core Megaport Network revenue guidance in constant currency, underscoring the continued strength of the underlying business.

The post Megaport shares tumble despite record results appeared first on The Motley Fool Australia.

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

Shares in Guzman y Gomez Ltd (ASX: GYG) are under heavy pressure on Friday after the Mexican restaurant chain released its half-year result.

In mid-morning trade, the Guzman y Gomez share price is down 10.11% to $18.31.

At market open, the stock fell as low as $17, marking a record low since the company listed on the ASX in June 2024.

Despite a modest rebound, the shares remain down and are now around 15% lower in 2026.

Here is what the company reported.

Sales and earnings climb in the first-half

For the six months ended 31 December 2025, Guzman y Gomez delivered global network sales of $681.8 million. That is an increase of 18% on the prior corresponding period.

Revenue rose 23% to $261.2 million, while group underlying EBITDA increased 23.3% to $33 million.

Statutory net profit after tax (NPAT) came in at $10.6 million, up 44.9% from $7.3 million a year earlier.

The Australia segment continues to drive performance. Australian network sales rose 17.5% to $673.6 million. Comparable sales growth in Australia was 4.4% for the half.

Segment underlying EBITDA for Australia increased 30% to $41.3 million. As a percentage of network sales, that lifted to 6.1%, up from 5.5% last year.

Average drive-thru restaurant margins were reported at 22%.

Network expansion continues

Guzman y Gomez opened 17 restaurants globally during the half, including 14 in Australia. It ended the period with 272 restaurants across Australia, Asia and the United States.

The company highlighted a strong development pipeline, with 108 restaurants in the pipeline under commercial terms agreed. More than 85% of the pipeline is drive thru format.

In Australia, management pointed to solid franchisee economics. Median franchise restaurant margins increased to 21.4%, while median franchise return on investment was 48%.

In the United States, network sales rose 67% to $8.2 million, driven by new restaurant openings. However, the US segment remains in investment mode, with segment underlying EBITDA of negative $8.3 million for the half.

Dividend declared and balance sheet remains strong

The board declared a fully franked interim dividend of 7.4 cents per share. The ex-dividend date is 13 March 2026, with payment scheduled for 31 March 2026.

Operating cash flow improved during the half, supported by earnings growth. Capital expenditure totalled $23.1 million, largely directed towards new restaurant openings and refurbishments.

As at 31 December 2025, Guzman y Gomez held $236.4 million in cash and term deposits and had no debt. Management said the strong balance sheet supports continued network expansion.

Outlook unchanged despite share price weakness

Looking ahead, Guzman y Gomez maintained its FY26 outlook.

For Australia, the company expects strong sales growth supported by new restaurant openings, menu innovation, daypart expansion, marketing, and digital initiatives. Segment underlying EBITDA as a percentage of network sales is expected to remain in the 6% to 6.2% range for FY26.

In the US, management expects restaurant productivity and margins to improve over time as the network matures. However, losses are forecast to increase slightly in FY26 compared to FY25 as expansion continues.

Despite record sales and rising earnings, investors are heading for the exits. After a strong run since listing, today’s sell off suggests the market is reassessing the company’s valuation and near-term growth outlook.

The coming months will show whether Guzman y Gomez can turn solid operating momentum into stronger share price performance.

The post Guzman y Gomez shares crash to a record low following half-year results 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.

Shares in shipbuilder Austal Ltd (ASX: ASB) are trading higher after the company announced it had been awarded a $4 billion contract with the Australian Government.

In a statement to the ASX on Friday morning, the company said its Australian defence division had been awarded a contract to build eight landing craft heavy (LCH) vessels, under the Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia.

Austal said the construction would take place at its Henderson shipyard in Western Australia and would start in 2026 and carry on until 2038.

A key defence partner

Austal Chief Executive Officer Paddy Gregg said the award of the contract reinforced the company’s status as a trusted partner to the Australian Defence Force.

He went on to say:

This contract represents another significant investment in Australia’s sovereign shipbuilding capability – and Austal Defence Australia is ready to deliver these highly capable vessels to support the ADF’s operational requirements. Constructing the landing craft heavy vessels at Henderson will create and develop thousands of new, skilled jobs in Western Australia and provide further opportunities for the local defence industry supply chain. While Austal’s US business has traditionally accounted for a large share of our defence order book in recent years, this contract reflects the growing strength and success of Austal’s Australian operations — and Australian industry — within the national shipbuilding and sustainment enterprise. This LCH construction contract balances out the split and provides greater geographic diversity of earnings. It also provides earnings and employment stability for the next 12 years.

Racking up the wins

Austal said the contract was the second major award for the company under the SSA, following the $1.029 billion landing craft medium design and build contract awarded in December.

Austal Defence Australia Executive General Manager, strategic shipbuilding, Gavin Stewart, said the construction project would provide outstanding opportunities for people to work within the company and for its supply chain partners.

The newly contracted vessels will be about 100m in length, 16m wide, and have a crew of more than 200.

They can also carry either six Abrams tanks or nine Redback infantry fighting vehicles.

Austal also said that Austal USA was presently constructing up to 12 smaller Landing Craft Utility vessels for the US Navy at its Mobile, Alabama, US shipyard.

Austal shares were 5.4% higher at $6.29 on Friday morning.

The company was valued at $2.46 billion at the close of trade on Thursday.

The post Austal shares take off on new Aussie contract win appeared first on The Motley Fool Australia.

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

The All Ordinaries Index (ASX: XAO) is down 0.3% in early trade today, while ASX All Ords gold stock St Barbara Ltd (ASX: SBM) is marching higher.

St Barbara shares closed yesterday trading for 75.5 cents. In morning trade on Friday, shares are swapping hands for, well, 76.5 cents each, up 1.3%

This sees the St Barbara share price up a jaw dropping 194.2% since this time last year, racing ahead of the 8.0% one-year gains delivered by the benchmark index.

Today the miner released its half year results for the six months to 31 December (H1 FY 2026).

Here are the highlights.

ASX All Ords gold stock swings back to profit

The St Barbara share price is marching higher with the company reporting a 32% year on year increase in revenue from ordinary activities to $128.8 million.

The ASX All Ords gold stock also notched a big improvement in earnings, with earnings before interest, taxes, depreciation and amortisation (EBITDA) coming in at $8.56 million, up from a loss of $39.8 million in H1 FY 2025.

On the cost front, the miner spent $40.5 million on growth capital, studies and exploration expenditure, up from the $23.9 million expenditure in H1 FY 2025.

And investors will have noted that the miner has swung to a profit, with underlying profit after tax of $1.3 million, up from a loss of $48.1 million in the prior corresponding half.

St Barbara’s statutory loss after tax of $249,000 was also a big improvement from the $48.5 million loss reported a year ago.

The ASX All Ords gold stock’s focus remains the development of its New Simberi Gold Project, located in Papua New Guinea, and the development of its 15 Mile Processing Hub Project, located in Canada.

Turning to the balance sheet, St Barbara had cash on hand of $74.8 million as at 31 December.

What did management say?

Commenting on the results that are helping to boost the ASX All Ords gold stock today, St Barbara CEO Andrew Strelein said:

We have delivered a number of project milestones in the first half with the delivery of the Feasibility Study for the New Simberi Gold Project, the Touquoy Restart Pre-Feasibility and, subsequent to the end of the December half year we announced the results of Pre-Feasibility Study for 15-Mile Processing Hub

In December, the company announced combined agreements with Lingbao Gold and the PNG government owned Kumul Minerals enabling the New Simberi Gold Project to progress to FID, with St Barbara to be fully funded for its share of development costs whilst retaining a 40% attributable share in the expanded operation.

St Barbara also updated its Mineral Resources and Ore Reserves Statement this morning.

The ASX All Ords gold stock reported Total Ore Reserves of 3.8 million ounces of contained gold and Total Mineral Resources of 7.9 million ounces of contained silver.

“For the first time at Simberi we have also reported Mineral Resources of 15.3 million ounces of contained silver and Ore Reserves of 4.5 million ounces of contained silver,” Strelein said.

The post Up 194% in a year, why is this ASX All Ords gold stock lifting off again on Friday? appeared first on The Motley Fool Australia.

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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 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.