Category: Stock Market

Finding the right ASX shares to hold over the next five years comes down to identifying businesses with strong growth drivers, scalable models, and the ability to keep compounding earnings over time.

While markets will inevitably have ups and downs, high-quality growth companies can often look through that noise.

Here are five ASX growth shares that could be worth buying and holding for the next five years.

Breville Group Ltd (ASX: BRG)

The first ASX growth share that could be a strong long-term pick is Breville.

Breville has built a premium global brand in kitchen appliances, with a focus on innovation and design. What makes the company particularly compelling is its international expansion.

A large portion of its revenue now comes from overseas markets, giving Breville exposure to a much larger opportunity than the domestic market alone. Combined with its leadership position in the thriving coffee market, this leaves it well-placed for sustainable growth.

Life360 Inc (ASX: 360)

Another ASX growth share to consider is location technology company Life360.

Life360 is transitioning from just a user growth story into a user growth and monetisation story. Its platform has almost 100 million users globally, but the focus is now on converting that scale into sustainable earnings.

Subscription growth, partnerships, and new features are helping drive revenue higher, while improving operating leverage is supporting profitability.

If the company continues executing well, it could evolve into a highly scalable global platform business.

Pro Medicus Ltd (ASX: PME)

A third ASX growth share that stands out is Pro Medicus.

Pro Medicus provides medical imaging software and has built a reputation for winning large, long-term contracts with leading hospitals.

What sets it apart is its high-margin business model and strong competitive positioning. Once its technology is in place, switching costs are high, leading to recurring revenue and strong retention.

ResMed Inc (ASX: RMD)

A fourth ASX growth share that could be worth considering is ResMed.

ResMed operates in the sleep apnoea and respiratory care market, combining medical devices with digital health platforms.

Its business benefits from recurring revenue, as patients continue to purchase masks, software, and accessories over time. There are also strong structural tailwinds, including ageing populations and increasing awareness of sleep health.

With ongoing innovation and a growing global footprint, ResMed appears well placed to deliver sustainable growth long into the future.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be worth considering is WiseTech Global.

WiseTech is building the software backbone for global logistics through its CargoWise platform. Its solutions are deeply embedded in customer operations, creating strong switching costs and recurring revenue.

The company continues to expand its capabilities and increase its reach across global supply chains.

As trade becomes more complex and digitised, WiseTech’s platform could become even more critical, supporting long-term growth.

The post 5 ASX growth shares to buy and hold for 5 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, ResMed, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, ResMed, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, ResMed, and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Nufarm Ltd (ASX: NUF) share price has surged into the spotlight on Wednesday.

This comes after the agricultural chemicals company delivered a much stronger-than-expected market update.

In early morning trade, Nufarm shares are up a massive 13.96% to $2.53, putting the stock among the ASX’s top performers for the session.

Even after today’s rally, the shares remain down 35% over 12 months, showing how weak sentiment had become before this rebound started.

Today’s rally suggests the market is reassessing earnings expectations and balance sheet risks after a difficult stretch for the business.

Let’s take a closer look at the release.

A much stronger first half than the market expected

According to the trading update, Nufarm expects its first-half FY26 underlying EBITDA to come in between $239 million and $244 million.

At the midpoint, that represents 17% growth on the prior corresponding period, which is a significant improvement given the company’s weaker recent history.

Management said the stronger result was driven by better margins in Crop Protection, growth in Hybrid Seeds, and improved contributions from its omega-3 and bioenergy platforms.

That mix is likely giving the market more confidence that the recovery is not coming from just one division.

The company also flagged positive trading momentum continuing into April, suggesting the stronger start to the half has carried into the current quarter.

Debt is falling and the strategy refresh adds another lever

Another major support for the share price was the continued reduction in debt.

Nufarm said net debt at 31 March had fallen to approximately $1.23 billion, down $130 million from a year earlier. Leverage also improved to around 3.6 times EBITDA.

Given how much of the past year has been dominated by balance sheet concerns, the update has landed well with investors.

The company also announced the first stage of a strategy refresh, targeting an additional $50 million in gross cost savings.

These savings are expected to come from asset optimisation, manufacturing, product footprint, and SG&A efficiencies, with benefits building progressively through FY27.

Foolish takeaway

The strongest part of today’s update is that it improves confidence in both earnings and the balance sheet at the same time.

The first-half upgrade shows trading conditions are improving, while lower debt helps ease one of the market’s biggest concerns around the stock.

The extra $50 million cost-out target also gives investors another reason to believe margins can rebuild through FY26 and into FY27.

After a rough year for the shares, attention may now start shifting from downside risks to Nufarm’s recovery path.

The post Why Nufarm shares just exploded higher on Wednesday appeared first on The Motley Fool Australia.

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

The team at Morgans has just provided updated guidance on two Australian bank shares. 

Both Bank of Queensland Ltd (ASX: BOQ) and Westpac Banking Corp (ASX: WBC) have brought investors strong returns this year compared to the broader market. 

Year to date, Bank of Queensland shares have risen almost 12% while Westpac shares have risen 6.5%. 

For context, this has far outpaced the S&P/ASX 200 Index (ASX: XJO) which is up 2.8% in the same period. 

Let’s see Morgan’s updated guidance on these two ASX bank shares. 

1H26 result preview for BOQ

Bank of Queensland has been one of the best performing ASX financials stocks so far this year. 

At the time of writing, BOQ shares are exchanging hands for $7.40. 

The company is set to release half year results and interim dividend announcement on the 22 April.

In a recent note out of Morgans, the broker said it expects a material decline in 1H26 earnings, with recent share price strength driven by the expected capital return from the equipment finance whole-of-loan sale. 

Share price strength has compressed total return potential to c.5%. As such, we moderate our rating from ACCUMULATE to HOLD.

The broker has a current share price target of $7.39. 

This indicates BOQ shares are currently trading at fair value. 

Westpac shares a sell

Turning attention to Westpac shares, the broker said the company published a trading update yesterday ahead of its 1H26 result due for release on 5 May. 

In the trading update, Westpac noted the supply shock from the energy market disruption is expected to result in higher inflation and higher interest rates.

An expected slowing in economic growth will create a more challenging environment for some customers.

This update led to a 2.9% share price drop yesterday for the bank shares. 

It also triggered a sell recommendation from the team at Morgans. 

Implied revenues were weaker, costs lower, and credit impairment charges higher than our and market expectations. We revise our rating from TRIM to SELL as total return expectations at current prices have fallen below the -10% trigger. We estimate c.18% price downside risk partly offset by c.3.8% forecast cash yield.

The broker has a current price target of $34.06 on Westpac shares. 

This indicates a downside of nearly 18% from the current share price of $41.48. 

The post Are Westpac and Bank of Queensland shares a buy, hold or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Here in Australia, the S&P/ASX 200 Index (ASX: XJO) acts as the benchmark index. 

It includes the 200 largest Australian companies based on market capitalisation. 

The index is also market-cap weighted, meaning bigger companies have more influence on the index’s movement

In simple terms: it shows how the top slice of the Australian stock market is performing overall.

Here in Australia, it has a strong weighting towards big banks and mining companies, which make up most of the largest companies. 

Investors often monitor the performance of this index to compare how their portfolio compares. 

Many Aussie investors also compare the ASX 200 index to the benchmark index in the US – the S&P 500 Index (SP: .INX). 

The S&P 500 tracks the performance of 500 of the largest publicly traded companies in the United States.

Unlike the ASX 200, it is weighted heavily towards technology giants like Apple (NASDAQ: AAPL) and consumer discretionary stocks like Amazon (NASDAQ: AMZN. 

How do you invest in these markets?

The simplest way for investors to gain exposure to these markets is through ASX ETFs. 

If you are looking to track the performance of the ASX 200, two options to consider are: 

• iShares Core S&P/ASX 200 ETF (ASX: IOZ)
• BetaShares Australia 200 ETF (ASX: A200). 

Meanwhile, for exposure to the S&P 500, investors may consider: 

• iShares S&P 500 ETF (ASX: IVV)
• SPDR S&P 500 ETF Trust (ASX: SPY). 

There are also several alternatives to these ASX ETFs that may provide a slightly different focus for investors to consider. 

For example, investors looking for slightly more diversification in the Australian market could consider the Global X Australia 300 Etf (ASX: A300). 

As the name suggests, it includes the 300 largest companies rather than the traditional 200. 

Focussing on the US, another popular investment is in the BetaShares NASDAQ 100 ETF (ASX: NDQ). 

This index is often referred to as representing the new economy – including 100 of the largest non-financial companies listed on the Nasdaq in the US. 

My colleague Grace Alvino explains why investors may target this fund instead of the traditional S&P 500 in her article from this morning. 

It’s also important to note that investors do not have to decide between one or the other.

Many investors choose to include both US and Australian focussed funds in their portfolio.

Which is performing better this year?

So far in 2026, the ASX 200 has increased by approximately 2.7%. 

Considering a fall of 9% during March, it has shown resilience to geopolitical volatility this year. 

Meanwhile in the US, the S&P 500 has increased 1.59%. 

Finally, the NASDAQ-100 Index (NASDAQ: NDX) is currently tracking somewhere in between the two, rising 2.5% year to date. 

The post Has the ASX 200 or S&P 500 been a better investment this year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, and iShares S&P 500 ETF and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telix Pharmaceuticals Ltd (ASX: TLX) shares are on the move on Wednesday morning.

At the time of writing, the ASX radiopharmaceuticals stock is down 7.5% to $14.28.

As a comparison, the ASX 200 index is trading 0.25% higher in morning trade today.

Why are Telix shares falling today?

The company’s shares are under pressure following the announcement of a large convertible bond offering due in 2031.

According to the release, Telix has raised US$600 million from the convertible notes offering.

These notes can be converted into ordinary Telix shares at a future date, which introduces the potential for dilution if conversion occurs.

Management noted that the proceeds will primarily be used to refinance its existing convertible bonds due 2029, with any excess funds directed toward general corporate purposes.

The bonds are expected to carry a relatively low coupon of between 1.50% and 1.75% and will be issued with a conversion price of US$13.85 (~A$19.55), which is a premium of approximately 37.5% to the current share price.

While the company described the transaction as cost-effective financing, the combination of potential dilution and associated hedging activity appears to be weighing on sentiment.

Telix’s managing director and group CEO, Dr. Christian Behrenbruch, said:

The refinance of the existing Convertible Bonds represents our proactive approach to capital management. The new Convertible Bonds will continue to provide the business with cost effective financing.

The successful completion of the convertible bonds refinance is in line with our capital management strategy and provides financial flexibility for Telix. We are pleased with the support we have received from both existing and new investors as part of the concurrent repurchase and new issue of convertible bonds.

Investor presentation

Alongside the announcement, Telix also released an updated investor presentation, which largely reiterated previously disclosed performance and outlook details.

The presentation highlights that the company generated group revenue of US$230 million in the first quarter of 2026, representing an 11% increase on the previous quarter and a 23.7% jump on the prior corresponding period.

Looking ahead, Telix continues to guide to FY 2026 revenue in the range of US$950 million to US$970 million. This will be supported by growth in its Precision Medicine business and contributions from its radiopharmacy operations.

Its research and development guidance range remains US$200 million to US$240 million.

And this appears to be money well spent. The company pointed to progress across its pipeline, including multiple late-stage clinical programs and upcoming regulatory milestones.

It also spoke about its significant market opportunity in the US market. Management estimates that it has a US$32 billion addressable market across its Precision Medicine and Therapeutics pipeline.

The post Why are Telix shares sinking 7.5% today? 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.

Boss Energy Ltd (ASX: BOE) shares are sinking on Wednesday morning.

At the time of writing, the ASX 300 uranium stock is down almost 14% to $1.49.

Why are Boss Energy shares crashing?

The company’s shares are under pressure following the release of a production update that included a downgrade to its FY 2026 guidance.

According to the release, Boss Energy has reduced its FY 2026 production guidance for the Honeymoon operation to between 1.40 million and 1.45 million pounds of U3O8. This is down from previous guidance of 1.6 million pounds.

Management advised that the downgrade is largely due to ongoing disruptions caused by heavy rainfall.

Boss Energy had previously flagged that rain impacted third quarter production by restricting site access and limiting the delivery of key materials. However, further unexpected rainfall during March extended these disruptions beyond initial expectations.

As a result, production for the third quarter came in at just 203,000 pounds of U3O8. This is below the previously guided range of 240,000 to 270,000 pounds.

Looking ahead, fourth quarter production is now expected to be between 356,000 and 406,000 pounds, which is also below earlier expectations.

Infrastructure delays add to pressure

In addition to weather-related issues, Boss Energy experienced delays in commissioning key infrastructure.

This includes components required to support the ramp-up in production, such as NIMCIX columns and associated pumping systems, as well as the completion of wellfield infrastructure.

These delays, combined with restricted site access, have contributed to the lower production outlook.

Costs remain unchanged

One positive is that despite the downgrade to production, the company has maintained its cost guidance.

Boss Energy expects FY 2026 C1 costs to remain in the range of $36 to $40 per pound, and all-in sustaining costs between $60 and $64 per pound.

However, management noted that costs are now expected to come in toward the upper end of these ranges due to factors such as higher fuel and transport expenses.

Commenting on the update, Boss Energy’s managing director, Matthew Dusci, said:

We recognise this downgrade is disappointing, particularly after maintaining guidance as recently as March. At that time, our expectation was that site access and reagent deliveries would normalise during the month. Subsequent unexpected rainfall, combined with the degraded baseline condition of access roads, extended disruption materially beyond that assumption. This has impacted both production and the timing of commissioning critical infrastructure during ramp-up.

While weather-related access constraints were a key factor, delays to certain infrastructure, mainly associated with the commissioning of the additional PLS and BLS pumps, have also contributed to the revised production outcome and guidance for FY26.

Despite this setback, Dusci remains positive on its outlook. He concludes:

These events have impacted performance in the short-term, however we anticipate rebounding to a normalised FY26 production run rate over the course of Q4 FY26. Our immediate focus is restoring targeted lixiviant chemistry, completing commissioning of additional capacity, and exiting FY26 with the operation better positioned for FY27.

The post Why are Boss Energy shares crashing 14% today? 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.

Yancoal Australia Ltd (ASX: YAL) shares are on the move on Wednesday morning.

At the time of writing, the ASX 200 coal stock is up 1.5% to $7.32 after returning from a short trading halt.

Why is this ASX 200 coal stock rising today?

The catalyst for the move has been the announcement of a major acquisition.

According to the release, Yancoal has entered into binding agreements to acquire an 80% interest in the Kestrel coal mine in Queensland’s Bowen Basin.

The transaction will be completed through the acquisition of Kestrel Coal Group, which holds the interest in the mine.

The total consideration for the deal is up to US$2.4 billion. This includes an upfront payment of US$1.85 billion, as well as contingent payments of up to US$550 million that are linked to future coal prices.

Management describes Kestrel as a high-quality, long-life asset, producing premium metallurgical coal that is used in steelmaking. It is the largest producing underground coal mine in Australia, which highlights the scale of the acquisition.

Strategic benefits

The ASX 200 coal stock believes the acquisition is a strong strategic fit for its existing portfolio.

The addition of Kestrel is expected to increase the company’s exposure to metallurgical coal, lifting its share of production to approximately 22% on a pro forma basis.

This is significant given that metallurgical coal typically commands higher margins and is linked to global steel demand.

The asset is also located near Yancoal’s existing operations in the Bowen Basin, which may provide operational and logistical benefits over time.

Funding

Yancoal plans to fund the acquisition through a combination of existing cash, debt facilities, and future cash flows from the enlarged business.

The transaction remains subject to a number of regulatory approvals and conditions.

Completion is currently targeted for the second half of calendar 2026, assuming all approvals are received.

Commenting on the acquisition, the ASX 200 coal stock’s CEO, Sharif Burra, said:

The proposed acquisition of 80% of the Kestrel Coal Mine represents a strong strategic fit for Yancoal and adds another high-quality, long-life mine to our portfolio. Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix.

The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner. We look forward to working closely with Mitsui, the joint venture partner and owner of 20% of Kestrel, in the future as co-owners of Kestrel to continue to add value to the mine, local communities and stakeholders.

The post ASX 200 coal stock higher on US$2.4 billion deal 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.

Many ASX stocks fell during the month of March as global conflict weighed heavily on sentiment. 

This has prompted plenty of coverage from the team at The Motley Fool about where investors should be scooping up value shares.

In addition to plenty of shares that may have been oversold during March, there are also ASX stocks that ignored broader market negativity and powered ahead. 

Let’s look at three that have flown higher in 2026 despite broader volatility.

4DMedical Ltd (ASX: 4DX)

For those who missed it, 4DX Medical was one of the best ASX stocks to own in 2025. 

It is a medical technology company working in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

The company’s non-invasive lung imaging technology emanates from research work undertaken at Monash University. 

It is the first FDA-cleared respiratory imaging solution that uses mathematical models and algorithms to convert sequences of X-ray images into four-dimensional quantitative data.

In the last 12 months, this ASX stock has risen 2,000%. 

Yes, you read that right. 

While this rapid pace has slowed, it has still enjoyed a 39% rise year to date. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up just 2.8% in the same period. 

So, where to now for this ASX stock?

Many holders would be considering profit-taking, while those on the outside looking in might have missed the boat. 

The Motley Fool’s Samantha Menzies dove into this question recently, pointing out the gamble that some investors might be taking. 

It’s possible this runaway train is now rising more on hype and hope rather than concrete earnings. 

Analysts forecasts via TradingView indicate it is now above fair value by approximately 34%. 

PLS Group Ltd (ASX: PLS)

PLS is an Australian lithium-tantalum producer positioning itself at the forefront of the rapidly growing global lithium industry.

While it hasn’t been all smooth sailing, PLS shares are up 25% year to date and 283% in the last 12 months. 

Global lithium prices have been driving this growth, along with its dominant market position here in Australia. 

These drivers could continue to benefit this ASX 200 stock in the long term. 

However, 17 analyst forecasts via TradingView indicate that right now, it is trading close to fair value. 

Resolute Mining Ltd (ASX: RSG)

Resolute Mining is an Australia-based gold producer.

Like most gold stocks, it rallied throughout 2025. 

But while many other companies in the sector have fallen this year, Resolute Mining shares have continued to climb a further 17% in 2026. 

Unlike the previous ASX stocks mentioned, experts think Resolute Mining shares can continue to climb. 

7 analysts via TradingView have an average one-year price target of $2.13. 

This suggests a potential upside of 47% from current levels. 

The post Will these top-performing ASX stocks keep charging higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 decade before retirement can make or break your long-term financial future. It’s the period when your portfolio is often at its largest, your super balance has the most to lose from a market correction, and every investment decision carries more weight.

That’s exactly why I believe Australian investors should focus on a strategy that blends growth, resilience, and rising income.

For retirees who own their home, the latest ASFA Retirement Standard suggests a couple needs around $77,000 a year for a comfortable lifestyle, while singles need roughly $55,000.

That makes the final 10 years before retirement the ideal time to shape a portfolio designed to support that level of spending.

Local and global reach through ETFs

My preferred approach starts with broad ASX and global share ETFs as the portfolio’s growth engine. A core holding in the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to many of the market’s best dividend-paying companies.

Adding an international ETF such as BetaShares Global Shares ETF (ASX: BGBL) helps diversify beyond the banks and miners that dominate the local market.

Together, these ETFs can still deliver the capital growth needed to keep pace with inflation over what could be a 25-year retirement.

Increase income, limit risk

But this is also the decade when income starts to matter more. That’s why I like gradually introducing a high-yield ETF such as SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). The higher dividend stream, supported by franking credits, can help lift the portfolio’s cash generation without relying entirely on selling units.

At the same time, reducing risk becomes critical. A major market sell-off just before retirement can permanently damage a drawdown plan, which is why I would steadily increase exposure to bond ETFs such as the Vanguard Australian Fixed Interest ETF (ASX: VAF).

Bonds may not deliver eye-catching returns, but they can provide stability and act as a valuable shock absorber when share markets turn volatile.

Blue chips for growth

I’d also reserve a smaller slice of the portfolio for a handful of elite ASX blue-chip shares. Names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL) can add a blend of dependable dividends and long-term earnings growth. These businesses have the scale and quality to remain core holdings well into retirement.

The real secret, though, is the glide path. Ten years out, I’d still lean heavily into shares. Five years from retirement, I’d be lifting bond and cash exposure. By retirement day, I’d want at least two years of living expenses sitting in cash or term deposits, ready to fund spending needs without touching shares in a downturn.

That combination of ASX ETFs, quality blue chips, bonds, and a cash buffer creates exactly what pre-retirees need most: a portfolio built not just to grow wealth, but to defend it when it matters most.

The post 10 years to retirement? Here’s how to build a solid income appeared first on The Motley Fool Australia.

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

The Virgin Australia Holdings Ltd (ASX: VGN) share price is in focus after the airline confirmed its FY26 financial guidance remains unchanged, with underlying EBIT and EBIT margin expected to improve in 2HFY26 despite a surge in fuel prices.

What did Virgin Australia report?

• FY26 financial guidance unchanged; 2HFY26 underlying EBIT and EBIT margin both expected to be higher than 2HFY25
• Group leverage at 0.8x net debt/underlying EBITDA, below its 1–2x target range
• Liquidity position of $1.5 billion at 31 March 2026
• Fuel costs of $554.7 million for 1HFY26, representing 21% of total operating expenses
• 2HFY26 RASK (revenue per available seat kilometre) growth expected at approximately 5%, up from prior 3–4% guidance

What else do investors need to know?

Virgin Australia has responded to fuel price volatility by adjusting fares and domestic capacity, with 2HFY26 capacity now expected to rise 1% but fall 1% in the fourth quarter. Strong fuel hedging means the group is protected from most rises, with 92% of Brent crude and 71% of refining margin exposure hedged for the remainder of FY26.

Although jet fuel prices have more than doubled since late February, Virgin Australia expects the increase in fuel costs for 2HFY26 to be about $30–40 million above earlier forecasts. The airline reports continued supply assurance from its fuel suppliers for operations into May.

What’s next for Virgin Australia?

Virgin Australia says its outlook for FY26 remains solid, assuming no major changes to demand, jet fuel prices, or fuel supply in the near term. For early FY27, the company has continued strong hedging (93% of Brent crude but only 15% of refining margin), and reviews are underway to adjust capacity if volatility persists. The business remains confident in its flexible cost and hedging strategies to navigate uncertainty.

Virgin Australia share price snapshot

Over the past 12 months, Virgin Australia shares have declined 27%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

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The post Virgin Australia’s FY26 update: Hedging cushions rising fuel costs 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.