Category: Stock Market

The Goodman Group (ASX:GMG) share price is in focus after the company declared an unfranked interim distribution of 15 cents per security for the six months ending 31 December 2025.

What did Goodman Group report?

• Interim distribution of 15.0 cents per security, fully unfranked
• Record date: 31 December 2025
• Ex-dividend date: 30 December 2025
• Payment date: 25 February 2026
• Distribution relates to the six-month period ended 31 December 2025
• Further details, including tax components, will be announced on 23 February 2026

What else do investors need to know?

Goodman’s interim distribution remains unfranked, as with recent dividends. There is no change to its dividend policy or payment frequency.

The company has not provided details about tax component breakdowns at this time, but has committed to sharing this information closer to the payment date. Securityholders should expect further updates by late February 2026.

What’s next for Goodman Group?

Investors should look out for the company’s full distribution and tax component details, due out in late February 2026. Goodman continues to prioritise steady distributions as part of its approach to providing income for securityholders.

Any further company updates or new developments may be revealed when the group releases its half-year results, likely to coincide with the tax component announcement.

Goodman Group share price snapshot

Over the past 12 months, Goodman Group shares have declined 21%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Goodman Group declares 15c unfranked interim distribution for H1 FY26 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 positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Looking for new additions to your investment portfolio this month? If you are, it could pay to listen to what analysts at Morgans are saying about the ASX stocks in this article.

They have just been given buy ratings and are tipped to rise meaningfully from current levels. Here’s what the broker is saying about them:

Navigator Global Investments Ltd (ASX: NGI)

Morgans believes that this alternative asset management company’s shares are undervalued.

It highlights that despite rising over 70% this year, its shares are still trading at just 13x estimated FY 2026 earnings.

This comes at a time when management is aiming to double its earnings over the next five years, which implies a compound annual growth rate (CAGR) of 15%. It said:

Navigator Global Investments (NGI) is an alternative asset management firm focused on partnering with leading global alternative managers, with exposure to 11 boutique firms across hedge funds, private markets, structured credit, macro, commodities and derivatives. NGI operates a simple and effective model: it takes minority stakes in high-quality, high-margin alternative managers and supports their growth with capital and strategic services. The model creates a highly diversified earnings base with strong growth potential through adding scale (new partnerships) to the existing platform.

NGI has a strategic ambition to double EBITDA over five years, implying ~15% CAGR. We believe the business has the operating structure and expertise, is self-funding, and has a large addressable market for acquisitions to achieve this target. Earnings resilience is a key feature supported by high diversity in its Assets under management (AUM) across asset classes, managers, investment strategies, and investor channels. At ~13x FY26F PE, we see this earnings durability and growth potential as undervalued.

Morgans has initiated coverage on the ASX stock with a buy rating and $3.45 price target. This implies potential upside of 17% for investors from current levels.

Polynovo Ltd (ASX: PNV)

Another ASX stock that Morgans has put a buy rating on is Polynovo.

It is a medical technology company aiming to simplify the management of acute complex wounds with its NovoSorb BTM product. This is a dermal scaffold for the regeneration of the dermis when lost through surgery, trauma or burn.

Morgans has turned more positive on the company after it strengthened its board and finally appointed a new leader. It was also pleased to see that its recent trading update suggests that the company is on to achieve its revenue forecast in FY 2026. It said:

Following changes to its Board and with the appointment of a new CEO, we see more stability and focus returning to the PNV business. The 1Q26 trading update sees group sales up 33% and gives us confidence our full-year revenue forecast (up ~17%) is on track. We sit below revenue consensus but in line with EBITDA. We have made no changes to forecasts. However, we have removed our discount to the target price which now sits at A$2.03 (was A$1.69). We have moved our recommendation up to BUY from SPECULATIVE BUY.

As mentioned above, Morgans has a buy rating and $2.03 price target on its shares. This suggests that upside of 68% is possible between now and this time next year.

The post Why Morgans just put buy ratings on these ASX stocks 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 PolyNovo. The Motley Fool Australia has recommended PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

REA Group Ltd (ASX: REA) shares are ending the week reasonably positively.

In afternoon trade, the property listings giant’s shares are up slightly to $188.73.

Can the realestate.com.au operator’s shares rise further? Let’s see what analysts at Macquarie Group Ltd (ASX: MQG) are saying.

What is the broker saying about REA Group?

Macquarie has been busy looking at industry data and highlights that trading conditions aren’t too favourable at present. Following a 4% decline in Australian residential listings volumes in November, the broker estimates that financial year to date listings are down 6%. It said:

Current trends are tracking slightly below expectations – 1H26 YTD listings are down 6%, albeit with the last three months down 4%. Assuming December continues or improves this recent trend (i.e. down 4% to flat), this suggests a 1H26 decline of 5 – 6% (MQe = 5% decline), albeit month-to-month listings can be volatile.

Looking to 2026, the risk of Australian rate hikes could present a headwind, however comparable periods become easier to cycle in 2H26 (1Q-4Q25 = +7% / +4% / 0% / -8%). We are in line with REA’s guidance for flat FY26 volumes, last reiterated in early November. Sydney and Melbourne also continue to outperform, which should benefit geographical mix.

The good news is that REA Group is no stranger to tough trading conditions and is able to use its powerful position to drive earnings growth. Macquarie expects this trend to continue. Though, it does have a few nagging concerns. It explains:

We remain confident on REA’s ability to deliver +16% three-year EPS CAGR to FY28, more so driven by double-digit buy yield growth (MQe = +12.6%) and positive operating jaws (MQe = +3%pts). However, valuation has been under pressure given the threat of AI/Domain, trading on 36x 12m fwd P/E (vs 47x two-year avg); we remain cautious and are monitoring any potential structural threats to REA and the industry.

REA Group shares tipped to rise

According to the note, the broker has retained its neutral rating with a $220.00 price target.

Based on its current share price, this implies potential upside of almost 17% for investors over the next 12 months.

To put that into context, if Macquarie is on the money with its recommendation, a $10,000 investment would turn into approximately $11,700 by this time next year.

In addition, it trades with a modest dividend yield of 1.4%, which adds an extra $140 cash return to the equation.

The post How much upside does Macquarie tip for REA Group shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors often turn to energy shares because many of these companies have a track record of delivering reliable dividends, even when the broader market gets choppy. As we head towards the middle of December, a few well-known ASX energy names are standing out for their yields and long-term potential.

Here are my top three shares that income seekers might want to consider buying this month.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is still one of the biggest energy names on the ASX, producing oil, LNG, and other key energy products. At a recent share price of about $24.70, it is offering a fully franked dividend yield of roughly 6.7%. That is a standout number when you compare it to many of the large-cap stocks on the market today.

In the last financial year, Woodside paid out approximately $1.65 per share in dividends, which is why its trailing yield remains above 6.5%. The company’s dividend approach has been to return a solid portion of underlying profits to shareholders, a strategy that income-focused investors tend to appreciate.

Energy prices will always move around, and Woodside’s earnings move with them, but the company’s dividend policy aims to smooth out those fluctuations. For income investors willing to ride through the short-term market noise, this level of yield is hard to ignore.

Santos Ltd (ASX: STO)

Santos has had its fair share of challenges lately, including a softer profit result and a dividend cut in the last financial year. Despite that, the stock still sits on a respectable dividend yield of about 5.8% based on recent payouts and its current share price of $6.23.

The company already pays out a meaningful share of its free cash flow and expects to lift those returns from 2026. That focus on rewarding investors has captured the attention of those seeking both income and long-term growth.

However, Santos is also not without risk. Its earnings can be tied to commodity cycles, but the current yield makes it a contender for those focused on dividends rather than short-term price moves.

Yancoal Australia Ltd (ASX: YAL)

Yancoal is a bit different from the oil and gas producers above. It’s a coal producer, and its dividend track record has been more volatile. Recent results show Yancoal’s trailing yield can hit 10%, though that’s influenced by its uneven and unpredictable dividend payments.

Based on a share price near $5.20, Yancoal’s historical dividends produce some eye-catching yields. The downside is that its payouts have moved around a lot, making them less reliable than those from Woodside or Santos. Investors need to be comfortable with that volatility before relying on Yancoal for income.

Foolish Takeaway

If you are seeking income, the energy sector still offers some attractive options. Woodside continues to deliver solid, well-backed dividends, Santos is shaping up to return more cash to shareholders, and Yancoal’s past payouts have produced some striking yields.

Just keep in mind that a high yield only matters if the business can sustain it over the long haul.

Nevertheless, I believe these ASX energy shares deserve a spot on the December watchlist for those dividend hunters.

The post Dividend investors: Premier ASX energy shares to buy in December 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.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Citi, its analysts have retained their buy rating on this travel agent giant’s shares with an improved price target of $16.75. This follows news that the company has agreed to acquire online cruise platform Iglu for 122 million British pounds. This is the second cruise related acquisition the company has made in two years and appears to indicate that management is making a strategic push into higher-value and less volatile leisure segments. In response to the acquisition, Citi has lifted its earnings estimates and its valuation accordingly. The Flight Centre share price is trading at $14.84 on Friday afternoon.

Netwealth Group Ltd (ASX: NWL)

A note out of Bell Potter reveals that its analysts have upgraded this investment platform provider’s shares to a buy rating with an improved price target of $31.50. The broker believes that the company is on track to beat its funds guidance if its net flows are maintained. Outside this, it notes that Netwealth has continued to build platform functionality with additional managed account options, a new individual HIN offering, and expanded bond access through the trading desk. It believes that this will help increase its revenue share and sees a pathway to the usual +20% revenue growth story that historically has attracted value investors around these levels. The Netwealth share price is fetching $26.97 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Another note out of Citi reveals that its analysts have retained their buy rating on this logistics solutions technology company with a reduced price target of $109.15. The broker was pleased with WiseTech Global’s recent investor day event, noting that it has allowed investors to refocus on its growth drivers rather than recent controversies. While it acknowledges that delays with the new CTO offering are disappointing, it was pleased with the CargoWise Value Packs and DBSchenker rollout. Overall, this has led to a slight upgrade to revenue assumptions. But with the tech sector de-rating, it has reduced its valuation to reflect lower sector multiples. The WiseTech Global share price is trading at $71.96 on Friday.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are having a ripper day, up 1.22% to 8,696.6 points at the time of writing.

Let’s check out some ASX shares to buy, according to the experts.

ASX shares to buy ahead of the new year

South32 Ltd (ASX: S32)

The South32 share price is $3.56, up 3.6% on Friday and up 2.8% in the year to date (YTD).

Among the diversified ASX mining shares, Macquarie prefers South32 over all others.

The broker raised its rating on South32 from neutral to outperform this week.

Macquarie said:

We upgrade S32 from Neutral to Outperform given prospects of an improved returns outlook and a favourable catalyst backdrop.

South32 is benefiting from an increase in commodity prices for many of the metals and industrial materials it produces.

The miner produces nine commodities, including silver, copper, and aluminium.

The silver price is up 119% in the year to date, while copper is up 36% and aluminium 14%.

Macquarie has a 12-month price target of $3.70 on South32 shares.

Elders Ltd (ASX: ELD)

Elders supplies farming products and provides advisory, financial, and real estate services.

The Elders share price is $7, up 0.5% today and down 3% for 2025.

Morgans retained its buy rating on Elders shares after the company released its FY25 results.

The broker said:

ELD’s FY25 result was in line with its guidance. As was well guided too, the 2H25 was weak due to drought.

Outlook comments were optimistic, the 1Q26 is off to a strong start and FY26 should benefit from a positive rainfall outlook, higher selling prices, acquisitions and the transformation projects.

The broker upgraded its price target on this ASX agricultural share from $8.50 to $8.65.

Light & Wonder Inc. CDI (ASX: LNW)

Light & Wonder is a US gaming machines manufacturer and software developer.

The Light & Wonder share price is $151.61, up 0.02% on Friday and up 8.7% this year.

Morgans has a buy rating on Light & Wonder shares with a price target of $175.

After the company’s 3Q FY25 results, Morgans commented:

LNW delivered record margin expansion across all three segments, with iGaming operating leverage the standout performer, while land-based margins surprised on favourable product mix as Grover scales and premium installed base momentum continues.

Mineral Resources Ltd (ASX: MIN)

Mineral Resources is a diversified ASX mining share that produces iron ore and lithium, and provides mining industry services worldwide.

The Mineral Resources share price is $51.84, up 0.35% today and 49% in the YTD.

Ord Minnett has a buy rating on Mineral Resources with a price target of $55.

In a recent note, the broker said:

Mineral Resources (MIN) has formed a joint venture with POSCO Holdings for its lithium assets that sees the giant Korean group pay US$765 million ($1.2 billion) cash for a 30% stake in the JV, with the Australian company holding the other 70%.

The purchase price values the Australian company’s remaining stakes in the Wodgina and Mt Marion operations at circa $4 billion, versus a consensus valuation of $2.8 billion previously, and implies a long-term spodumene price of circa US$1600 a tonne, comfortably above market expectations centred on US$1240 a tonne.

Find out whether Mineral Resources will resume paying dividends in FY26.

Woodside Energy Group Ltd (ASX: WDS)

Oil & gas giant Woodside is the largest ASX energy share.

The Woodside share price is $24.69, down 0.3% today and 1.1% for the year.

Morgans has a buy rating on Woodside with a share price target of $30.50.

The broker recently commented:

Growth to 2032 with net operating cash flow guided to ~US$9bn (+6% CAGR) with a pathway to ~50% higher dividends.

Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure.

The post 5 ASX shares to buy now: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Elders and 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), like other tech stocks, traveled through difficult times and better times this year. The stock slipped this spring amid concern about the impact of U.S. import tariffs on corporate earnings. But as President Donald Trump negotiated with other countries, this pressure eased.

The company also faced the challenge of an antitrust suit in the U.S., but a ruling in September averted the worst-case scenario — and this decision offered Alphabet a significant boost. Since, the stock has gained nearly 50%, and just recently, Alphabet did something it hasn’t done in seven years. Is it time to buy this top tech stock? Let’s find out.

90% market share

First, though, let’s catch up on the Alphabet story so far. This is the company behind something you may use and rely on every day: I’m talking about Google Search, the world’s most popular search engine. It’s steadily held onto about 90% share of the market. Google, through advertising across its platform, fuels Alphabet’s revenue growth, but this isn’t the only revenue driver.

Alphabet also is the owner of Google Cloud, one of the world’s major cloud service providers, and that business is growing in the double digits.

On top of this, Alphabet’s investment in artificial intelligence (AI) is helping the company improve its business — for example, streamlining the advertising experience. Alphabet has developed its own large language model, Gemini, to apply to its own needs and offer to clients through Google Cloud. The cloud provider also offers many AI products and services, from chips to a fully managed service for the development of generative AI, and this has fueled growth in recent quarters.

In the latest quarter, for example, Alphabet said demand for AI infrastructure and generative AI powered a 34% gain in cloud revenue.

The elimination of a big risk

The major weight on all of this was the U.S. antitrust suit — the risk was a potential breakup of revenue-driver Google. That risk was eliminated when a federal judge decided that Alphabet could maintain its ownership of its Google Chrome browser, and the company now faces lesser penalties.

All of this, along with a reasonable valuation, has helped boost Alphabet shares in recent months — and help the company do something it hasn’t done in seven years. On Nov. 21, Alphabet’s market value soared past that of software giant Microsoft for the first time since 2018. Back then, both companies’ market capitalizations were about $800 billion — now, they’ve surpassed $3 trillion.

GOOG Market Cap data by YCharts

Alphabet has maintained its market cap gain, and now at $3.8 trillion, it’s the biggest company after Nvidia and Apple.

Now, let’s return to our question: Does this make Alphabet a stock to buy? It’s key to keep in mind that a high market cap doesn’t automatically translate into a buying opportunity. A company may have reached such a level but could now be overvalued or face new headwinds — or it may not be the right fit for your portfolio.

Why a high market cap may be positive

Of course, recent gains in market cap might be positive — they could be the result of good news that prompted investors to pile into the stock. And maintaining a high market cap over time shows sustained demand for the shares.

But, before investing, it’s most important to consider a company’s earnings track record, financial health, and future prospects — and also take a look at valuation. In the case of Alphabet, there’s reason to be optimistic about all of these points. The company has delivered growth in revenue and profit over time, the AI opportunity is in its early days so could spark significant growth in the quarters to come, and today, Alphabet still is reasonably priced — it trades for 30x forward earnings estimates, which is lower than many of its AI peers.

All of this makes this stock that’s roared past Microsoft a fantastic buy right now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Alphabet just did something it hasn’t done in 7 years. Time to buy? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Adria Cimino 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 Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shareholders in junior listed investment company ECP Emerging Growth Ltd (ASX: ECP) could soon be in line for a healthy special dividend, but there’s a significant catch attached.

The company on Friday said it wanted to pay a 10-cent fully-franked special dividend to its shareholders, but only if participation in the company’s dividend reinvestment plan (DRP) reached 80%.

The 10-cent special dividend would constitute an extra 8.7% fully-franked yield for shareholders, on top of the company’s current yield of 4.84%, according to the ASX website.

How to pay out dividends without depleting cash

Speaking at the company’s annual general meeting in November, Chair Murray d’Almeida explained the conundrum facing the company.

He said that one of the issues shareholders regularly brought up was the significant amount of franking credits accrued by the company, and how these could be passed back to shareholders.

As Mr d’Almeida said:

The franking account is accumulated through tax paid by the company and represents value that could be distributed to shareholders by way of dividends. ECP has accumulated a very robust franking balance after multiple years of strong returns, particularly utilising the leveraged portfolio from the convertible note raising. The franking account balance allows the board to maintain our fully franked dividend payments even during periods of lacklustre portfolio performance, however given the market movements over the last few years there has been substantial credits accumulated in excess of normal prudent management.

But, Mr d’Almeida said, the challenge was how to distribute the franking credits without depleting the company’s cash balance for investment, “and therefore shrink the size of ECP”.

As such, the company has come up with what it says is a “truly unique” approach.

The company on Friday said it would pay out the special dividend, but only if 80% of its shares were enrolled in the company’s dividend reinvestment plan (DRP).

As the company said:

The rationale behind the DRP criteria is to ensure the company can continue growing its overall size yet still provide shareholders with access to the franking credits.

Level well short at the moment

The company stated that the DRP participation rate was currently at 36.7%, and it encouraged its shareholders to contact its share registry and sign up in an effort to reach the 80% mark.

ECP added that it would keep its shareholders apprised of progress towards the 80% hurdle when it released its net tangible asset report each month.

ECP shares were steady at $1.14 on Friday, with no trades going through by about noon. The company was valued at $21 million at the close of trade on Thursday.  

The post An 8.7% special dividend sounds great, but there’s a catch! appeared first on The Motley Fool Australia.

More reading

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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 S&P/ASX 200 Index (ASX: XJO) is heading into the weekend in style on Friday. In afternoon trade, the benchmark index is up 1.15% to 8,690.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Austal Ltd (ASX: ASB)

The Austal share price is down 1.5% to $6.33. This morning, the shipbuilder revealed that the Foreign Investment Review Board and Federal Treasurer Jim Chalmers have approved an application South Korean giant Hanwha Corporation to increase its direct equity shareholding in Austal from 9.9% to 19.9%. Not everyone is happy with the decision, with the ABC reporting that Japanese officials twice contacted the Department of Defence to raise concerns about the Hanwha bid.

Fenix Resources Ltd (ASX: FEX)

The Fenix Resources share price is down 3.5% to 48.2 cents. This may have been driven by profit taking from some investors after the iron miner’s shares jumped on Thursday. That was driven by the release of its three-year production plan. After delivering production of 2.4Mt in FY 2025, it is now aiming to increase this to between 4.2 million and 4.8 million tonnes in FY 2026, 4.7 million and 5.3 million tonnes in FY 2027, and then 5.4 million and 6 million tonnes in FY 2028.

Metcash Ltd (ASX: MTS)

The Metcash share price is down 3% to $3.25. This has been caused by the wholesale distributor’s shares going ex-dividend this morning for its latest payout. At the start of the month, Metcash released its half year results and reported a 5.9% decrease in underlying profit after tax to $126.7 million. Nevertheless, the Metcash board elected to maintain its fully franked interim dividend at 8.5 cents per share. Eligible shareholders can look forward to receiving this dividend late next month on 28 January.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 1.5% to $1.22. This is despite the medical device company being the subject of a bullish broker note out of Morgans today. According to the note, the broker has upgraded Polynovo’s shares to a buy rating with a $2.03 price target. This implies potential upside of approximately 65% for investors over the next 12 months. Its analysts said: “Following changes to its Board and with the appointment of a new CEO, we see more stability and focus returning to the PNV business.”

The post Why Austal, Fenix Resources, Metcash, and Polynovo shares are falling 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 PolyNovo. The Motley Fool Australia has recommended PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Austal Ltd (ASX: ASB) shares have fallen on news that a foreign shipbuilder has been granted permission to raise its stake.

Treasurer Jim Chalmers and the Foreign Investment Review Board (FIRB) have approved an application lodged in June by HAA Pty
Ltd, an entity controlled by South Korean shipbuilder Hanwha Corp, to buy up to a 19.9% stake in Austal.

That’s just below the 20% threshold at which a shareholder must make a formal takeover offer under the Corporations Act.

The Austal share price is currently $6.27, down 2.34% on Friday, while the S&P/ASX 200 Index (ASX: XJO) is up 1.1%.

Austal is Australia’s largest defence exporter. It owns shipyards in the US, Australia, Vietnam, and the Philippines.

Its clients include the Australian Navy and the US Navy.

Hanwha is a diversified Fortune 500 company with interests in defence, aerospace, clean energy, finance, and retail.

Hanwha already owns 9.9% of Austal plus a further 9.9% economic interest through a cash-settled total return swap.

This makes Hanwha one of Austal’s largest shareholders, and it’s been a long-time suitor for the Australian defence shipbuilder.

In fact, Hanwha tried to buy Austal outright last year when it offered $2.825 per share in cash to take over the company.

Why did the Treasurer approve Hanwha’s request?

A statement from Chalmers said the approval is subject to strict conditions.

These include Hanwha’s access to and storage of sensitive information.

There are also conditions regarding who Hanwha may nominate to the Austal board, if Austal were to accept any nomination.

In a statement, Chalmers said:

My decision was not taken lightly and comes after extensive consultation and long and careful deliberation.

It follows a thorough and robust process that took account of all the relevant economic, national security and other national interest issues.

Hanwha would remain a minority shareholder under this proposal and cannot increase its shareholding above 19.9 per cent.

This decision ensures there are greater protections for our Strategic Shipbuilder and the Government’s sovereign interests in Austal.

In August, the Government signed the Strategic Shipbuilding Agreement with Austal after naming it our sovereign shipbuilder for Tier 2 surface combatant vessels.

Chalmers said the agreement remained an essential part of the Future Made in Australia agenda.

This decision and associated conditions will protect our sovereign interests in this capability and ensure the company can continue to grow, invest, and deliver continuous shipbuilding in Western Australia.

What did Austal management say?

In a statement today, Austal CEO Paddy Gregg said:

Treasurer Chalmers has made his decision and we respect that decision.

With the clarity provided by this decision, the Board and management are firmly focused on delivering value for all Austal shareholders as Australia’s sovereign shipbuilder under the Strategic Shipbuilding Agreement (SSA), a major contributor to the US defence industrial base, and with significant growth opportunities at our US and Australasia operations.

Will Hanwha get a seat on the board?

Hanwha has previously indicated that it would seek to partner with Austal on various opportunities and also seek a board position if granted approval to raise its stake to 19.9%.

Today, Austal said:

The Austal board will closely review the opportunities and risks associated with those partnership and board position requests, should they be made officially, before it determines whether this would deliver demonstrable benefits for all Austal shareholders.

Austal shares double in 2025

Austal shares have ripped in 2025 amid the global megatrend in rising defence spending.

The Austal share price is up 102% in the year to date.

The industrials stock entered the benchmark ASX 200 at the June quarter rebalance.

For FY25, Austal reported a record $1.8 billion of revenue and EBIT of $113 million.

Its EBIT guidance for FY26 is $135 million, which would be a record for the company.

Austal’s order book is currently worth more than $13 billion.

In October, Austal executed a US$100 million loan agreement from Export Finance Australia (EFA).

EFA is the Australian Government’s export credit agency.

Austal will use the funding for the construction of vessels for the US Navy and US Coast Guard at its Alabama shipyard.

In March, Austal conducted a $200 million institutional placement to fund the expansion of its Alabama shipyard.

The post Austal shares fall after Treasurer greenlights higher Hanwha stake appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Austal and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.