Category: Stock Market

The Civmec Ltd (ASX: CVL) share price is in focus after the company announced full-year FY26 revenue of A$903.0 million, up 11.4%, and a net profit after tax of A$52.1 million, a 22.5% increase on last year.

What did Civmec report?

• Revenue of A$903.0 million, up 11.4% on FY25
• EBITDA of A$107.3 million, up 17.0% (EBITDA margin 11.9%)
• NPAT of A$52.1 million, up 22.5% (net profit margin 5.8%)
• Final dividend of 3.5 Australian cents, fully franked (total 6.0 cents for FY26)
• Order book of A$1.4 billion at 31 July 2026
• Net assets increased to A$591.2 million

What else do investors need to know?

Civmec reported strong operating cash flow before working capital movements of A$107.2 million, up 20% year on year, with increased investment in working capital supporting higher activity levels and order growth. The company’s secured order book stands at A$1.4 billion, thanks to significant new contract wins, including major SMPE&I packages for Iluka Resources and the Perth Sporting and Entertainment Precinct.

The business continues to expand through early contractor involvement and pre-FEED processes, particularly across the resources, energy, and infrastructure sectors. Civmec also promoted Mark Clay as Executive General Manager, Defence, to drive growth in its defence business—now newly established as a prime contractor to the Commonwealth.

What did Civmec management say?

Chief Executive Officer Patrick Tallon said:

Our FY26 result reflects the strength of our people, our proven execution capability, and the consistent delivery we bring to every project. The establishment of Civmec Defence Industries, together with the expansion of our regional facilities in Port Hedland and Gladstone, has further broadened our capabilities and market reach. With strong contributions across all sectors, we enter FY27 with a substantial order book, strong market demand, and a robust pipeline of opportunities.

What’s next for Civmec?

Civmec is entering FY27 with a sizeable order book and an active tendering pipeline across its key sectors. The business is well positioned to benefit from strong demand, with ongoing projects for major resources and energy clients and growth in public infrastructure and defence.

Management is focused on disciplined growth, pursuing opportunities across resources, energy, infrastructure, and expanding capabilities in defence and shipbuilding. Recent leadership appointments and investment in facilities are expected to support execution and further diversification.

Civmec Limited share price snapshot

Over the past 12 months, Civmec shares have risen 61%, outpacing the All Ordinaries Index (ASX: XAO).

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The post Civmec lifts FY26 profit, order book reaches $1.4bn appeared first on The Motley Fool Australia.

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

The Virgin Australia Holdings Ltd (ASX: VGN) share price is in focus today after the airline posted a 13.4% rise in underlying EBIT to $753 million for FY26, alongside its first fully-franked dividend of 7.6 cents per share since re-listing.

What did Virgin Australia report?

• Underlying EBIT of $753 million, up 13.4% on FY25
• Underlying NPAT $404 million, up 21.9% year on year
• Statutory NPAT $501 million, up 4.7% on FY25
• Underlying EBIT margin expanded 60bps to 12.0%
• Fully-franked dividend of 7.6 cents per share declared
• ROIC increased to 20.1%, up 140bps

What else do investors need to know?

Virgin Australia says strong customer demand, effective fuel hedging, and benefits from its Transformation Program supported its earnings growth and helped offset rising costs, particularly in labour and airport charges. The airline finished FY26 with a conservative balance sheet: net debt at $1.2 billion represents a leverage ratio below its target range and available liquidity is $1.6 billion.

Operational performance also improved, with on-time rates up to 77.1% and completion rates at 98.7%. The Velocity Frequent Flyer program continued to grow, with external billings up 12.4% and more than 800,000 new members joining during FY26.

What did Virgin Australia management say?

Commenting on the results, Virgin Australia’s CEO, Dave Emerson, said:

Our FY26 results demonstrate that Virgin Australia has become a stronger and more resilient airline… Our strategy is working. We have built a simpler, more focused business with a primarily domestic network, targeted short-haul international services and global connectivity through our airline partners. That strategy, together with the continued benefits of our Transformation Program, has strengthened the quality of our earnings and positioned us well for the future…. The declaration of our inaugural dividend since re-listing reflects confidence in the strength of the business, while maintaining the disciplined approach to investment and capital allocation that will support sustainable long-term growth.

What’s next for Virgin Australia?

Looking ahead, Virgin Australia expects continued strong travel demand to support earnings. For 1H FY27, underlying EBIT is forecast to be broadly in line with the prior period, with disciplined capacity reductions, ongoing Transformation Program benefits, and planned investments in newer, more efficient aircraft.

The company aims to grow its owned fleet and maintain financial discipline, targeting capex of $0.9–1.0 billion in FY27. Velocity earnings are expected to hold steady next year, with investment in loyalty transformation aiming to drive double-digit earnings growth from FY28 onwards.

Virgin Australia share price snapshot

The Virgin Australia share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 20%.

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The post Virgin Australia posts robust FY26 results and first dividend since re-listing appeared first on The Motley Fool Australia.

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

The Channel Infrastructure NZ Ltd (ASX: CHI) share price is on watch as the company announced a major new contract with bp for expanded jet and diesel storage at Marsden Point, expected to deliver around $130 million in revenue over 15 years. Channel plans to invest approximately $65–70 million in repurposing storage tanks to support this long-term partnership.

What did Channel Infrastructure NZ report?

• Signed a 15-year contract with bp for extra jet and diesel storage at Marsden Point
• Contract estimated to generate ~$130 million revenue over the initial term (before indexation)
• Growth capital expenditure of $65–70 million planned for tank repurposing (2026–2028)
• Project to be funded via existing debt facilities
• Operating expenditure to increase by $0.7–0.9 million per year to support growth
• In-service contracted storage at Marsden Point increased by 40% over three months

What else do investors need to know?

Channel Infrastructure’s new deal with bp marks a big step in growing its role in New Zealand’s fuel supply chain. The company will begin work to repurpose existing tanks in September 2026, aiming to complete the project and start revenue in Q3 2028.

The investment is part of a broader plan to unlock Marsden Point’s strategic value, supporting fuel resilience and future energy transition opportunities. Channel has also recently increased its contracted storage and continues to look for further opportunities for growth, including supporting lower-carbon fuels and energy security projects.

What’s next for Channel Infrastructure NZ?

Looking ahead, Channel Infrastructure is focused on delivering the Marsden Point expansion and maximising its position as New Zealand’s leading fuel import terminal. Management remains committed to supporting the country’s energy transition, leveraging available storage capacity and land for new fuel security and renewable projects.

The company also retains strategic interests outside Marsden Point, including a stake in the Somerton pipeline to Melbourne Airport and a fuel testing business, positioning it well for long-term industry shifts.

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The post Channel Infrastructure secures $130m bp storage contract in Marsden Point growth plan appeared first on The Motley Fool Australia.

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

The ASX tech share Siteminder Ltd (ASX: SDR) could be one of the best businesses to buy right now, given its growth prospects and appealing valuation.

Siteminder is the name behind Siteminder software, which it calls the world’s leading hotel commerce platform. It also operates Little Hotelier, an all-in-one hotel management software offering.

The Siteminder share price has drifted lower after it reported its FY26 result, and I think this represents a particularly good buying point considering its improving financials.

Let me explain why I think it’s such an appealing buy.

Strong revenue growth

The company is delivering strong growth with its revenue, which is helping increase the scale of the business every year.

In FY26, the ASX tech share delivered revenue growth of 18.6% to $266.1 million, demonstrating strong performance despite softer travel conditions.

It showed resilience and growing traction from new product initiatives such as the smart platform. The smart platform represents multiple new modules that give hotels more analytics, intelligence and even automated room price features.

The company’s annual recurring revenue (ARR) rose 14.9% to $313.7 million, which suggests FY27’s revenue figure already has some pleasing growth baked in.

During FY26, the company added 5,900 hotel properties to its client list, taking the total to 56,000. Average revenue per user (ARPU) increased 5.9% to $429, largely thanks to increasing smart platform adoption and deeper product penetration.

Siteminder expects its ARR to grow at a compound annual growth rate (CAGR) in the “20s” in percentage terms between FY26 to FY30, on a constant currency and organic basis. I think most companies would be happy to grow revenue at a strong pace.

Improving profit margins

I think one of the best signs of a compelling ASX tech share is one where its profit margins are rising as it grows. Operating leverage is a very powerful force to help the compounding of earnings.

In FY26, the company’s adjusted operating profit (EBITDA) soared 96.5% to $28.1 million, while reported operating profit (EBITDA) rocketed 244% to $24.4 million – the reported figure included $3.8 million of restructuring and other costs.

Other profit margins also increased during the period. It noted that adjusted free cash flow improved by 123% to $10.5 million.

Siteminder expects its adjusted EBITDA margin to expand meaningfully in FY27. The adjusted EBITDA margin is expected to reach the mid-20s in FY30.

If revenue is growing strongly and the margins are going up, the bottom line could improve significantly.

Pleasing valuation

The ASX tech share is projected by analysts to quickly turn quite profitable over the next couple of financial years. According to the projection on Commsec, the Siteminder share price is valued at 29x FY28’s estimated earnings.

For a business that could be growing revenue by at least 20%, I think that the valuation looks cheap following its 50% decline this year.

The post Why I think this is a top ASX tech share to buy today appeared first on The Motley Fool Australia.

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

A $10,000 investment can produce a meaningful income stream if it is put to work carefully.

But which ASX dividend shares could be top buys right now?

Here are three ASX dividend shares that I think could be worth considering.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT could be an ASX dividend share to buy for steady income.

The property company owns convenience-focused assets across neighbourhood retail, large-format retail, health, and services.

This gives it exposure to tenants linked to everyday spending. Supermarkets, pharmacies, healthcare providers, pet stores, childcare operators, and other daily-needs businesses can be more resilient than purely discretionary retailers.

That can help support rental income and distributions through the cycle.

Another positive is that HomeCo Daily Needs REIT is not trying to own trophy office towers or speculative development assets. Its focus is much more practical, owning properties that people tend to visit regularly and that tenants need to operate from.

HomeCo Daily Needs REIT offers a forecast dividend yield of around 7.5% in FY 2027.

IPH Ltd (ASX: IPH)

IPH could be another ASX dividend share to consider. It provides intellectual property services across areas such as patents, trademarks, and related advisory work.

This essentially means that it helps businesses protect ideas, brands, technology, and commercial rights.

That may not be an exciting headline industry, but it can be a good one for dividends. IPH is a capital-light business, which means it does not need to spend huge sums on factories, mines, or physical infrastructure to keep operating.

Patent filing activity can move up and down, and the business is not immune to softer conditions. But the underlying need for companies to protect intellectual property is not going away.

If its earnings stabilise and cash generation remains strong, IPH could continue to reward shareholders with attractive dividends.

IPH currently trades with an estimated FY 2027 dividend yield of around 11.5%.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a buy is Transurban. It owns and operates toll roads in Australia and North America.

These assets sit inside major cities and are used by motorists who want faster or more reliable travel.

That gives Transurban a defensive infrastructure quality. Urban populations grow, congestion remains a problem, and well-located toll roads can remain valuable for decades.

The company also has a long record of paying distributions to investors and has major projects that could support future growth.

The company’s shares currently trade with a forward estimated FY 2027 dividend yield of 5.2%.

The post 3 high-yield ASX dividend shares to buy with $10,000 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sky Network Television Ltd (ASX: SKT) share price is in focus today after the company posted a strong full-year FY26 result, with underlying revenue rising 9% to $826.1 million and underlying EBITDA climbing 6% to $157 million—at the top end of guidance.

What did Sky New Zealand report?

• Underlying revenue: $826.1 million, up 9% from FY25
• Underlying EBITDA: $157.0 million, up 6%
• Statutory NPAT: $59.8 million, up 190%; Underlying NPAT: $41.8 million, up 2%
• Final dividend: 17cps (fully imputed), full-year dividend of 32cps, up 45% on FY25
• Normalised free cash flow: $58.9 million, up 60%
• Closing cash balance: $79.1 million, up 144% year-on-year

What else do investors need to know?

Sky completed its integration of Sky Free (formerly Discovery NZ), delivering $8 million in annual synergy benefits, well above initial estimates. Advertising revenue more than doubled to $131.7 million, now making up 16% of total income and highlighting Sky’s growing diversification beyond subscriptions.

The board has set its sights on 10% annual dividend growth over the next three years and will switch to quarterly payments from FY27. The company is also considering an on-market share buyback if no better capital deployment opportunities arise following the next interim results.

What did Sky New Zealand management say?

Chief Executive Sophie Moloney commented:

Three years ago, we set ambitious targets reflecting our confidence in Sky and the opportunity ahead. Since then, we have navigated a challenging economic environment while completing two significant projects—the accelerated satellite migration in FY25 and the acquisition and integration of Sky Free in FY26. We finish this period a stronger Sky—larger, more diversified and increasingly digital, with greater audience scale and more opportunities for growth.

What’s next for Sky New Zealand?

Looking ahead, Sky expects trading conditions to remain challenging in the first half of FY27 amid economic uncertainty. Nevertheless, it’s guiding for FY27 revenue between $825 million and $840 million, and EBITDA of $155 million to $165 million. Dividend guidance is for at least 35cps—continuing its policy of annual increases.

The company is targeting at least $10 million of additional Group EBITDA by FY28 from further business optimisation. Longer term, Sky aims to significantly lift revenue by FY31, including 20–30% from non-subscription sources, while cementing margin expansion and ongoing earnings growth.

Sky New Zealand share price snapshot

Over the past 12 months, the Sky New Zealand shares have declined 1%, slightly trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post Sky New Zealand FY26 earnings: Profit up 190%, dividend jumps 45% appeared first on The Motley Fool Australia.

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

The Elevra Lithium Ltd (ASX: ELV) share price is in focus after the company reported a big 39% increase in revenue to US$202 million and returned to a net profit of US$44 million for FY26 following a transformational year.

What did Elevra Lithium report?

• Revenue rose 39% to US$202 million (FY25: US$145 million)
• Group profit after income tax of US$44 million, swinging from a US$247 million loss in FY25
• Underlying EBITDA improved to US$14 million, up from a US$43 million loss
• Closing cash balance surged to US$255 million (FY25: US$47 million)
• Spodumene concentrate production reached 197,967 dmt (down 3% on PCP), with 181,494 dmt sold (down 13%)
• Operating cost per tonne sold increased 2% to US$853/dmt

What else do investors need to know?

Several strategic milestones shaped Elevra Lithium’s FY26. The merger between Sayona Mining and Piedmont Lithium was completed, creating North America’s largest hard-rock lithium producer and unlocking US$15 million in cost synergies over ten months.

Elevra fully funded a staged brownfield expansion at its flagship North American Lithium (NAL) mine, expected to lift annual production capacity by 15–20% from mid-CY27. The company also advanced the Moblan Lithium Project, increased resources at both NAL and Moblan, and agreed to divest its stake in the Ewoyaa Lithium Project for approximately US$71 million.

A major US$202 million equity raise bolstered the balance sheet, supporting expansion plans while keeping cash reserves healthy. The group also saw Board and management changes, including the appointment of a new CFO, Christian Cortes.

What did Elevra Lithium management say?

Lucas Dow, Managing Director and Chief Executive Officer, said:

FY26 marked a transformational year for Elevra. We completed the merger of Sayona Mining and Piedmont Lithium, creating a leading North American lithium producer, fully funded the staged expansion of NAL, advanced our broader development pipeline, and continued to sharpen our portfolio through the agreed divestment of our interests in the Ewoyaa Lithium Project.

On the operational front, FY26 was a year defined by resilience, disciplined execution and strategic progress. We demonstrated improved safety performance. While temporary mining conditions at NAL in the first half of the year impacted production and led us to revise our operating guidance, our team responded quickly and efficiently through disciplined mine planning to improve plant performance and deliver production within our original guidance with minimal impact to unit operating costs compared to FY25.

The June 2026 quarter represented our strongest operational performance of the year, with recoveries improving to 71%, a new monthly production record in May, and quarterly production exceeding 54,000 dmt. As we enter FY27, we do so with confidence in our strategy, confidence in our assets, and confidence in the opportunities ahead.

What’s next for Elevra Lithium?

Looking forward, Elevra’s top priorities are to deliver steady operating performance at NAL, execute the brownfield expansion on time and on budget, restructure customer offtake deals, and advance development at Moblan. FY27 guidance includes spodumene production of 198,000–210,000 dmt, sales of up to 230,000 dmt, and sustaining capital expenditure focused on expansion and project studies.

Management remains focused on disciplined capital allocation and maintaining balance sheet flexibility. Successful completion of the Ewoyaa sale and ongoing exploration in Québec and Western Australia will help sharpen Elevra’s focus on core growth assets.

Elevra Lithium share price snapshot

The Elevra Lithium share price has smashed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of more than 100%.

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The post Elevra Lithium posts FY26 profit rebound and funds expansion appeared first on The Motley Fool Australia.

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

ASX passive income ideas can be some of the best ideas for generating cash returns because of how they can provide large and growing dividend payouts.

Dividends aren’t guaranteed, but some investments can provide payout guidance that can give us a high level of confidence of what the payment may be for the coming financial year.

I’ll run through two of my favourite picks for payouts.

Centuria Industrial REIT (ASX: CIP)

I think this is one of the best options in the real estate investment trust (REIT) sector for payouts because of the tailwinds it’s benefiting from and the rising distributions.

It describes itself as Australia’s largest domestic pure-play industrial REIT and is in the S&P/ASX 200 Index (ASX: XJO). It wants to provide investors with income and an opportunity for capital growth.

The properties are located in key metropolitan areas throughout Australia and it’s underpinned by a quality and diverse tenant base.

In FY26, the business experienced like-for-like net operating income (NOI) growth of 5.2%. There are a number of drivers increasing the rent value of industrial real estate such as data centres, e-commerce adoption, a growing population, the onshoring of logistics, and refrigerated storage for food and medicine.

The ASX passive income idea also reported in FY26 that it saw 30% positive re-leasing spreads – its rental income is seeing a big jump, with new contracts generating much stronger rent than the old rent. The REIT reckons that its portfolio is, on average, 17% under-rented, suggesting further strong growth as leases come up for renewal in the coming years.

Centuria Industrial REIT has provided guidance that its FY27 distribution will grow by 3% year-over-year to 17.3 cents per security, while net rental profit could grow by up to 5.5% per unit.

At the time of writing, the FY27 distribution guidance translates into a forward yield of 5.8%.

WCM Quality Global Growth Fund (ASX: WCMQ)

I think plenty of Australian investors could benefit from owning quality exchange-traded funds (ETFs) that give exposure to global shares. However, not many of those ETFs have a good dividend yield.

I believe the WCMQ ETF can provide a pleasing mixture of capital growth and dividends, which is why I think it’s a top option to consider.

WCM is a California-based fund manager. It has two criteria for including any company in its portfolio. The company must have a growing competitive advantage (or expanding economic moat) and a corporate culture that supports expanding the moat.

WCM believes the direction of a company’s economic moat is more important than the actual current size of its moat. It focuses on companies with a positive moat ‘trajectory’, measured by rising return on invested capital (ROIC), rather than those with a large but static or deteriorating moat.

Since the ETF’s inception in August 2018, its portfolio has returned an average of 15.2% per year.

The fund aims to provide investors with a minimum annualised cash yield of 5% per year, based on the net asset value on 30 June 2026.

It has provided guidance that it will pay quarterly distributions of 53.6 cents over the next year, which is a yield of around 5.3% at the time of writing.

$300 per month from these ASX passive income ideas

At the time of writing, the distribution guidance for these two ideas comes to an average dividend yield of 5.55%.

They don’t pay monthly, but they do pay quarterly. So, I think it’s better to think of the target as an annual goal and then split that into a monthly amount.

Achieving $300 per month translates into an annual target of $3,600. To deliver that goal at an average of 5.55%, we’re talking about investing approximately $64,900 across these two names. But I’d ensure I spread my money across more than just two names for good diversification.

The post 2 ASX passive income ideas I’d use to generate $300 a month in 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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 McMillan Shakespeare Ltd (ASX: MMS) share price is in focus today after the company delivered a record net profit after tax of $106.7 million for FY26, up 11.4%. Group revenue also climbed 6.8% to $602.1 million.

What did McMillan Shakespeare report?

• Revenue up 6.8% to $602.1 million
• Statutory net profit after tax (NPAT) from continuing operations up 11.4% to $106.7 million
• Underlying net profit after tax and amortisation (UNPATA) up 13.8% to $107.9 million
• Underlying EBITDA grew 14.1% to $180.7 million
• Fully franked final dividend of 70 cents per share, total FY26 dividend 132 cents per share
• Return on capital employed (ROCE) rose to 62.1%

What else do investors need to know?

McMillan Shakespeare saw healthy growth across all segments in FY26, with novated leases under management surging 13.5% to 90,000 and salary packaging customers up 7.1% to 402,000. The plan and support services business also expanded its customer base, and productivity gains were delivered through ongoing investments in technology, automation, and artificial intelligence.

The company reported a strong balance sheet, with net assets of $126.4 million and a low debt-to-EBITDA ratio of 0.4x. MMS also announced an on-market share buyback of up to $10 million to be executed over 12 months.

What’s next for McMillan Shakespeare?

The company enters FY27 from a position of strength, expecting the supportive environment for novated leasing to continue, helped by ongoing electric vehicle incentives and cost-of-living pressures. Demand is anticipated to remain steady across salary packaging and fleet management, while the plan and support services segment is well placed for regulatory changes in the NDIS.

MMS plans to deliver productivity gains, broaden sales capability, and invest selectively in customer propositions as it continues to focus on growth, digital innovation, and enhancing customer experience.

McMillan Shakespeare share price snapshot

The McMillan Shakespeare share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of almost 8%.

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The post McMillan Shakespeare shares on watch on strong FY26 profit and 70c dividend 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 recommended McMillan Shakespeare. 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.

Building a $1 million share portfolio can sound like a goal reserved for people starting with a lot of money.

But time and consistency can change the picture considerably.

If I were aiming for that target over the next 20 years, this is how I would approach it.

Start with $20,000 and keep adding

Let’s assume I begin with a $20,000 ASX share portfolio and invest another $1,500 each month.

That works out to $18,000 of new money every year.

If the portfolio produces an average return of around 9% per annum, those contributions could grow to approximately $1 million over 20 years.

I should point out that there are no guarantees the market will deliver 9% annually. Returns will vary considerably from year to year, but 9% is roughly in line with the historical average annual return.

I think this example shows why I would focus less on finding one spectacular investment and more on keeping money invested for a long time.

I would also reinvest dividends where appropriate and give successful investments time to grow rather than constantly trading in and out of the market. This will allow compounding to do its work.

Focus on quality businesses

If I were choosing individual ASX shares, I would want companies capable of becoming more valuable over many years.

That means looking for strong competitive positions, healthy balance sheets, capable management, and genuine opportunities to keep growing.

This could mean ASX shares like Goodman Group (ASX: GMG), Cochlear Ltd (ASX: COH), TechnologyOne Ltd (ASX: TNE), and Macquarie Group Ltd (ASX: MQG).

The goal would not be to predict which share performs best next month. I would be trying to assemble a collection of businesses capable of compounding earnings and value throughout much of the 20-year period.

Diversification would also be important. It is worth remembering that even businesses that look excellent today can disappoint. So, having a portfolio with sufficient diversification could offer some downside protection.

Consistency could be the biggest advantage

I think the $1,500 monthly contribution into ASX shares is just as important as the return assumption.

There will inevitably be periods when markets fall sharply and investing feels uncomfortable.

Those could actually be some of the most valuable months to keep contributing, because the same $1,500 buys more shares at lower prices.

Foolish takeaway

I would not expect the journey to $1 million to be smooth.

But starting with $20,000, investing $1,500 each month, and targeting a long-term return of around 9% gives the goal a realistic foundation.

For me, the strategy comes down to three things: quality investments, consistent contributions, and enough patience to let compounding do its work.

The post How I’d aim to build a $1 million ASX share portfolio in 20 years 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 Cochlear, Goodman Group, and Macquarie Group. The Motley Fool Australia has recommended Cochlear, Goodman Group, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.