Category: Stock Market

At first glance, it would be fair to assume investors in Dexus (ASX: DXS) would be happy with how its latest set of earnings results went down this morning.

After all, units of this real estate investment trust (REIT) are currently up a healhy 8.16% (at the time of writing) to $6.84 each.

But when you consider this REIT’s long-term stock price chart, you might want to think again.

For one, Dexus is still down about 12% over the past 12 months (including today’s big jump). The REIT is also down 20.1% from where it was five years ago. But what’s even more sobering is that today’s Dexus unit price is about the same as it was back in August 2014. And it’s still below the level it was a whole decade earlier than that, way back in late 2004.

Unless you timed buying and selling this REIT impeccably (which is statistically unlikely), the only returns that have kept you comfortable over the past two decades have come from dividend distributions. Sure, with a 5.4% yield today, those haven’t been insubstantial. But we still can’t conclude anything other than Dexus has been a bit of a dud investment for as long as most investors can remember.

But perhaps the REIT is about to turn a corner.

It’s worth noting that investors might, understandably, feel a little shortchanged by the market’s valuation of Dexus. In today’s earnings, the REIT confirmed that its property portfolio has an actual value (net tangible asset) of $8.95 per Dexus unit. This means that Dexus’ value is being undershot by the market, for whatever reason, to the tune of 30%.

Could Dexus benefit from this massive share buyback program?

Management has taken notice of this fact. In its earnings release this morning, Dexus CEO Ross Du Vernet revealed a new share buyback program specifically tailored to address this value disparity:

There is a sustained disconnect between our equity market valuation and that of our underlying assets and businesses. We have activated an on-market securities buyback of up to 10% of Dexus securities, which we expect to execute at a pace consistent with maintaining balance sheet discipline as we progress asset sales and other initiatives.

Since Dexus has a market capitalisation of approximately $7.34 billion, this buyback program could be worth up to $734 million.

Share buybacks can significantly boost shareholder returns. By reducing the supply of units in the open market, it has the potential to increase the pricing of those units. Further, buybacks are also good for the company (or REIT) itself, as there are fewer units to split profits and dividends amongst.

Such a large share buyback program being undertaken does have the potential to boost returns for Dexus investors. Particularly when the shares are being bought back at such a discount to their alleged intrinsic value. But we shall have to wait and see if this eventuates in the Dexus unit price.

The post Can a massive share buyback save the Dexus stock price? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Dexus posts $348.5m half-year profit as property values lift
• 13 ASX 200 shares hit multi-year lows as the market takes a breather
• Why 2026 could be the year of the REIT rebound
• Bargain hunting? Here are 3 ASX 200 shares plumbing 52-week lows today

Motley Fool contributor Sebastian Bowen 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 ASX tech share CAR Group Ltd (ASX: CAR) has enormous potential, based on what UBS thinks could happen with the vehicle marketplace business. There is exciting potential for the CAR Group share price.

While best known for the Australian business Carsales, it also has exposure to other markets, including South Korea (through Encar), Brazil (with Webmotors), and the USA (with Trader Interactive).

After seeing the result, UBS said that it was a “solid result”, which points to continuing execution in all regions.

UBS view on the result

The broker pointed out that CAR Group’s results showed consistent execution and growth across all regions.

CAR Group reported that revenue rose 8% to $626 million, operating profit (EBITDA) went up 11% to $324 million, and reported net profit climbed 16% to $143 million. The board of directors decided to increase the interim dividend per share by 10% to 42.5 cents.

Australian revenue rose 8%, with adjusted EBITDA growth of 8%. North America revenue grew 13%, while adjusted EBITDA climbed 11%. In Latin America, revenue grew 23% and adjusted EBITDA climbed 29%. Asian revenue increased 17% and adjusted EBITDA went up 13%.

UBS liked CAR Group’s reassurance on AI because of market concerns. AI investment by the business will fall within the “existing spend envelope” over the medium term, at around 10% of capital expenditure. It’s also starting to see signs of incremental revenue from AI-supported products such as “lead nurturing, sourcing products in Australia and the US, and guarantee inspection in South Korea.”

The broker believes the investment in AI will continue to support yield and depth growth across all regions. For example, a fully AI-driven search experience has led to two times the leads in Brazil.

UBS also noted that there is “longer term margin upside potential” from AI, with the company suggesting near-term reinvestment of AI productivity savings back into AI developments, but with potential for margin expansion in the medium-to-longer term.

The broker forecasts that CAR Group’s margins can continue expanding in FY27 onwards by an average of 80 basis points (0.80%) per year over the next three years.

UBS also believes that growth in the US (with Trader Interactive) is poised to return to double digits, driven by dealer additions, a 6% price rise in January, and growth in leads in private, media, and marine.

How much could the CAR Group share price rise?

The broker suggested that the business is trading at a relatively low price compared to its typical historical earnings multiple, while still delivering double-digit earnings growth. It’s valued at 25x FY26’s estimated earnings, according to UBS’ projections.

UBS has a buy rating on the business with a price target of $39.60. That implies a possible rise of more than 50% at the time of writing.

The post The CAR Group share price is a strong buy – UBS appeared first on The Motley Fool Australia.

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• Does AI spell doom for REA Group and Car Group?
• 3 of the best ASX dividend shares right now

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

Netwealth Group Ltd (ASX: NWL) delivered another dividend increase after a strong first-half performance. The result has sent the company’s shares sharply higher in afternoon trade.

At the time of writing, the Netwealth share price is up 13.22% to $25.27.

The wealth platform provider lifted its interim dividend by 20% after delivering double-digit earnings growth.

The board declared a fully-franked interim dividend of 21 cents per share, up from 17.5 cents a year earlier. That increase closely tracks earnings per share (EPS) growth of 20.5% to 28.1 cents.

Shares will trade ex-dividend on 4 March 2026, with payment scheduled for 26 March.

Strong inflows drive earnings growth

Funds under administration (FUA) climbed 23.6% year on year to $125.6 billion. Net inflows remained strong, with $16.6 billion of FUA inflows recorded during the half. That growth fed directly into revenue, with total income rising 24.7% to $193.8 million.

EBITDA increased 23.9% to $96.7 million, while margins remained high at 49.9%. Although this was slightly below last year’s level due to ongoing investment, the company is still operating near the 50% mark.

Earnings growth was matched by strong operating cash flow. Netwealth continues to benefit from a largely recurring revenue base, which provides visibility as it expands.

Expanding the platform while lifting profits

During the half, the company increased operational headcount to 791, adding 74 roles across product, technology, and service functions. Management said the investment is aimed at strengthening the platform and supporting adviser growth, rather than chasing short-term margin gains.

Even with that investment, profitability remains robust. The company reiterated that it expects FUA net flows in FY26 to remain broadly consistent with FY25 levels and EBITDA margins to stay around current levels, excluding specific First Guardian-related expenses.

Earnings growth now flowing to shareholders

Netwealth has long been viewed as a growth company, but the rising dividend shows that the business is now evolving. With greater scale now in place, additional revenue is flowing through at healthy margins.

The platform is still capturing market share, expanding its adviser network, and increasing account balances. At the same time, strong recurring revenue and solid cash conversion are supporting a growing payout to shareholders.

The 20% increase in the interim dividend is a clear sign of that progress. The company is generating cash, reinvesting in the business, and still returning more profits along the way.

If adviser growth and net inflows remain steady in the second half, further dividend growth would not be a surprise.

The post Dividend boost sends Netwealth shares 13% higher appeared first on The Motley Fool Australia.

More reading

• Can HUB24 match Netwealth’s stellar results tomorrow?
• Why Lottery Corp, NAB, Netwealth, and TechnologyOne shares are charging higher today
• Netwealth shares surge 12% as record inflows power earnings growth
• Netwealth earnings: 24% revenue jump and record inflows
• Here are the top 10 ASX 200 shares today

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

Seek Ltd (ASX: SEK) shares are down 3.08% in afternoon trade on Wednesday. At the time of writing, the shares are trading at $16.03 each.

Today’s decline means the shares have now plummeted 33.33% year to date and are down 34.92% compared to this time last year.

What has caused the share price crash in 2026?

Seek shares slowly declined through January, but significantly picked up pace in late January to early February, when broad tech-sector weakness and softer hiring trends raised investor concerns.

Overall, there is evidence that job ad volumes have begun stabilising in early 2026, but activity remains below peak levels. As a business that centres on online employment advertising, there is concern that lower ad volumes could translate into slower revenue growth or shrinking profits for Seek. 

Did Seek’s latest financial results inject any confidence back into investors?

The company posted its half-year results for the period ending 31st December 2025 ahead of the market open yesterday. It reported a 21% increase in sales revenue, a 12% increase in net revenue, and a 19% increase in EBITDA.

But the company also reported a statutory loss of $178 million due to a $356 million impairment related to Zhaopin. Yield growth of 17% across ANZ and Asia more than offset softer job ad volumes, reflecting the impact of AI-enabled product upgrades and pricing initiatives.

Management also upgraded its FY26 guidance, now expecting net revenue of $1.19 billion to $1.23 billion and EBITDA of $530 million to $550 million.

The double-digit growth didn’t do anything to investor confidence, though, and the shares closed 2.6% lower for the day. While the company posted impressive revenue and profit growth, investors were likely deterred by the level of statutory losses. 

What now? Are Seek shares a buy, sell, or hold for 2026?

The good news is that analysts are still bullish that we’ll see some upside from Seek shares throughout the remainder of the year.

TradingView data shows that analysts have a consensus buy rating on the stock, with all 15 analysts holding a buy or strong buy rating on Seek shares. 

The average target price is $27.24 a piece, which implies a potential 70.86% upside at the time of writing. But some think the shares could climb a whopping 103.76% to $32.50 over the next 12 months. 

The post Are Seek shares a buy after its FY26 half-year results? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 stock just announced a huge dividend hike
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• SEEK delivers double-digit growth and record dividend in FY26 half-year results
• Here are the top 10 ASX 200 shares today
• 3 beaten-down ASX 200 shares to pick up in February

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

Santos Ltd (ASX: STO) shares have lost 1.8% to $6.55 during afternoon trade.

The drop comes despite the ASX energy company reporting “strong base business performance” for the full year 2025.

Solid overall results

The Adelaide-based oil and gas company reported in a statement on Wednesday sales revenue for FY 2026 of US$4.9 billion, about 8% down from the prior year.

Underlying net profit after tax (NPAT) was US$898 million, down roughly 30% due to softer oil and gas prices. The free cash flow was strong at US$1.8 billion, while EBITDAX for the full year 2025 ended up at US$3.4 billion.

Santos Managing Director and CEO Kevin Gallagher said the results highlight the strength of the company’s base business.

Our base business has performed exceptionally well with production maintained and the best unit production costs in a decade, achieved through continued commitment to the disciplined low-cost operating model.

Flagship projects as turning point

At its heart, Santos is a high-quality energy producer with long-life assets spread across Australia, Papua New Guinea, Timor-Leste, and the US. LNG is the engine room, backed by long-term contracts, that help smooth out short-term commodity price noise.

The next few years could be a turning point for Santos shares. Flagship growth projects like Barossa LNG and Alaska’s Pikka oil project are edging closer to first production.

Santos reported that it operated its core assets with high reliability and brought Barossa and Darwin LNG online early and on budget.

Mr Gallagher noted:

Barossa and Darwin LNG have been delivered within six months of the original schedule and within the original budget, without drawing on any additional contingency.

Pikka Phase 1 is set to deliver first oil in late Q1 2026 and ramp to full output in Q2.

Mr Gallagher commented on Pikka Phase 1:

The project is planned to ramp up production to full plateau rate by the end of the second quarter. Drilling results are encouraging with test rates indicating an average initial production rate of approximately 7,000 bbl/d per well, under anticipated operating conditions, supporting targeted delivery of plateau production rate.

The energy giant also tightened cost control, delivering its lowest unit production costs in a decade. Santos is pushing ahead with growth.

The company will also cut headcount by about 10% as major projects shift into the base business.

Intact 2026 guidance

Guidance for 2026 stays intact. Santos expects production and sales of 101 to 111 mmboe. Santos forecasts that unit costs will be at US$6.95 to US$7.45 per barrel of oil equivalent. It also tips capital expenditure to land between US$1.95 billion and US$2.15 billion.

What next for Santos shares?

Over the past 12 months, Santos shares have declined 4.5%. Santos is trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 6% over the same period.

Wednesday afternoon’s drop interrupts a solid rebound in the first weeks of 2026. However, Santos shares are still up 6.3% year to date.

The post Santos shares drop despite strong full-year results appeared first on The Motley Fool Australia.

More reading

• Here’s everything you need to know about Santos’ latest dividend
• 5 things to watch on the ASX 200 on Wednesday
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• 2 quality ASX dividend shares trading at a discount
• 5 things to watch on the ASX 200 on Monday

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 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.

Santos Ltd (ASX: STO) shares are under pressure on Wednesday after the energy giant released its full-year results for 2025.

At the time of writing, the Santos share price is down 1.50% to $6.57.

While the company delivered solid operational and financial performance, income investors will likely be most interested in its latest dividend update.

Here’s everything you need to know.

Santos’ FY25 dividend at a glance

Santos has declared a final dividend of 10.3 US cents per share.

This brings total dividends for FY25 to 23.7 US cents per share. That’s up from 23.3 US cents last year and marks another year of disciplined capital returns.

The dividend will be paid in US dollars.

Key dates to note are:

• Ex-dividend date: 23 February 2026

• Record date: 24 February 2026

• Payment date: 25 March 2026

The dividend is 100% unfranked.

Based on the current share price of $6.57, the stock is trading on a trailing yield that remains competitive within the ASX energy sector. Investors should remember that payments are declared in US dollars, meaning the final amount received in Australian dollars will depend on exchange rates.

Backed by strong cash flow

The dividend was underpinned by solid free cash flow generation despite lower realised commodity prices.

For FY25, Santos reported:

• Free cash flow of US$1.8 billion

• Underlying profit of US$898 million

• EBITDAX of US$3.4 billion

The total dividends declared for the year came in at around US$770 million.

Santos finished the year with gearing of 26.9%, or 21.5% excluding leases, signalling balance sheet strength at the end of a peak capital investment phase.

Unit production costs came in at US$6.78 per barrel of oil equivalent. That marks the lowest level in a decade and highlights management’s focus on cost discipline.

Dividend growth despite major project spend

One of the more notable takeaways is that Santos has grown dividends while progressing two major development projects, Barossa and Pikka Phase 1.

Management highlighted that dividends per share have delivered a 13.6% compound annual growth rate since 2018. That expansion has occurred alongside the company’s large-scale investment, including Barossa and the Moomba carbon capture and storage project.

With Barossa and Pikka ramping up, Santos expects production of 101 to 111 mmboe in 2026. It continues to target at least 60% of all-in free cash flow to be returned to shareholders over time.

Foolish takeaway

Today’s share price decline suggests the market may have been hoping for a stronger result or larger capital return.

However, Santos continues to position itself as a disciplined, cash-generating energy producer focused on shareholder returns.

While commodity prices will always influence future payouts, Santos’ low-cost operating model and improving free cash flow breakeven metrics support its outlook. Its strengthened balance sheet also suggests it remains well placed to continue rewarding investors.

The post Here’s everything you need to know about Santos’ latest dividend appeared first on The Motley Fool Australia.

More reading

• Santos shares drop despite strong full-year results
• 5 things to watch on the ASX 200 on Wednesday
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• 2 quality ASX dividend shares trading at a discount
• 5 things to watch on the ASX 200 on Monday

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

Shares in Judo Capital Holdings Ltd (ASX: JDO) got a nice little bump from the company’s strong first-half profits released this week, but have subsequently given back all of the gains.

With a longer-term view in mind, we’ve canvassed the opinions of three brokers on where the shares could go from here, and the consensus is that the company is undervalued at current prices.

More on that later. First off, what did the company report this week?

Profits surging

Judo said in its statement to the ASX this week that net profit had come in at $59.9 million, up 32 per cent on the prior half and up 46% compared with the same period the previous year.

The junior bank said it had delivered “above system growth” with gross loans and advances of $13.4 billion, up 7% over the half and 15% year on year, driven, the company said, by its, “differentiated customer value proposition and improved productivity”.

Judo also reaffirmed its guidance for full year, pre-tax profits of $180-$190 million.

Chief executive officer Christopher Bayliss said regarding the result:

Today’s result demonstrates that Judo continues to successfully execute against its clear and simple strategy. 2026 is a significant milestone for Judo, marking our 10th year as Australia’s first specialist SME business bank. Over this time, not only have we validated the strong demand for a differentiated, relationship-based approach to SME lending, we have demonstrated the agility of our model and our team’s ability to successfully execute our strategy. Following major investment in Judo’s systems and people, we have built the bank we dreamed of and are now scaling our business and progressing towards our goal of delivering a sector-leading return on equity.

Mr Bayliss added the bank was continuing to expand into regional and agribusiness lending.

Shares looking undervalued

Among the brokers, Morgan Stanley has the most bullish share price target for Judo, at $2.20 per share, compared with $1.80 on Wednesday.

The Morgan Stanley team said good volume growth, an upgrade to margin guidance and evidence of increased operating leverage provided more confidence in Judo’s 2-year earnings outlook.

Meanwhile at Morgans they have a price target of $2.09 on Judo shares, but added there could be some serious upside further down the track.

They added:

Judo does not intend paying dividends as it retains capital to support its significant loan growth aspirations. As such, investors in Judo are entirely reliant on capital growth to achieve their total return objective. While Judo is higher risk than major banks given it is a challenger operating entirely in the SME business banking space, we expect capital appreciation will be driven by stellar earnings growth across FY26-27 in particular. By the end of this decade we think Judo may be worth close to $3/share.

And finally, the team at Macquarie has a price target of $2.05 per share for Judo.

They said the company was executing well and delivering on growth, and they have an outperform rating on the shares.

Judo was valued at $2.12 billion at the close of trade on Tuesday.

The post Are Judo Capital shares a buy, sell or hold after their results this week? appeared first on The Motley Fool Australia.

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This February’s earnings season is continuing with gusto this week. We’ve heard from another round of popular ASX 200 shares over the last few days, with good, bad, and ugly results all around. This morning, Lottery Corp Ltd (ASX: TLC) joined the throng with its own earnings report card. And it’s an interesting one to read for investors who might want to buy Lottery Corp shares for dividends.

Lottery Corp has long been a top choice for ASX investors looking for defensive earnings and a stable dividend. After all, this company has exclusive licenses to run the perennially popular lottery and Keno games in most states and territories. These services tend to be highly resilient to economic maladies like inflation and recessions, given the enduring appeal of the chance to hit the jackpot.

So let’s see how this company lived up to that reputation with its latest earnings and dividend, covering the six months to 31 December 2025.

As we covered this morning, it was a bit of a mixed bag for Lottery Cop over the second half of last year. The company told investors that it suffered its least-favourable period for jackpot outcomes since its 2022 spinoff from Tabcorp Holdings Ltd (ASX: TAH). Revenues were up 2% year on year to $1.82 billion. However, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 0.7% from the same period in 2024 to $367 million. Net profit after tax (NPAT) was also lower, falling 1.4% to $173.3 million.

Earnings per share (EPS) came in at 7.8 cents per share, a drop of 0.1 cents (or 1.3%) from the previous period.

Despite this, investors seem to be relieved. That’s going off the current Lottery Corp share price, which is up a healthy 4.17% at the time of writing to $5.38.

What does the latest Lottery Corp dividend look like?

But let’s talk dividends.

Lottery Corp has revealed that its first dividend of 2026 will come in at 8 cents per share. As is the company’s habit, it will come with full franking credits attached. This interim dividend matches last year’s equivalent payout, also worth 8 cents per share. Together with the final dividend, worth 8.5 cents per share, that was paid out in September of last year, it keeps Lottery Corp’s full-year payouts at 16.5 cents per share.

Lottery Corp has nominated 25 February (next Wednesday) as this payout’s ex-dividend date. So if any investor doesn’t yet own Lottery Corp shares but wishes to receive this dividend, they will need to have shares in their name by market close on 24 February. The dividend pay day has then been set for 26 March next month.

Perhaps concerningly for investors, the interim dividend that was announced today represents a payout ratio of 103% of earnings. That’s something you may have clocked, given that Lottery Corp’s EPS for the period was just 7.8 cents per share. Perhaps this can be excused, given the apparently erroneous dip in jackpot conditions. However, the company did pay out 100% of its earnings as dividends over the full 2025 financial year. This indicates that it is hitting its speed limit when it comes to dividends. So income investors should certainly keep an eye on Lottery Corp’s financials over the rest of 2026.

Lottery Corp shares are currently trading on a (trailing and forward) dividend yield of 3.07%.

The post Here’s everything you need to know about the new Lottery Corp dividend appeared first on The Motley Fool Australia.

More reading

• Why Lottery Corp, NAB, Netwealth, and TechnologyOne shares are charging higher today
• The Lottery Corporation posts steady earnings and dividend for 1H26
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• Looking for income? Check out these buy-rated ASX dividend stocks
• 3 quality ASX shares to buy with $10,000

Motley Fool contributor Sebastian Bowen 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 The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

HUB24 Ltd (ASX: HUB) reports its half-year results tomorrow, and with rival Netwealth Group Ltd (ASX: NWL) delivering a standout set of numbers today, expectations are building.

Netwealth shares are up 12% after it announced its half year results today, and HUB24 shares are up around 3% today (at the time of writing) likely reflecting optimism that it too could deliver strong results tomorrow.

HUB24 has already given investors a glimpse of its platform momentum and so the question for tomorrow is how well those flows convert into revenue and profit growth.

Solid platform net inflows

In January, HUB24 reported record half-year platform net inflows of $10.7 billion and quarterly inflows of $5.6 billion. Total funds under administration (FUA) reached $152.3 billion at 31 December 2025, up 26% on the prior corresponding period, with platform FUA up 29%.

The business also continued to grow its adviser base, with active advisers increasing 8% year-on-year to 5,277.

The growth engine is clearly firing but the question for tomorrow’s result is how well that 29% FUA growth is translating into uplift in revenue and EBITDA and whether margins remain resilient as the company continues investing in its product.

Netwealth a good test case

Netwealth demonstrated how strong FUA growth can drive both revenue expansion and margin stability. HUB24 now faces a similar test tomorrow.

HUB24’s model, like Netwealth’s, benefits from increasing platform net inflows but fee mix, pricing discipline, and competitive dynamics all play a role in how effectively flows convert into earnings.

Structurally, the tailwinds in the industry remain strong and adviser-led flows continue to shift toward technology-enabled platforms with HUB24, Netwealth and Macquarie Group Ltd (ASX: MQG) being clear beneficiaries.

Share price snapshot

HUB24 shares have had a volatile run over the past year. At one point over the past 12 months, HUB24 shares were up 40%, before dropping 26% from their October 2025 peak. This reflects the broader sentiment swings in high-multiple financial technology stocks. Today’s 3% rise however suggests investors are positioning for a potentially strong result tomorrow.

Its hard to tell how much of that is already priced in but if HUB24 can consistently increase its FUA whilst translating that into strong revenue and earnings growth, long-term investors will likely have much to be happy about.

Tomorrow’s result will be a key progress marker in that journey.

The post Can HUB24 match Netwealth’s stellar results tomorrow? appeared first on The Motley Fool Australia.

More reading

• Why Lottery Corp, NAB, Netwealth, and TechnologyOne shares are charging higher today
• Netwealth shares surge 12% as record inflows power earnings growth
• Do experts think the Macquarie share price is a buy?
• Netwealth earnings: 24% revenue jump and record inflows
• Where to invest $10,000 in ASX shares right now

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Macquarie Group, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Suncorp Group Ltd (ASX: SUN) shares are having a poor session on Wednesday.

In afternoon trade, the insurer’s shares are down 5% to $15.12.

Why are Suncorp shares sinking?

Investors have been selling the company’s shares today after it released its half-year results.

The market appears disappointed after Suncorp reported a sharp drop in profit for the six months ended 31 December, weighed down by elevated natural hazard costs and weaker investment returns.

According to the release, Suncorp posted a net profit after tax of $263 million for the half, down significantly from $1.1 billion in the prior corresponding period. Cash earnings came in at $270 million, compared to $828 million a year ago.

The key culprit was natural disasters.

Natural hazard costs surge

Management revealed that it dealt with nine declared natural hazard events during the half, resulting in more than 71,000 claims at a net cost of around $1.3 billion.

Natural hazard costs were $453 million above the half-year allowance, driven largely by destructive thunderstorms and widespread hailstorms across Australia’s east coast, particularly in south-east Queensland.

Net incurred claims jumped 23.4% to $5.48 billion, reflecting both the severe weather events and ongoing claims inflation in parts of the portfolio.

The key Consumer Insurance division swung to an insurance trading loss of $137 million, compared to a $509 million profit in the prior period, largely due to the elevated natural hazard experience.

Suncorp’s CEO, Steve Johnston, said:

While Suncorp’s 1H26 reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns over the half, our underlying business remains resilient as we continue to deliver on our strategic imperatives and drive good momentum leading into the second half of the financial year.

Investment returns and margins

Suncorp also revealed that its net investment income fell to $259 million from $374 million a year ago. It was impacted by negative mark-to-market movements from higher yields.

Despite this, underlying margins held up relatively well. The underlying insurance trading ratio (UITR) came in at 11.7%, towards the top half of the group’s 10% to 12% target range.

Gross written premium increased 2.7% to $7.69 billion, supported by strong growth in the Consumer portfolio, particularly in Motor and Home.

Capital and dividend

On a more positive note, Suncorp maintained a strong capital position, with Common Equity Tier 1 capital sitting $700 million above the midpoint of its target range.

The board declared a fully franked interim dividend of 17 cents per share, representing 68% of cash earnings.

The company also completed $168 million of its on-market share buy-back program during the half and continues to target around $400 million in buy-backs over FY26.

Outlook

Looking ahead, management expects gross written premium growth to be around the bottom of the mid-single digit range, given current market conditions in Commercial insurance.

The underlying insurance trading ratio is expected to remain in the top half of the 10% to 12% range, supported by pricing momentum in Consumer and Commercial & Personal Injury portfolios.

The post Why are Suncorp shares sinking 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 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.