Category: Stock Market

Lithium shares are back in favour on Wednesday, with several ASX-listed producers and developers posting strong gains.

A rebound in lithium carbonate prices and improving sentiment across the battery materials space appear to be driving renewed buying interest.

Here are 3 lithium stocks that are going gangbusters today.

Liontown Ltd (ASX: LTR)

The Liontown share price is up 8.95% to $1.978 in late afternoon trade.

That takes its gain to roughly 16% over the past week, marking an impressive short-term recovery for the Kathleen Valley developer.

Liontown is one of the ASX’s largest pure-play lithium names, with its flagship Kathleen Valley project in Western Australia moving toward production. After a volatile 2025, investors appear to be repositioning as lithium prices show signs of stabilising.

Spot lithium carbonate prices in China have rebounded sharply in recent weeks, climbing back above CNY 150,000 per tonne. While still well below the 2022 highs, the recovery has been enough to reignite optimism across the sector.

With a market capitalisation of $6.26 billion and significant institutional support, Liontown is widely regarded as a key indicator of lithium sector sentiment on the ASX.

Core Lithium Ltd (ASX: CXO)

Core Lithium shares are also enjoying a strong session.

The Core Lithium share price is up 6.52% to 24.5 cents, extending its weekly gain to approximately 25%.

Core owns the Finniss Lithium Operation near Darwin. After facing operational and pricing headwinds during the lithium downturn, the company has been focused on cost management and balance sheet strength.

As lithium prices recover, Core’s share price can move more aggressively as sentiment improves. And on the back of this, investors appear to be rotating back into smaller-cap lithium stocks as confidence builds around a potential sector recovery.

Lake Resources N.L. (ASX: LKE)

Rounding out the trio is Lake Resources.

The Lake Resources share price is up 7.90% today. Over the past week, shares have surged around 21%.

Lake is developing the Kachi Lithium Project in Argentina and has positioned itself as a direct lithium extraction hopeful. Like many pre-production developers, its share price has been highly sensitive to changes in lithium pricing and investor risk appetite.

While the project remains in development, improving sector sentiment is clearly driving strong short-term share price momentum.

Why lithium shares are moving

The common factor behind today’s gains is lithium pricing.

After falling sharply through 2023 and 2024, lithium carbonate prices have rebounded in early 2026. Improving electric vehicle demand expectations, policy support in China, and supply discipline from producers have contributed to the recovery.

Lithium shares tend to respond quickly to changes in pricing, particularly among producers and developers with higher exposure to spot markets.

If prices continue to stabilise or move higher, sentiment across the sector could remain supportive in the near term.

The post Why these 3 ASX lithium shares are charging higher today appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) hit a fresh record high in afternoon trade on Wednesday. At the time of writing, the index is up 0.88% to 9,101.80 points. Some of the index’s strongest performers have helped drive the market higher today, but there is one ASX stock in particular that I have my eye on.

Westgold Resources Ltd (ASX: WGX) shares have also reached an all-time high in afternoon trade today. The stock is 1.88% higher at the time of writing, trading at $7.845 per share. 

The gold miner has enjoyed incredible momentum and is now one of the strongest performers on the ASX 200 index over the past year, delivering gains of 211.31%.

What has driven the ASX stock price higher?

Westgold’s share price has been pushed higher by a few tailwinds over the past 12 months. 

Geopolitical uncertainty has seen investors flock to safe-haven assets, such as gold, so far in 2026. The repositioning has seen some sectors drop dramatically, while ASX gold stocks have soared.

Just this week, investors have been snapping up shares in Aussie gold miners amid concerns about US President Donald Trump’s global tariff plans. 

The upset around these planned “reciprocal traffics” has continued for over 12 months now. But fresh concerns have resurfaced this week after the US Supreme Court struck down Trump’s earlier nation-by-nation tariffs as exceeding his authority. 

Trump’s new 10% global tariff came into effect yesterday. And his administration plans to hike it to 15% in an effort to rebuild its tariff agenda. Trump has also warned that higher tariffs could be imposed on countries that “play games” with recent trade agreements. 

The soaring interest in gold has, in turn, sent the metal’s price surging. Trading Economics data shows that the gold price spiked to an all-time high in late January, and while it has since cooled, it’s still not far below that peak. Gold has risen to around $5,180 per ounce today. 

So what can we expect next from the Westgold share price?

Analysts are very bullish on the outlook for the ASX stock this year, even after its latest share price surge.

TradingView data shows that all six analysts have a strong buy consensus on the stock. The average target price is $9.34, which implies an 18.4% upside at the time of writing. However, the maximum target price is $11.70, which translates to a potential 48.38% upside for investors.

The post This stellar ASX stock is up 211% this past year — and there’s more growth ahead appeared first on The Motley Fool Australia.

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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.

Accent Group Ltd (ASX: AX1) shares are catching the eye on Wednesday.

In afternoon trade, the ASX 300 stock is up 20% to 99.5 cents.

Why is this ASX 300 stock rocketing?

Investors have been buying the footwear retailer’s shares following the release of its half-year results.

For the six months ended 28 December, the footwear retailer reported a 2.4% increase in total sales to $865.2 million and EBITDA of $156 million. While the latter was down 1.5% on the prior corresponding period, it was comfortably ahead of Bell Potter’s estimate of $141.3 million.

In addition, the Platypus and The Athlete’s Foot owner’s board declared a fully franked interim dividend of 3.25 cents per share. This was also better than Bell Potter’s estimate of 3 cents per share.

Also potentially giving the ASX 300 stock a lift today was management’s update on its Sports Direct rollout. It advised that it “successfully opened the first Sports Direct store and website with pleasing early trade.”

Furthermore, management is in active negotiations on a further 9 store locations, supporting its long-term target of at least 50 stores over the next 6 years.

The ASX 300 stock wasn’t just opening stores during the half. It also closed a number of loss-making businesses and stores, with further store closures planned in the second half. It notes that these actions not only improve profitability but also enable senior management to redirect focus and resources toward growth initiatives.

Management commentary

The ASX 300 stock’s CEO, Daniel Agostinelli, said:

In a promotional trading environment, growth was achieved across many of our businesses. The Athlete’s Foot, HOKA, Merrell and Nude Lucy all experienced strong growth, pleasingly Platypus and wholesale sales were ahead of prior year with wholesale forward orders also ahead of prior year into the second half of FY26. Cost of doing business (CODB) and inventory continue to be well managed.

Trading update

Accent Group has started the second half in a positive fashion. It advised that sales between 29 December and 22 February have grown by 7.1%. Continuing business gross margin in January was also in line with the prior year.

In light of this, the ASX 300 stock has confirmed its guidance for second-half EBIT in the range of $30 million to $35 million.

Agostinelli added:

I am pleased with the early trade from Sports Direct, the launch of Lacoste and the forward pipeline of Wholesale orders. Recent refinancing and facility extension reinforces the strength of the balance sheet and supports ongoing investment in growth. The team remains focused on driving profitable sales, tightly managing controllable costs and executing our key growth initiatives.

The post Why this ASX 300 stock is jumping 20% on Wednesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Accent Group. 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are climbing higher again on Wednesday afternoon. At the time of writing, the mining giant’s shares are up another 2.69% to $56.22 a piece. Today’s uptick means the stock is now sitting at an all-time high, and is 39.47% higher than 12 months ago. This follows the miner hitting new all-time highs yesterday and on Monday.

The gains have also helped push the S&P/ASX 200 Index (ASX: XJO) to a new record high this afternoon.

It’s been a big month for the miner after it posted an impressive half-year result, which confirmed an 11% revenue increase and a 28% profit hike. At the same time, BHP announced a 46% increase in its fully-franked interim dividend to US73 cents. 

It also announced a new silver agreement with Wheaton Precious Metals Corp (NYSE: WPM). Under the long-term streaming agreement, BHP will receive an upfront payment of US$4.3 billion at completion. In exchange, the miner will deliver silver to Wheaton calculated by reference to its share of silver produced at the Antamina mine in Peru.

Investors are clearly thrilled with the company’s latest developments and are falling over themselves to get their hands on the stock. 

So, if I bought $15,000 worth of BHP shares in early 2026, what are they worth now?

For the year to date, BHP shares are up 22.85%, and for the year, they are up 39.47%. 

Today’s share price increase means that $15,000 invested in the mining giant’s stock when the ASX first opened for the year on the 2nd of January is now worth $18,427.50.

Meanwhile, $15,000 invested in BHP shares this time last year would be worth even more, totalling $20,920.50 at the time of writing.

Can BHP shares keep climbing even higher this year?

Analysts are divided about the outlook for the miner’s shares this year. Many think that the stock has run its course and there isn’t much room left for it to run higher, while others think we could see a small uptick.

TradingView data shows that 7 out of 20 analysts have a buy or strong buy rating on BHP shares. Another 11 have a hold rating, and 2 have a sell or strong sell rating.

The average target price of $52.58 implies a potential 6.43% downside ahead, at the time of writing. But the more optimistic $59.94 target price suggests the stock could rise another 6.71% over the next 12 months.

The post $15,000 invested in BHP shares at the start of 2026 is now worth… appeared first on The Motley Fool Australia.

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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a spare $2,500 and want to invest it wisely, these four ASX shares are tipped to multiply your investment.

Nextdc Ltd (ASX: NXT) 

Nextdc operates a fast-expanding network of data centres for cloud computing and telecommunications, and it also supports AI workloads. It has physical centres, cooling, power, security services, and also project support. I think that, as data usage grows, demand for this type of secure, high-quality infrastructure will also increase. Some analysts think the stock could climb as high as 107.78% to $29.36 over the next 12 months.

Life360 Inc (ASX: 360)

Life360 is a US-based software development company that took the tech industry by storm in 2025 before crashing by the end of the year. The company delivered a standout quarterly update in January, which beat expectations and caused a share price surge of nearly 30%. It looks like the business is poised for good growth this year, with some strong user acquisition numbers and monetisation expected by the end of the year. Data shows that 11 out of 14 analysts have a buy or strong buy rating on the ASX shares. The average target price is $43.03, which implies an 86.76% uplift over the next 12 months.

Lovisa Holdings Ltd (ASX: LOV)

The fashion jewellery and accessories retailer was hammered by a profit miss in its first-half FY26 results earlier this month, but some think the selling was overdone. The company’s revenue figures were solid, though, and its sales growth remained positive. If it continues to grow in profitable markets, then its bottom line could be stronger than expected. Data shows the 16 analysts are split on their position for Lovisa shares. However, the average target price still represents a significant upside. I think the stock has legs to run further this year. Out of 16 analysts, 7 have a buy or strong buy, and another 8 have a hold rating. The average target price of $30.98 implies a 23.86% potential upside from the trading price at the time of writing.

CSL Ltd (ASX: CSL) 

The ASX biotech share was the second-most traded stock among CommSec clients last week. The biotech stock has been subdued since it crashed 15% following its half-year results and shock CEO exit earlier this month. The latest downturn is just one of many headwinds the company has faced over the past 6 months. But I think the current share price offers investors an opportunity to buy the stock cheaply. There is still great growth potential and a strong core business. Analysts are mostly (12 out of 18) bullish, and the potential upsides are impressive. The average target price of $211.82 represents a possible 46.06% increase over the next 12 months, at the time of writing. 

The post Top ASX shares to buy right now with $2,500 appeared first on The Motley Fool Australia.

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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 positions in and has recommended CSL, Life360, and Lovisa. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended CSL and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When markets turn volatile, I look for businesses that can keep paying me no matter what the economy is doing. For me, Telstra Group Ltd (ASX: TLS) sits firmly in that category.

Last Thursday, Telstra released its half-year results. There was plenty to digest across earnings, cash flow, and guidance. However, the key takeaway for income investors was the dividend and the strength of the cash earnings supporting it.

A dividend that keeps climbing

Telstra declared an interim dividend of 10.5 cents per share, up from 9.5 cents a year ago. That represents growth of just over 10% year-on-year.

Importantly, the dividend was 90.48% franked. For shareholders, that adds significant after-tax value, particularly for retirees and those holding shares outside super.

Based on Telstra’s recent share price of $5.09, the dividend yield is roughly 6% before franking.

Management highlighted continued earnings growth, disciplined capital management, and strong cash flow generation. Cash earnings per share (EPS) rose 20% in the half, helping underpin both dividends and ongoing share buy-backs.

For me, that mix is attractive. It provides income today, alongside capital management that supports long-term shareholder returns.

Defensive by nature

One of the reasons I would hold Telstra through almost any market condition is the nature of its business.

People might cut discretionary spending in a downturn. They might delay buying a new car or cancel a holiday. But they are unlikely to cancel their mobile phone plan or home internet.

Connectivity has become an essential service. Whether the economy is booming or struggling, Australians still need to work, stream, bank, and communicate.

Telstra remains the dominant player in mobile, with a premium network and strong market share. That scale provides pricing power and earnings stability. It also underpins recurring revenue, a key feature for income-focused investors.

Cash flow doing the heavy lifting

The latest results showed underlying EBITDA growth and improved cash generation. Operating cash flow funded ongoing network investment while also enabling increased returns to shareholders.

Telstra is continuing to invest in infrastructure, including fibre and 5G, while also executing on a sizeable buy-back. At the same time, it reaffirmed its full-year guidance, providing further confidence around dividend sustainability.

Maintaining this balance between reinvesting in the business and returning capital to shareholders is essential. A high yield means little if it is not sustainable. Telstra’s payout is well supported by earnings and cash flow for the foreseeable future.

The kind of stock you can sleep on

Telstra is unlikely to double overnight. It is not an artificial intelligence darling or a speculative explorer.

But it does something arguably more valuable. It provides reliable income, moderate growth, and defensive characteristics in a single package.

In uncertain times, that is exactly the type of business I want in my portfolio. And this is why Telstra remains an Australian dividend stock I would be comfortable holding through almost anything.

The post An Australian dividend stock I’d hold through anything 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Due to recent weakness in the tech sector, there are a number of ASX growth shares that are trading at just a fraction of what analysts think they are worth.

Two examples of this can be found in this article. Let’s see why analysts at Bell Potter think these shares could skyrocket in 2026 and beyond. Here’s what you need to know:

Catapult Sports Ltd (ASX: CAT)

The first ASX growth share that is being tipped to skyrocket is sports wearables and analytics solutions provider Catapult.

Bell Potter likes the company due to its strong position in a pro sports technology market that could be worth US$72 billion by the end of the decade. It said:

Catapult Sports is a leading global provider of elite athlete wearing tracking solutions and analytics for athlete tracking. The key target market of Catapult is elite sporting teams and organisations and the acquisition of SBG also now gives the company a presence in motorsports. The pro sports technology market is currently valued at US$36bn in 2025 and is forecast to double to US$72bn by 2030.

We view CAT as a market leader entering a stronger phase of cash generation and operating leverage, with an underpenetrated global customer base and expanding analytics suite providing a long runway for subscription growth and valuation upside.

Bell Potter currently has a buy rating and $5.50 price target on its shares. Based on its current share price of $3.45, this implies potential upside of approximately 60% over the next 12 months.

Life360 Inc. (ASX: 360)

Another ASX growth share that could skyrocket according to Bell Potter is location technology company Life360.

While the broker recently trimmed its valuation to reflect a de-rating in tech valuations, it remains very positive on the company and continues to forecast strong revenue and earnings growth. It said:

We have reduced the multiples we apply in the EV/Revenue and EV/EBITDA valuations from 12x and 62.5x to 10x and 52.5x given the pull back in tech valuations over recent months. We have also increased the WACC we apply in the DCF from 8.3% to 8.5% which has been driven by an increase in the risk-free rate from 4.25% to 4.5%. The net result is a 14% decrease in our price target to $45.00 which is >15% premium to the share price so we maintain the BUY recommendation.

The next potential catalyst for the stock is the release of the 2025 result in early March where we expect strong 2026 guidance to be provided with, for instance, revenue growth expected to be >30% and adjusted EBITDA growth >40%.

Bell Potter currently has a buy rating and $41.50 price target on its shares. Based on its current share price of $23.16, this implies potential upside of approximately 80% for investors between now and this time next year.

The post 2 ASX growth shares ready to skyrocket in 2026 and after appeared first on The Motley Fool Australia.

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

The Austal Ltd (ASX: ASB) share price is seesawing again on Wednesday, currently down 0.61% to $4.88.

At this level, the shipbuilder is sitting at a 9-month low. The stock has also tumbled nearly 40% in just one month following its latest half-year results and guidance downgrade.

After doubling in 2025 and hitting a record high above $8 in January, investor confidence has deteriorated quickly. The key question now is whether the recent sell-off marks a bottom, or if further downside lies ahead.

What did Austal report?

For the 6 months ended 31 December 2025, Austal delivered solid top-line growth.

Revenue rose 34.4% to $1.1 billion. Earnings before interest and tax increased 41.3% to $60.3 million, with EBIT margins improving to 5.4%. Net profit after tax (NPAT) climbed 21% to $30.5 million.

Despite the strong growth, two issues weighed heavily on investor sentiment.

First, the company reduced its FY26 EBIT guidance to around $110 million, down from prior guidance of $135 million. Second, net cash fell to $241.4 million following significant capital expenditure to expand US manufacturing facilities.

While management highlighted a record $17.7 billion order book and stronger Australasian operations, the earnings downgrade ultimately overshadowed those positives.

Why the heavy selling?

The guidance reset came after Austal identified discrepancies related to incentives in its US T-ATS program. An estimated $11.7 million overstatement had been included in prior guidance.

In addition, US operations continue to face cost pressures and legacy contract issues. Although revenue in the US segment rose, EBIT declined year over year.

The change in guidance sparked heavy selling, with the shares dropping from $8 in January to the $4 range within a few weeks.

What are brokers saying?

Broker reactions have been mixed.

Bell Potter maintained a ‘hold’ rating and cut its price target to $6.30. Macquarie trimmed its target to around $7.55. Citi reportedly downgraded the stock to ‘sell’ following the result.

Even after those downgrades, most broker targets remain above the current $4.88 share price, suggesting potential upside if the company delivers on its plans.

Is this the bottom?

At current levels, Austal trades on materially lower expectations than just a month ago. The company still has a record order book, long-dated defence contracts, and exposure to higher global defence spending.

However, execution risk remains significant, particularly in the US business as it transitions to new shipbuilding programs and expands capacity.

If management delivers on its revised $110 million EBIT guidance and restores confidence in the reliability of its earnings, the recent sell-off may prove overdone.

Whether this is the bottom will likely depend less on defence tailwinds and more on Austal’s ability to meet its targets.

The post Austal shares down almost 40% in a month. Is this the bottom? 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.

Property technology company Pexa Group Ltd (ASX: PXA) recently upgraded its full-year profit outlook and announced it was selling an entire business division, news that sent its shares higher at the time.

But it’s what is in the wings that is interesting to the team at Macqaurie, which says new changes to how real estate agents and conveyancers have to treat buyers and sellers will be a tailwind for the company.

More on that later. First, we’ll look at what Pexa recently announced.

Restructure underway

The company said in mid-February that it had decided to sell its majority-owned Digital Solutions business, which would drive about $26 million in net impairments, with the sale expected to be finalised by mid-year.

This decision followed a strategic review of the business.

Pexa Managing Director Russell Cohen said regarding the sale:

Our decision to exit the Digital Solutions businesses reflects our disciplined focus on our core capabilities to drive long-term, profitable growth for our shareholders. While quality assets with strong management teams, the strategic review confirmed that PEXA was not the best long-term natural owner of these businesses. With the strategic review now complete, management is fully focused on accelerating our growth strategy and unlocking value from existing operations and future opportunities.

Pexa said it expected to report significant items of $7 to $8 million in its first-half results, excluding the $26 million previously mentioned, with the costs largely related to redundancies from a cost optimisation program and restructuring.

The cost-out program was expected to save more than $10 million per year.

Pexa also downgraded its full-year revenue outlook to $395 to $415 million, down from $405 to $430 million, but upgraded its core earnings forecast by $10 million to $15 to $25 million.

Pexa shares looking cheap

The Macquarie team recently had a look at Pexa and said changes to how property transactions need to be handled would be good for the business.

They said in a research note to clients that conveyancers and real estate agents would soon have to comply with anti-money laundering and counter-terrorism financing laws, requiring checks on buyers and sellers in property transactions.

They added:

This includes registering with AUSTRAC, completing initial and ongoing client due diligence, and reporting both suspicious transactions promptly and all transactions annually to AUSTRAC.

Macquarie said Pexa had launched a software solution, Pexa Clear, in January, putting it ahead of the game ahead of the new regulations coming into force from July 1.

The Macquarie team estimated the new business would generate about $90 million in revenue for Pexa, and they have a 12-month price target of $19.15 on Pexa shares.

This compares with $14.33 now and would constitute a 33.6% gain if achieved.

Pexa will report its first-half results on Friday, February 27. The company was valued at $2.53 billion at the close of trade on Tuesday.

The post Why money laundering law changes will be a boon for this property tech company appeared first on The Motley Fool Australia.

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

Shares in Domino’s Pizza Enterprises Ltd (ASX: DMP) are trading 16% lower at $18.15 during Wednesday afternoon trade. This brings the loss for Domino’s Pizza shares over 12 months to 42%.

Investors weren’t too impressed with the reset-style results for the first half of 2026 that Domino’s Pizza released this morning.

Back to profitability

Domino’s Pizza swung back to profit and delivered modest growth in underlying earnings. It signals that Domino’s turnaround strategy is gaining traction. Underlying EBIT reached $101.5 million in the 6 months ending 31 December 2025, up 1.0% on 1H25.

Network sales and same-store sales remained soft, but franchise profitability improved by 4.5% to $103,000. This was due to management pulling back on heavy discounting and focusing on sustainable margins over pure volume.

Largest Domino’s franchisee outside US

Domino’s Pizza Enterprises is the largest Domino’s franchisee outside the United States. It runs a sprawling network across Australia, New Zealand, Japan, and parts of Europe.

The group generates revenue from company-owned stores, franchise royalties, and supply chain operations. A vertically integrated model that has helped Domino’s Pizza build one of the ASX’s biggest fast-food networks.

But scale hasn’t shielded it from pressure. Store closures, rising costs, and softer consumer demand in key markets have squeezed earnings and dented investor confidence in Domino’s Pizza shares in recent years.

Clear step forward

This wasn’t a knockout result. But the board of the pizza-giant said it’s a clear step forward. After a tough stretch, Domino’s priority is profitability, franchise strength, and balance sheet repair. Something that long-term investors needed to see.

Executive Chairman Jack Cowin commented:

These results reflect deliberate decisions taken as part of our reset to strengthen the foundations of the business, prioritising an increase in franchise partner profitability.

We reduced reliance on discounting during the half. Volumes moderated, as expected, but unit economics improved. That was a conscious trade-off to build a stronger system.

Mixed regional performances

Performance across regions was mixed. Europe showed pockets of improvement, while trading in Australia and Japan remained challenging. But the key takeaway wasn’t regional volatility; it was improved profitability and tighter execution.

Encouragingly, Domino’s generated solid cash flow, reduced debt, and rewarded shareholders with an interim dividend of 25.0 cents per share (unfranked), up 16.3%.

What’s next for Domino’s Pizza shares?

Management has reaffirmed full-year guidance and is zeroing in on what matters: lifting franchise partner profitability, generating strong free cash flow, and cutting group leverage.

As the foundations strengthen, Domino’s plans to invest selectively. It will back sustainable same-store sales growth and disciplined network expansion, not reckless rollout.

The post Domino’s Pizza shares tumble 16% after reset-style results appeared first on The Motley Fool Australia.

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