Category: Stock Market

Fortescue Ltd (ASX: FMG) shares are rising on Wednesday morning.

At the time of writing, the mining giant’s shares are up 1.5% to $22.20.

Fortescue shares rise despite court loss

The miner’s shares are rising on Wednesday despite the release of an announcement after the market close yesterday relating to a court loss.

According to the release, the Federal Court has delivered its decision in relation to the Native Title Compensation Claim that was commenced by the Yindjibarndi Ngurra Aboriginal Corporation RNTBC back in 2022 relating to the Solomon Hub.

The Federal Court determined that Fortescue is liable to pay compensation to the Yindjibarndi Ngurra Aboriginal Corporation RNTBC.

It notes that the total amount for economic loss is anticipated to be in the vicinity of $100,000 plus interest and the total amount for cultural loss is $150 million. The latter is significantly more than the “figure of no more than $8 million” that Fortescue suggested was appropriate.

The Federal Court has advised that it will publish the reasons for its decision at a later date. Fortescue intends to review those reasons when available.

How does this compare to expectations?

The $150 million that the Federal Court has awarded is a lot less than the Yindjibarndi Ngurra Aboriginal Corporation RNTBC was seeking.

It contended that mining companies in the Pilbara typically agree to pay a 0.5% royalty to traditional owners for use of their land.

Based on this, it calculated its economic loss on the basis of a percentage of royalties until the end of the operational life of the project, which is expected to be in 2045, to be in excess of $800 million.

It also separately sought compensation of $1 billion for cultural loss that it has suffered from the grant of the mining tenements.

In response to the news, a Fortescue spokesperson stated:

Dr Andrew Forrest and Fortescue care deeply about all First Nations people, including the Yindjibarndi community. Fortescue accepts that the Yindjibarndi People are entitled to compensation. The Company has agreed to and pays financial compensation under all of its other seven native title agreements. Fortescue has strong relationships with the First Nations people of the Pilbara region of Western Australia, with dedicated Heritage, Native Title and Community teams working hand in hand with Traditional Custodians to ensure cultural heritage is managed sustainably and responsibly.

The post Fortescue shares push higher despite order to pay Yindjibarndi $150m damages appeared first on The Motley Fool Australia.

More reading

• 3 reasons why the Fortescue share price could be a buy
• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• Buy, hold, sell: Mineral Resources, Fortescue, Champion Iron shares
• Why the ASX 200 is charging higher today

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.

Aristocrat Leisure Ltd (ASX: ALL) shares are on the move on Wednesday morning.

At the time of writing, the ASX 200 gaming technology stock is up 5% to $48.40.

ASX 200 stock charges higher on results day

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

For the six months ended 31 March, Aristocrat reported normalised revenue of $3.03 billion. This was broadly flat on a reported currency basis but up 6.4% in constant currency.

The company’s largest division, Aristocrat Gaming, delivered revenue of $1.96 billion, which is up 4.9% on the prior corresponding period.

This was supported by strong outright sales growth and market share gains in North America and Australia and New Zealand. Its Gaming Operations installed base also expanded, with market share increasing to 43%.

Product Madness revenue fell 4.1% to US$546.2 million. However, this reflected the sale of the Social Casual business early in the half. Its Social Casino revenue increased 4.7% to US$541.7 million, with the division maintaining a 23% market share in the Social Casino Slots market.

Aristocrat Interactive revenue increased 6.5% to US$230.3 million, driven by iLottery and the continued scaling of content, particularly in North America. Management notes that this was partially offset by Platforms following the strategic decision to exit White Label.

Normalised EBITA increased 6.2% to $1.12 billion, or 14% in constant currency. Normalised net profit after tax rose 9.1% to $725.4 million, while normalised NPATA increased 8.4% to $794.0 million. On a constant currency basis, normalised NPATA was up a sizeable 16.3%.

The ASX 200 stock’s board declared an unfranked interim dividend of 50 cents per share. This is up 13.6% on the prior corresponding period.

In addition, the company revealed that it is increasing its on-market share buy-back program by $1 billion (up to $2.5 billion in aggregate) and extending it through to 12 May 2027.

Management commentary

Aristocrat’s CEO and managing director, Trevor Croker, said the result reflected disciplined execution and continued momentum across the business. He commented:

Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments. Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage.

This result once again highlights our market leadership and scale as fundamental strengths of the business. At the same time, we have maintained a balanced approach to capital allocation, returning capital to shareholders while investing strategically to strengthen our long-term growth and resilience.

Outlook

Looking ahead, no firm guidance has been given for FY 2026.

However, management advised that it “expects to deliver NPATA growth over the full year to 30 September 2026 on a constant currency basis.”

This reflects expectations for continued revenue and market share growth from Aristocrat Gaming, continued market share growth from Product Madness, and “accelerating performance at Aristocrat Interactive toward [its] FY29 US$1 billion Revenue Target.”

The post Aristocrat shares charge higher on strong result and $1b buy-back appeared first on The Motley Fool Australia.

More reading

• Aristocrat Leisure posts double-digit profit and dividend growth in HY26
• 5 things to watch on the ASX 200 on Wednesday
• Top brokers name 3 ASX shares to buy today
• Down 16% year to date, Bell Potter thinks now is the time to buy low on this ASX 200 stock
• Have beaten-down ASX gaming stocks finally hit a bottom?

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.

Develop Global Ltd (ASX: DVP) shares are falling on Wednesday morning.

In early trade, the ASX mining stock is down 2% to $6.05.

This follows the release of an announcement before the market open.

What did the ASX mining stock announce?

This morning, the mining and mining services company announced a major contract win.

The first contract is a $274 million contract from Core Lithium Ltd (ASX: CXO) to undertake all underground development and production activities at the Finniss Lithium Project in the Northern Territory.

The ASX mining stock notes that the contract has a minimum three-year term, with a two-year extension option, and is expected to generate steady-state annual revenue of $120 million.

The scope of work includes surface infrastructure and portal establishment at the BP33 mine and associated underground mining activities.

The company’s managing director, Bill Beament, said:

We are delighted to secure the Core Lithium contract, which again reflects the skills and depth of our first-class mining services team. We are also very pleased to add a lithium project of this quality and scale to our mining services portfolio, given its long mine life and strong fundamentals. We are currently preparing tenders for mining services opportunities and receiving extremely positive feedback from potential clients about the strength of our team and our approach to mining and contracting.

What else was announced?

The ASX mining stock separately announced that its contract with Bellevue Gold Ltd (ASX: BGL) will come to an end shortly.

It notes that completion of this contract will coincide with the scheduled start of underground mining at Core Lithium’s Finniss Lithium Project.

Management highlights that the demobilisation of the electrical infrastructure, fixed plant and mobile mining fleet at Bellevue Gold will release ~$50 million worth of capital that is scheduled to be redeployed throughout the Develop business.

As part of the demobilisation, Develop intends to retain the personnel it employed at Bellevue. It points out that this team includes some of the most skilled and experienced underground miners in Australia.

Beament commented:

We are operating in a very favourable contracting market and therefore it is important that we strike the right balance between delivering value for our clients and returns for our shareholders. We have built a world-class underground mining team and it is imperative that we protect margins, not only for our shareholders but also to ensure that we can continue to invest in the best people and the latest equipment for the benefit of our clients.

This means being selective in the contracts we take on and the terms on which we deliver our services. Our new contract with Core Lithium is ideally suited to our key strengths and will see us relocate highly experienced people from our Bellevue site to the Finniss project.

The post ASX mining stock drops despite big lithium news appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining services provider is charging higher on a big contract win?
• Here are the top 10 ASX 200 shares today
• 8 ASX 200 shares with renewed buy ratings this week
• How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today
• 4 ASX copper shares to buy now: experts

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.

Australia’s major banks have long been the backbone of income portfolios, and the case for owning them remains compelling.

For decades, Australian income investors have turned to the big four banks as a reliable source of fully-franked dividends.

Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) collectively pay out billions of dollars in dividends each year.

With a more supportive interest rate environment, this is unlikely to change anytime soon. 

The dividend picture today

Each of the big four currently offers a different yield proposition, giving investors a range of options depending on their priorities.

ANZ currently leads the pack on yield, offering investors a trailing dividend yield of around 4.5%, though it is worth noting that recent ANZ dividends have carried only partial franking credits. 

NAB and Westpac sit not far behind, trading on fully-franked yields of approximately 4.5% and 4.2%, respectively. 

CBA offers the lowest headline yield of around 3%, reflecting the premium valuation the market places on Australia’s largest bank.

But with the strongest growth profile of all big four banks, CBA is likely to grow its dividend meaningfully through to 2027. 

All banks have roughly similar payout ratios. 

When grossed up to include the value of franking credits, the effective yield on each of these banks rises materially, making them even more attractive for Australian taxpayers in higher tax brackets.

Why the outlook remains positive

The big four banks operate in one of the most stable and concentrated banking markets in the world.

Their oligopoly position, defined by deep customer relationships and a highly regulated environment, gives them a durable competitive advantage that few industries can match. 

Rate rises from the Reserve Bank of Australia should support near-term net interest margins, further boosting bank returns. 

A more stable economic environment could also encourage stronger credit growth, which would feed directly into bank revenues.

Franking credits remain a powerful advantage

One of the most compelling reasons Australian investors hold bank shares is the franking credit benefit.

For retirees in the zero tax bracket, franking credits effectively boost the cash return well above the headline dividend yield. 

This structural advantage is unique to Australian equities and makes the big four particularly attractive relative to international income alternatives.

Foolish Takeaway

The big four banks may not deliver explosive capital growth. 

But for investors seeking reliable, tax-effective income backed by some of the most profitable and resilient businesses, Commonwealth Bank, NAB, Westpac, and ANZ continue to deserve a place in any income-focused portfolio. 

The post Why the big four banks could keep delivering for income investors appeared first on The Motley Fool Australia.

More reading

• Commonwealth Bank of Australia posts Q3 2026 capital update
• Are these ASX ETF giants still worth buying today?
• How much do I need to invest in ASX shares for $500 a month of passive income?
• 3 ASX ETFs that could be top picks for beginners
• How Chalmers’ budget tips the scales for ASX 200 dividend shares like Stockland and NAB

Motley Fool contributor Mark Verhoeven 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 Paladin Energy Ltd (ASX: PDN) share price is in focus today after the company reported US$209.1 million in revenue for the nine months to 31 March 2026 and posted a US$1.7 million profit attributable to shareholders, marking a significant turnaround from the prior period’s loss.

What did Paladin Energy report?

• Revenue: US$209.1 million for the nine months to 31 March 2026 (up from US$138.2 million year-on-year)
• Gross profit: US$34.4 million (vs. US$21.7 million loss in pcp)
• Net profit after tax (NPAT): US$1.7 million attributable to shareholders (up from a loss of US$30.1 million in pcp)
• Operating cash flow: Outflow of US$36.4 million (compared to an inflow of US$14.0 million in pcp)
• Unrestricted cash and short-term investments: US$219.5 million at period end
• Basic earnings per share: 0.4 US cents (vs. loss of 8.9 US cents in pcp)

What else do investors need to know?

Paladin strengthened its balance sheet during the period, completing a A$400 million equity raise and a share purchase plan to support the Patterson Lake South (PLS) project and the ramp-up of the Langer Heinrich Mine in Namibia. The company also restructured its syndicated debt facility, reducing debt capacity from US$150 million to US$110 million and securing a US$70 million undrawn revolving credit facility, providing added financial flexibility.

There was an impairment of US$3.3 million on exploration assets following the relinquishment of certain Canadian tenements as the group continues to streamline its project portfolio. The current unrestricted cash position of US$219.5 million and undrawn debt facility highlight Paladin’s ongoing focus on financial resilience and project development.

What’s next for Paladin Energy?

Looking ahead, Paladin’s focus is on progressing the PLS project in Canada towards a final investment decision while ramping up uranium production at Langer Heinrich. The company expects to leverage a strong contract book, flexible pricing, and robust cash reserves to support its growth strategy.

Ongoing management of exploration tenements and disciplined capital allocation will remain key themes. The company continues to monitor legal proceedings related to a shareholder class action but notes no significant post-balance date events.

Paladin Energy share price snapshot

Over the past 12 months, Paladin Energy shares have risen 99%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Paladin Energy posts profit as revenue rebounds in FY26 earnings appeared first on The Motley Fool Australia.

More reading

• Temple & Webster posts record April profit and FY26 upgrade
• Commonwealth Bank of Australia posts Q3 2026 capital update
• Aristocrat Leisure posts double-digit profit and dividend growth in HY26
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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.

Inghams Group (ASX: ING) shares are in focus after starting the week strong.

Inghams is a leading vertically integrated poultry producer (from stock feed to end products) with a market leading position in Australia and the number two participant in New Zealand.

It supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants including McDonalds and KFC.

Share price snapshot

Inghams shares were in a free fall up until last week. 

From the start of January until close of trade last Friday, the poultry producer’s shares had fallen 32%. 

However on Monday, Inghams shares jumped almost 7%, followed by a further 8% rise yesterday. 

Investors reacted positively to an update from the company that included: 

• Reaffirmed FY26 guidance for Underlying EBITDA (pre AASB 16) of $180 million to $200 million
• For the first nine months of FY26, group core poultry volumes rose 1.1% versus prior comparable period (PCP)
• Group core poultry net selling prices increased 1.1% versus PCP
• Annualised cost savings initiatives expected to deliver $60–80 million
• Revised capital expenditure guidance of approximately $80 million for FY26. 

Chief Executive Officer and Managing Director said Ed Alexander said:

We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.

What is Bell Potter’s view?

Following this impressive 15% rise, investors may be wondering if the tide has officially turned after a rough few months. 

The team at Bell Potter have subsequently raised their EBITDAL (Earnings Before Interest, Taxes, Depreciation, and Amortisation and Leases) forecasts by +4% in FY26e, +6% in FY27e and +9% in FY28e. 

Upgrades are reflective of higher baseline EBITDAL in the Australian business through 3Q26e and incorporation of targeted initiatives in FY27-28e. Our target price is now $2.10ps (prev. $2.00ps).

Modest upside for Inghams shares

Based on this updated price target of $2.10, this indicates an upside potential of just over 7% from current levels. 

The underlying 3Q26 exit rate in Australia looked strong, and for the most part this mitigates the estimated 4Q26 impact of rising fuel costs. Looking into FY27e, cost out initiatives are likely to blunt some of the impact of inflationary costs pressures in area such as labour, fuel, packing and feed, with the key area of risk being any material rotation in channel to market or supply growth.

The post Are Inghams shares a buy, hold or sell after jumping 15% this week? appeared first on The Motley Fool Australia.

More reading

• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Why Dyno Nobel, Inghams, Metcash, and Strike Energy shares are charging higher today
• Why is this ASX 300 food stock racing higher today?
• Inghams Group boosts FY26 guidance as poultry volumes and prices rise
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows

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

Shares in Woodside Energy Group (ASX: WDS) have pulled back 7% over the past month, but the bigger picture still looks impressive for shareholders.

The ASX energy giant remains up around 30% year to date and has surged roughly 48% over the past 12 months.

Much of that rally has been driven by volatile oil markets. Brent crude prices have swung sharply with every new Middle East strike, peace negotiation headline or ceasefire rejection.

But after such a strong run, one expert believes investors may want to consider locking in some profits.

Oil and gas prices drive the rally

Woodside is one of Australia’s largest oil and gas producers, with operations spanning liquefied natural gas (LNG), oil and offshore energy projects.

The company generates revenue by producing and selling energy products into global markets, making earnings heavily tied to commodity prices.

That dynamic has worked strongly in Woodside’s favour recently. Higher oil and gas prices have boosted realised selling prices and strengthened cash generation, helping drive the Woodside share price rally over the past year.

Woodside’s first-quarter FY26 update highlighted that trend clearly. The company reported a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion despite production falling 8% to 45.2 million barrels of oil equivalent due partly to heavy rainfall disruptions.

Importantly, Woodside’s average realised price rose 11% to US$63 per barrel equivalent during the quarter, helping offset weaker production volumes.

Risks remain elevated

However, investing in energy stocks like Woodside shares always comes with significant risks.

Commodity prices remain highly volatile and are heavily influenced by geopolitical tensions, global economic growth and supply disruptions.

If oil prices retreat sharply, Woodside’s earnings and dividends could quickly come under pressure.

The company also faces operational risks tied to weather events, project execution and rising costs.

Longer term, the global energy transition toward renewables also creates uncertainty around fossil fuel demand growth.

Analysts remain divided

Broker sentiment towards Woodside shares remains mixed.

According to TradingView data, seven of 14 analysts currently rate the stock as a hold. Five analysts have buy ratings, while two recommend selling.

The average 12-month price target currently sits around $33 per share, implying roughly 7% upside from current levels. The most bearish analyst forecast suggests downside of around 21%, while the most bullish implies potential upside of roughly 41%.

Why one expert says sell

Over at Sanlam Private Wealth, Remo Greco, has named Woodside shares as a sell.

The investment firm believes investors may want to take advantage of elevated crude oil prices and recent share price strength to cash in some gains.

Commenting on Woodside shares Greco said (courtesy of The Bull):

The energy company produced a record 198.8 million barrels of oil equivalent in full year 2025. However production was offset by lower realised prices. Consequently, net profit after tax of $2.718 billion was down 24 per cent on the prior corresponding period. Full year fully franked dividends were down 8 per cent. In our view, relying on dividends carries risk if commodity prices or production fall. Investors may want to take advantage of elevated crude oil prices to cash in some gains.

The post Here’s why this expert is calling time on Woodside shares appeared first on The Motley Fool Australia.

More reading

• Warning! Experts name 3 ASX 200 shares to sell
• Sell alert! Why this expert is calling time on Woodside and ANZ shares
• Why the ASX 200 is being smashed today
• Buy, hold, sell: TechnologyOne, Telstra, and Woodside shares
• 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.

The global security landscape has shifted dramatically in recent years. 

Countries around the world are increasing their spending commitments, led by Europe and the United States, which are investing more and more into their defence budgets.

Australia has a vibrant defence industry that will benefit from this structural tailwind. 

The question for investors is which stocks can best capture this opportunity?

DroneShield Ltd (ASX: DRO)

DroneShield has become one of the most closely watched and exciting defence technology stocks on the ASX, and for good reason.

The company develops artificial intelligence-enabled counter-drone systems used by military forces, governments, and critical infrastructure operators around the world. 

In FY 2025, DroneShield posted revenue of $216.5 million, up 276% year on year, and a $3.5 million profit.

The company also reported a $2.3 billion sales pipeline and confirmed that $104 million in revenue for 2026 had already been secured. 

It is still early days in the DroneShield story, and with a premium valuation, many risks still exist for the investment thesis. 

But the focus on counterdrone technology is definitely a strong tailwind that will provide many future growth opportunities. 

A recent pullback in the share price due to an ongoing ASIC investigation may provide investors with an attractive entry point. 

The one question investors should be asking is to what point this future growth has already been priced in?

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems develops and manufactures advanced electro-optic technologies for defence and space markets, including remote weapon systems, high energy laser weapons, and counter-drone solutions. 

Clearly in a massive growth phase, the company signed $424 million worth of contracts during FY 2025, compared to just $70 million in FY 2024. 

Key wins included a $125 million high energy laser weapon export contract, the world’s first of its kind, a $108 million LAND 400-3 remote weapon systems contract, and multiple Slinger counter-drone system orders. 

The company ended FY 2025 with $106.9 million in cash after repaying all borrowings, giving it a clean balance sheet heading into a busy delivery year. 

Bell Potter seems to agree on the positive direction of the company: 

We retain our Buy rating and [increase] our TP to $10.40 on lower CY27e earnings. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. Through both its kinetic and directed energy solutions, EOS has a long runway for growth.

Austal Ltd (ASX: ASB)

Austal is a more established name in the defence space and offers a compelling investment proposition.

The company is Australia’s largest defence shipbuilder, designing and constructing advanced naval and patrol vessels for governments and defence forces around the world, operating yards in Australia, the United States, Vietnam, and the Philippines. 

Austal has had great momentum as of late, winning many key contracts. 

As of February 2026, Austal carried a record order book of $17.7 billion in contracted work, up from $13.1 billion just eight months earlier. 

Recent highlights include a $1.029 billion contract to build 18 Landing Craft Medium vessels for the Australian Army, and a separate approximately $4 billion contract to build eight Landing Craft Heavy vessels under the Commonwealth’s Strategic Shipbuilding Agreement. 

Austal’s contracts are often long term, providing a very sticky revenue base for the company. 

Austal has over a decade of work now locked in, offering investors a level of revenue visibility that is rare among ASX-listed companies of its size.

Foolish Takeaway

The structural shift in global security spending looks set to persist for years.

DroneShield and EOS offer higher-risk, higher-upside exposure to this trend.

Austal, on the other hand, with a record order book and long-term government contracts already on hand,  provides investors a more grounded and established investment opportunity.

The post 3 ASX stocks positioned to benefit from rising global defence budgets appeared first on The Motley Fool Australia.

More reading

• Down 13% in a week, are EOS shares now too cheap to ignore?
• Why Amotiv, DroneShield, Life360, and WiseTech shares are tumbling today
• DroneShield shares crash 16% on ASIC investigation
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today
• These are the 10 most shorted ASX shares

Motley Fool contributor Mark Verhoeven 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 DroneShield and Electro Optic Systems. 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 Temple & Webster Group Ltd (ASX: TPW) share price is in focus after the company reported record April EBITDA of approximately $2.5 million and projected FY26 revenue growth of up to 12%.

What did Temple & Webster report?

• EBITDA for April 2026 was around $2.5 million, the most profitable April in company history
• FY26 revenue is forecast at $665–675 million (up 11–12% versus prior year)
• FY26 EBITDA guidance of $20–22 million (up 6–17%)
• FY27 EBITDA expected to double to roughly $40 million even in a flat growth environment
• Ongoing margin optimisation program successfully implemented

What else do investors need to know?

Temple & Webster has responded to record-low consumer confidence by rebalancing between profit and growth. The company introduced new promotional strategies, repriced its entire catalogue, and slowed the increase in fixed costs to improve profitability.

Management highlighted that these efficiency measures have delivered better monthly profits and established a clear path to increased earnings. The business also has a strong balance sheet and substantial headroom to continue its on-market share buy-back.

What did Temple & Webster management say?

Temple & Webster CEO Mark Coulter said:

We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business. However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business.

What’s next for Temple & Webster?

Looking ahead, Temple & Webster expects profitability to improve further in FY27, with EBITDA potentially doubling, supported by current margin run-rates. The company aims to invest in its platform and expand its private label and exclusive products, while also taking advantage of opportunities in home improvement, B2B, and international markets.

Temple & Webster’s strong financial position should enable continued investment in organic growth, selective acquisitions, and capital management initiatives as the company pursues its $1 billion revenue target by FY28.

Temple & Webster share price snapshot

Over the past 12 months, Temple & Webster shares have declined 72%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Temple & Webster posts record April profit and FY26 upgrade appeared first on The Motley Fool Australia.

More reading

• Paladin Energy posts profit as revenue rebounds in FY26 earnings
• Commonwealth Bank of Australia posts Q3 2026 capital update
• Aristocrat Leisure posts double-digit profit and dividend growth in HY26
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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

The Commonwealth Bank of Australia (ASX: CBA) share price is in focus today as the bank released its Basel III Pillar 3 Capital Adequacy and Risk Disclosures for the quarter ended 31 March 2026. Key highlights include a Common Equity Tier 1 (CET1) ratio of 11.6% and a total capital ratio of 20.0%.

What did Commonwealth Bank of Australia report?

• Common Equity Tier 1 (CET1) capital ratio was 11.6%, up 7 basis points from the prior quarter.
• Total capital ratio stood at 20.0%, down slightly from 20.6% at 31 December 2025.
• Total risk weighted assets (RWA) increased 2.4% to $517.5 billion.
• Liquidity Coverage Ratio (LCR) averaged 133% for the quarter.
• Leverage ratio measured at 4.4%, remaining well above the required 3.5% minimum.

What else do investors need to know?

The growth in RWAs during the quarter was largely driven by higher interest rate risk in the banking book, as well as ongoing lending growth. Credit risk RWA rose 1.3% to $414.6 billion, notably across commercial lending and mortgages in both Australia and New Zealand.

The Group undertook several capital initiatives, including the completion of an on-market share purchase to satisfy its Dividend Reinvestment Plan and the issuance of $1.85 billion in new subordinated notes to strengthen Tier 2 capital. Liquidity and funding ratios remained strong, with the Net Stable Funding Ratio (NSFR) at 116%.

What’s next for Commonwealth Bank of Australia?

CBA noted it will remain focused on prudent management of capital, funding, and liquidity as it navigates evolving economic conditions. The bank aims to provide stability and support to customers while meeting all APRA regulatory requirements. Ongoing efforts to strengthen earnings and maintain a resilient balance sheet are expected to continue.

Commonwealth Bank of Australia share price snapshot

Over the past 12 months, CBA shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Commonwealth Bank of Australia posts Q3 2026 capital update appeared first on The Motley Fool Australia.

More reading

• Why the big four banks could keep delivering for income investors
• Paladin Energy posts profit as revenue rebounds in FY26 earnings
• Temple & Webster posts record April profit and FY26 upgrade
• Aristocrat Leisure posts double-digit profit and dividend growth in HY26
• 5 things to watch on the ASX 200 on Wednesday

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.