The ASX Ltd (ASX: ASX) share price is in focus today after the company reported unaudited 1H26 results showing operating revenue up 11.2% to $602.8 million and statutory NPAT climbing 8.3% to $263.6 million.

What did ASX Ltd report?

• Operating revenue of $602.8 million, up 11.2% on the prior corresponding period (pcp)
• Statutory net profit after tax (NPAT) of $263.6 million, up 8.3%
• Underlying NPAT of $263.6 million, up 3.9%
• Total expenses (excluding ASIC Inquiry costs) of $247.0 million, up 12.1%
• Total expenses (including ASIC Inquiry costs) of $264.3 million, up 20%
• Underlying return on equity of 13.5%, flat on pcp

What else do investors need to know?

ASX has updated its FY26 total expense growth guidance. Excluding ASIC Inquiry costs, FY26 expense growth is now forecast between 13% and 15%; including these costs, growth is expected between 20% and 23%. This update is driven by heavier investment in technology upgrades and risk management, as well as higher legal costs.

The company continues to develop its Commitments plan in response to the ASIC Inquiry Panel’s interim report. The plan details strategic actions—including a reset of the Accelerate Program and steps to improve board independence for key facilities.

Stronger trading volumes, especially in cash markets and interest rate futures, contributed to ASX’s higher revenues in the half.

What did ASX Ltd management say?

ASX Ltd CEO and Managing Director Helen Lofthouse said:

Since announcing our five-year strategy in mid-2023, we have been making significant investments in ASX to modernise our technology and secure our pathway to long-term sustainable growth.

The ASIC Inquiry Panel’s interim report underscores an even greater urgency to the transformation we are pursuing.

Alongside the reset of the Accelerate Program and the measures to enhance the independence of the clearing and settlement facilities, we have been reviewing key areas of our strategic investment to support how we address the spirit of the Inquiry’s findings.
This has underpinned our forecasting activity and contributed to the expense update we’ve provided today. Central in our assessment has been ASX’s role as an operator of critical market infrastructure that must perform to a very high standard, always striving for excellence.

Our unaudited results show ASX has experienced a period of strong cash market trading activity and demand for interest rate futures, and we felt it was important to release these additional figures to allow a fuller picture to be considered when providing today’s update to expense guidance.

What’s next for ASX Ltd?

ASX plans to provide further details at its 1H26 results announcement scheduled for 12 February 2026. The company is focused on delivering on its Commitments plan, investing to modernise its platforms, and addressing the findings of the ASIC Inquiry.

Investors can also expect FY27 expense growth guidance to be released at ASX’s June 2026 Investor Forum. The company’s medium-term return-on-equity target range has also been adjusted slightly lower in response to updated capital requirements from regulators.

View Original Announcement

The post ASX Ltd 1H26 earnings: revenue rises, expenses guidance upgraded appeared first on The Motley Fool Australia.

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

Fortunately for income investors, there are a lot of ASX dividend stocks to choose from on the local market.

To narrow things down, let’s take a look at two that analysts believe are top buys right now. They are as follows:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that travel agent giant Flight Centre could be a top ASX dividend stock to buy now.

The broker believes it is worth sticking with the company during this current period of short term uncertainty. That’s because when operating conditions finally improve, it is expecting Flight Centre’s earnings to rebound materially. It explains:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

As for income, Morgans is forecasting fully franked dividends of 52 cents per share in FY 2026 and then 61 cents per share in FY 2027. Based on the current Flight Centre share price of $15.46, this would mean dividend yields of 3.4% and 3.9%, respectively.

The broker currently has a buy rating and $18.38 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that could be a top buy according to analysts is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around 85 stores under its flagship Universal Store brand. In addition, it is growing its store network with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

The team at Bell Potter is bullish on the company’s outlook and feels that the market is undervaluing its shares. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter believes this leaves the company well-placed to pay fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.35, this would mean dividend yields of 4.5% and 5%, respectively.

The broker currently has a buy rating and $10.50 price target on its shares.

The post Why analysts are recommending these ASX dividend stocks to their clients appeared first on The Motley Fool Australia.

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• How to turn ASX dividends into long-term wealth
• Why I would buy BHP, Xero, and Flight Centre shares today

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

Term deposits at Australian banks are some of the safest places to put money. In fact, some banks still offer attractive deals, with a solid interest rate of more than 4%. However, S&P/ASX 200 Index (ASX: XJO) shares appeal to me more.

While term deposits protect against risks, they don’t have any potential to deliver growth either. There’s no capital growth or passive income growth potential.

The two businesses I’m about to highlight have given investors pleasing passive income growth over the last few years, and I’m expecting more over the long-term.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the first ASX 200 share I’d buy rather than a term deposit.

The investment house has been the most reliable ASX dividend share over the last three decades – it has grown its payout every year since 1998. That suggests a shareholder could decide to spend all of the payment each year and still likely see a larger payout in the following year. Aside from interest rate changes (both up and down), term deposit holders would be left with the same interest payments if they spent all of their interest income each year.

Perhaps even more impressively, the company has paid a dividend every year for 120 years since it listed. Those payments flowed through world wars, global pandemics and recessions. That’s a compelling history of passive income.

How has it been so reliable? The business pays its dividend out of the cash flow it receives from its investment portfolio each year. Soul Patts typically pays out a majority of this cash flow each year which comes from defensive investments, ensuring a higher dividend payment for Soul Patts shareholders than last year.

The ASX 200 share regularly puts its excess cash into new investments, expanding the portfolio, unlocking more growth avenues and diversifying its investment base further.

I like the direction the business has been building its portfolio, in areas such as industrial properties, swimming schools and agriculture. I think those areas have significant expansion potential.

I’m expecting the business to grow its payout to at least $1.08 per share in FY26. That would be a grossed-up dividend yield of at least 4%, including franking credits, at the time of writing.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX 200 share that I think has a good future for dividends and growth.

There are few businesses that offer as important a service to households and businesses as Telstra. An internet connection may be needed for activities like work, education, entertainment and connecting with others.

The company has the most mobile subscribers in Australia and a number of other advantages. It has the largest mobile network, with coverage of 3 million square kilometres and 99.7% of the population. Telstra also boasts that it has Australia’s largest 5G network with 95% population coverage.

But, Telstra isn’t waiting for its rivals to catch up – it’s investing another $800 million in its mobile network over the next four years to extend its leadership and deliver an advanced 5G that is faster, more reliable and more efficient than 5G today.

By having the best network, it can charge more than rivals because of the quality and reliability, allowing it to earn a better margin from its network and grow profit faster.

Thanks to a growing subscriber base and strengthening margins, I believe the ASX 200 share can continue increasing its payout, as it has done in the last few financial years.

I’m expecting Telstra to pay an annual dividend per share of 20 cents in FY26, translating into a grossed-up dividend yield of 6%, including franking credits.

The post Forget term deposits! I’d buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

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• AUB Group completes $400m institutional placement to fund Prestige acquisition
• Emerald Resources shares in focus after Dingo Range resource boost
• Woodside Energy posts record 2025 production as project pipeline advances
• Greatland Resources delivers strong Q4 cash flow and mine expansion progress

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

The AUB Group Ltd (ASX: AUB) share price is in the spotlight today after the company wrapped up a $400 million institutional placement at $29.40 per share to fund its acquisition of Prestige and support future growth opportunities.

What did AUB Group report?

• Raised $400 million through the placement of approximately 13.6 million shares at $29.40 each
• Placement priced at a 7.9% discount to the last traded price of $31.91
• Strong demand from both existing and new shareholders
• Separate non-underwritten Share Purchase Plan (SPP) targeting up to $40 million for eligible investors
• Funds will support the Prestige acquisition, related costs, and future accretive opportunities

What else do investors need to know?

The new shares issued in the placement fall within AUB’s existing placement capacity and are due to settle on 30 January 2026, with allotment scheduled for 2 February. The $40 million SPP gives eligible Australian and New Zealand shareholders an opportunity to apply for up to $30,000 of new shares, with the offer period open from 4–26 February 2026.

Shares under the SPP will be priced at the lower of the $29.40 placement price or a 2% discount to the five-day volume weighted average price at closing, rounded to the nearest cent. If the SPP is oversubscribed, AUB reserves discretion to scale back applications or raise more.

What did AUB Group management say?

AUB’s CEO Mike Emmett said:

We are pleased with the outcome and thank our shareholders for their strong support for the Placement and the transaction. We are excited for Prestige to join the AUB Group and look forward to accelerating our UK Retail strategy to deliver value for shareholders.

What’s next for AUB Group?

Capital raised will be used to complete the Prestige acquisition and explore additional opportunities for growth. Management aims to leverage the acquisition to strengthen AUB’s UK Retail strategy and deliver enhanced value to shareholders.

AUB will provide further details on the SPP in a dedicated offer booklet, expected on 4 February. Key dates include SPP settlement and trading of new shares in early March 2026, though these timelines remain indicative.

AUB Group share price snapshot

Over the past 12 months, AUB Group shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post AUB Group completes $400m institutional placement to fund Prestige acquisition appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland names new CEO as leadership transition takes shape
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• Emerald Resources shares in focus after Dingo Range resource boost
• Woodside Energy posts record 2025 production as project pipeline advances
• Greatland Resources delivers strong Q4 cash flow and mine expansion progress

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 recommended Aub 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 Emerald Resources (ASX: EMR) share price is under the spotlight today after the company announced an updated mineral resource estimate for the Dingo Range Gold Project in Western Australia. The latest update features a 40.9 million tonne resource at 1.1 grams per tonne (g/t) gold for a total of 1.41 million ounces (Moz) of gold, including a higher-grade 24.2Mt at 1.4g/t for 1.12Moz.

What did Emerald Resources report?

• Measured, Indicated, and Inferred Mineral Resource Estimate for Dingo Range of 40.9Mt @ 1.1g/t Au for 1.41Moz
• Higher-grade subset: 24.2Mt @ 1.4g/t Au for 1.12Moz
• Ongoing drilling continues to show potential for resource extensions at depth and along strike
• Project now fully permitted for mining, with regulatory approvals granted in December 2025
• Maiden ore reserve and Definitive Feasibility Study (DFS) underway and set to be finalised following this update

What else do investors need to know?

Emerald’s drill programs at the Dingo Range are continuing, focusing on both open pit and underground potential. Recent drilling at the Boundary Prospect has returned encouraging high-grade results, and results from down-plunge extension drilling are expected in the short term.

The project is now fully permitted for mining, with a Clearing Permit approved following the Mining Proposal and Mine Closure Plan in late 2025. This clears the way for Emerald to move into project development once the works approval is received.

What’s next for Emerald Resources?

The focus for the rest of 2026 is on converting the newly updated resource into a maiden ore reserve, finalising feasibility studies, and progressing the Dingo Range Gold Project towards development. Emerald also plans ongoing drilling campaigns to further grow the resource base and test the underground potential at several prospects.

With all key regulatory approvals now in place, the company is aiming to begin full development activities in calendar year 2026. In parallel, similar progress is underway at the Memot Gold Project in Cambodia, supporting Emerald’s aspiration to become a 300,000 to 400,000 ounce per year gold producer.

Emerald Resources share price snapshot

Over the past 12 months, Emerald Resources shares have risen 107%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Emerald Resources shares in focus after Dingo Range resource boost appeared first on The Motley Fool Australia.

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

If you are looking for exposure to the real estate sector, then read on!

That’s because Bell Potter has just named a number of ASX real estate stocks as buys.

Here’s what it is recommending to clients:

Abacus Storage King (ASX: ASK)

Bell Potter has initiated coverage on this storage company’s shares with a buy rating and $1.70 price target. This implies potential upside of approximately 10% for investors from current levels. In addition, the broker is expecting a 4.1% dividend yield in FY 2026.

Commenting on its initiation at buy, the broker said:

We initiate coverage of ASK with a Buy recommendation and a $1.70 target price. We forecast FY26e DPU of 6.2c (in line with guidance, VA consensus) and a 3yr EPS CAGR of +3.8%. While near term EPS growth is modest, the investment case is anchored in NTA compounding and convergence of listed market pricing toward private-market cap rates, with expected +8.2% 3yr NTA growth CAGR providing a clear benchmark for share price performance over time.

Centuria Industrial REIT (ASX: CIP)

Another ASX real estate stock that Bell Potter is bullish on is Centuria Industrial REIT.

Bell Potter has a buy rating and $3.75 price target on its shares. This suggests that upside of 15% is possible for investors between now and this time next year. In addition, a 5.1% dividend yield is expected in FY 2026.

Although its shares have outperformed recently, the broker notes that they are still trading at a discount to peers. It said:

Stock has outperformed +7% vs. +0% XPJ last 6m, but still trades at a -15% discount to NTA within a desirable real estate sub-sector where we see asset value upside.

DigiCo Infrastructure REIT (ASX: DGT)

Finally, this data centre operator could be an ASX real estate stock to buy according to Bell Potter.

This morning, the broker has upgraded its shares to a buy rating with a $3.25 price target. This implies potential upside of 25% for investors over the next 12 months. Bell Potter also expects a 4.6% dividend yield in FY 2026, bringing the total potential return to almost 30%.

The broker highlights that its shares have been underperforming materially over the past six months. It thinks this is a buying opportunity, it said:

Stock has been a key underperformer across the REIT sector last 6m (-17% vs. -3% XPJ), but yet there is now more certainty on leasing / FFO in FY26+ post guidance update. Addressing high gearing and delivering milestones are catalysts for re-rating.

The post Broker names 3 ASX real estate stocks to buy appeared first on The Motley Fool Australia.

More reading

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• Buy these ASX dividend stocks for 5% to 10% yields: 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.

The Woodside Energy Group Ltd (ASX: WDS) share price is in focus today after the oil and gas producer reported record full-year production of 198.8 million barrels of oil equivalent, exceeding its 2025 guidance, and continued strong reliability across key assets.

What did Woodside Energy Group report?

• Full-year production reached a record 198.8 MMboe, above the 192–197 MMboe guidance range.
• Quarterly production was 48.9 MMboe, down 4% from Q3, mainly due to weather and reduced east coast demand.
• Full-year revenue was US$12,984 million, steady compared to 2024 (US$13,179 million).
• Average realised quarterly price was US$57/boe, down 5% on the previous quarter.
• Capital expenditure for the year came in at US$4,703 million, with US$929 million spent on the Louisiana LNG project.
• Oil asset reliability remained strong, including 99.2% at Sangomar and 98% at Shenzi.

What else do investors need to know?

Woodside progressed major projects, with the Scarborough Energy Project 94% complete and on track for first LNG in Q4 2026, and the Trion Project at 50% completion targeting first oil in 2028. The company achieved a key milestone at the Beaumont New Ammonia Project, producing first ammonia in December.

Strategic partnerships were strengthened—Woodside completed the sell-down of a 10% interest in Louisiana LNG and 80% of Driftwood Pipeline to US gas company Williams. The move brings US$1.9 billion in capital and additional LNG offtake support.

Management changes saw Liz Westcott appointed Acting CEO after the resignation of Meg O’Neill. The board is expected to announce a permanent successor in early 2026.

What did Woodside Energy Group management say?

Acting CEO Liz Westcott said:

We achieved record annual production of 198.8 million barrels of oil equivalent in 2025. This performance was driven by sustained plateau production at Sangomar through late October and Pluto LNG operating at 100% reliability for the second half of the year. In recent days we marked a special milestone for the Scarborough Energy Project with the safe arrival of the floating production unit at the field and commencement of hook-up activities. The project was 94% complete at the end of the year and remains on budget and on target for first LNG cargo in Q4 2026.

What’s next for Woodside Energy Group?

Looking ahead, Woodside’s 2026 guidance targets hydrocarbon and ammonia production of 172–186 MMboe. A planned major turnaround at Pluto LNG Train 1 is expected to impact volumes in Q2 2026 as preparations ramp up for Scarborough’s start.

The focus remains on delivering key projects safely and maintaining cost discipline, while supporting the CEO transition. Final project commissioning at Beaumont New Ammonia continues, and long-term supply agreements have been struck for both LNG and ammonia, supporting future revenue streams.

Woodside Energy Group share price snapshot

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

View Original Announcement

The post Woodside Energy posts record 2025 production as project pipeline advances appeared first on The Motley Fool Australia.

More reading

• Emerald Resources shares in focus after Dingo Range resource boost
• Greatland Resources delivers strong Q4 cash flow and mine expansion progress
• Ampol FY25 profits rise on refinery margin strength
• West African Resources posts strong December quarter cash inflows
• 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.

It is fair to say that the DroneShield Ltd (ASX: DRO) share price has been on fire over the past 12 months.

During this time, the counter-drone technology company’s shares have risen an incredible 575%.

But what is more incredible is that one leading broker believes that the DroneShield share price could still be undervalued despite this strong rise.

What is the broker saying?

Firstly, let’s take a look at what Bell Potter is saying about the company’s fourth quarter and full year update.

The broker was pleased with DroneShield’s performance during FY 2025, noting that its revenue was ahead of expectations. And while its costs were higher than it was forecasting, it feels that this is a one-off. It said:

DRO reported unaudited revenue of $216.5m for CY25, +3% vs. BPe of $210.0m. In 4Q25, revenue of $51.3m grew 94% YoY and compares to cash receipts of $63.5m. SaaS revenues in 4Q25 of $4.6m grew 475% YoY, with $18.1m committed for CY26e. DRO reported operating cash flow of $7.7m which compares to an outflow of – $8.9m in 4Q24. Including capitalised R&D, operating cash flow was $3.2m.

DRO is targeting to be consistently operating cashflow positive and profitable moving forward. DRO reported a January 2026 cash balance of $201.1m (BPe $189.9m Dec 2025). The Dec 2025 fixed cash cost is $150m/year, higher than our estimates likely higher due to one-off costs associated with the Alexandria fit out.

Sales pipeline reduces

Something that caught the eye with DroneShield’s update was its sales pipeline, which has reduced meaningfully since its last update.

Bell Potter isn’t concerned and believes this is likely to reflect low probability contracts or ones that were reduced in scope. It adds:

DRO reported a sales pipeline of $2.09b as of January 2026, a fall from $2.55b reported in October 2025. The decline in the pipeline is mostly due to several early stage/low probability large projects which did not materialize or were reduced in scope, as well as AUD/USD appreciations.

DroneShield share price could be undervalued

According to the note, the broker has retained its buy rating and $5.00 price target on its shares.

Based on the current DroneShield share price of $4.18, this implies potential upside of 20% for investors over the next 12 months.

Bell Potter highlights that the company’s shares trade at a sizeable discount to global drone peer group. This is despite having a leadership position in the industry. It concludes:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2.1b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e.

At 47x CY26e EV / EBITDA, DRO trades at a 28% discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post Why the DroneShield share price could be undervalued appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 team at Bell Potter has provided updated guidance on two ASX small-cap stocks that indicate big upside in 2026. 

Before investing in small-cap stocks, it’s important to remember they can come with increased volatility. 

Many small-cap companies operate pre-profit, relying on external/government funding for research and development. 

This can create large fluctuations in share price. 

On the flip side, there is always the possibility of small-cap companies becoming the large-cap stocks of the future. 

With this in mind, here are two that have drawn attractive price targets from Bell Potter. 

Biome Australia Ltd (ASX: BIO)

Biome Australia develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the ‘Activated Probiotics’ brand.

Activated Probiotics is a range of live biotherapeutic products aimed to help prevent and support the management of various health concerns. 

Its stock price is down more than 30% over the last 12 months. However, it has risen 7% so far in 2026. 

The team at Bell Potter released a new report on Biome Australia following its quarterly activities and cash flow report.

Bell Potter said the 2Q26 result was excellent. 

Results included: 

• Quarterly EBITDA / operating cash flow passing $1m for the first time
• 2Q26 sales had been pre-released and were up c.41% yoy to c.$6.5m
• Cash receipts were up c.43% to c.$6.2m
• Annualised run rate on sales is now c.$26m, while gross margins are being maintained at >61%

The broker has maintained its buy recommendation and 12-month price target of $1 on this ASX small-cap stock. 

From yesterday’s closing price, that indicates an upside of more than 122%. 

We have adjusted our 1H26 estimate to reflect the EBITDA beat, although we are maintaining our FY26 estimates. It is encouraging to see operating leverage begin to flow through to the financial results. Free cash flow generation should be the final hurdle to attracting wider investor interest. We look forward to the HY update that should enable investors to gain further insight into progress on international expansion and brand development through the Mecca partnership.

AML3D Ltd (ASX: AL3)

Bell Potter has also maintained its speculative buy recommendation on ASX small-cap defence stock AML3D Ltd. 

This update came after the company’s quarterly report yesterday, which included significant order growth.

AL3’s December 2025 quarterly report points to increased system orders in the US, emerging demand signals from the UK and European defence sectors and ongoing R&D in Australia to support the next generation of ARCEMY systems.

Bell Potter said the company’s order book is now $16.5m, which includes $9m of orders on hand at the opening of FY26 plus more recently announced orders including $1.7m from FasTech (US contract printer), $4.5m from HII (Newport News Shipbuilding ordering two ARCEMY systems), and $1.2m from Austal (for a rapid deployment system). 

AL3 retained a strong cash position at quarter-end of $29m (prior quarter $31m), with no debt. 

The broker has a price target of $0.40 on this ASX small-cap stock, which indicates an upside of 122%. 

AL3’s technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy’s Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY  systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

The post Are these ASX small-cap stocks about to double? appeared first on The Motley Fool Australia.

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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.

The Greatland Resources Ltd (ASX: GGP) share price is in focus after the miner produced 86,273 ounces of gold in the December quarter at an all-in sustaining cost (AISC) of $2,196 per ounce, generating $406 million in cash flow and closing the quarter debt free with $948 million in cash.

What did Greatland Resources report?

• Quarterly gold production: 86,273 ounces; copper production: 3,528 tonnes
• All-in sustaining cost (AISC): $2,196 per ounce of gold
• Net revenue: $507 million from sales of 72,212oz gold and 3,301t copper
• Operating cash flow: $406 million; closing cash balance at $948 million
• No debt; undrawn $75 million working capital facility for total liquidity of $1.02 billion
• Completion of Havieron Feasibility Study confirming pathway to world-class, low-cost mine

What else do investors need to know?

The December quarter capped Greatland’s first full year of owning the Telfer operation, in which it produced over 335,000 ounces of gold and 14,000 tonnes of copper, generating approximately $1.3 billion in cash flow. The company invested $61.2 million in Telfer growth capex and completed more than 54,000 metres of resource development drilling, with exploration progress targeting potential mine life extensions.

Safety remained a focus, with just one lost time injury during the quarter and improved TRIFR safety metrics. Greatland also strengthened future prospects by completing the Havieron Feasibility Study and securing a $500 million corporate debt facility commitment with a syndicate of major Australian banks, although the company remains debt free at quarter end.

What did Greatland Resources management say?

Managing Director Shaun Day said:

We are pleased to have delivered another strong operational performance in the December quarter, with gold production of 86,273 ounces at an AISC of $2,196 per ounce… Conclusion of the December quarter completes our first full 12 months of ownership of Telfer in which we produced over 335,000 ounces of gold and 14,000 tonnes of copper, generated ~$1.3 billion cash flow from operations, and built our net cash by ~$800 million. An important milestone was achieved during the quarter with the completion and release of the results of the Havieron Feasibility Study which confirmed the pathway to a world-class, long-life, lowest quartile cost Australian gold-copper mine.

What’s next for Greatland Resources?

Looking ahead, Greatland expects full-year FY26 production to reach the upper end of its 260,000–310,000 ounce gold guidance range, while aiming for AISC at the lower end of the $2,400–$2,800 per ounce range. Development of the Havieron project is now underpinned by both strong internal cash generation and a $500 million debt commitment, with first gold targeted roughly 2.5 years after receiving environmental approvals.

Ongoing drilling programs at Telfer and Havieron are set to support further growth and potential life extensions, with resource estimates due for key underground targets in early 2026.

Greatland Resources share price snapshot

Over the past 12 months, Greatland Resources shares have risen 92%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Greatland Resources delivers strong Q4 cash flow and mine expansion progress appeared first on The Motley Fool Australia.

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