The Fortescue Ltd (ASX: FMG) share price is in focus after the company reported record half-year iron ore shipments, up 3% year-on-year to 100.2 million tonnes, and maintained strong cash generation with a US$4.7 billion balance.

What did Fortescue report?

• Record H1 FY26 iron ore shipments of 100.2 million tonnes, up 3% from H1 FY25
• Iron Bridge Concentrate shipments of 4.3Mt in H1 FY26, up 37% year on year
• Hematite C1 unit cost of US$18.64/wmt in H1 FY26
• Hematite average revenue of US$93/dmt in Q2 FY26
• Cash balance of US$4.7 billion and net debt of US$1.0 billion at 31 December 2025
• Q2 FY26 capital expenditure of US$759 million

What else do investors need to know?

Fortescue has entered a binding agreement to acquire the remaining 64% of Alta Copper, aiming to expand its copper portfolio and critical minerals footprint in Latin America. The company is also advancing studies for its Belinga Iron Ore Project in Gabon, where a Presidential Taskforce was established during the quarter to support development.

Fortescue continued its decarbonisation push, delivering a large-scale battery energy storage system at North Star Junction and progressing the Cloudbreak Solar Farm construction. The company maintains an A rating for its Modern Slavery Statement and has kept FY26 guidance unchanged.

What did Fortescue management say?

Fortescue Metals and Operations Chief Executive Officer, Dino Otranto said:

It was a record first half, with shipments reaching new highs across our operations. This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance.

We also reached an important milestone during the quarter with delivery of our first large-scale battery energy storage system at North Star Junction. With a total capacity of 250MWh, this installation marks the first step in a planned 4-5GWh rollout of energy storage required to support the decarbonisation of our operations over the coming years.

We are fundamentally changing how we power our operations by combining firmed renewable energy, our high-voltage transmission infrastructure and growing electric fleet, led by Fortescue Zero technologies.

What’s next for Fortescue?

Looking ahead, Fortescue is focused on meeting its unchanged FY26 shipment guidance of 195–205Mt, with a continued emphasis on cost control and operational safety. The company is stepping up its critical minerals expansion, particularly in copper, through the proposed Alta Copper acquisition.

Fortescue will also keep investing in renewables and electrification projects to advance its decarbonisation strategy. Exploration continues at home and globally to support future growth.

Fortescue share price snapshot

Over the past 12 months, Fortescue shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Fortescue: Record iron ore shipments and strong cash flow in H1 FY26 appeared first on The Motley Fool Australia.

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

The Northern Star Resources Ltd (ASX: NST) share price is in focus today after the company released its December 2025 quarterly results, recording gold sales of 348,061 ounces at an all-in sustaining cost (AISC) of A$2,937 per ounce, with group net mine cash of A$129 million.

What did Northern Star Resources report?

• December quarter gold sold: 348,061oz at an average realised price of A$4,908/oz
• All-in sustaining cost (AISC): A$2,937/oz (US$1,938/oz)
• Group underlying free cash flow: A$(328) million
• Net mine cash: A$129 million; cash and bullion: A$1,176 million
• FY26 group gold sales guidance revised to 1,600–1,700koz (from 1,700–1,850koz)
• FY26 group AISC guidance increased to A$2,600–2,800/oz (from A$2,300–2,700/oz)

What else do investors need to know?

Northern Star faced several one-off operational events this quarter, including a primary crusher failure at Kalgoorlie and longer-than-expected recovery works at Jundee. While operations have resumed, these disruptions prompted a downgrade of full-year production and cost guidance.

The company continues major growth investment, keeping FY26 group growth capital guidance unchanged at A$1,140–1,220 million. Key projects include the KCGM Mill Expansion, which remains on track for commissioning in early FY27, with associated capital expenditure for FY26 revised upward.

Net cash at quarter-end was A$293 million, and the hedge book continues to decline. Hedging commitments now sit at 1.12 million ounces at an average price of A$3,333/oz as deliveries outpace additions.

What did Northern Star Resources management say?

Managing Director & CEO Stuart Tonkin said:

As previously announced, a number of one-off operational events across our assets resulted in a softer December quarter and prompted us to revise FY26 production and cost guidance. Looking ahead, our team remains firmly focused on driving productivity improvements and strengthening cost discipline.

“The December quarter delivered positive advances at our two key growth projects that will structurally reshape our cost base and support delivery of higher-margin ounces. The KCGM Mill Expansion remains on track for commissioning in early FY27. At the same time, our team continues to optimise the engineering and design of the Hemi Development Project whilst progressing approvals.

“Northern Star’s balance sheet remains in a net cash position and we expect future free cash generation to increase materially as production lifts and our hedge book unwinds into this elevated gold price environment.

What’s next for Northern Star Resources?

For the rest of FY26, Northern Star will concentrate on finishing the KCGM Mill Expansion construction and ramping up commissioning plans. Production guidance has been lowered, but operational improvements and cost discipline remain a priority.

Management expects free cash flow to improve in coming periods, underpinned by higher production, strong gold prices, and the ongoing wind down of hedging commitments. Key growth projects, including the Hemi Development Project, are advancing on schedule.

Northern Star Resources share price snapshot

Over the past 12 months, Northern Star Resources shares have risen 66%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Northern Star Resources cuts guidance after softer quarter 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.

ASX defence stocks have been red hot over the last 12 months. 

Consistent geopolitical uncertainty and government investment have been catalysts for the sector. 

Many ASX defence stocks have benefited from these tailwinds. 

But for investors who have been hesitant to gain exposure, is there any further upside?

A new report from Bell Potter has identified two particular ASX defence stocks with plenty of room for more growth. 

Let’s see what the broker had to say. 

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is an Australian company that develops and produces advanced electro-optic technologies. 

The company’s products are used in space information and intelligence services, optical, microwave and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air.

Its share price has already rocketed 740% higher in the last 12 months. 

But the team at Bell Potter is optimistic the company can continue to grow following a new acquisition. 

In a report from the broker yesterday, Bell Potter said EOS has entered into an agreement to acquire MARSS.

MARSS is a Europe-based command and control (“C2”) systems, which are critical for effectively countering drones. 

C2 and software/AI capabilities have been an obvious gap in EOS’ counter-drone (CUAS) offering. The acquisition of a C2 capability bolsters EOS’s chances in securing prime contractor status on large C-UAS programs thus potentially boosting sales of EOS’ other C-UAS effectors, including High Energy Laser Weapons; Slingers; and Interceptor Drones. C2 systems also offer recurring revenues.

Following this news, Bell Potter upgraded EPS +1%/+15% in CY26/27e, reflecting: consolidation of the MARSS Group acquisition in 2H26e; updated cash balance; and higher effector sales in CY27e.

The broker has also raised its price target on this ASX defence stock to $12.00 per share. 

From yesterday’s closing price of $10.09, this indicates an upside of 18.93%. 

At 43x CY26e EV/ EBITDA, EOS trades at a 40% discount to the Global drone peer group mean.

Elsight Ltd (ASX: ELS)

Elsight is engaged in the development and commercialisation of Halo in the UAV market. Elsight’s Halo provides BVLOS (Beyond the Visual Line of Sight) connectivity for drones, UAVs, and other unmanned/uncrewed systems on-air and on land.

This ASX defence stock is up 990% in the last 12 months. 

Bell Potter just upgraded its outlook, indicating there is still more upside. 

The broker said it has upgraded longer term revenue growth assumptions due higher confidence in commercial drone market growth and revenue growth following the commercial launch of the new Aura platform.

Bell Potter has an upgraded price target of $4.60 (previously $3.60). 

From yesterday’s closing price, this indicates an upside of $3.87, this indicates an upside of 18.86%. 

We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

The post ASX defence stocks to target according to Bell Potter 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 positions in and has recommended 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.

Praemium Ltd (ASX: PPS) shares could be undervalued at current levels.

That’s the view of analysts at Bell Potter, which believe this ASX All Ords stock could rise strongly over the next 12 months.

What is the broker saying about this ASX All Ords stock?

Bell Potter was pleased with the investment platform provider’s performance during the second quarter. And while there are negatives from its quarterly update, it feels the positives outweigh them. The broker said:

PPS delivered a solid 2Q26 result with operating metrics more advanced than forecast across the Group and progress on the strategy was articulated further. This is tracking to guidance, and further transformation has been flagged. Outflows were conventional again for Powerwrap, which was a positive development, offset by new attrition related to OneVue assets and management flagged an aggregate impact of -$361m. At a high level this would imply $823m net flows, which annualises to $3.3bn. While overhang is negative, this is not entirely unexpected. OneVue is now fully exited and management reaffirmed that guided full-year synergies remain achievable.

Bell Potter also highlights that the ASX All Ords stock has a robust sales pipeline, which it feels is being underappreciated by the market.

The share price movement today looks to factor in more adviser movements that could stay for another 12-18 months but does not account for client firm flows and distractions away from its sales funnel. We did not see the same sequential step-up in gross inflows for SMA and Spectrum. However, the latter remained stable and continues to surprise given expected volatility and PPS had to finalise a $933m internal transfer vs. $474m achieved in the previous quarter. There is now a focus to onboard a priority client within the SMA.

Time to buy

According to the note, the broker has responded to the update by retaining its buy rating with an improved price target of $1.10.

Based on its current share price of 79.5 cents, this implies potential upside of 38% for investors over the next 12 months.

In addition, the broker is expecting a 3.2% dividend yield in FY 2026. This boosts the total potential return beyond 40%.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. Wins are translating to revenue and to that end, we view: 1) inflow expectations as low and 2) compelling multiple vs. EBITDA growth equation.

PPS enters FY26 with an improvement in cash operating expenses as FUA and attaching revenue scale. It is also set to benefit from an additional +$3m run-rate cost out from 1H26 following the integration of OneVue. We think PPS has extensive growth runway with low single digit market share and contract win momentum now translating to revenue.

The post Bell Potter says this ASX All Ords stock could rise 40% appeared first on The Motley Fool Australia.

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James Hardie Industries PLC (ASX: JHX) shares have been quietly rebuilding momentum. In the first weeks of 2026, James Hardie shares have soared 13.8% to $34.89 at the time of writing.

After a volatile period driven by fears of a housing slowdown and deal scepticism, the construction heavyweight is regaining support thanks to its strong market position, clear strategy, and improving global construction outlook.

Now, investors are starting to ask whether the current rally still has legs. Let’s have a look at the reasons why James Hardie shares could keep it going.

US as engine room

James Hardie is best known as the world’s leading manufacturer of fibre-cement products, supplying cladding, siding, and trim for residential and commercial buildings. The US remains the engine room of the business, accounting for the majority of earnings, with Australia, Europe, and Asia providing diversification.

Fibre cement continues to gain share from traditional materials thanks to its durability, fire resistance, and low maintenance. Advantages that resonate with builders and homeowners alike.

Pricing power is key

One of the key drivers behind the rally of James Hardie shares is the company’s pricing power. Even as construction volumes have softened, the company has been able to defend margins through price increases and disciplined cost control.

Its brand is deeply embedded in the US housing market, particularly in the repair and remodel segment, which tends to be more resilient than new home construction during downturns.

Expansion outdoor living products

The acquisition of Azek has also reshaped the growth story. By expanding into outdoor living products such as decking and rail, James Hardie has significantly increased its addressable market.

While the deal initially unsettled investors due to execution risk and higher debt, confidence is gradually improving as integration progresses and the strategic logic becomes clearer.

Housing cycles exposure

That said, the risks have not disappeared. James Hardie remains exposed to housing cycles. Particularly in the US, where high interest rates continue to pressure affordability. A sharper-than-expected slowdown in construction activity would weigh on volumes and earnings.

The Azek acquisition also needs to deliver on promised synergies, with any missteps likely to be punished by the market.

What’s next for James Hardie shares?

From an analyst perspective, sentiment on James Hardie stocks has improved but remains measured. Many see the stock as well-positioned for a recovery as housing conditions stabilise and interest rates eventually ease.

Expectations are not for a straight-line surge, but for steady gains supported by strong cash generation, operational leverage, and long-term demand for fibre cement solutions.

The average 12-month price target reflects that at $37.10, a modest 6% upside. The more upbeat analyst forecasts go as high as $46.20, a potential plus of 32% over the next 12 months.

The post Here’s why James Hardie shares can keep the rally going 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 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.

Beach Energy Ltd (ASX: BPT) shares are in focus today after the company’s FY26 Second Quarter Activities Report.

The ASX energy company reported a 17% drop in quarterly sales revenue to $445 million. 

What else did the company report?

In addition to the sales revenue decline, the company also reported: 

• Quarterly production down 9% to 4.5 million barrels of oil equivalent (MMboe)
• Sales volumes fell 13% to 5.9 MMboe
• Average realised gas price rose 2% to $11.9 per gigajoule (GJ)
• Waitsia Gas Plant delivered first gas and peaked at 165 TJ/day after quarter-end
• Liquidity at quarter-end rose to $925 million

Despite a fall in production and sales revenue, the Beach Energy shares climbed 2.73% higher during yesterday’s trading. 

Bell Potter weighs in

Following the report, the team at Bell Potter released updated analysis on Beach Energy shares. 

Bell Potter highlighted that overall realised prices were 5% weaker, with lower oil and LNG prices offsetting marginally stronger gas prices. 

It said Beach Energy ended the quarter with net debt of $445m, a $39m improvement on the prior quarter; adding back $166m capex implies around $205m in cash flows from operations. 

The company also added a new $300m Term Loan to its debt facilities, lifting quarter-end funding liquidity to $925m.

Guidance unchanged 

Beach Energy produces oil and natural gas from numerous joint venture projects across Australia and New Zealand. 

These include the onshore Cooper and Eromanga Basin project, covering one million square kilometres in South Australia, Northern Territory, Queensland, and New South Wales and recognised as Australia’s most prolific oil and gas-producing basin.

Bell Potter said in yesterday’s report that Cooper Basin and Western Flank production recovered from previously flood-impacted quarters and offset weaker maintenance and customer nomination impacted Otway Basin output.

Most of the flood-impacted production in the Cooper Basin and Western Flank has now been restored.

BPT made no change to FY26 guidance: Production 19.7-22.0MMboe; and capex of $675-775m.

Hold recommendation for Beach Energy shares

Bell Potter has maintained its hold recommendation on Beach Energy shares. 

BPT is in a production replacement cycle with respect to exploration and appraisal. Production growth should return in FY27 and capex ease, enabling positive free cash flow to support balance sheet deleveraging and ongoing dividends.

We are positive on BPT’s exposure to Australian east coast gas markets (around half of sales volumes) and cautious with respect to global oil markets.

Based on this guidance, Bell Potter has a price target of $1.10. 

This price target indicates Beach Energy shares are trading close to fair value, after closing yesterday at $1.13. 

The post What’s Bell Potter’s view on Beach Energy shares after its 9% production dip? 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 team at Morgans has been busy this week digesting updates and revising their valuation models.

Two popular ASX shares that have been under the magnifying glass are named below. Here’s what the broker is saying about them:

ARB Corporation Ltd (ASX: ARB)

This 4×4 automotive parts company’s shares have come under significant pressure this month after releasing a trading update that fell well short of expectations.

While this was disappointing, the broker remains positive on ARB. It believes that FY 2026 will be a base year for earnings and highlights that several tailwinds are supportive of growth in the coming years.

Morgans has an accumulate rating and $32.00 price target on its shares. It said:

1H26 underlying PBT of A$58m (~16% below pcp; ~14% below cons) reflected softer group sales and margin pressure (AUD/THB weakness and lower factory recoveries), with a pronounced 2Q deterioration (group sales -5.8%). All divisions weakened through the period, with implied Aftermarket sales -4.4% in 2Q26 (vs -1.7% in 2Q25); OEM -43% (vs -2%); and Export flat (vs +20.4%). The softness within the Aftermarket division is somewhat understandable, given the sharp deterioration in our tracked ARB new vehicle sales index through November (-14.8%) and December (-6.8%), dragging 2Q FY26 volumes 6.7% lower vs the pcp. However, the slowing rate of growth within Export is a point of concern (flat in 2Q) as ARB will cycle a more demanding comp in 2H FY26 (2H FY25 A$142m; vs A$125.4m 1H26).

We expect FY26 earnings will reflect a ‘base’ year for ARB to reset margins and resume a more sustainable growth trajectory (MorgansF FY25-28F EPS CAGR +7%). We are encouraged by ongoing US strength (1H26 +26%); a commanding balance sheet position (A$59.4m net cash); and various tailwinds supporting Aftermarket division recovery through CY26 (new OEM launches; network growth/upgrades; and eCommerce launch). Accumulate maintained.

BHP Group Ltd (ASX: BHP)

Morgans was pleased with BHP’s performance during the second quarter. This was particularly the case for its WAIO, Escondida, and Antamina operations.

However, the broker feels that its shares are fairly valued. As a result, it has retained its hold rating with an improved price target of $47.90. The broker commented:

A sound 2Q26 result operationally, with WAIO setting a H1 production record and BHP upgrading guidance at both Escondida and Antamina. The offsetting negative was the separate update on the Jansen Stage 1 potash project, seeing a further budget upgrade to US$8.4bn and leaving concern around possible changes to Jansen Stage 2.

We have applied upgraded metal price forecasts, driving the upgrade in our target price but not transforming the value proposition, with BHP still appearing fair value. In our sector investment strategy we view BHP as a core holding on earnings and portfolio quality grounds as well as dividend profile, we maintain our Hold rating.

The post What is Morgans saying about ARB and BHP shares? 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 ARB Corporation. The Motley Fool Australia has recommended ARB Corporation and BHP Group. 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) share Xero Ltd (ASX: XRO) has declined 28% in five years, which is a significant decline considering the ASX 200 is close to all-time highs. It’s down even more (49%) since June 2025, as the chart below shows.

If you just looked at the financials of the business in the past five years, you’d see significant progress by the ASX 200 tech share.

Interest rates have risen considerably in the last five years, which is a headwind for share prices, but I’m going to highlight how the company has done more than enough over the last five years to justify its valuation being higher than it is today.

Global growth

There are few ASX shares that have been successful as Xero at growing internationally.

Australia and New Zealand are great countries to do business in, but there are a lot more potential subscribers across the rest of the world.

Xero operates in a number of other regions including the UK, Canada, Ireland, the US, South Africa, Singapore, Malaysia, Hong Kong, Indonesia and the Philippines.

In the FY26 first-half result, the business reported that its global subscriber base rose 10% year-over-year to 4.6 million. It reached 2.7 million subscribers across Australia and New Zealand, with the rest of the world reaching 1.9 million subscribers. It’s a great sign that the business has a subscriber loyalty rate of around 99% each year.

The business recently acquired Melio, a US business that enables subscribers to pay their accounts payable through a wide choice of payment methods. This can help diversify Xero’s growth avenues and provide cross-selling opportunities in the US.

I think there’s a great chance for the ASX 200 share to significantly grow from here in the coming years as the world’s small and medium business sector digitalises further with their accounting (particularly with governments preferring online and faster reporting).

Great profitability

There are not many businesses on the ASX with a stronger gross profit margin than Xero at more than 88%.

When the margin is that high, it means a large majority of new revenue can be used by Xero for growth spending (advertising and R&D) and/or increase the profit lines.

After years of heavy focus on growth, the ASX 200 share is now balancing growth and profitability.

The HY26 result was a great sign of how profit is flowing strongly. While operating revenue rose 20% to NZ$1.2 billion, net profit jumped 42% to NZ$135 million and free cash flow soared 54% to NZ$321 million.

Broker UBS suggests that the business is projected to see net profit soar from NZ$235 million in FY26 to NZ$1.1 billion in FY30.

With that profit outlook, I think the ASX 200 share is significantly undervalued by the market.

The post Down 28% in 5 years. Is it time to consider buying this ASX 200 fallen icon? appeared first on The Motley Fool Australia.

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

The Genesis Energy Ltd (ASX: GNE) share price is in focus as the New Zealand energy provider delivered a solid Q2 FY26, highlighting record hydro generation, robust fuel management and an upgraded EBITDAF outlook for the year.

What did Genesis Energy report?

• Hydro generation: 740 GWh, up 21 GWh year on year, driven by strong hydrology and plant availability
• Thermal generation: 85 GWh for the quarter, a record low; 869 GWh for the half, also a record low
• Total customer numbers: 495,706, down 4% versus a year ago, reflecting brand integration and churn
• Electricity netback: $159/MWh, normalising from Q1, with margin quality supported by disciplined pricing
• FY26 normalised EBITDAF guidance lifted to $490–$520 million (from $455–$485 million)
• Billing and CRM re-platform Release 1 live for 50,000 customers; Release 2 on track

What else do investors need to know?

Genesis continued to advance its long-term renewables pipeline, making progress on new onshore wind, solar, and battery projects destined to drive future portfolio flexibility and growth. The company also signed a framework agreement with Yinson Renewables for exclusive rights to over 1 GW of onshore wind projects and submitted a grid connection application for the 300 MW Castle Hill wind development.

On the operational side, Genesis completed the final investment decision for the 136 MWp Edgecumbe solar farm and acquired the 271 MWp Rangiriri solar project. Construction of Stage 1 of the Huntly BESS (Battery Energy Storage System) remains on schedule and on budget for commencement in Q1 FY27. The business retains focus on cost efficiency and late-life optimisation of its Huntly and Kupe operations.

What’s next for Genesis Energy?

Looking ahead, Genesis Energy has increased its FY26 normalised EBITDAF guidance range to $490 million–$520 million, citing better-than-expected margin quality and continued strength across its diversified portfolio. Operating costs are trending higher as investment continues in strategic initiatives, including digital, renewables, and the Gen35 growth strategy, but second-half FY26 expectations remain in line with prior guidance.

The company aims to further expand its renewable and flexible generation assets, enhance digital capabilities, and maintain disciplined capital allocation. Further detail on progress is expected at Genesis’ half-year results in February.

Genesis Energy share price snapshot

Over the pat 12 months, Genesis Energy shares have risen 6%, running slightly ahead of the S&P/ASX 200 Index (ASX: XJO) which has increased 4% over the same period.

View Original Announcement

The post Genesis Energy lifts FY26 guidance in strong Q2 earnings appeared first on The Motley Fool Australia.

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• Here’s the average Australian superannuation balance at 40. How does yours compare?

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

The Contact Energy Ltd (ASX: CEN) share price is in focus today after the company reported rising electricity and gas sales for December 2025, along with strong wholesale net revenue and increased customer connections.

What did Contact Energy report?

• Mass market electricity and gas sales reached 340GWh, up from 274GWh in December 2024.
• Customer netback climbed to $168.91/MWh (December 2024: $156.56/MWh).
• Contracted wholesale electricity sales rose to 950GWh (December 2024: 699GWh).
• Total electricity and steam net revenue grew to $103.94/MWh (December 2024: $98.75/MWh).
• Contact total customer connections rose to 668,000 (December 2024: 635,000).
• Unit generation cost increased to $38.18/MWh (December 2024: $30.68/MWh).

What else do investors need to know?

Contact’s mass market electricity and gas sales outperformed last year, with higher netbacks supporting profitability. Wholesale electricity and contracted sales also saw strong gains, while customer numbers continued to grow.

The company’s renewable projects are progressing, including the Glenbrook-Ohurua battery expected online in Q1 CY26 and the Kowhai Park Solar project targeted for Q2 CY26. Meanwhile, the TCC plant has moved into decommissioning, reflecting Contact’s shift towards renewables. December inflows into the Clutha catchment remained robust, with storage levels well above the long-term mean, supporting reliability.

What’s next for Contact Energy?

Contact is ramping up its renewable generation, with several major solar, battery, and geothermal developments underway. Management has also guided for further integration of recent acquisitions and expects continued growth in both retail and wholesale markets.

The company plans to keep building its sustainable energy portfolio, supporting New Zealand’s net zero ambitions and providing value to a growing customer base.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Contact Energy posts higher sales and renewables progress in December update 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.