James Hardie Industries PLC (ASX: JHX) shares are having a tough session on Wednesday.

At the time of writing, the ASX 200 share is down over 3% to $25.90.

James Hardie shares fall on results day

Investors have been selling the building materials company’s shares this morning following the release of its fourth quarter and full year results.

According to the release, for FY 2026, James Hardie reported net sales of US$4.84 billion, up 25% from US$3.88 billion in FY 2025. However, this was largely supported by the contribution from the AZEK acquisition. On an organic basis, net sales declined 2% for the year.

The newly acquired Deck, Rail & Accessories division contributed net sales of US$795.2 million and adjusted EBITDA of US$224.8 million for the year.

In Siding & Trim, net sales increased 3% to US$2.96 billion. However, adjusted EBITDA fell 5% to US$951.4 million, with margins declining to 32.1% from 35% in FY 2025.

Management said full-year exterior product volumes fell high single digits, with single-family volumes down low double digits as softer construction conditions weighed on demand.

Group operating income fell 32% to US$447.6 million, while adjusted EBITDA rose 17% to US$1.27 billion.

Finally, statutory net income fell 75% to US$104.0 million, compared with US$424 million in FY 2025.

Management commentary

Commenting on the year, James Hardie’s CEO, Aaron Erter, said:

Fiscal 2026 was a transformational year for James Hardie, highlighted by the closing of the AZEK acquisition. As we integrate the businesses, we are seeing continued progress across both cost and commercial synergies, further strengthening our belief in the long-term value creation opportunity from the combination.

For the full fiscal year, we delivered solid financial performance despite a challenging operating environment. Despite our markets declining mid-to-high single digits for the year, our organic net sales declined just 2% year over year.

Outlook

Unfortunately, James Hardie is not assuming a market recovery in FY 2027.

However, it is still targeting pro forma adjusted EBITDA growth of 4% to 8%.

The company’s chief financial officer, Ryan Lada, explained:

The operating environment remains uncertain. We are not assuming a market recovery. What gives us confidence is execution — synergy realization, our enhanced go-to-market model, manufacturing cost actions taken in FY26, and disciplined capital allocation. In forming our fiscal year 2027 outlook, we assessed a broad range of macroeconomic indicators, including commentary from large homebuilders, repair and remodel market trends, channel inventory levels across our distribution network, and broader consumer sentiment.

The post James Hardie shares tumble on FY26 profit crunch appeared first on The Motley Fool Australia.

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

Catapult Sports Ltd (ASX: CAT) shares are jumping on Wednesday.

In morning trade, the ASX 300 tech stock is up 18% to $3.41.

ASX 300 tech stock jumps on results

Investors have been bidding the sports technology company’s shares higher today following the release of a strong full-year result.

According to the release, Catapult’s annualised contract value increased 28% in constant currency to US$133.8 million in FY 2026.

Excluding acquired ACV from Perch and IMPECT, ACV increased 18%, which management said was also a record level of incremental ACV growth.

Revenue increased 19% in constant currency to a record US$140.7 million. This was driven by SaaS revenue of US$118.6 million, which was up 21% in constant currency. SaaS and other recurring revenue now represents 95% of total revenue, highlighting the recurring nature of the ASX 300 stock’s business model.

In Performance and Health, ACV increased 23% in constant currency, supported by geographic expansion, growth in soccer across EMEA and Central America, and continued traction in North American college sports.

In Tactics and Coaching, ACV rose 40%, with the acquisition of IMPECT a key contributor alongside continued growth in the Pro Video Suite.

Catapult added 576 new professional teams during the year, while average ACV per professional team increased 10% in constant currency to more than US$30,000 for the first time. Retention also increased to more than 96%.

As for earnings, the ASX 300 tech stock revealed that management EBITDA increased 67% to US$24.7 million, reflecting strong revenue growth and disciplined cost management.

Its contribution margin increased to 53% from 49%, while the operating profit margin expanded to 18% from 13%.

How does this compare to expectations?

The result appears to have beaten expectations across several key measures.

Bell Potter had forecast management EBITDA of US$23 million, while noting consensus appeared to be closer to US$22.4 million. Catapult delivered US$24.7 million, which was ahead of both.

The broker was also looking for ACV of US$133.6 million, compared with the actual result of US$133.8 million.

Free cash flow excluding transaction costs also came in ahead of Bell Potter’s estimate at US$6.5 million.

Management commentary

The ASX 300 tech stock’s CEO, Will Lopes, appeared to be pleased with the year. He said:

FY26 was a transformational year for Catapult. We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them. These results reflect the efforts of every person at this company, and to the world-class sports teams who trust us with their performance every day.

What I am most proud of is how we achieved it. Disciplined cost management, combined with strong top-line growth, drove our Rule of 40 to a record high, clear evidence that our operating model is scaling the way we designed it to.

Outlook

Looking ahead, Catapult expects strong ACV growth, low churn, continued margin improvement, and higher free cash flow in FY 2027. Lopes said:

At Catapult, our compass remains fixed: be an invaluable partner to our customers, and deliver strong, profitable growth. As we enter FY27, we expect strong ACV growth, low churn, continued margin improvement towards our targets, and higher free cash flow, all consistent with our Rule of 40 focus.

The post Why are Catapult Sport shares jumping 18% today? appeared first on The Motley Fool Australia.

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• Bell Potter names more of the best ASX shares to buy in May

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

The Dalrymple Bay Infrastructure Ltd (ASX: DBI) share price is in focus after the company announced an 8.5% increase in its distribution guidance for FY26/27 and a Q1 FY26 distribution of 6.75 cents per stapled security.

What did Dalrymple Bay Infrastructure report?

• Forecast Terminal Infrastructure Charge (TIC) for TY-26/27 is ~$4.02 per tonne, up 8.1% on the prior year.
• Distribution guidance for TY-26/27 set at 28.62 cents per stapled security, an 8.5% uplift versus the previous period.
• Q1-26 distribution of 6.75 cents per stapled security declared, matching previous guidance.
• Terminal remains fully contracted at 84.2Mtpa until 30 June 2028, with evergreen renewal options.
• Distribution to be paid as a mix of unfranked dividend and loan note repayment.

What else do investors need to know?

Dalrymple Bay Infrastructure’s updated guidance points to stable cashflows, as the company continues to operate on a 100% take-or-pay basis with its contracted customers. The major increase in the Terminal Infrastructure Charge reflects higher non-expansionary capital expenditure (NECAP), underpinning the uplift to the asset base.

The forecast incorporates an additional $97.8 million of NECAP spend and ongoing indexation to the Australian CPI, helping sustain consistency in DBI’s targeted distributions. All future distributions remain subject to board approval and prevailing market conditions.

What’s next for Dalrymple Bay Infrastructure?

Dalrymple Bay Infrastructure reaffirmed its annual distribution growth target of 3–7% for the foreseeable future, subject to business performance and conditions. The company plans to continue investing in its terminal infrastructure to ensure ongoing reliability, capacity, and value for securityholders.

Management emphasises the business’s role as a critical export gateway and its stable, long-term contracts. This consistent strategy aims to deliver secure, predictable income streams and maintain the company’s commitment to its established payout policy.

Dalrymple Bay Infrastructure share price snapshot

Over the past 12 months, Dalrymple Bay Infrastructure shares have risen 30%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout appeared first on The Motley Fool Australia.

More reading

• Catapult Sports reports record revenue in FY26
• James Hardie earnings: FY26 profit drops as sales lift 25%
• Here’s the average superannuation balance at age 51 in Australia. How does yours compare?
• 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.

Retirement investing is not just about chasing the biggest dividend yield.

If I were building a portfolio for retirement, I would want income, but I would also want businesses that could keep growing over time. After all, retirement can last decades, and inflation can slowly eat away at purchasing power.

That is why I think a good retiree portfolio should include ASX 200 shares with defensive qualities, reliable demand, and the ability to lift earnings and dividends over the long run.

Three I would consider are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the first ASX 200 shares I would look at for retirement income.

The reason is simple. Telecommunications is close to essential.

Mobile and internet services are now part of everyday life. People use them to work, bank, shop, communicate, stream, book appointments, and manage their households. That gives Telstra a level of demand resilience that many consumer-facing businesses do not have.

I also like the way Telstra has become a cleaner investment story in recent years. The company has simplified its structure, invested heavily in its mobile network, and continued to benefit from its strong position in Australian telecommunications.

For retirees, I think the dividend is the main attraction. Telstra may not offer the highest yield on the ASX, but I would rather own a solid income stock with defensive earnings than chase a yield that may not be sustainable.

If Telstra can keep growing earnings modestly and maintain a sensible dividend, I think it could be a useful anchor in a retirement portfolio.

Coles Group Ltd (ASX: COL)

Coles is another ASX 200 share I would consider buying and holding through retirement.

Supermarkets are not exciting, but I think that is part of their strength.

People need groceries in every economic environment. Spending patterns can change, shoppers may trade down, and competition can be intense, but food demand does not disappear because interest rates rise or consumer confidence weakens.

That makes Coles a relatively defensive business.

I also like the everyday nature of its cash flows. A supermarket business has frequent customer visits, strong brand recognition, and a large national store network. It can also use data, loyalty programs, online shopping, and supply chain investment to improve the customer experience over time.

For retirees, Coles could provide a combination of income and stability. The dividend may not make anyone rich quickly, but I think the business has the kind of steady demand profile that can be valuable when investors are drawing income from their portfolios.

If inflation remains sticky, Coles also has some ability to pass through price increases, although it must balance that carefully with customer value and competition.

Transurban Group (ASX: TCL)

Transurban is a very different type of income share.

This ASX 200 share owns and operates toll road assets in major cities. I like this because infrastructure can provide a long-term income stream linked to essential transport routes.

Traffic volumes can fluctuate with economic conditions, fuel prices, and work-from-home trends. But major toll roads are hard to replicate, and they often sit in locations where congestion makes the assets valuable.

For retirees, I think Transurban’s appeal is the potential for relatively predictable cash flows and distributions.

It also offers some inflation-linked qualities because toll increases are often connected to inflation or set under long-term concession arrangements. That can be useful in a retirement portfolio, where the goal is not just income today, but income that can hold up over time.

Transurban is sensitive to debt costs, so rising interest rates can affect sentiment. But if I were investing with a long-term view, I would still see it as one of the more attractive infrastructure names on the ASX.

Foolish Takeaway

If I were investing for retirement, I would want income that comes from businesses people keep using year after year.

Telstra, Coles, and Transurban all fit that idea in different ways. They provide exposure to communication, groceries, and transport infrastructure, three areas that can remain relevant across many market cycles.

For retirees seeking income and some capital growth potential, I think these ASX 200 shares could be strong buy-and-hold options.

The post 3 strong ASX 200 shares for retirees to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Catapult Sports Ltd (AS:X CAT) share price is in focus, following its FY26 results revealing record revenue of US$140.7 million, up 19% in constant currency, and management EBITDA of US$24.7 million, up 67% year-over-year.

What did Catapult Sports report?

• Annualised Contract Value (ACV): US$133.8 million, up 28% (CC) year-on-year, or 18% (CC) excluding acquisitions
• Total revenue: US$140.7 million, up 19% (CC) year-on-year
• Management EBITDA: US$24.7 million, up 67%
• Contribution margin: 53% (up from 49% last year)
• Free cash flow (ex acquisitions/transaction costs): US$6.5 million
• No net debt; cash balance above US$53 million

What else do investors need to know?

Catapult added 576 new professional teams in FY26 and boosted its average ACV per pro team to over US$30,000 for the first time, up 10%. Customer retention remains strong, topping 96%, suggesting the company’s land and expand approach is working.

The business also advanced its product suite with notable innovation, launching new offerings like Vector 8 for athlete monitoring, Perch’s upgraded P2 Camera, and integrating IMPECT’s video analysis within Catapult’s platform. These developments come alongside successful acquisitions of Perch and IMPECT, which are now fully integrated ahead of the company’s key Northern Hemisphere sales season.

What did Catapult Sports management say?

Commenting on the results, CEO & Managing Director Will Lopes said:

FY26 was a transformational year for Catapult. We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them… We are only just beginning to realize the potential of our expanded platform, and I have great confidence in our ability to continue driving this business forward as one of the world’s best SaaS companies.

What’s next for Catapult Sports?

Looking ahead to FY27, Catapult expects continued strong ACV growth, low customer churn, margin improvements, and higher free cash flow, all remaining consistent with its “Rule of 40” SaaS efficiency targets. The company’s expanded platform, which now combines athlete performance data, video analysis, gym monitoring, and scouting intelligence, positions it to deliver new capabilities to professional teams worldwide.

Management says it remains focused on being an “invaluable partner” for customers and driving profitable expansion, with further product rollouts and deeper market penetration expected in the coming year.

Catapult Sports share price snapshot

Over the past 12 months, Catapult Sports shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Catapult Sports reports record revenue in FY26 appeared first on The Motley Fool Australia.

More reading

• Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout
• James Hardie earnings: FY26 profit drops as sales lift 25%
• Here’s the average superannuation balance at age 51 in Australia. How does yours compare?
• 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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. 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 ASX stock Temple & Webster Group Ltd (ASX: TPW) may well be one of Australia’s top share opportunities right now. The large sell-off could be a great buying opportunity for opportunistic investors.

As the above chart shows, the Temple & Webster share price has more than halved in 2026 alone.

However, it’s still materially above the lows seen in 2022 and 2023 when investors worried about what impacts higher inflation and interest rates could have on demand for homewares, furniture, and home improvement products – that’s what Temple & Webster sells through its website.

Why I think it’s one of Australia’s top shares

Interestingly, a large proportion of what’s sold on the website is shipped directly by third-party suppliers, allowing Temple & Webster to be capital-light and generate substantial positive cash flow. It doesn’t need to hold the amount of inventory that would be required to sell everything on its website.

The company has been very effective at growing its market share, including in FY26. Over the long term, I believe the business will continue to grow its market share, and scale benefits will flow through the company as rising profit margins.

In FY26, even in a difficult year, it expects to report revenue of between $665 million and $675 million, representing year-over-year growth of between 11% to 12%.

The company is successfully utilising AI across the business in a variety of ways, which helps improve customer satisfaction and conversion rates – those are key aspects that support a new customer becoming a returning customer. AI is also helping drive a 10% improvement in shipping cost accuracy.

One area of the business I think investors should pay close attention to is the home improvement segment, which includes products like tiles, wallpaper, sinks, and vanities for various rooms, cabinets, showers, baths, toilets, curtains and blinds, and heating and cooling. Its growth options like this are another reason why I’m calling this one of Australia’s top shares to buy.

In the first half of FY26, the home improvement segment saw revenue growth of 47% to $30 million, a much faster growth rate than the core homewares and furniture segment. I think this business could deliver stronger revenue growth than the overall business for the foreseeable future.

I’m expecting the core business to continue to see benefits from the national adoption of e-commerce. Australia has tended to lag the UK and US in e-commerce adoption by between 5 and 7 years – Australia is now at approximately 20% e-commerce adoption for homewares and furniture, while the UK is at 29% and the US is at 35%. There’s plenty of room for growth in the next five years.

This could be a great time to buy

The Temple & Webster share price has sunk heavily – not for the first time this decade – yet its revenue continues to climb.

I believe the market is significantly undervaluing where Temple & Webster could be in three to five years. It could be good to invest when the market is fearful.

I’m not suggesting it’s going to go back above $20 in the next 12 months, but the company is focusing on profitability during this period, and this could help the market see how much its earnings could rise in the long term.

Temple & Webster expects its operating profit (EBITDA) to approximately double to around $40 million in FY27, even in a low growth scenario.

According to the forecast on CMC Invest, the Temple & Webster share price is valued at 32 times FY27’s estimated earnings. This looks to me like a compelling time to look at one of Australia’s top shares.  

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. 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.

Geopacific Resources Ltd (ASX: GPR)’s Woodlark gold project in Papua New Guinea would generate more than $6 billion over the life of the mine, a new study published today says.

Robust project economics

The company released its definitive feasibility study into the proposed gold mine this morning, saying the study “confirms Woodlark as a technically robust, economically attractive, long-life open pit gold development, forecast to generate strong free cash flow and rapid capital payback”.

The study says the mine will generate revenue of $6.1 billion in total, with post-tax net cash flow of $2.5 billion, calculated at a gold price of $5500. The gold price is currently $6312.

The mine is expected to have a payback period of about 18 months and an all-in sustaining cost of production of $ 1,966 per ounce.

The company said:

The production schedule prioritises near-surface higher grade material during the early years of operation, supporting strong eary cash generation and rapid capital payback.

The definitive feasibility study is based on a 1.2 million ounce gold reserve.

The open-pit mining project is expected to cost about $650 million to bring into production.

The company said it would now engage with financing partners “and assess a range of funding solutions”.

Geopacific Resources Managing Director Hamish Bohannan said:

The completion of the DFS marks a major milestone for the Company and confirms Woodlark as a technically robust, long-life project capable of delivering strong margins and significant free cash flow. It comes at a time of increasing international interest in resource development and infrastructure investment in PNG, reflecting the country’s growing strategic importance as a destination for large-scale resource projects and a key supplier of precious metals to global markets. The Woodlark Project is well positioned to contribute to this development landscape while delivering long-term value for shareholders and stakeholders in PNG. Importantly, the Project benefits from a high proportion of Proved and Probable Reserves, established permitting and significant prior technical work which provides a strong foundation as we advance towards development.

Mr Bohannan said the company was targeting a final investment decision on the project by late 2026.

The Woodlark mine is expected to produce for 12 years with 35.6 million tonnes of ore mined.

The project is located on Woodlark Island, about 600km east of Port Moresby.

More exploration to come

The company said there were further near-mine targets that could also result in new resources.

The company said:

Large-scale copper-gold porphyry targets on Woodlark Island remain completely untested, providing a potentially company-making discovery opportunity layered on top of the existing gold project.

Geopacific Resources is valued at $153.9 million.

The post A new PNG project could generate more than $6 billion once in production, this ASX gold company says appeared first on The Motley Fool Australia.

More reading

• Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout
• 3 strong ASX 200 shares for retirees to buy and hold
• Catapult Sports reports record revenue in FY26
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• James Hardie earnings: FY26 profit drops as sales lift 25%

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 James Hardie Industries Plc (ASX: JHX) share price is in focus today after the building products group posted full-year net sales of US$4.84 billion, up 25%, while net profit fell sharply year-on-year.

What did James Hardie report?

• Full-year net sales: US$4.84 billion, up 25% (Q4: US$1.40 billion, up 45%)
• Net profit after tax: US$104.0 million, down 75%
• Adjusted EBITDA: US$1.27 billion, up 17% year on year
• Adjusted EBITDA margin: 26.2% (down from 27.8%)
• Organic net sales: down 2% in FY26 (excluding AZEK acquisition)
• No dividend declared or paid for the year

What else do investors need to know?

James Hardie completed its largest-ever acquisition with the purchase of AZEK on 1 July 2025. The company reported that integration is progressing well, delivering both cost and commercial synergies ahead of schedule. Cost savings from facility closures and operational initiatives were highlighted, with $25 million in annualised savings expected to begin from FY27.

Australian and New Zealand operations delivered steady results, with local currency sales holding firm and EBITDA margins remaining in the mid-30% range. European sales also grew despite challenging economic conditions, buoyed by fibre gypsum products and resilience in key markets.

Across the group, market softness—particularly in North America—affected organic growth, especially in the core Siding & Trim division, but the contribution from AZEK and disciplined cost management supported improved profitability.

What’s next for James Hardie?

For FY27, James Hardie expects pro forma Adjusted EBITDA growth of 4% to 8%, with positive organic sales growth anticipated in the Siding & Trim division. The company is targeting free cash flow of at least US$500 million, an increase of over US$200 million year on year.

Management says synergy realisation and operational discipline remain key, while no material recovery in end markets is assumed in company guidance. With channel inventories now normalised, James Hardie expects to benefit from improved pricing, product mix, and cost leverage.

James Hardie share price snapshot

Over the past year, James Hardie shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post James Hardie earnings: FY26 profit drops as sales lift 25% appeared first on The Motley Fool Australia.

More reading

• Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout
• Catapult Sports reports record revenue in FY26
• Here’s the average superannuation balance at age 51 in Australia. How does yours compare?
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX 200 shares that could be too cheap to ignore

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.

Small-cap investing is rarely smooth.

One month, the market is excited about scale, growth, and opportunity. The next, investors are worrying about dilution, capital raises, and whether management is moving too quickly.

That seems to be the current debate around Stealth Group Holdings Ltd (ASX: SGI).

The ASX small cap has had a wild few months. After reaching all-time highs in January 2026, Stealth shares are now down around 30% from that peak. Yet the share price has also rebounded more than 40% in May alone.

That kind of volatility can be uncomfortable. But it is also fairly stereotypical of smaller-listed companies, particularly those trying to grow quickly through acquisitions and operating leverage.

So, after the pullback and rebound, is Stealth still one of the more interesting ASX small caps to watch?

What does Stealth Group do?

Stealth is a diversified distribution company that supplies products and solutions to businesses, trade customers, and retail consumers across Australia.

It operates across two main divisions: hardware and industrial distribution, and consumer products.

That means the business sits in several practical end markets at once. It supplies hardware, safety, industrial, maintenance, repair, and operations products, while also distributing consumer products and technology accessories through retail channels.

Following its acquisition of Hardware and Building Traders (HBT), Stealth has become a much larger business. HBT added around 1,165 independent stores, approximately $700 million in annual member purchases, and roughly 490 supplier relationships.

The deal also helped position Stealth as a major independent alternative in the hardware and industrial supply market.

That is the strategic attraction here.

Stealth is not trying to reinvent the wheel. It is trying to build scale in fragmented markets, use that scale to improve procurement power, expand exclusive and private-label brands, and drive better margins across a larger platform.

The latest result showed real progress

Stealth’s half-year result was strong on the surface.

For the first half of FY26, the company reported gross sales of $82.2 million, up 11.8%. Revenue came in at $72 million, while operating earnings (EBITDA) rose 18.8% to $5.3 million.

Net profit after tax (NPAT) increased 51.4% to $1.6 million.

That is the kind of operating leverage investors like to see. A modest increase in revenue produced a much stronger jump in profit, suggesting the business is beginning to scale.

However, the per-share result tells a more complicated story.

Stealth issued a significant number of shares to help fund the HBT acquisition. That increased the share count materially, meaning existing shareholders absorbed dilution immediately, while the full earnings benefit of HBT will take longer to appear.

This is one of the central tensions in the investment case.

On the one hand, acquisitions can accelerate growth. On the other hand, they can dilute existing shareholders if the new earnings do not arrive quickly enough.

The balance of risk and reward

There are a few clear risks to watch.

The first is dilution. The recent notice of an extraordinary general meeting may have unsettled some investors, particularly the resolution seeking to refresh the company’s 15% placement capacity. That does not guarantee another capital raise, but it does remind shareholders that acquisitions and growth funding can come at a cost.

The second risk is execution. Integrating HBT, capturing synergies, expanding private-label brands, and improving margins all sound attractive. But each requires disciplined management.

The third is valuation. Even after falling from its highs, Stealth is no longer an overlooked microcap trading on sleepy expectations. Investors now expect growth.

Foolish Takeaway

Stealth is not a simple story anymore.

It has gone from a small distributor to a much more ambitious national platform with scale, procurement leverage, and a clear FY28 target.

The opportunity is obvious: If management delivers, Stealth could become a far larger and more profitable business.

The risk is equally clear: shareholders need the earnings growth to justify the dilution, the acquisitions, and the volatility.

That makes Stealth one to watch closely rather than blindly chase. For investors who can tolerate small-cap swings, this may be a company worth keeping on the radar as the HBT contribution becomes clearer over the next few reporting periods.

The post Could this rebounding ASX small cap still have a long growth runway? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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.

If you are looking for ASX shares to buy and hold for the long term then it could be worth considering the two in this article.

Not only do they have strong long-term growth outlooks, but they were recently recommended as buys by analysts with major upside potential.

Here are the two ASX shares that they are recommending to clients:

Light & Wonder Inc (ASX: LNW)

Light & Wonder is an ASX share with momentum building beneath the surface.

The company operates across gaming content, gaming machines, systems, and digital gaming. Its strength lies in creating content that can be used across multiple channels and markets.

This matters because gaming technology is increasingly about content depth and distribution. A successful game can generate value across land-based casinos, online platforms, and social gaming channels.

Light & Wonder has been reshaping its business in recent years, with a stronger focus on recurring revenue and higher-quality earnings.

The company also has scale in a global industry where content, relationships, and regulatory approvals matter.

If Light & Wonder keeps improving its execution and expanding digital revenue, it could continue to build value over the long term.

Earlier this month, Macquarie put an outperform rating and $200.00 price target on the company’s shares. Based on its current share price, this implies potential upside of approximately 75%.

Netwealth Group Ltd (ASX: NWL)

Netwealth Group is benefiting from a major shift in Australia’s wealth management industry.

The company operates a platform used by financial advisers to manage client portfolios, reporting, administration, and investment access.

Its growth is being supported by advisers moving away from older legacy platforms toward more modern technology. This migration has been playing out for years, and Netwealth has been one of the winners.

A key part of the appeal is operating leverage. As more funds move onto the platform, revenue can grow faster than costs if the business continues to scale efficiently.

Australia’s superannuation and investment markets remain large, and advisers still need better tools to manage increasingly complex client needs.

With funds under administration continuing to shift toward independent platforms, Netwealth remains well placed to benefit from this structural change.

This month, Morgan Stanley put an overweight rating and $33.00 price target on Netwealth’s shares. Based on its current share price, this suggests that upside of approximately 50% over the next 12 months.

The post Analysts say these ASX shares could rise 50% to 75% 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 Light & Wonder Inc, Macquarie Group, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.