The Harvey Norman Holdings Ltd (ASX: HVN) share price is in focus today after the company reported a 4.9% increase in statutory profit before tax to $790.29 million and announced a fully-franked final dividend of 13.0 cents per share.

What did Harvey Norman report?

• Total system sales revenue up 3.1% to $9.64 billion
• Earnings before interest, tax, depreciation & amortisation (EBITDA) rose 5.0% to $1.18 billion
• Statutory profit before tax increased 4.9% to $790.29 million
• Underlying profit before tax (excl. AASB 16, property revals, penalty) up 10.9% to $654.69 million
• Basic earnings per share grew 2.0% to 42.41 cents
• Fully-franked dividend lifted 3.8% to 27.5 cents per share for FY26

What else do investors need to know?

The company highlighted strong performance from its international operations, with overseas company-operated retail profit before tax jumping 23.4% to $135.72 million. Harvey Norman continued its international expansion, particularly in the UK, where its platform is being scaled for long-term growth.

Asset strength remains a key feature, with total assets increasing 5.7% to $8.85 billion. Operating cash flows were robust at $537.22 million, underpinning ongoing investments, dividend payments, and future initiatives.

What did Harvey Norman management say?

The company’s chair, Gerry Harvey, commented:

FY26 delivered growth in operating earnings, continued international expansion and strong franchise profitability. With total assets approaching $9 billion, net assets approaching $5 billion, substantial property ownership and low gearing, we remain well positioned to deliver long-term sustainable growth for our shareholders.

What’s next for Harvey Norman?

Harvey Norman is focused on leveraging its growing international presence, especially in established markets like New Zealand, Asia, and Europe. Management expects positive momentum to continue as the company opens new stores, invests in Next Gen-AI product categories, and maintains attention to cost management.

With a strong asset-backed balance sheet and conservative gearing, the business aims to fund further expansions while supporting long-term value creation for shareholders.

Harvey Norman share price snapshot

The Harvey Norman share price is underperforming the S&P/ASX 200 index (ASX: XJO) with a decline of around 27% over the past 12 months.

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The post Harvey Norman lifts profit and dividend in FY26 earnings result 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 positions in and has recommended Harvey Norman. 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 WAM Capital Ltd (ASX: WAM) share price is in focus today after reporting a 10.5% decline in its investment portfolio for FY2026 and announcing a maintained final dividend of 7.75 cents per share, partially franked at 60%.

What did WAM Capital report?

• Full year FY2026 dividend of 15.5 cents per share, partially franked at 60%, maintained
• Final dividend of 7.75 cents per share, payable 21 October 2026
• Operating loss after tax of $125.9 million (FY2025: profit of $219.6 million)
• Investment portfolio declined 10.5% in FY2026, underperforming key ASX indices
• FY2027 dividend target reduced to 8.0 cents per share to preserve capital
• Pre-tax net tangible assets (NTA) at $1.22 per share at 30 June 2026

What else do investors need to know?

The Board’s decision to cut the FY2027 dividend target to 8.0 cents per share comes after years of paying out more in dividends than was earned, drawing down the profits reserve from $1.48 per share to just 5.6 cents per share after the latest payout. The reduction aims to protect WAM Capital’s capital base and rebuild its profits reserve.

In FY2026, WAM Capital’s portfolio underperformed compared to the broader S&P/ASX All Ordinaries Accumulation Index (up 5.7%) and S&P/ASX Small Ordinaries Accumulation Index (up 8.1%). The main challenges were sector positioning and tough conditions for small-cap industrials, as larger companies and AI beneficiaries attracted most investor attention.

WAM Capital remains focused on a diversified portfolio, with notable holdings in Artrya Limited, GemLife Communities, Aussie Broadband, and Maas Group. The investment team has increased cash holdings (11.5% of the portfolio) and repositioned assets looking for better returns in FY2027.

What did WAM Capital management say?

Chairman Geoff Wilson AO said:

Since FY2020, the Board has maintained WAM Capital’s full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company’s accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

We recognise the impact a reduction in the FY2027 full year dividend target to 8.0 cents per share will have on shareholders. The FY2027 target is intended to rebuild the profits reserve, preserve the Company’s capital base and place WAM Capital in a stronger position to deliver sustainable income and capital growth for shareholders.

What’s next for WAM Capital?

The Board has set a more sustainable FY2027 dividend target, aiming for 8.0 cents per share, split evenly between interim and final dividends, still partially franked at 60%. Achieving this will depend on generating additional profits through positive portfolio performance in FY2027, so the dividend target is not a formal forecast or guarantee.

Management is optimistic about the potential for recovery, particularly for undervalued smaller companies, as interest rates stabilise and market conditions improve. WAM Capital plans to maintain its active, diversified approach and is positioned to benefit if conditions for small-to-mid-cap stocks pick up.

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The post WAM Capital trims FY27 dividend after portfolio setback in 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 positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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 stocks with growth potential can deliver great share price gains, and Bell Potter thinks they’ve identified two such companies.

They’ve released research reports this week into two companies in the healthcare sector, and are predicting solid gains for both.

Let’s see who they like.

Lumos Diagnostics Ltd (ASX: LDX)

This diagnostic technology company recently reported full-year revenue of US$13.2 million, up 6% on the previous year, and an adjusted EBITDA loss of US$2.8 million, which was a 19% improvement.

The company said it was a “landmark year underpinned by significant regulatory, commercial, and operational achievements that have positioned the Company for future growth”.

The company went on to say:

The year was highlighted by the execution of a transformational six-year U.S. distribution agreement with PHASE Scientific with a value of US$317 million, achievement of U.S. FDA CLIA waiver status for FebriDx, and securing nationwide Medicare reimbursement recognition across all U.S. Medicare Administrative Contractors (MACs). These milestones materially expanded the addressable market opportunity for FebriDx by more than 15 times to over US$1.0 billion per annum and established the foundations for large-scale commercial adoption in the U.S.

The company said FY27 will be about converting the regulatory and commercial milestones achieved in FY26 into sustained revenue growth.

Bell Potter agreed, saying the commercial execution of the FebriDx rollout would be the focus.

The broker is expecting Lumos to hit breakeven in FY29.

Bell Potter has a price target of 25 cents on Lumos, compared to the current price of 10 cents. Lumos Diagnostics is valued at $94.5 million.

Trajan Group Ltd (ASX: TRJ)

This analytical science company delivered second-half EBITDA of $8.1 million, up from $5 million in the first half of the year, but overall full-year earnings were down 14.7%.

Chief Executive Officer Stephen Tomisich said of the result:

FY26 was a year of two halves. While the first quarter created a difficult starting point for the year, the business recovered operationally from Q2 onward, and we delivered a materially stronger second half result. The benefits of Project Neptune and other operational initiatives became increasingly evident in H2, with improved gross margins, stronger nEBITDA and better cost control across the Group. These gains were partly masked in the reported result by the appreciation of the Australian dollar against key trading currencies.

The company’s guidance for the current year is for mid-single-digit organic revenue growth in FY27 and double-digit EBITDA growth.

Bell Potter said the company “is trading at an extremely deep discount, but it will need to turnaround earnings momentum to shift investor sentiment”.

Bell Potter has a price target of 50 cents on Trajan shares compared to 16.5 cents currently.

The post 2 ASX small-cap stocks Bell Potter thinks could return 130% to 200% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.