The Virgin Australia Holdings Ltd (ASX: VGN) share price is in focus today after the airline posted a 13.4% rise in underlying EBIT to $753 million for FY26, alongside its first fully-franked dividend of 7.6 cents per share since re-listing.

What did Virgin Australia report?

• Underlying EBIT of $753 million, up 13.4% on FY25
• Underlying NPAT $404 million, up 21.9% year on year
• Statutory NPAT $501 million, up 4.7% on FY25
• Underlying EBIT margin expanded 60bps to 12.0%
• Fully-franked dividend of 7.6 cents per share declared
• ROIC increased to 20.1%, up 140bps

What else do investors need to know?

Virgin Australia says strong customer demand, effective fuel hedging, and benefits from its Transformation Program supported its earnings growth and helped offset rising costs, particularly in labour and airport charges. The airline finished FY26 with a conservative balance sheet: net debt at $1.2 billion represents a leverage ratio below its target range and available liquidity is $1.6 billion.

Operational performance also improved, with on-time rates up to 77.1% and completion rates at 98.7%. The Velocity Frequent Flyer program continued to grow, with external billings up 12.4% and more than 800,000 new members joining during FY26.

What did Virgin Australia management say?

Commenting on the results, Virgin Australia’s CEO, Dave Emerson, said:

Our FY26 results demonstrate that Virgin Australia has become a stronger and more resilient airline… Our strategy is working. We have built a simpler, more focused business with a primarily domestic network, targeted short-haul international services and global connectivity through our airline partners. That strategy, together with the continued benefits of our Transformation Program, has strengthened the quality of our earnings and positioned us well for the future…. The declaration of our inaugural dividend since re-listing reflects confidence in the strength of the business, while maintaining the disciplined approach to investment and capital allocation that will support sustainable long-term growth.

What’s next for Virgin Australia?

Looking ahead, Virgin Australia expects continued strong travel demand to support earnings. For 1H FY27, underlying EBIT is forecast to be broadly in line with the prior period, with disciplined capacity reductions, ongoing Transformation Program benefits, and planned investments in newer, more efficient aircraft.

The company aims to grow its owned fleet and maintain financial discipline, targeting capex of $0.9–1.0 billion in FY27. Velocity earnings are expected to hold steady next year, with investment in loyalty transformation aiming to drive double-digit earnings growth from FY28 onwards.

Virgin Australia share price snapshot

The Virgin Australia share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 20%.

View Original Announcement

The post Virgin Australia posts robust FY26 results and first dividend since re-listing appeared first on The Motley Fool Australia.

More reading

• 2 ASX travel stocks to buy and one to sell
• Buy, hold, sell: Orora, Virgin Australia, and ResMed shares
• 5 ASX shares I’d buy with $5,000 in August

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. 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 Channel Infrastructure NZ Ltd (ASX: CHI) share price is on watch as the company announced a major new contract with bp for expanded jet and diesel storage at Marsden Point, expected to deliver around $130 million in revenue over 15 years. Channel plans to invest approximately $65–70 million in repurposing storage tanks to support this long-term partnership.

What did Channel Infrastructure NZ report?

• Signed a 15-year contract with bp for extra jet and diesel storage at Marsden Point
• Contract estimated to generate ~$130 million revenue over the initial term (before indexation)
• Growth capital expenditure of $65–70 million planned for tank repurposing (2026–2028)
• Project to be funded via existing debt facilities
• Operating expenditure to increase by $0.7–0.9 million per year to support growth
• In-service contracted storage at Marsden Point increased by 40% over three months

What else do investors need to know?

Channel Infrastructure’s new deal with bp marks a big step in growing its role in New Zealand’s fuel supply chain. The company will begin work to repurpose existing tanks in September 2026, aiming to complete the project and start revenue in Q3 2028.

The investment is part of a broader plan to unlock Marsden Point’s strategic value, supporting fuel resilience and future energy transition opportunities. Channel has also recently increased its contracted storage and continues to look for further opportunities for growth, including supporting lower-carbon fuels and energy security projects.

What’s next for Channel Infrastructure NZ?

Looking ahead, Channel Infrastructure is focused on delivering the Marsden Point expansion and maximising its position as New Zealand’s leading fuel import terminal. Management remains committed to supporting the country’s energy transition, leveraging available storage capacity and land for new fuel security and renewable projects.

The company also retains strategic interests outside Marsden Point, including a stake in the Somerton pipeline to Melbourne Airport and a fuel testing business, positioning it well for long-term industry shifts.

View Original Announcement

The post Channel Infrastructure secures $130m bp storage contract in Marsden Point growth plan appeared first on The Motley Fool Australia.

More reading

• Virgin Australia posts robust FY26 results and first dividend since re-listing
• Why I think this is a top ASX tech share to buy today
• 3 high-yield ASX dividend shares to buy with $10,000
• Sky New Zealand FY26 earnings: Profit up 190%, dividend jumps 45%
• Elevra Lithium posts FY26 profit rebound and funds expansion

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 ASX tech share Siteminder Ltd (ASX: SDR) could be one of the best businesses to buy right now, given its growth prospects and appealing valuation.

Siteminder is the name behind Siteminder software, which it calls the world’s leading hotel commerce platform. It also operates Little Hotelier, an all-in-one hotel management software offering.

The Siteminder share price has drifted lower after it reported its FY26 result, and I think this represents a particularly good buying point considering its improving financials.

Let me explain why I think it’s such an appealing buy.

Strong revenue growth

The company is delivering strong growth with its revenue, which is helping increase the scale of the business every year.

In FY26, the ASX tech share delivered revenue growth of 18.6% to $266.1 million, demonstrating strong performance despite softer travel conditions.

It showed resilience and growing traction from new product initiatives such as the smart platform. The smart platform represents multiple new modules that give hotels more analytics, intelligence and even automated room price features.

The company’s annual recurring revenue (ARR) rose 14.9% to $313.7 million, which suggests FY27’s revenue figure already has some pleasing growth baked in.

During FY26, the company added 5,900 hotel properties to its client list, taking the total to 56,000. Average revenue per user (ARPU) increased 5.9% to $429, largely thanks to increasing smart platform adoption and deeper product penetration.

Siteminder expects its ARR to grow at a compound annual growth rate (CAGR) in the “20s” in percentage terms between FY26 to FY30, on a constant currency and organic basis. I think most companies would be happy to grow revenue at a strong pace.

Improving profit margins

I think one of the best signs of a compelling ASX tech share is one where its profit margins are rising as it grows. Operating leverage is a very powerful force to help the compounding of earnings.

In FY26, the company’s adjusted operating profit (EBITDA) soared 96.5% to $28.1 million, while reported operating profit (EBITDA) rocketed 244% to $24.4 million – the reported figure included $3.8 million of restructuring and other costs.

Other profit margins also increased during the period. It noted that adjusted free cash flow improved by 123% to $10.5 million.

Siteminder expects its adjusted EBITDA margin to expand meaningfully in FY27. The adjusted EBITDA margin is expected to reach the mid-20s in FY30.

If revenue is growing strongly and the margins are going up, the bottom line could improve significantly.

Pleasing valuation

The ASX tech share is projected by analysts to quickly turn quite profitable over the next couple of financial years. According to the projection on Commsec, the Siteminder share price is valued at 29x FY28’s estimated earnings.

For a business that could be growing revenue by at least 20%, I think that the valuation looks cheap following its 50% decline this year.

The post Why I think this is a top ASX tech share to buy today appeared first on The Motley Fool Australia.

More reading

• SiteMinder: FY26 profit nearly doubles, revenue jumps 22%
• 3 excellent ASX shares I would buy and hold for 10 years or more

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