Tag: Stock pick

Elders Ltd (ASX: ELD) shares are crashing on Monday morning.

At the time of writing, the ASX 200 share is down 22% to $5.61.

This follows the release of the agribusiness company’s half-year results before the market open.

ASX 200 share crashes on results day

This morning, Elders released its half-year results and revealed a strong lift in earnings thanks to a major acquisition.

It reported underlying sales revenue of $1.77 billion, up 32% from $1.34 billion in the prior corresponding period. Management said the result was driven by improved seasonal conditions and the contribution from Delta Agribusiness, which was acquired in November.

Looking at its divisions, Elders Crop Protection delivered higher EBIT across all businesses, mainly due to improved procurement of raw materials.

Elders Rural Services also performed well, with livestock prices driving most of the upside.

Delta Agribusiness contributed EBIT of $10.4 million in its first five months under Elders’ ownership, while Elders Real Estate benefited from growth in residential turnover and property management.

Australian Independent Rural Retailers’ EBIT was slightly lower, with temporary people cost growth more than offsetting higher sales and margin improvements. Corporate Services and Other Costs increased due to higher IT costs linked to the transition of systems modernisation expenses and the cost of running dual platforms until legacy systems are retired.

This meant that underlying EBIT rose 33% to $76.6 million, while underlying profit before tax increased 31% to $56.2 million. Underlying profit after tax lifted 13% to $37.9 million.

However, the selling today may have been driven by earnings per share, which were negatively impacted by a higher share count following its capital raising.

Elders revealed that underlying earnings per share was down 4% to 18.1 cents.

This led to the Elders board declaring a fully franked interim dividend of 18 cents per share, in line with last year’s interim dividend, although last year’s payout was only 50% franked.

Management commentary

The ASX 200 company’s managing director and CEO, Mark Allison, was pleased with the half. He said:

The first half of FY26 has been eventful for Elders, with Delta Agribusiness welcomed into the Elders Group and seasonal improvements driving optimism for the winter crop.

Our decision to implement a new divisional structure in FY26 is already reaping benefits through improved alignment and efficiency gains. Elders’ strong management has proven effective in allowing us to optimise the season and set ourselves up for a solid second half.

Outlook

Elders believes it is well positioned for the second half.

This is being supported by the first-year earnings contribution from Delta Agribusiness, further systems modernisation benefits, and Delta synergy gains.

Management advised that it expects key financial metrics to improve in the second half as Delta’s earnings are progressively reflected and proceeds from the planned Killara Feedlot divestment are expected to reduce net debt, leverage, and interest expense.

However, elevated diesel prices remain a risk to the company’s cost base, although prices have eased from the highs seen in March.

Commenting on its outlook, Allison said:

International events have caused price volatility in fuel and fertiliser, creating challenges for our supply chain in the first half. Elders’ strong supply relationships, combined with an adept agronomy network for timely advice to growers, has allowed us to manage demand and ensure growers are equipped for the season ahead.

The post Which ASX 200 share is crashing 22% on half-year results? appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Monday
• 3 ASX dividend stocks to help build passive income
• 3 ASX dividend shares to buy with 5% to 6% yields
• Nervous investors turn to ASX 200 defensives as global energy shock drags on

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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Abacus Storage King (ASX: ASK) shares are in focus today as the company revealed plans to internalise management and rebrand as Storage King Group, a move expected to boost Funds from Operations (FFO) per security by approximately 6% on a pro forma basis.

What did Abacus Storage King report?

• Entered binding agreements with Abacus Group to internalise management, costing $19 million plus around $5 million for net assets.
• Anticipates annual cost savings of about $7 million, driving 6% FFO per security accretion (pro forma FY26).
• Retains key executives Nikki Lawson (incoming CEO/MD) and Evan Goodridge (incoming CFO) under new employment agreements.
• Upsized existing debt facility by $300 million to $1.55 billion, maintaining pricing and covenants.
• Gearing expected to rise by 40 basis points but remain inside the company’s 25–40% target range.
• Reaffirms full year FY26 distribution guidance of 6.2 cents per security.

What else do investors need to know?

From 30 June 2026, the company will transition to the new name ‘Storage King Group’ with the ASX ticker changing to ‘SKG’. The responsible entity and property trust will also adopt the Storage King brand, with proposed name changes to be approved at the AGM in November.

The transaction follows a detailed review by independent directors and advisers. It’s structured to align management incentives with shareholder outcomes and does not require shareholder approval given it’s on arm’s length terms. Transitional arrangements ensure business continuity as key staff migrate to the new structure.

Storage King Group will remain Australia’s only listed pure-play self-storage REIT, with 205 stores and a portfolio spanning 1.2 million square metres of land, mostly in major cities. Its proprietary revenue management system and ongoing developments provide a platform for future growth.

What’s next for Abacus Storage King?

Management remains confident despite the competitive self-storage environment and broader economic pressures. The company sees medium-term margin expansion supported by its technology and internal alignment following the restructuring.

Abacus Storage King has reiterated its FY26 distribution guidance and will provide a full update on operating results and initial FY27 outlook with its annual results, due 14 August 2026.

Abacus Storage King share price snapshot

Over the past 12 months, Abacus Storage King shares have declined 7%, trailing the S&P/ASX 200 Index (AX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Abacus Storage King internalises management and rebrands as Storage King Group appeared first on The Motley Fool Australia.

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• Pro Medicus inks $90m contract
• Brambles revises FY26 outlook, announces new US$400m buy-back
• Elders posts higher HY26 profit and holds interim dividend
• Life360 launches US$225m share repurchase to offset dilution

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 investment bank just posted a 30% jump in full-year profit and a record second half.

But what does it mean for shareholders going forward?

Macquarie Group Ltd (ASX: MQG) released its full-year results for FY 2026 this month, and on the surface, the numbers look excellent.

Net profit after tax rose 30% to $4.85 billion for the year ended 31 March 2026.

The second half alone delivered a record $3.19 billion in net profit, up 93% on the first half.

Return on equity improved to 14%, up from 11.2% in FY 2025.

Revenue climbed 13% to $19.5 billion while operating expenses grew only 5%, a combination that showcases the operating margins the business can generate in strong conditions.

What drove the result

All four of Macquarie’s operating divisions contributed positively to the FY 2026 result, a meaningful contrast to the prior year when the Commodities and Global Markets division disappointed.

CGM bounced back emphatically this time, delivering a net profit contribution of $4.22 billion and emerging as the standout performer for the year.

Macquarie Asset Management grew its assets under management to $959.1 billion, a figure that positions the business as one of the largest alternative asset managers in the world.

The Banking and Financial Services division continued to expand its loan and deposit books, and Macquarie Capital grew its private credit portfolio meaningfully over the period.

The dividend and capital position

Macquarie declared a final ordinary dividend of $4.20 per share, bringing the total FY 2026 dividend to $7 per share, up from $6.50 in FY 2025.

Both payments carry 35% franking.

At the current share price of around $237, Macquarie trades on a trailing dividend yield of approximately 2.95%.

The capital surplus sits at $9.3 billion, up from $7.6 billion at the half-year mark, giving management significant firepower for reinvestment or future capital returns.

What management says about the outlook

CEO Shemara Wikramanayake struck a measured tone on the year ahead, acknowledging that global economic conditions, interest rate movements, regulatory shifts, and foreign exchange impacts could all influence near-term performance.

She said:

Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework.

Looking ahead, the FY 2026 result gives investors genuine reasons for optimism heading into FY 2027.

The $9.3 billion capital surplus gives management significant firepower to deploy into new opportunities, while Macquarie Asset Management’s near-$1 trillion in assets under management provides a growing and recurring earnings base that reduces reliance on the more volatile CGM division.

With all four divisions now firing, the platform looks well set for another strong year.

Foolish Takeaway

Macquarie delivered a strong FY 2026 result, but the share price barely moved on the day of the announcement, suggesting the market had already priced in much of the good news.

For long-term investors, the combination of a diversified earnings base, a growing asset management business, and a strong capital position continues to make Macquarie one of the most attractive financial stocks on the ASX.

The post What Macquarie’s latest result tells investors about the year ahead appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: COG Financial Services, Macquarie, CBA shares
• Here are the top 10 ASX 200 shares today

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

Wildcat Resources Ltd (ASX: WC8) shares are starting the week in the red.

In morning trade, the ASX lithium stock is down 4% to 58.5 cents.

Why is this ASX lithium stock falling?

Investors have been selling the lithium developer’s shares on Monday after broad market weakness overshadowed the release of an announcement.

According to the release, Wildcat has continued to advance workstreams for a Definitive Feasibility Study (DFS) for its Tabba Tabba Project in Western Australia’s Pilbara region.

It notes that optimisation of the mine plan is being completed, aiming to bring forward the Stage 2 process plant expansion (to 4.5Mtpa processing throughput), while reducing pre-production mining strip and capital expenditure.

Positively, it highlights that spodumene concentrate grading 5.65% Li2O, with a low iron grade of 0.63% Fe2O3, has been achieved from material representing years 1-2 of processing operations.

Management also points out that the pre-feasibility study (PFS) only considered processing of the spodumene-dominant Leia and Luke orebodies. As a comparison, the DFS will include processing streams for the tantalum mineral resource at Tabba Tabba, the spodumene-petalite mineral resource of the Chewy orebody and the petalite-dominant mineral resources of the Han and Hutt orebodies.

All in all, this bodes well for the release of the DFS.

What else?

The ASX lithium stock advised that applications for environmental approvals are underway and are expected to be lodged imminently.

In addition, funding discussions have commenced with government funding agencies, banks, and seasoned mining financiers. Management also revealed that there has been strong offtake interest from tier-1 parties.

Commenting on today’s update, the ASX lithium stock’s project director, James Dornan, said:

We are close to finalising the Definitive Feasibility Study for the Tabba Tabba Project. Mine planning and metallurgical testwork is being progressed across the entire life of mine, with material from Years 1-2 of open pit operations achieving a spodumene concentrate grade of 5.65% Li2O with low iron and excellent recoveries, providing confidence for the commissioning and ramp up phases of the Project.

Surveying and geotechnical work over the development site are nearly complete, with no major issues identified. In parallel, we are moving forward on applications for environmental approvals while also advancing discussions for funding and offtake from the Project and will provide updates on these as they progress.

Following today’s move, Wildcat Resources shares are still up more than 250% from 16 cents over the past 12 months.

The post Why is this ASX lithium stock dropping despite some big news? 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.

The New Hope Corporation Ltd (ASX: NHC) share price is in focus after the company posted a quarterly update. Group Run-of-Mine (ROM) coal production rose 5.0% to 4.3 million tonnes and underlying EBITDA jumped 21.7% to $130.1 million, compared to the prior quarter.

What did New Hope Corporation report?

• Group ROM coal production: 4.26Mt, up 5.0% on the previous quarter
• Saleable coal production: 3.01Mt, up 8.7% quarter on quarter
• Total coal sales: 3.20Mt, a 10.4% quarterly lift
• Average realised sales price: $140.7/t, up 1.2% from prior quarter
• Underlying EBITDA: $130.1 million, up 21.7% from the previous quarter
• Available cash: $571.6 million at quarter end

What else do investors need to know?

New Hope successfully issued $300 million in new convertible notes due 2032, while repurchasing $293.3 million of notes due 2029, extending its debt maturity profile and reducing near-term refinancing risks. The cash balance was further supported by a fully franked 10 cent interim dividend totalling $84.3 million that was paid during the quarter.

On the operational front, the Bengalla Mine achieved a 12.4% improvement in FOB cash costs to $74.0 per sales tonne, driven by stronger sales and operational performance. New Acland Mine coal sales also increased, despite slightly lower ROM production due to higher strip ratios.

What’s next for New Hope Corporation?

For the remainder of FY26, the company reaffirmed production guidance for both Bengalla and New Acland mines, while lowering Bengalla’s sustaining capital expenditure forecast by 21%. New Hope anticipates ongoing strong demand for thermal coal from key Asian markets, with most production for the next quarter already contracted.

The company plans continued capital management initiatives, with its on-market share buy-back remaining active, and says it will keep assessing options to return further value to shareholders.

New Hope Corporation share price snapshot

Over the past 12 months, New Hope Corporation shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post New Hope Corporation posts stronger coal output and profit in third quarter appeared first on The Motley Fool Australia.

More reading

• Abacus Storage King internalises management and rebrands as Storage King Group
• Pro Medicus inks $90m contract
• Brambles revises FY26 outlook, announces new US$400m buy-back
• Elders posts higher HY26 profit and holds interim dividend
• Life360 launches US$225m share repurchase to offset dilution

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.

A decade is a useful timeframe for investors.

It is long enough for compounding to do meaningful work, but close enough to make the goal feel real.

If I were trying to build wealth by 2036, I would want a portfolio that is simple, diversified, and focused on long-term growth rather than short-term market noise.

Vanguard exchange-traded funds (ETFs) can be a good way to do that. They offer broad exposure, low costs, and the ability to invest across thousands of companies without needing to pick every winner.

Three Vanguard ETFs I would consider are named in this article.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF I would buy is the Vanguard MSCI Index International Shares ETF. It gives investors exposure to a large basket of global shares across developed markets outside Australia.

That is useful because the ASX is only a small part of the global share market. Australia has some excellent companies, but it is also heavily weighted toward banks and miners. The VGS ETF can help investors access many of the world’s biggest businesses across technology, healthcare, consumer goods, financials, industrials, and more. This includes Nvidia, Apple, and Microsoft.

I like the fund because it gives investors a broad way to benefit from global innovation and corporate earnings growth over time.

There will be market downturns along the way. But if the global economy is larger in 2036 than it is today, I think a diversified global share ETF has a good chance of being a strong wealth builder.

Vanguard Australian Shares Index ETF (ASX: VAS)

The second ETF I would consider is the Vanguard Australian Shares Index ETF.

This fund provides exposure to a broad range of Australian shares, including large companies such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Coles Group Ltd (ASX: COL).

I think this ETF can play an important role in a portfolio because Australian shares offer something different from global shares.

The local market has a strong dividend culture, and many companies pay franked dividends. That income can be reinvested while an investor is building wealth, helping the portfolio grow over time.

It may not be the fastest-growing ETF on the ASX, but I think it can be a strong foundation holding for investors who want broad exposure to the local market.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The final ETF I would look at is the Vanguard Diversified High Growth Index ETF.

It is a ready-made diversified portfolio in one fund. It provides exposure to Australian shares, international shares, emerging markets, and a small allocation to defensive assets.

That makes it appealing for investors who want simplicity.

Instead of deciding how much to put into Australian shares, global shares, emerging markets, and bonds, the VDHG ETF does much of that work inside one ETF.

The fund is still growth-focused, so it will move with share markets. But it also gives investors a wide spread of assets, which can reduce reliance on any single country or sector.

For someone aiming to build wealth by 2036, I think it could work well as a core holding or as a simple all-in-one option.

Foolish Takeaway

Building wealth by 2036 does not require a complicated portfolio. In fact, I think simplicity can be a major advantage.

There will be downturns, corrections, and years when returns disappoint. But for investors who keep adding money, reinvest income, and stay focused on the long term, these three Vanguard ETFs could be strong tools for building wealth over the next decade.

The post 3 Vanguard ETFs for Australian investors to build wealth by 2036 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $20,000 investment gives investors enough room to spread their money across a few high-quality ASX 200 shares.

I would want that money working across different parts of the market. That means avoiding three companies with the same drivers and instead looking for a mix of growth, financial exposure, and global opportunity.

Three ASX 200 shares I would consider buying with $20,000 are named in this article.

Breville Group Ltd (ASX: BRG)

The first ASX 200 share I would buy is Breville. It has built a premium consumer brand across kitchen appliances, with coffee machines at the centre of its global growth story.

I think the company is interesting because it is selling into a habit that can be very sticky. Coffee is part of many people’s daily routines, and consumers are increasingly willing to spend on better at-home equipment if it improves the experience.

That gives Breville a useful position. Its products are designed to sit in the premium end of the market, where brand, performance, design, and customer trust are important.

The growth opportunity is also global. Breville already has a strong presence in several markets, but I think there is still room to expand its brand awareness, product range, and direct distribution over time.

There are risks. Consumer spending can weaken, tariffs can affect margins, and premium appliances are not immune to economic pressure.

But if Breville keeps building its brand and winning more households internationally, I think it could be a much larger business in a decade.

Netwealth Group Ltd (ASX: NWL)

The second ASX 200 share I would consider is Netwealth. It operates an investment platform used by financial advisers and their clients. It helps with portfolio administration, reporting, investment access, and client management.

I like this business because it sits inside one of Australia’s most important long-term financial trends: the growth of personal wealth.

Australia has a huge pool of superannuation and investment assets. As more people approach retirement, inherit wealth, or seek professional advice, technology becomes increasingly important in managing that money efficiently.

Netwealth has built a strong reputation in the independent platform market. Advisers want systems that are easy to use, flexible, and reliable. Clients want better visibility over their investments.

That creates a good backdrop for Netwealth if it can keep winning flows and deepening adviser relationships.

The share price can be sensitive to market conditions because funds under administration can rise and fall with asset prices. Competition is also strong. But I think Netwealth has the kind of scalable model that can reward long-term investors if it continues taking share.

Macquarie Group Ltd (ASX: MQG)

The third ASX 200 share I would buy is Macquarie Group.

Macquarie is one of the most impressive financial businesses on the ASX in my view.

It is not a simple bank. It has operations across asset management, commodities and global markets, banking and financial services, and investment banking.

That gives Macquarie several ways to make money.

Some parts of the business can benefit from infrastructure investment. Others are exposed to commodities, energy transition, private markets, deal activity, and global capital flows.

I think that flexibility is one of the reasons Macquarie has created so much value over time.

Earnings can be uneven from year to year, and the share price can pull back when markets are weak or when deal activity slows. But I see Macquarie as a long-term compounder with a strong culture, global reach, and a proven ability to move capital into attractive opportunities.

Foolish Takeaway

I think this mix would give me exposure to three very different long-term stories.

Breville offers global brand growth, Netwealth gives exposure to the expanding wealth management platform market, and Macquarie adds a diversified financial business with global reach.

That is a useful spread for a $20,000 portfolio.

There will be weaker periods for all three shares, and valuation should still be watched. But if I were investing for the next five to 10 years, I would be happy to let these businesses work away in the background.

The post 3 ASX 200 shares I’d buy with $20,000 appeared first on The Motley Fool Australia.

More reading

• What Macquarie’s latest result tells investors about the year ahead
• What on earth’s going on with Xero shares?
• 5 years ago, $10,000 bought 63 Macquarie shares. But how many would it buy now?
• Macquarie says these two ASX 200 companies will benefit from AI, in very different ways
• Buy, hold, sell: Aristocrat, Breville, and Healius shares

Motley Fool contributor Grace Alvino 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 Macquarie Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pro Medicus Ltd (ASX: PME) share price is in focus today after the company announced a significant seven-year, A$90 million contract with Boston-based Beth Israel Lahey Health to deliver its full stack imaging platform via the cloud.

What did Pro Medicus report?

• Signed a 7-year, A$90 million contract with Beth Israel Lahey Health
• Full stack contract includes Visage 7 Viewer, Workflow, and Open Archive
• Platform to be delivered via cloud-based implementation
• Contract uses a transaction-based licensing model, offering potential upside
• Go-live rollout targeted for Q1 2027

What else do investors need to know?

Pro Medicus continues to grow its presence in North America, with Beth Israel Lahey Health—covering 14 hospitals and over 39,000 staff—joining an expanding list of clients. The contract covers the migration of existing imaging archives and integration with electronic health records, showing demand for Pro Medicus’ cloud solutions.

The company highlighted its proven cloud-based rollout process, which will commence immediately. This aligns with their broader CloudPACS strategy, aimed at setting industry standards in healthcare imaging IT.

What’s next for Pro Medicus?

The company is focused on the immediate planning and subsequent rollout of its Visage 7 cloud platform at Beth Israel Lahey Health, aiming for a Q1 2027 go-live. Pro Medicus also noted a strong pipeline, with ongoing growth across all market segments and increasing demand for its full suite of imaging products.

Looking longer term, management sees a clear trend toward health providers adopting comprehensive, cloud-based imaging solutions, positioning Pro Medicus for future opportunities.

Pro Medicus share price snapshot

Over the past 12 months, Pro Medicus shares have declined 56%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Pro Medicus inks $90m contract appeared first on The Motley Fool Australia.

More reading

• Brambles revises FY26 outlook, announces new US$400m buy-back
• Elders posts higher HY26 profit and holds interim dividend
• Life360 launches US$225m share repurchase to offset dilution
• ALS reports record FY26 earnings and dividend uplift
• What on earth’s going on with Xero shares?

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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.

Utilities and airports software company Gentrack Group Ltd (ASX: GTK) has announced it will buy New Zealand company Prospero Energy, while also reporting a fall in half-year profit.

Gentrack is tipped by broker Shaw and Partners to more than double in value, following the company’s shares falling from highs greater than $12 over the past year to $3.49 now.

We’ll get to the specific Shaw and Partners price target later.

Building out its energy division

On today’s acquisition, Gentrack said in a statement to the ASX that Prospero, which trades under the name Factor, is a software-as-a-service business serving the energy retail sector.

Gentrack said further:

Factor’s platform enables utilities to price and manage commercial electricity contracts at scale, replacing legacy systems with machine learning running over scaled data sets. Factor has global ambitions with customers in Australia and the United Kingdom, and partnerships with Salesforce and AWS. The acquisition will be integrated into Gentrack’s utilities business, enhancing its g2 energy retail platform and reinforcing Gentrack’s leadership position in the B2B energy retail segment.

Gentrack said the acquisition would help it provide the gold standard in energy pricing and forecasting.

The company added:

Gentrack’s customers include some of the world’s largest and most advanced energy retailers specializing in the Commercial and Industrial segments. Factor’s advanced systems will be an integral part of g2, allowing us to immediately bring this capability to our customer base, helping both our customers and Gentrack grow revenues. With Factor, g2 will be even more compelling to new prospects around the globe, helping us win more business and accelerate the energy transition.  

Gentrack will pay NZ$24 million for the business with a potential earn-out of NZ$10 million linked to revenue targets.

The deal is expected to be earnings per share accretive in FY28, Gentrack said.

Profit slump

The company also reported its half-year results to the end of March 31, with revenue falling from NZ$112 million to NZ$110.1 million, and net profit falling from NZ$7.2 million to NZ$5.1 million.

The company said sales cycles in the utilities sector were long, and “the long sales cycles, and two unexpected new client delays, have had an impact on our results this first half, but does not change our confidence in our medium-term growth targets of more than 15% CAGR”.  

Gentrack said its airports division, Veovo, had an “exceptional” first half.

Shares looking cheap

Shaw and Partners recently issued a research report on Gentrack, setting a $8 price target for the company.

The broker said the recent sell-off in the company’s shares “increasingly implies a structural slowdown that management commentary and pipeline visibility do not support”.

Gentrack is valued at $366.6 million.

The post Which ASX technology company, which is tipped to double in value, has just announced an acquisition? 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 positions in and has recommended Gentrack Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Brambles Ltd (ASX: BXB) share price was in focus following a trading update that revealed revised FY26 guidance and the announcement of a new US$400 million share buy-back.

What did Brambles report?

• FY26 sales revenue growth revised to 2–3% (previously 3–4%) at constant FX rates
• Underlying Profit growth now expected at 3–5% (previously 8–11%) at constant FX
• Free Cash Flow before dividends now forecast between US$1,000–1,100 million
• New US$400 million on-market share buy-back to commence after current program
• Repair capacity constraints in the US expected to impact FY26 earnings by ~US$60 million
• Dividend payout policy remains unchanged at 50–70% of Underlying Profit

What else do investors need to know?

Brambles is investing heavily in improving pallet quality and boosting repair capacity across its US network. This follows increased automation amongst customers, which demands more consistent, higher-quality pallets.

Short-term constraints arose in April 2026, driven by subcontractor changes, labour shortages, and heightened customer demand. Brambles expects these issues to ease by the end of 1H27 and will provide another update with its full-year results in August 2026.

The company is responding by increasing pallet relocations, adding repair resources, and purchasing around 2 million new pallets in 4Q26—with further purchases anticipated next half.

What did Brambles management say?

Brambles CEO Graham Chipchase said:

Our immediate priority is to meet our customers’ needs and to restore stability and service in the affected parts of our US network. Our response and ongoing investments in quality reinforce that meeting our customers’ needs is non-negotiable. We will not compromise on the investment required to meet the quality, network resilience and service outcomes our customers expect.

What’s next for Brambles?

Brambles remains focused on supporting its US operations and restoring service levels. While the company expects short-term cost headwinds, it is confident these will ease as initiatives take effect.

Looking ahead, Brambles reaffirms its FY28 goal to expand margins by at least 3 percentage points versus FY24. Ongoing investment in innovation, digital capability, and customer solutions remains a key part of Brambles’ longer-term strategy.

Brambles share price snapshot

Over the past 12 months, Brambles shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Brambles revises FY26 outlook, announces new US$400m buy-back 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.