Tag: Stock pick

The Zip Co Ltd (ASX: ZIP) share price is in focus today after the company posted record FY26 cash EBTDA of $268.9 million, up 57.9%, and a material increase in net profit after tax to $116.4 million, up 45.7% on the prior year.

What did Zip Co Limited report?

• Record cash EBTDA of $268.9 million, up 57.9% vs FY25
• Total revenue rose 24.7% to $1,336.1 million
• Operating margin expanded to 20.0%, from 15.8% last year
• Total transaction volume (TTV) increased 27.2% to $16.7 billion
• Net profit after tax of $116.4 million, up 45.7%
• Active customers grew to 6.5 million, a 3.7% lift year on year

What else do investors need to know?

Zip continued to deliver strong growth in the US, with total transaction volume and revenue up over 42% in local currency. In Australia and New Zealand, the company reported improved revenue and Australian receivables growth, led by its Zip Plus product, while announcing a wind down of its New Zealand operations to sharpen focus on Australia.

The business strengthened its funding platforms with new note issuances and warehouse facilities, increasing available cash and liquidity to $246.5 million. Zip also completed $150 million of share buybacks and announced a further on-market buyback of up to $50 million for FY27.

Looking ahead, Zip is considering a share consolidation to reduce the number of shares on issue and is exploring the possibility of a dual listing on a US stock exchange, should market conditions support this.

What did Zip Co management say?

Zip Group CEO and Managing Director, Cynthia Scott, said:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model.

Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

We delivered strong credit outcomes, strengthened our funding platforms and embedded AI across our people, processes and products. We also returned $150 million to shareholders through share buybacks and continue to optimise our capital structure, with new capital management initiatives announced today. Looking ahead, we are focused on executing on our FY27 strategic priorities to drive growth and innovation, and investing for long-term scale.

What’s next for Zip Co?

Looking forward, Zip aims to deliver group cash EBTDA of $340 million in FY27, up 26% on FY26, while targeting an operating margin of 20%–22%. US transaction volume is expected to grow by more than 30% (in USD), with a group revenue margin around 8%.

Management says it remains committed to scaling through further product innovation, AI integration, and capital management initiatives. Investors can also expect ongoing updates on potential share consolidation plans and any move towards a US dual listing.

Zip Co share price snapshot

The Zip Co share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 15%.

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The post Zip Co reports record FY26 earnings and outlines growth strategy 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. 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.

Owners of ANZ Group Holdings Ltd (ASX: ANZ) shares may not have seen a lot of net profit growth over the past decade, but investors may like to know what analysts are expecting of the ASX bank share in the coming two annual results and how that plays into the valuation.

Profit growth is not guaranteed, of course, but ANZ is facing somewhat challenging conditions, with loan demand facing headwinds amid taxation changes and higher interest rates.

But, at the same time, borrowers may be less reliable during this period of economic uncertainty and higher interest rates.

Despite that, shareholders will be pleased to know that the ASX bank share is predicted to grow earnings in the coming annual FY26 result. A projection is not a guarantee of growth, though.

FY26

The ASX bank share’s 2026 financial year finishes in September 2026, so there is still more than a month to go for ANZ.

But, the latest update from the bank showed further progress by the business.

Its quarterly cash profit of $1.9 billion showed 2% year-over-year growth. Net loans and advances were flat year-over-year at $846 billion, though there was an increase in constant currency terms.

The bank also reported that its cost-to-income ratio improved by 155 basis points (1.55%) year-over-year to 49.66%.

ANZ won’t be able to cut costs every reporting period to grow earnings, but it made a sizeable difference in the FY26 third quarter. Operating income for the bank actually declined by 1% year-over-year, while operating expenses improved by 4%. That helped profit before provisions increase 3% to $2.8 billion.

It was a 6% rise in the provision charge to $102 million and a 4% rise in the income tax expense to $819 million that meant the cash profit growth was slower than the profit before provisions growth. Profit is important for supporting ANZ shares.

Analysts expect the ASX bank share’s earnings per share (EPS) to rise to $2.566 in the 2026 financial year, according to Commsec.

FY27

There are a number of things that ANZ is working on to improve its operations in the coming years, including in FY27.

First, ANZ wants to embed its new leadership team and continue to drive a cultural reset.

Second, the ASX bank share wants to integrate Suncorp Bank faster to deliver value.

Third, ANZ wants to accelerate the delivery of its single customer digital front-end.

Fourth, it wants to reduce duplication and simplify the organisation. It noted that 84% of 3,500 announced roles exited the bank by the end of June 2026. Around of 73% of estimated gross cost savings of $875 million in FY26 were realised by the end of June 2026.

Fifth, it wants to enhance non-financial risk management to improve the ASX bank share’s resilience.

The projection on Commsec suggests the business could see EPS slightly fall to $2.55 in FY27.

Therefore, ANZ’s profit isn’t likely to do much after FY26, so there could be better ASX shares to consider.

The post Here’s the earnings forecast out to 2027 for ANZ shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus after the company reported half-year revenue up 22% to US$477 million and a strong gross margin improvement to 55%. Adjusted EBITDA surged 146% year-on-year to US$52 million.

What did Telix Pharmaceuticals report?

• Revenue rose 22% year-on-year to US$477 million, tracking to the upper end of FY26 guidance.
• Gross margin climbed to 55%, with Precision Medicine segment margin at 65%.
• Adjusted EBITDA came in at US$52 million, up 146% on the prior year.
• Profit after tax was US$38 million, including a US$40 million payment from Regeneron.
• Group R&D investment was US$124 million, mainly supporting late-stage programs.
• Positive operating cash flow of US$23 million and cash balance of US$252 million at 30 June 2026.

What else do investors need to know?

Telix announced a new strategic collaboration with Regeneron to develop and commercialise next-generation radiopharmaceutical therapies, contributing US$40 million in other income this half. The company also completed refinancing of its convertible bond structure with a new US$600 million issue due 2031.

Operationally, the Precision Medicine segment drove growth with flagship products Illuccix and Gozellix gaining market share. Key clinical milestones were achieved, including enrolment completion for late-stage trials and regulatory progress in the US, China, Europe, and Japan. Telix is also expanding its global manufacturing footprint with new and upgraded facilities in Australia, Belgium, Japan, and the US.

What did Telix Pharmaceuticals management say?

Managing Director and Group CEO, Dr Christian Behrenbruch, said:

Telix delivered an outstanding first half, with strong revenue growth, market share gains and significant progress across clinical and regulatory milestones. Our strengthened balance sheet is enabling increased investment in late-stage programs, including ProstACT Global, market expansion opportunities within our precision medicine portfolio and manufacturing and supply chain capabilities that differentiate Telix. With multiple near-term catalysts, we enter the second half with strong momentum and confidence.

What’s next for Telix Pharmaceuticals?

Telix reaffirmed FY26 revenue and other income guidance above US$1 billion, with R&D expenditure expected between US$230 million and US$270 million. The company expects ongoing clinical trial readouts and regulatory submissions in key territories later in the year.

Strategically, Telix will leverage its expanded manufacturing capacity and commercial partnerships to support commercial growth and pipeline advancement. The new at-the-market equity facility is intended to provide flexible access to capital to underpin future expansion, subject to regulatory approvals.

Telix Pharmaceuticals share price snapshot

The Telix Pharmaceuticals share price has recorded a small decline over the past 12 months, compared with a 1.5% gain from the S&P/ASX 200 index (ASX: XJO).

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The post Telix Pharmaceuticals delivers robust half-year earnings and pipeline progress 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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 Autosports Group Ltd (AS:X ASG) share price is in focus today after the prestige car retailer posted record full-year revenue of $3.19 billion and normalised profit before tax up 11.1%.

What did Autosports Group report?

• Record FY26 revenue of $3.19 billion, up 11.9% year on year
• Gross profit reached $589.7 million, up 15% from FY25
• Normalised NPBT of $53.5 million, up 11.1%
• New vehicle order write climbed 20% compared to the prior year
• Order bank soared 290% since 30 June 2025
• Vehicle service and parts revenue increased by 16% and 22%, respectively

What else do investors need to know?

Autosports Group’s core prestige and luxury segments stayed resilient despite challenging market conditions, supported by strong demand for new energy and electric vehicles. The group faced stock shortages in the final quarter as accelerated demand for electric models outpaced inventory, but it maintained gross margins at 18.5%.

To fund growth and expand its network, the company increased its Syndicated Facility Agreement by $85 million to $435 million, extending maturities and relaxing some covenants. Meanwhile, new greenfield dealerships are scheduled to open in Sydney, and a key property acquisition in Canberra will strengthen its ACT operations.

What did Autosports Group management say?

Chief Executive Officer Nick Pagent said:

Our record performance reflects our disciplined growth strategy and commitment to representing brands that are future-ready. The surge in electric vehicle demand puts us in a strong position as new supply arrives.

What’s next for Autosports Group?

Autosports Group remains upbeat as it enters FY27 with new dealership launches, including Mercedes-Benz Southport and new luxury EV brands Omoda Jaecoo and XPENG in Sydney. The acquisition in Canberra underpins further expansion plans.

Management expects the record order bank to begin unwinding in the second half of FY27 as new electric vehicle supply finally meets strong demand. Additional growth is anticipated from newly acquired businesses and continued roll-out of new electric and luxury vehicles, positioning Autosports Group well in the evolving automotive market.

Autosports Group share price snapshot

Over the past 12 months, Autosports Group shares have declined 46%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Autosports Group posts record revenue and surging EV orders 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 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 Fortescue Ltd (ASX: FMG) share price is in focus after the company delivered record iron ore shipments and posted a nine per cent jump in underlying EBITDA to US$8.6 billion for the year ended 30 June 2026.

What did Fortescue report?

• Revenue grew 9% to US$17.0 billion.
• Underlying EBITDA rose 9% to US$8.6 billion (margin: 51%).
• Underlying net profit after tax (NPAT) increased 3% to US$3.5 billion.
• Free cash flow up 25% to US$3.2 billion.
• Fully franked dividends for FY26 totalled A$1.08 per share (65% payout ratio).
• Net debt reduced to US$0.9 billion; cash balance at US$5.1 billion.

What else do investors need to know?

Fortescue achieved record iron ore shipments of 201.3 million tonnes, supported by ongoing operating excellence and a focus on safety, with a Total Recordable Injury Frequency Rate of 1.3. The company’s Hematite C1 unit cost was US$18.74 per wet metric tonne, within guidance despite higher energy prices.

Fortescue advanced its Green Grid strategy, progressing renewable energy projects and installing over 300,000 solar panels in the Pilbara. The company also completed the acquisition of Alta Copper, expanding its copper portfolio in Peru.

Ongoing investments in technology, including artificial intelligence for operations and energy management, are intended to boost productivity and long-term cost competitiveness.

What did Fortescue management say?

Fortescue Metals and Operations CEO Dino Otranto said:

Our record operating performance this year underpinned a nine per cent increase in Underlying EBITDA and a 25 per cent increase in free cash flow. We invested US$3.6 billion across the business and finished the year with US$5.1 billion in cash and net debt of just US$0.9 billion. That puts us in a strong position to continue investing in growth while delivering returns to shareholders.

What’s next for Fortescue?

Guidance for FY27 includes 197–207 million tonnes of iron ore shipments and a Hematite C1 unit cost between US$20.50 and US$21.75 per wet metric tonne. Planned capital expenditure is up to US$4.7 billion for metals, with an additional US$150 million earmarked for energy investments.

Fortescue will continue developing its renewable Green Grid, expanding exploration efforts, and focusing on autonomous and AI-driven efficiency improvements. The company aims to build on its strong financial position to support future growth across metals and energy.

Fortescue share price snapshot

The Fortescue share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 7%.

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The post Fortescue hits new records in FY26: profit up, dividends flow 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX dividend shares are some of the most appealing things about investing in the Australian stock market because of the dividend yields on offer.

It’s one thing to hope for good capital growth, but seeing real cash hit the bank account during the year is especially appealing to investors seeking passive income.

I’m going to highlight two ASX dividend shares that have yields above 7%

Charter Hall Long WALE REIT (ASX: CLW)

This business is a real estate investment trust (REIT) that aims to maximise the distribution income that it provides to investors. It also has tenants locked into long-term rental contracts. The average weighted lease expiry (WALE) of the REIT is around nine years.

Charter Hall Long WALE REIT is invested in various types of commercial property around Australia such as hotels and pubs, grocery and distribution, telecommunication exchanges, data centres, service stations, banking and professional services, food manufacturing, healthcare and more.

The reason why it’s able to provide such a good distribution yield to investors is because it targets a distribution payout ratio of 100% of its rental earnings. In other words, it pays out all of its rental profit each year.

The business expects to pay an annual distribution per unit of 25.5 cents in FY27. That translates into a distribution yield of 7.1%, at the time of writing.

I think this is a great time to invest in the business because it’s trading at a 24% discount to the net tangible assets (NTA) per security of $4.71 as of 30 June 2026.

With rental income regularly growing thanks to fixed annual increases and inflation-linked increases, the business has a compelling outlook for rental growth for the foreseeable future.

Dexus Industria REIT (ASX: DXI)

The other ASX dividend share I want to highlight is Dexus Industria REIT, which is invested in high-quality industrial warehouses across Australia. As of 30 June 2026, the portfolio was valued at $1.5 billion and is allocated across major Australian cities.

It aims to provide sustainable income and long-term capital growth for investors.

There are a number of tailwinds supporting the rental potential and value of industrial real estate, including growing e-commerce adoption, increased demand for refrigerated space, and the onshoring of logistics.

In FY26, the business reported strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong re-leasing spreads of 21.4% and a high occupancy rate of 98.8%.

A re-leasing spread tells investors what the new rate of rent is compared to the old rental rate. The reported re-leasing spread figure implies a rental increase of 21.4% compared to the old rental contract.

The business expects to pay an annual distribution of 16.6 cents per security in FY27, translating into a yield of 7.1%, at the time of writing.

The ASX dividend share also looks cheap because it’s trading at a 32% discount to its reported NTA as of 30 June 2026.

The post 2 ASX dividend shares with yields above 7% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 NRW Holdings Ltd (ASX: NWH) share price is in focus after the company announced record full-year earnings and outlined a strong outlook. Revenue jumped 31.4% to $4.3 billion while underlying EBITA soared nearly 39% to $288.6 million.

What did NRW Holdings report?

• Revenue rose 31.4% to $4.3 billion (FY25: $3.3 billion)
• Underlying EBITA climbed 38.8% to $288.6 million
• Underlying NPAT up 43.6% to $182.7 million
• Fully franked final dividend of 14.5 cents per share, up 53%
• Underlying EBITA margin increased to 6.7% from 6.4%
• Fredon acquisition added new earnings pillar EMIT

What else do investors need to know?

NRW’s impressive result reflects growth across all divisions as well as a nine-month contribution from acquired company Fredon. This acquisition formed the company’s fourth operating segment, EMIT, increasing exposure to promising sectors like health, defence and data centres.

Mining produced stronger profits after improved productivity and reduced weather impacts in Queensland. Meanwhile, the civil segment kept steady margins despite softer resource construction demand in some regions.

The company finished the year with $7.5 billion in secured revenue and a future work pipeline worth $29.1 billion, including $11.1 billion in active tenders. Refinancing of bank facilities in July 2026 has further strengthened NRW’s balance sheet.

What’s next for NRW Holdings?

Looking ahead, NRW expects revenue of $4.6 billion–$4.8 billion and underlying EBITA of $320–$330 million in FY27, with around 85% of revenue already secured. The business will continue targeting growth across resources, energy transition, defence, infrastructure and data centre markets.

Thanks to a wider set of operating segments and a robust balance sheet, NRW aims to pursue further acquisitions and maintain disciplined capital allocation, supporting its competitive edge in attractive long-term sectors.

NRW Holdings share price snapshot

Over the past 12 months, NRW shares have risen 104%, significantly outperforming the All Ordinaries Index (ASX: XAO).

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The post NRW reports record FY26 earnings, strong FY27 outlook appeared first on The Motley Fool Australia.

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

The APA Group (ASX: APA) share price is in focus after the company reported an 8.3% lift in underlying EBITDA to $2,183 million, surpassing guidance, and announced its 22nd consecutive increase in securityholder distributions.

What did APA Group report?

• Underlying EBITDA rose 8.3% to $2,183 million (FY25: $2,015 million), ahead of the midpoint of guidance
• Free cash flow increased 3.2% to $1,118 million
• Statutory revenue (excluding pass-through) was up 1.9% to $2,764 million
• Statutory net profit after tax jumped 81.4% to $234 million
• FY26 distribution increased 1.8% to 58.0 cents per security, in line with guidance
• EBITDA margin improved by 370bps to 77.9% due to $80 million of cost-out initiatives

What else do investors need to know?

APA’s cost-out program delivered $80 million in savings, exceeding its $50 million target and underpinning stronger margins. Capital investment of $546 million went into major growth projects, such as the Brigalow Peaking Power Plant, East Coast Gas Grid expansion, and Sturt Plateau Pipeline.

The group continues to streamline operations, with business simplification initiatives, divestments, and restructuring measures. Its organic growth pipeline has expanded to approximately $3.5 billion, supported by a strong balance sheet and debt raises, positioning APA to fund new opportunities.

What did APA Group management say?

APA CEO and Managing Director, Adam Watson, said:

FY26 was a year of strong financial and operational performance as we continue to deliver on our commitments to securityholders and position APA to capture value from our ~$3.5 billion organic growth pipeline. Our underlying earnings were up 8.3% and above the mid-point of guidance, supported by new assets and ongoing strong operational performance. $80 million in cost-out initiatives were delivered across the year, exceeding our target. Securityholder distributions again increased for the 22nd consecutive year.

What’s next for APA Group?

Looking ahead, APA has outlined underlying EBITDA guidance for FY27 of $2,260 million to $2,340 million, indicating mid-single-digit growth. This is expected to be driven by inflation-linked tariff escalation, the benefit of the new Sturt Plateau Pipeline, asset conversions, and ongoing cost savings.

Distributions to securityholders are forecast to grow to 59.0 cents per security in FY27. APA is also advancing projects in renewable energy, gas-powered generation, and infrastructure to support data centres, while maintaining a disciplined approach to capital allocation.

APA Group share price snapshot

The APA Group share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of 15%.

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The post APA Group FY26 delivers strong earnings, pipeline expansion, and 22nd annual dividend increase 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 Apa Group. 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 Maas Group Holdings Ltd (ASX: MGH) share price is in focus after the company delivered record FY26 results, with underlying revenue jumping 27% to $1.26 billion and underlying EBITDA rising 37% to $300.3 million, in line with updated guidance.

What did Maas Group report?

• Underlying revenue: $1,263.8 million, up 27% on prior corresponding period (pcp)
• Underlying EBITDA: $300.3 million, up 37% on pcp, matching updated guidance
• Statutory NPAT: $136.1 million, up 89%
• Underlying NPAT: $123.4 million, up 57%
• Underlying EPS: 34.2 cents, up 51% on pcp
• Operating cashflow conversion: 93%
• No final dividend declared for FY26

What else do investors need to know?

Maas Group pushed forward with its new capital management framework, favouring share buybacks over dividends. The group invested $55.1 million in buybacks since February and is seeking shareholder approval to increase its buyback capacity to 20% of issued capital.

A major sale of the Construction Materials portfolio to Heidelberg Materials Australia, valued at up to $1.703 billion, remains on track to settle in October 2026. This move is expected to further strengthen Maas Group’s balance sheet and provide additional options for future growth.

The group’s electrical division stood out as a key growth driver, with $1.2 billion in external work in hand. The recently secured $855 million Firmus purchase order provides further visibility on earnings for FY27 and beyond.

What did Maas Group management say?

Wes Maas, Managing Director and CEO, said:

FY26 was a defining year for Maas Group. We delivered a record result, and importantly our continuing operations exceeded the guidance range confirming the quality of the business we are carrying into FY27.

What’s next for Maas Group?

Maas Group expects strong revenue and profit growth from continuing operations into FY27, supported by its booming electrical manufacturing arm and a healthy pipeline of residential land settlements. Proceeds from the material sale are expected to provide extra firepower for earnings-accretive investment opportunities.

The company will shift to four reporting segments from FY27: Electrical, Residential Real Estate, Commercial Real Estate, and MGH Investments. The share buyback will remain in place, reflecting Maas Group’s belief that its shares are trading below underlying value.

Maas Group share price snapshot

Over the past 12 months, Maas Group shares have risen 32%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Maas Group delivers record FY26 earnings, boosts buybacks, eyes growth appeared first on The Motley Fool Australia.

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

The Megaport Ltd (ASX: MP1) share price is likely to come under the spotlight today as the company announced FY26 revenue surged 37% to $312.2 million, with EBITDA up 24% to $77.1 million and Group Annual Recurring Revenue jumping 62% to $395.2 million.

What did Megaport report?

• Revenue up 37% to $312.2 million (FY25: $227.1 million)
• EBITDA rose 24% to $77.1 million (FY25: $62.3 million)
• Net loss of $39.0 million (FY25: loss of $0.3 million)
• Group Annual Recurring Revenue (ARR) increased 62% to $395.2 million
• Cash and cash equivalents at year end: $435.4 million
• No dividend declared for FY26

What else do investors need to know?

Megaport completed the acquisition of the compute platform Latitude.sh and India’s Extreme IX internet exchange, broadening its platform and opening new markets. The company also executed over $1 billion in capital raises to fund large strategic contracts and establish an on-demand GPU pool.

During FY26, Megaport delivered eight significant multi-year infrastructure contracts valued at $747.8 million, underscoring rising demand for integrated network, compute and storage solutions, especially supporting AI workloads. Its ongoing global expansion included adding 155 data centres and further building out its US and Indian operations.

What did Megaport management say?

Megaport’s CEO, Michael Reid, said:

A year ago, I said FY26 would be a year of acceleration. We delivered on that promise and went much further, completely transforming the scale, reach, and ambition of Megaport.

FY26 produced an exceptional result. Group Annual Recurring Revenue increased by 62% to $395.2 million, revenue grew by 37% to $312.2 million, and EBITDA reached $77.1 million. These are incredible results and we’re only just getting started.

What’s next for Megaport?

Looking ahead to FY27, Megaport plans to keep integrating its acquisitions, efficiently deliver contracted infrastructure, and bring its on-demand GPU pool to market. Management will also focus on sustaining network momentum while unifying compute, network, and storage through software, aiming to build on its position in distributed AI and digital infrastructure solutions.

Megaport says its priorities are disciplined investment in growth where demand is clear and where the business model provides strong returns. The board remains confident about the company’s international growth opportunity and will continue to pursue markets for cloud, AI, and digital workloads.

Megaport share price snapshot

Over the past 12 months, the Megaport share price has rocketed 42%, outpacing the S&P/ASX 200 Index (ASX: XJO) and the broader tech sector’s performance.

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The post Megaport FY26: Earnings soar as AI and global footprint drive strategy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.