Tag: Stock pick

This battered ASX industrial stock is pushing higher today, up around 7% to $3.25 during Tuesday morning trade. The jump has come after the company reassured investors with a steady trading update.

The rally comes after Reliance Worldwide Corporation Ltd (ASX: RWC) reaffirmed its FY26 outlook and provided fresh clarity on key risks, including US tariffs and geopolitical tensions in the Middle East.

Even with today’s gain, the ASX industrial stock remains about 20% lower over the past year. That’s a sharp contrast to the roughly 10% rise in the S&P/ASX 200 Index (ASX: XJO).

What did Reliance Worldwide report?

Reliance Worldwide is a global plumbing and water flow solutions company. It designs and manufactures products like push-to-connect fittings, valves, and pipes used in residential and commercial buildings.

Its earnings are closely tied to construction activity, renovation trends, and input costs like metals and resins. This makes it sensitive to both economic cycles and global supply chain pressures.

Today’s update was all about stability. The ASX industrial stock confirmed that its FY26 full-year guidance remains unchanged after nine months of trading to 31 March 2026, a key confidence signal in a volatile environment.

On tariffs, the company expects the FY26 net cost impact from US measures to land at the lower end of its previously guided US$25 million to US$30 million range. Looking ahead, the company forecasts FY27 tariff impacts to ease further to between US$5 million and US$7 million.

Importantly, there were no material changes to its broader assumptions. This includes regional outlooks, group performance, cash flow conversion, or cost-saving initiatives.

Tariffs and global risks: What’s changed?

The industrial company also flagged two notable developments in US trade policy. First, tariffs imposed under emergency powers (IEEPA) were struck down by the US Supreme Court and replaced with a temporary Section 122 tariff, set to expire in July 2026. The company has lodged a claim to recover previously paid tariffs, although the final amount remains uncertain.

Second, there have been updates to Section 232 tariffs covering key materials like steel, aluminium, and copper. Despite these shifts, the ASX industrial stock does not expect a meaningful impact on its FY26 earnings or cash flow.

What’s next?

Looking ahead, Reliance Worldwide expects to stay on track for FY26, even as higher oil prices push up costs across resin, logistics, and energy. The company is offsetting these pressures through price increases. It currently does not expect material disruption from the conflict in Iran this financial year.

That said, management of the ASX industrial stock did strike a cautious note: a prolonged escalation in the Middle East could start to influence operating conditions into FY27.

Foolish Takeaway

Today’s share price jump suggests investors are breathing a sigh of relief.

The ASX industrial stock isn’t firing on all cylinders yet. However, steady guidance, easing tariff pressures, and manageable risks may be enough, for now, to rebuild confidence.

The post Why this beaten-down ASX industrial stock just spiked 7% appeared first on The Motley Fool Australia.

More reading

• Reliance Worldwide resets FY26 outlook, updates on tariffs and Middle East
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther 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.

Heart disease technology company Echo IQ Ltd (ASX: EIQ) has struck a major deal in the US, which will lead to one of its technologies being deployed into the Mount Sinai Health System.

Growing the footprint

The company said in a statement to the ASX on Tuesday that EchoSolv AS would be deployed into Mount Sinai, which comprises seven hospitals, more than 400 outpatient practices, and more than 3,760 beds

EchoSolv AS is an AI-based decision support software package for the assessment of severe aortic stenosis.

The company said Mount Sinai was a prestigious organisation to be associated with.

It added:

The system services millions of patient interactions annually, encompasses over 3,760 beds across campuses, and is consistently ranked among the top hospitals in the US across multiple specialties, including cardiology and heart surgery. Its scale, research pedigree and clinical leadership position it as a high-volume, high-complexity healthcare network at the forefront of adopting advanced digital health and AI-enabled technologies. The deployment marks a significant milestone for Echo IQ and reflects the Company’s continued growth as health systems and cardiology practices seek practical AI products that can be integrated into existing clinical workflows.

Echo IQ US General Manager Nick Lubbers said the company was proud to be working with such a highly regarded health system.

He added:

This deployment is an important step in our US commercial growth and underscores increasing interest in solutions that can support cardiologists within routine echocardiography workflows. We believe EchoSolv AS offers a practical, measurement-based second look that can help physicians assess severe aortic stenosis more consistently and look forward to working with The Mount Sinai Health System to demonstrate its utility at scale.

Echo IQ shares initially traded more than 8% higher on the news on Tuesday morning before falling back to be 5.2% lower at $1.08.

Shares looking like good value

The analyst team at Morgans have a price target of $1.30 on Echo IQ shares, but has flagged that there’s further significant upside possible following FDA approval for one of the company’s other technologies, EcholSolv HF.

As they said in a note to clients recently:

We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.

Echo IQ is valued at $757 million.

The post This ASX biotech has just announced a major US deal appeared first on The Motley Fool Australia.

More reading

• This ASX health tech stock just hit a new record high. Could it go even higher?
• 2 undervalued ASX shares to buy that experts think could deliver strong returns

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.

National Australia Bank Ltd (ASX: NAB) shares have slumped in morning trade on Tuesday.

At the time of writing, NAB shares are down 0.8% higher to $39.88 a piece. 

The latest decline means that shares are now down 6% for the year-to-date and 11% higher over the year.

The banking giant has been in the spotlight over the past 12 months after ASX bank stocks flew higher in 2025. The uptick in interest came off the back of higher inflation rates and anticipation of more interest rate increases.

So far this year, NAB shares have been pretty volatile. Their value has swung anywhere between $49.10 and the current trading price of $39.88. That’s around a $10 difference. 

In February, NAB reported stronger-than expected profits in its first quarter FY26 earnings result. The banking giant revealed a 15% hike in its cash earnings and a 6% increase in revenue. 

News of a hike in inflation and the Middle East conflict drove the bank’s share price even higher in early March. But broad bank sector pressure and concerns about the bank’s higher expected impairment charges have seen some investors sell up their shares.

So, if I invested $5,000 in NAB shares 6 months ago, what are they worth today?

At the time of writing, NAB shares are 10.5% lower than six months ago.

The current share price means that an investor who invested $5,000 in NAB shares six months ago would have $4,475 today.

But any investors who bought the same amount of NAB shares one year ago would now be sitting on a profit. The 11% annual increase means $5,000 would now be worth $5,550.

What’s next for NAB shares? Are they a buy, sell or hold?

It looks like the peak has passed for NAB shares.

According to TradingView data, some brokers are still optimistic that we could still see an upside ahead for the bank stock. With two out of 16 analysts ripping an upside of up to 26% to $5.50.

But the majority have a more bearish outlook. Seven analysts have a hold rating and another seven have a sell or strong sell rating.

The average target price is $39.84, which implies a small potential 0.1% downside at the time of writing. But others are much more pessimistic and think the share price could crash up to 25% to $30 a piece over the next 12 months.

The post $5,000 invested in NAB shares 6 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• How does Morgans rate ANZ, BOQ, CBA, NAB, and Westpac shares?
• Buy, hold, sell: ANZ, NAB, and WiseTech shares
• NAB shares: Are they cheap enough to buy after the latest drop?
• Why Monash IVF, NAB, Viva Energy, and Worley shares are falling today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday

Motley Fool contributor Samantha Menzies 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.

S&P/ASX 200 Index (ASX: XJO) gold stock Pantoro Gold Ltd (ASX: PNR) is sinking today.

Pantoro Gold shares closed yesterday trading for $3.81. In morning trade on Tuesday, shares are swapping hands for $3.52 each, down 7.6%.

For some context, the ASX 200 is down 0.6% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a steeper 2.1%.

Pantoro is focused on its 100%-owned Norseman Gold Project, located in Western Australia. The project has a current Total Mineral Resource of 4.6 million ounces of gold.

Here’s why investors look to be favouring their sell buttons today.

ASX 200 gold stock slides on weather woes

Pantoro Gold shares are under pressure following the release of the company’s third-quarter update (Q3 FY 2026).

For the three months to 31 March, the ASX 200 gold stock produced 17,757 ounces of gold. That’s down 19.5% quarter on quarter.

The miner sold 20,016 ounces of gold during the quarter, receiving an average price of $6,916 per ounce.

Investors will also have noted the rising costs.

Pantoro Gold reported an all-in Sustaining Cost (AISC) for the quarter of $3,204 per ounce. That’s up 24.5% from the AISC of $2,573 per ounce in Q2 FY 2025.

On the earnings front, the ASX 200 gold stock reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $88.4 million.

The miner’s cash and gold balance increased by $37.7 million over the quarter, after exploration and project capital expenditures of $32.7 million.

Over the three months, Pantoro Gold continued with its exploratory drill campaign, operating four underground diamond drill rigs and three reverse circulation (RC) surface rigs. The miner expects a fifth underground diamond drill at Norseman within the next few weeks.

The March quarter also saw Pantoro Gold announce a share buyback program. The company has since purchased some $4.63 million worth of shares under the buyback program.

What’s been hampering Pantoro Gold’s operations?

Like many miners in Western Australia, the ASX 200 gold stock was hit with wet weather and low cloud during February and March.

This impacted flights in and out of site, open-pit mining, and ore haulage activities. Pantoro’s Scotia mine also suffered flooding from Cyclone Mitchell.

As for impacts from the Middle East conflict, management noted:

To date, Pantoro has not been affected by the nation-wide fuel shortages and has long term supply contracts in place with a major Australian refiner and fuel supplier. The situation is being closely monitored with contingency planning in place should it be required in the future.

Management reaffirmed that Pantoro Gold is on track to achieve its full-year FY 2026 production guidance range of 86,000 to 92,000 ounces of gold.

The post Why is this $1.5 billion ASX 200 gold stock tumbling 8% today? appeared first on The Motley Fool Australia.

More reading

• This ASX gold stock just made a key move. Here’s why investors are watching closely
• How this $1.5 billion ASX 200 gold stock is on track to ramp up FY 2027 production
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben 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 Coles Group Ltd (ASX: COL) share price has soared in the last several weeks, and it’s close to its all-time high, as the chart below shows.

Coles isn’t just a supermarket business, though that segment makes the lion’s share of earnings. Other businesses include Coles Liquor, Liquorland, Flybuys, and Coles Financial Services (insurance, credit cards, and personal loans).

Its earnings diversification is not the reason why I think the company is appealing. Instead, there are (at least) three aspects that make Coles shares even at this level.

Inflation hedge

Time will tell how much inflation flows through the economy as a result of the Middle East conflict, but it could be noticeable or even substantial, depending on how long it takes before fuel starts flowing out of the Middle East again at a normal rate.

A few years ago, Coles showed it was very willing to pass on inflation to customers (which was a boost to revenue). Perhaps the company would handle the situation slightly differently these days.

Plenty of businesses may struggle in the face of a higher inflationary period, but Coles could be a good hedge for inflation.

Even without higher inflation, I still believe Coles is capable of delivering rising revenue thanks to Australia’s growing population, its expanding own brand product range, and a growing supermarket range.  

Improving profit margins

The company’s profit margins are regularly increasing thanks to its efforts at improving its supply chain.

Each of its profit lines improved at a faster pace than the one before it. In the FY26 half-year result, it reported revenue growth of 2.5%, operating profit (EBITDA) growth of 7.8%, EBIT growth of 10.2%, and underlying net profit growth of 12.5%.

The business has invested significantly in automated distribution centres (ADCs) and customer fulfilment centres (CFCs).

The ADCs and CFCs are helping improve in-store availability, stock freshness, and efficiencies (including costs).

With the CFCs specifically, they’re delivering a “significant uplift in customer metrics”. There has been a more than 2x perfect order rate compared to the in-store fulfilment, an increase in the range of 33% compared to the average store range, and there has been a significant increase in the net promoter score (NPS – customer satisfaction).  

Solid dividend yield

At the current Coles share price, it doesn’t offer the biggest dividend yield around. But it’s at an appealing level for investors wanting passive income.

According to the projection on CommSec, it’s forecast to pay an annual dividend per share of 76.6 cents in the 2026 financial year. That translates into a grossed-up dividend yield of 4.8%, including franking credits.

The post 3 reasons why the Coles share price is a buy appeared first on The Motley Fool Australia.

More reading

• Nervous investors turn to ASX 200 defensives as global energy shock drags on
• Stagflation: How to position an ASX stock portfolio
• Buy, hold, or sell? Coles, Wesfarmers, BHP shares
• Where I’d invest on the ASX for passive income right now
• 3 reasons to buy Coles shares today

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.8% to 8,697.6 points at the time of writing on Tuesday.

The market looks set to endure a sixth consecutive session in the red despite news of Iran offering the US a new peace deal.

Analysts at Trading Economics said:

Tehran reportedly signaled via Pakistan that hostilities could cease if Washington lifted its naval blockade, agreed to a revised framework governing transit through Hormuz, and provided assurances against future military action.

The US has expressed skepticism toward the proposal and is expected to respond with counteroffers in the coming days, with Iran’s nuclear program continuing to be a key point of contention.

Meanwhile on the The Bull this week, two experts give us their views on three ASX 200 shares.

Let’s check them out.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is $231.150, down 0.4% today and up 16% over the past month.

Jonathan Tacadena from MPC Markets has a buy rating on this ASX 200 bank share.

Tacadena likes Macquarie’s diversified business operations across more than 30 markets.

Its diversification appeals to investors, particularly in volatile markets. The trading desk has been a driver of growth in previous years and we suspect it will feature prominently at the company’s full year results due in May.

We believe the company’s outlook is bright. The company’s solid track record has stood the test of time.

Macquarie is scheduled to release its full-year FY26 results on next Friday, 8 May.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is $1.59, up 1% today and down 43% over the past 12 months.

Tacadena has a hold rating on this ASX 200 uranium share. 

The analyst said: 

Boss has cut production guidance at its Honeymoon operation in South Australia from 1.6 million pounds drummed to between 1.4 million and 1.45 million pounds drummed.

Heavy rain had impacted third quarter production in 2026 by restricting site access and limiting the delivery of goods required for production.

The share price fell on the news, but bounced in the following days, indicating the lows may be in for BOE and downside risk is lower for now.

Any good news moving forward should reward patient investors.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $171.77, down 0.8% today and up 7% in the year to date.

Damien Nguyen from Morgans has a sell rating on the market’s biggest company.

Nguyen said: 

CBA is Australia’s strongest major bank, with a leading retail franchise and consistent profitability. However, the market fully recognises these strengths.

The shares were recently trading at a significant premium, leaving limited upside as interest rate benefits fade and competition increases.

While the business remains high quality, future returns are likely to be more modest, in our view.

With the company’s valuation pricing in a lot of good news, we see better value elsewhere, supporting a sell view.

The post Buy, hold, sell: Macquarie, Boss Energy, CBA shares appeared first on The Motley Fool Australia.

More reading

• Down 42% in a year, are Boss Energy shares now a bargain buy?
• Experts name 3 ASX 200 shares to sell now
• These are the 10 most shorted ASX shares
• Buy, hold, sell: Brambles, CBA, and Macquarie shares
• Market alert: 2 major ASX bank shares could fall double digits

Motley Fool contributor Bronwyn Allen 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.

New research from the AFR and State Street shows that the ASX ETF market continues to grow at record pace. 

According to the report, the Australian market could grow to $380 billion in funds under management in 2026, up from about $320 billion last year and just $71 billion in 2020.

The rise of thematic investing

A significant shift that is contributing to this trend is the rise of thematic investing.

Traditionally, ASX ETFs were designed to track broad, diversified indexes like the S&P/ASX 200 Index (ASX: XJO) or S&P 500 Index (SP: .INX). 

However thematic funds focus on much more specific, niche sectors or “themes”. 

This focus can bring amplified returns when these sectors outperform the broader market, as investors gain concentrated exposure to high-growth areas. 

These can be areas like clean energy, artificial intelligence, or cybersecurity. 

However, this same concentration also introduces higher volatility and risk, particularly if the theme falls out of favour or fails to deliver on expected growth. 

Exploring which thematic funds have outperformed can give great insight into the broader economic landscape as to which industries and sectors are outperforming. 

With that in mind, here are three of the best thematic ASX ETFs over the last three years. 

Global X Semiconductor ETF (ASX: SEMI)

This ASX ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

It has risen more than 232% in the last three years, driven by the explosion in artificial intelligence.

Semiconductors are a special type of material that can control electricity – sometimes it lets electricity flow, sometimes it blocks it.

Because of this property, semiconductors are the building blocks of modern electronics. They’re used to make microchips, which power everything from your phone to cars to medical devices.

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

This ASX ETF aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies (ex-Australia), hedged into Australian dollars.

In the last 3 years, it has risen more than 173%. 

It has risen over the past three years mainly because a strong bull run in gold prices boosted the profits of gold mining companies, whose earnings (and share prices) tend to increase faster than the underlying commodity.

VanEck Australian Banks ETF (ASX: MVB)

Put simply, this fund gives investors exposure to a portfolio of seven ASX-listed banks and financial institutions. 

This includes the big four banks. 

It has risen approximately 48% in the last three years, driven by high interest rates boosting bank profits, and solid dividend payouts attracting investors. 

The post 3 of the best performing thematic ASX ETFs over the last 3 years appeared first on The Motley Fool Australia.

More reading

• How to invest in the AI Build-Out: Expert

Motley Fool contributor Aaron Bell 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.

European Lithium Ltd (ASX: EUR) has confirmed it plans to merge with its joint venture partner, Critical Metals Corp (NASDAQ: CRML), in a deal that will value it at more than $1 billion.

Significant takeover premium

Under the proposal, Critical Metals would acquire European Lithium in a scrip deal, offering 0.035 of its shares for each European Lithium share, valuing European Lithium at 58 cents per share.

This is more than a 100% premium from the closing price of 28.5 cents before European Lithium shares were placed in a trading halt last Friday.

European Lithium shareholders would own 45% of the combined company once the deal goes through.

European Lithium said in its statement to the ASX on Tuesday that the combination of the two companies would give shareholders exposure to “a NASDAQ-listed company with significantly higher liquidity and investor demand”.

It also points out that European Lithium’s largest asset is its 34% interest in Critical Metals.

As well as that relationship, the companies are joint venture partners in the Tanbreez rare earths project in Greenland, which Critical Metals owns 92.5% of and European Lithium the remainder.

The proposal is non-binding at this stage, and both companies have agreed to negotiate exclusively with one another, “to complete due diligence and execute a binding scheme implementation deed by 7 May 2026”.

Deal represents good value

European Lithium has established an independent board committee (IBC) to assess the merits of the deal.

European Lithium Independent Director and IBC Chair Michael Carter said:

This transaction will deliver substantial value to EUR shareholders, priced at a 136% premium. The combination will enable EUR shareholders to directly own interests in Critical Metals Corp. which will be strategically positioned as the sole owner of the Tanbreez rare earth project in Greenland and will benefit from substantial cash balances and a portfolio of critical minerals development opportunities.

European Lithium said the proposal was non-binding at this stage and shareholders did not need to take any action.

European Lithium said regarding the Tanbreez rare earths project that it was “an advanced, permitted asset poised to become a cornerstone in the global supply of rare earth elements for North America and Europe”.

Critical Metals also owns 100% of the Wolfsberg lithium project in Austria.

This was, European Lithium said, “a fully licensed, government-backed lithium mine built by the Austrian government and primed to play a central role in the region’s integrated lithium-ion battery supply chain”.

European Lithium shares were 57.9% higher in early trade at 45 cents.

The post This ASX lithium company’s shares have jumped more than 50% on major merger news appeared first on The Motley Fool Australia.

More reading

• Is this ASX lithium stock a takeover target? Sure looks like it
• This ASX lithium stock just exploded 12%. Here’s what sparked it

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.

Beach Energy Ltd (ASX: BPT) shares are under pressure on Tuesday morning.

At the time of writing, the ASX 200 energy stock is down 4.5% to $1.14.

What is weighing on Beach Energy shares?

This weakness is being driven by the release of the company’s third-quarter update, which included softer sales, a guidance downgrade, and ongoing operational disruptions.

According to the release, Beach Energy reported production of 4.8 MMboe for the quarter, which was up 7% on the prior quarter.

However, this was overshadowed by a decline in sales volumes, which fell 10% quarter on quarter to 5.3 MMboe, and a 6% drop in revenue to $419 million.

Guidance downgrade disappoints

But the main thing weighing on Beach Energy shares has been a downgrade to its full year production guidance.

Beach Energy now expects FY 2026 production to be in the range of 19.4 MMboe to 20.3 MMboe. This is down from its previous guidance range of 19.7 MMboe to 22.0 MMboe.

Management attributed the revision to a combination of factors, including weather-related disruptions, ramp-up challenges at the Waitsia Gas Plant, and cyclone-related shutdowns.

These issues appear to have raised concerns about the company’s ability to deliver consistent production growth in the near term.

Mixed operational performance

While production increased overall, the performance across Beach Energy’s asset base was mixed.

The Perth Basin delivered strong growth, with production rising 174% due to the ramp-up of the Waitsia Gas Plant.

However, this was offset by declines elsewhere. Production in the Otway Basin fell 9% due to lower customer demand, while the Cooper Basin and Western Flank operations were impacted by severe rainfall, leading to lower output.

In addition, LNG volumes were significantly lower due to one less cargo during the quarter, which also weighed on sales and revenue.

On the pricing front, Beach Energy benefited from a 19% increase in realised oil prices to A$125 per barrel.

However, realised gas prices declined 6% to $11.2 per gigajoule, reflecting softer demand and lower spot pricing on the East Coast.

Management commentary

Commenting on the quarter, Beach Energy’s managing director and CEO, Brett Woods, said:

This was a pivotal quarter for Beach, with the Waitsia Gas Plant reaching 94% of nameplate capacity, the Equinox rig returning to commence Phase 2 of the Otway offshore campaign and a final investment decision was taken on the Moomba Central Optimisation (MCO) project. Combined with strong cash generation and three new tenement awards, the third quarter marks the continued progress on our strategy.

Strong free cash flow generation, supported by one Waitsia LNG cargo and strong oil pricing, saw Beach’s financial position continue to strengthen. Revenue of $419 million contributed to an increase in available liquidity to $974 million and a reduction in net gearing to 11%, providing optionality for future growth.

The post Why are Beach Energy shares sinking today? appeared first on The Motley Fool Australia.

More reading

• Beach Energy lifts production in Q3 FY26, updates outlook
• ASX 200 energy shares lift as pessimism over Iran war deepens
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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.

A fresh quarterly update has given Whitehaven Coal Ltd (ASX: WHC) shares a boost during early Tuesday morning.

At the time of writing, the coal producer’s share price is up 3.77% to $7.99. That follows a weaker stretch, with the stock down around 15% over the past month.

Here’s what came through in the update.

Output falls after wet weather in key state

According to the release, Whitehaven reported managed ROM coal production of 9.5 million tonnes for the March quarter. That was down 14% on the December quarter, mainly due to wet weather in Queensland.

The drop was most visible, with Queensland production falling 28% quarter-on-quarter to 4.1 million tonnes.

New South Wales operations were steadier. Production came in at 5.4 million tonnes, broadly in line with the prior quarter.

Even with the softer production result, sales held up better. Equity sales reached 6.8 million tonnes for the quarter, which was consistent with December.

Stronger coal prices help offset lower volumes

One of the more supportive parts of the quarterly update came from pricing.

Whitehaven reported stronger realised prices across both metallurgical and thermal coal during the quarter.

In Queensland, average realised prices lifted, supported by stronger metallurgical coal benchmarks.

In New South Wales, pricing also improved, with realised thermal coal prices tracking above the NEWC index.

The company noted that tightening supply, partly linked to wet weather disruptions, helped support prices through the period.

Evidently, that helped offset some of the impact from lower production volumes.

Debt edges lower as buybacks continue

Whitehaven ended the quarter with net debt of around $600 million, down from $700 million at the end of December.

The company also completed a refinancing during April, which is expected to lower interest costs going forward.

Share buybacks continued throughout the quarter, with around $51 million of shares repurchased.

That brings total buybacks for the financial year to roughly $56 million.

Currently, Whitehaven has 824.73 million shares on issue.

Full-year outlook unchanged

Management left full-year guidance unchanged.

Managed ROM production is still expected to land between 37 million and 41 million tonnes for FY26.

Unit costs and capital expenditure are also tracking within previously guided ranges.

Looking ahead, development work continues across key projects including Vickery and Winchester South.

While these are longer-term projects, they are expected to support future production as development progresses.

What the market is focusing on next

This quarter was a bit messy, mainly due to weather, but pricing did a lot of the heavy lifting for Whitehaven.

The next step is seeing whether production can bounce back as conditions improve.

If volumes pick up and prices hold, that is where things start to look more interesting again.

The post Why Whitehaven Coal shares are rising today despite a rough month appeared first on The Motley Fool Australia.

More reading

• Whitehaven Coal shares: Q3 FY26 shows steady sales, improved pricing
• ASX 200 energy share with ‘material long-term upside’ ahead: fundie
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 shares newly upgraded this week
• Whitehaven shares are up 80% in a year. Here’s why investors still see upside

Motley Fool contributor Aaron Teboneras 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.