Tag: Stock pick

The All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade on Tuesday, with plenty of help from this soaring ASX All Ords share.

The fast-rising stock in question is IPD Group Ltd (ASX: IPG).

Shares in the distributor of electrical equipment and industrial digital technologies closed yesterday trading for $4.20. At the time of writing today, shares are swapping hands for $4.43 apiece, up 5.5%.

This now sees IPD shares up an impressive 58% since plumbing one-year closing lows on 23 June.

Here’s what’s catching ASX investor interest.

ASX All Ords share jumps on strategic acquisition

Investors are piling into IPD shares after the company announced that it has agreed to the terms of a binding agreement to acquire Platinum Cables.

Platinum Cables provides high-performance cable solutions for the Aussie mining and resources sector. In FY 2025, Platinum reported revenue of $44.8 million. The company achieved FY 2025 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.2 million, with a margin of 18.2%.

The ASX All Ords share will pay $37.5 million upfront for the acquisition, which it said equates to 5.2 times Platinum Cables’ FY 2025 earnings before interest and tax (EBIT).

The payment consists of $37 million cash and $500,000 in newly issued IPD shares. There’s also a contingent cash consideration of up to $7.5 million. That’s based on EBIT growth through to 31 December 2026 (5 times multiple on EBIT growth).

IPD reported it will fund the acquisition with both cash and debt. The ASX All Ords share said it has agreed to an expanded core debt facility with Commonwealth Bank of Australia (ASX: CBA) with a $56.1 million limit. It’s also agreed to a new $10 million working capital facility.

Investors are also responding enthusiastically to news that Platinum’s current management team will stay aboard and operate the business as a stand-alone entity.

What did management say?

Commenting on the acquisition that’s boosting the ASX All Ords share today, IPD CEO Michael Sainsbury said, “The acquisition of Platinum Cables is a continuation of our growth strategy that reinforces our leadership in the mining sector and delivers immediate earnings accretion for shareholders.”

The company anticipates pro forma FY 2025 earnings per share (EPS) accretion of around 11.5%, excluding synergies and one-off transaction costs.

Sainsbury continued:

The Platinum Cables business is highly complementary to our combined IPD and CMI business units and is leveraged to the same tailwinds, including the electrification of the Australian economy.

With their strong track record of organic growth and the potential for significant revenue synergies, we look forward to the Platinum Cables team joining IPD Group.

Platinum Cables founder David Bambach added, “We look forward to further growing the Platinum Cables business within the broader IPD Group”.

The ASX All Ords share expects to complete the acquisition tomorrow, 31 December.

The post Guess which ASX All Ords share is leaping higher today on acquisition news appeared first on The Motley Fool Australia.

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

When most investors think about BHP Group Ltd (ASX: BHP), iron ore usually gets the spotlight. It is still a critical part of the story, but it is no longer the part that excites me the most.

That honour belongs to copper.

With copper prices hitting a record high this month, I think the market is being reminded of something BHP has been quietly building for years.

That is a portfolio that’s increasingly leveraged to one of the most important metals of the modern economy.

Copper demand

Copper sits at the centre of several powerful structural trends.

Electrification, renewable energy, electric vehicles, data centres, and artificial intelligence all require vast amounts of copper. In fact, many of these technologies are significantly more copper-intensive than the systems they are replacing.

What makes this particularly compelling is that supply growth has struggled to keep pace. New copper projects are expensive, complex, and slow to bring online. Furthermore, grades are declining, permitting is harder, and geopolitical risks are rising.

The combination of rising demand and constrained supply is exactly what long-term investors should be paying attention to.

BHP shares are one of the best ways to play copper

BHP isn’t just exposed to copper; it is becoming increasingly defined by it.

The company already owns some of the world’s most important copper assets. This includes Escondida in Chile and a growing copper province in South Australia. Operationally, copper production has been trending higher, supported by improved throughput and ongoing investment in productivity and expansion projects.

More importantly, BHP isn’t standing still. Management has been clear about its ambition to grow copper output further over time, with a pipeline of options across existing operations and future developments. That gives the company leverage not just to today’s copper price, but to where prices could sit over the next decade.

A diversified base

What I particularly like about BHP is that this copper upside sits within a diversified mining giant.

Iron ore, metallurgical coal, and other commodities continue to generate enormous cash flows, helping fund growth while supporting dividends and balance sheet strength. It is also busy developing the enormous Jansen potash project, which is due to go live in mid-2027.

That diversification matters. It allows BHP to invest counter-cyclically, rather than being forced to pull back at exactly the wrong time.

In other words, I see copper as providing the upside, while the broader portfolio helps manage the risk.

Strong execution

A bullish commodity view only really works if the company can execute, and BHP has been doing exactly that.

Its operational performance has been solid, maintenance programs have been delivered on schedule, and major assets continue to operate at the lower end of the global cost curve. That cost discipline is critical in mining. It means higher prices flow through more cleanly to profits and cash flow.

It also gives BHP more flexibility to keep investing through the cycle, rather than chasing growth at the top.

What this means for the BHP share price

I don’t see the BHP share price as a speculative copper bet. I see the company as a high-quality, large-cap miner that is increasingly aligned with where the global economy is heading.

If copper prices remain elevated or continue to rise as demand accelerates, BHP is well placed to benefit. And if conditions soften, its scale, diversification, and balance sheet provide a buffer many pure-play copper producers simply don’t have.

Foolish Takeaway

I believe the BHP share price remains one of the most attractive long-term mining investments on the ASX. With world-class copper assets, a clear growth pathway, and the financial strength to execute, BHP offers investors exposure to one of the most important commodities of the future, without taking on undue risk.

The post Why I’m bullish on the BHP share price as copper prices surge appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The DroneShield Ltd (ASX: DRO) share price is catching the eye of investors again on Tuesday.

In morning trade, the counter drone technology company’s shares are outperforming the broader market by some distance.

At the time of writing, the DroneShield share price is up 6% to $3.32.

This compares favourably to the performance of the benchmark ASX 200 index, which is up 0.2% to 8,743.1 points on Tuesday morning.

Why is the DroneShield share price charging higher?

Investors have been fighting to get hold of the company’s shares today after it announced its third contract win in as many weeks.

In the middle of December, DroneShield announced a new contract worth $49.6 million with an in-region European reseller that is contractually required to distribute the products to a European military end-customer.

This contract was for handheld counter-drone systems, associated accessories, and software updates. It advised that it expects to complete all deliveries in the first quarter of 2026.

DroneShield then followed this up last week with a standalone contract for $6.2 million from an in-country reseller for delivery to a military end-customer in an Asia Pacific country.

It advised that the reseller is a wholly-owned subsidiary of a multi-billion dollar, global, publicly listed customer that is contractually required to distribute solutions to a major Asia Pacific military government department.

This contract comprises selected 3rd party hardware, interoperable with DroneShield’s command-and-control software platform, DroneSentry-C2.

What was today’s announcement?

This morning, DroneShield revealed that it has received a contract for $8.2 million from an in-country reseller for delivery to a western military end-customer.

Once again, the reseller is a wholly-owned subsidiary of a multi-billion dollar, global, publicly listed customer. However, on this occasion the reseller is required to distribute the products to the western military government department in-country.

According to the release, the contract is for handheld counter-drone systems, associated accessories and spare kits, and software updates.

DroneShield advised that it has this stock on-the-shelf and expects to complete the delivery prior to end of 2025 or early in the first quarter of 2026.

Cash payment is expected to be fully received during the first quarter of 2026. No additional material conditions need to be satisfied.

Management notes that over the past 7 years, prior to this contract, DroneShield has received 38 contracts from this reseller totalling over $9.6 million. Though, it warns that there are no obligations for any additional contracts from this reseller or end-customer.

The post DroneShield share price jumps 6% on new contract wi 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 DroneShield. 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nine publicly traded American companies are worth $1 trillion or more, but only four have graduated into the exclusive $3 trillion club so far: Nvidia, Apple, Alphabet, and Microsoft.

I think Amazon (NASDAQ: AMZN) could join them by the end of 2026 thanks to the accelerating revenue growth in its cloud computing division, and the surging profits in its legacy e-commerce business. The company has a market capitalization of $2.48 trillion as I write this, so investors who buy its stock today could earn a 21% return over the next year if it does cross the $3 trillion milestone.

Read on, and let’s consider Amazon’s growth prospects in the year ahead. 

All eyes on Amazon Web Services

Amazon’s potential pathway to the $3 trillion club next year starts with its industry-leading cloud computing platform, Amazon Web Services (AWS). It used to be a place where businesses would simply store data and host their critical digital applications, but it has evolved to become the center of Amazon’s artificial intelligence (AI) strategy.

AWS operates state-of-the-art data centers and it rents the computing capacity to AI developers who don’t have the financial resources to build their own infrastructure. These data centers are filled with advanced AI chips from suppliers like Nvidia, but Amazon also designed its own chips called Inferentia and Trainium. Top developers like Anthropic are using hundreds of thousands of the latest Trainium2 chips, which offer up to 40% better price performance than competing hardware when training AI models.

Then there is the AWS Bedrock platform, where businesses can access hundreds of completed AI models from third-parties including Anthropic and Meta Platforms. Developing models from scratch is time consuming and expensive, so using a ready-made solution can help businesses achieve their AI goals much faster.

AWS generated a record $33 billion in revenue during the third quarter of 2025 (ended Sept. 30), which was up 20% year over year. That was the fastest growth rate since the fourth quarter of 2022, which highlights the platform’s incredible AI-driven momentum. But it gets better, because AWS has a whopping $200 billion order backlog from customers who are waiting for more data center capacity to come online, so the strong top-line results are likely to continue.

Amazon’s earnings continue to crush Wall Street’s estimates

The $33 billion in third-quarter revenue that AWS brought in accounted for just 18% of Amazon’s total revenue of $180 billion. However, the cloud business is the company’s most profitable by far, contributing 65% of its total operating income. E-commerce is actually Amazon’s largest source of revenue, but its profit margins are very thin because its Amazon.com site focuses on selling a high volume of products at low prices.

However, Amazon is pushing to improve profitability in its e-commerce business by boosting efficiency and implementing new technologies. In 2023, it broke its U.S. logistics network into eight distinct regions, so now the products in each fulfillment center are specific to their geographic region. As a result, orders travel shorter distances to reach customers, which brings down packing and shipping costs.

Amazon also uses AI-powered software like Project Private Investigator in its fulfillment centers, which uses computer vision to identify defective products before they ship. This reduces returns and refunds, creating further cost savings.

The accelerating growth at AWS combined with improved efficiency in the e-commerce business is driving a huge increase in Amazon’s overall profit. The company generated earnings of $5.22 per share during the first three quarters of 2025, which was a whopping 42% jump from the same period in 2024. Plus, Amazon’s earnings have beaten Wall Street’s consensus estimates in every single quarter of 2025, by an average of 22%.

How Amazon can cross the $3 trillion milestone in 2026

Amazon stock trades at a price-to-earnings (P/E) ratio of 32.8 as I write this. That’s roughly in line with the Nasdaq-100 index which trades at a P/E ratio of 32.1, so Amazon stock is basically sitting at fair value relative to its peers in the tech sector.

Wall Street’s consensus estimate (provided by Yahoo! Finance) suggests Amazon could generate earnings of $7.86 per share in 2026, placing its stock at a forward P/E ratio of 29.6.

AMZN PE Ratio data by YCharts

Assuming Wall Street is right, Amazon stock would have to climb by 11% next year just to maintain its current P/E ratio of 32.8, lifting its market cap to $2.75 trillion. But remember, the company has a habit of beating Wall Street’s expectations.

If its 2026 earnings beat the consensus estimate by 22% like they have so far in 2025, then its stock could be poised for a 35% gain next year instead. That would catapult its market value to a whopping $3.35 trillion.

However, even an earnings beat of just 9% next year would be enough to see Amazon join the $3 trillion club. Given the incredible momentum across its e-commerce business and AWS, I think that’s an achievable target. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 unstoppable stock that could join Nvidia, Alphabet, Apple, and Microsoft in the $3 trillion club in 2026 appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Anthony Di Pizio 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 Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Energy Group Ltd (ASX: WDS) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $23.08. In morning trade on Tuesday, shares are changing hands for $23.35 apiece, up 1.2%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Woodside shares remain down 4.6% over 12 months. Though if we add the two fully franked dividends the company paid out over the year back in, investors will still be sitting on a modest gain today.

Woodside stock trades on a 7.2% fully franked trailing dividend yield.

Now, here’s what’s happening in Turkey.

Woodside shares gain on Turkish LNG deal

Overnight, Woodside announced that together with Turkey’s BOTAS, it signed a sale and purchase agreement (SPA) for the long-term supply of liquefied natural gas (LNG).

Woodside shares could get long-term support from the deal, which will see the company supply BOTAS with a total of 5.8 billion cubic meters natural gas equivalent. That equates to around 500,000 tonnes of LNG a year. The LNG sales will start in 2030 and continue for up to nine years.

The LNG will mostly come from Woodside’s still under-construction Louisiana LNG project in the United States, with the rest being sourced from the company’s broader portfolio.

Commenting on the deal, Woodside executive vice president Mark Abbotsford said:

This supply agreement with BOTAS represents a strategic milestone for Woodside given it is our first long-term LNG supply arrangement with the Turkish market. It is yet another demonstration of the strength and flexibility of Woodside’s diversified portfolio and ability to deliver on our global ambitions.

Woodside also appreciates the support shown by the Turkish and United States governments following the announcement of the HOA [Heads of Agreement] earlier this year.

What else did the ASX 200 energy stock report?

Woodside shares could also be getting a boost today from a separate announcement relating to the company’s Beaumont New Ammonia (BNA) facility, located in Texas.

Management revealed that BNA has produced its first ammonia following the completion of systems testing. This marks the first phase of operations commissioning of the facility.

“These outcomes confirm the facility’s production readiness and our ability to move toward commercial start-up following handover,” Woodside vice president Beaumont New Ammonia Kellyanne Lochan said.

The company expects commercial production of ammonia from BNA to begin following handover to Woodside OCI Global in early 2026. Woodside is targeting production of lower-carbon ammonia in the second half of 2026.

Woodside shares could benefit long term from BNA, which has an annual production capacity of 1.1 million tonnes.

Management said the project is designed to support growing global demand for ammonia, lower-carbon ammonia, and hydrogen-adjacent products. They noted that BNA has the potential to roughly double US ammonia exports.

The post Woodside shares lift off amid big news out of Turkey appeared first on The Motley Fool Australia.

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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.

Origin Energy Ltd (ASX: ORG) shares are on the move on Tuesday morning.

At the time of writing, the ASX 200 stock is up 1% to $11.37.

Why is this ASX 200 stock pushing higher?

Investors have been bidding the energy giant’s shares higher today after it released an announcement relating to its investment in Kraken Technologies.

According to the release, there have been a suite of transactions that have been executed that highlight the continued growth of Kraken, reinforce the strength of its technology leadership in a global context, and provide the capital to support its formal separation from Octopus Energy.

Origin revealed that US$1 billion in equity will be raised in Kraken’s first standalone raising from a pool of new investors and existing shareholders. This paves the way for a formal separation from Octopus Energy in mid-2026.

This investment round provides the first look through valuation of Kraken stand alone at US$8.65 billion. Origin plans to invest US$140 million (~A$210 million) as part of the process.

The release also advises that Kraken has signed a major licensing agreement with a leading energy retailer, which adds over 10 million customer accounts to its platform. This large strategic customer will also participate in the Kraken raising.

In order to grow its market share in Australia, Origin has agreed to waive exclusivity to the Kraken platform in the country. This is in exchange for an additional 1.5% equity interest in Kraken, which offsets dilution from the raising.

Post these transactions, Origin’s economic interest in Kraken will remain 22.7%. It will also continue to hold its strategic stake in Octopus Energy at 22.7%, which it believes reflects the positive outlook for growth and valuation upside of both entities.

Management commentary

Commenting on the news, the ASX 200 stock’s CEO, Frank Calabria, said:

We have been on a path to separate Octopus Energy and Kraken Technologies, and through execution of these transactions, have now laid the foundations necessary for this to occur and enable both the businesses to pursue their growth ambitions with greater focus and financial strength. Origin has always held a deep conviction in the potential of Kraken, and we have been able to maintain our highly valuable equity stake in Kraken, while supporting the continued expansion of Octopus Energy.

Octopus Energy and Kraken Technologies, supported by their first-class management teams, have continued to deliver impressive growth. In signing this major new customer, Kraken is rapidly closing in on its 100 million customer account target well ahead of plan. We believe these transactions put Octopus and Kraken in a strong position to unlock their next phase of growth, underpinned by the appropriate capital structure. We look forward to participating in the ongoing growth of both businesses.

The post Guess which ASX 200 stock is rising on 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.

Scandium is a metal few investors know well.

But despite its low profile, it is abundant in the Earth’s crust.

The challenge lies not in its presence but in finding deposits large and rich enough to be mined economically.

In essence, primary scandium mines are virtually non-existent.

Most of the world’s production is generated in small volumes as a by-product of other metals like nickel or uranium, or through the reprocessing of waste.

That said, Australia stands out with one of the highest concentrations of scandium globally.

In particular, New South Wales is believed to be the only location where scandium could potentially be mined as a primary commodity.

At the forefront of this opportunity is a little-known ASX mining stock aiming to transform from an aspiring explorer into a major producer of this strategic metal.

That company is Sunrise Energy Metals Ltd (ASX: SRL), and its shares have been booming.

Tell me more

Scandium is classified as a rare earth element.

It is one of the most effective minerals in strengthening aluminium, whilst also offering improved flexibility and resistance to heat and corrosion. 

Such traits make scandium desirable in high-performance aluminium alloys that need to be light, strong, and heat-resistant.

As a result, it is used across various industries, including aerospace, automotive manufacturing, heat exchangers, sporting goods, 3D printing, and energy transmission.

Scandium oxide also plays a key role in improving the performance of solid oxide fuel cells, used as clean energy sources for buildings, medical facilities, and data centres.

According to Sunrise Energy, more than 90% of the world’s scandium demand comes from civilian and defence applications in the US.

However, China currently dominates supply, accounting for over 80% of production and effectively all the world’s refining capacity.

And earlier this year, Beijing introduced export controls on scandium and other rare earth elements, fundamentally reshaping the global market.

These measures heightened supply concerns across the US and other Western nations, turning attention towards alternate supply chains.

Strategic project

Sunrise Energy believes its Syerston project in New South Wales hosts one of the world’s largest and highest-grade scandium resources.

If developed, the project could become a new source of low-cost, scalable, and reliable scandium for Western markets.

The group plans to build a stand-alone mine and processing plant at Syerston, capable of supplying scandium for 5G and 6G semiconductor chips, fuel cells, and both civilian and military aluminium alloys.

So far, a 32-year mine life has been estimated for the project.

An updated feasibility study gauging the development potential is expected early next year.

Sunrise Energy has already secured several key permits and approvals for developing the project.

The ASX mining stock aims to start construction of the mine by mid-2026.

Share price momentum for this unique ASX mining stock

Investor enthusiasm around the potential development of Syerston appears to be reflected in the spectacular performance of Sunrise Energy shares.

At the start of 2025, shares in this ASX mining stock were changing hands at $0.23 apiece.

By Monday’s close, its shares had surged to $7.41 apiece.

This represents a 3,122% gain for shareholders in this ASX mining stock since the start of the year.

For context, the S&P/ASX All Ordinaries Index (ASX: XAO) has risen by about 6.7% across the same timeframe.

The post This strategic ASX mining stock has rocketed 3,122% just this year. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Bart Bogacz 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.

It has been a modest year for the S&P/ASX 200 Index (ASX: XJO) in 2025, with an approximate gain of 6%. ASX materials and defence shares have been a real winner thanks to soaring commodity prices and global defence investment. 

On the flip side, it’s been a tough year for Australian technology and healthcare shares. 

The S&P/ASX All Technology Index (ASX: XTX) has dropped almost 11% in 2025, including more than 20% since October. 

Similarly, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down more than 24% since January. 

But amidst these struggling sectors have been some diamonds in the rough. 

Let’s look at some of the winners from these two sectors in 2025. 

Healthcare winners

One of the best performing ASX shares in 2025 has been 4DMedical Ltd (ASX: 4DX). 

The medical technology company works in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

The Motley Fool’s Aaron Teboneras reported earlier this month on the consistent run of positive results and milestones hit by the company this year. 

Regulatory approvals and new commercial partnerships have expanded its markets and validated its technology, shifting investor views from speculative potential to increasingly visible and growing software revenue.

This has launched the stock almost 680% higher in 2025. 

Despite this unbelievable run, it’s still drawing optimism for future growth.

Another healthcare stock winner this year has been Racura Oncology Ltd (ASX: RAC). 

It is an Australian clinical-stage biopharmaceutical company focused on developing cancer treatments.

It has risen almost 100% in 2025, meaning investors almost doubled their returns holding this stock through the year. 

This has been driven by promising scientific research and private placement offers.

Technology winners

Meanwhile, in the technology sector, one of the best-performing ASX shares has been Elsight Ltd (ASX: ELS). 

The company technically sits in the information technology sector, but has risen thanks to tailwinds in the defence sector. 

The company offers advanced communication components for unmanned systems (aerial, ground, and sea) through its flagship product – the Halo platform. 

Its rise has been fuelled by major contract wins, including a US$21.2M contract for CY2026. 

CY25e also marked a pivotal inflection point for the company, achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). 

Its share price has risen by more than 750% this year. 

Finally, another technology stock that has enjoyed a stellar year is Energy One Ltd (ASX: EOL). 

It is a supplier of software products and services to wholesale energy, environmental, and carbon trading markets.

It reported strong growth in the 2025 financial year, reporting revenue growth of 17% to $61.4 million and annual recurring revenue (ARR) rising 22% to $60.4 million.

Its share price is up more than 150% this year. 

The post Why did these ASX shares outperform their peers in 2025? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Energy One. 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.

Some ASX shares stand out because they operate in markets that are becoming increasingly important over time. Others earn attention because their technology addresses a problem that simply isn’t going away.

DroneShield Ltd (ASX: DRO) does both.

It operates in a niche that is becoming mission-critical, supported by technology that is difficult to replicate and growing more relevant by the year. While history shows that its share price will likely remain volatile, my focus is on the long-term opportunity this business is chasing, and one that I believe could play out over many years.

A problem that isn’t going away

Drones are no longer just toys or tools for hobbyists. They’ve become a genuine security threat across military operations, government facilities, airports, prisons, critical infrastructure, and even major public events.

That’s where DroneShield comes in.

The company develops counter-drone solutions designed to detect, track, identify, and neutralise unauthorised drones. It does this using a mix of radio frequency sensing, artificial intelligence (AI), radar, optical systems, and electronic warfare. As drone technology becomes cheaper, more capable, and more widely available, the need for effective counter-drone systems is only growing.

Importantly, this isn’t a cyclical issue. Governments and defence agencies don’t get the option to wait it out when it comes to protecting sensitive assets. Security threats don’t disappear just because economic conditions soften.

Defence spending provides powerful tailwinds

One of the key reasons I’m comfortable owning DroneShield shares is the broader environment it operates in. Global defence spending is trending higher, not lower.

Geopolitical tensions, asymmetric warfare, and the changing nature of conflict have pushed counter-drone capabilities up the priority list for many countries. There’s even talk of a drone wall across Europe’s eastern border. DroneShield already counts military and government agencies among its customers and continues to secure contracts across allied nations.

These relationships matter. Defence procurement tends to involve long sales cycles, high barriers to entry, and meaningful switching costs once systems are deployed. Over time, that creates the potential for repeat orders and more predictable revenue, even if contract announcements arrive unevenly.

A platform with room to scale

Another reason I like DroneShield is that it’s not a one-trick pony. Its technology is modular and heavily software-driven, which allows it to evolve alongside emerging drone threats.

As the installed base grows, there’s an opportunity to sell higher-margin software upgrades, updates, and ongoing support. If management executes well, I think that operating leverage could eventually help transform DroneShield from a lumpy, contract-driven business into a more consistently profitable defence technology company.

Why I’m comfortable holding through volatility

There’s no denying DroneShield shares can be volatile. Contract timing, government budgets, and market sentiment can all send the share price swinging.

But I’m comfortable with that. History shows that long-term returns are often earned by holding high-quality businesses through short-term noise. DroneShield operates in an expanding market, its technology is already proven, and its strategic relevance appears to be increasing, not fading.

Foolish Takeaway

I’m buying and holding DroneShield shares because the world is becoming more complex, not less. As long as drones remain a threat, counter-drone solutions will remain essential.

For patient investors willing to look past near-term volatility, I believe DroneShield could be a top long-term buy.

The post Why I’m buying and holding DroneShield shares forever appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 Origin Energy Ltd (ASX: ORG) share price is in focus today after the company announced its involvement in Kraken Technologies’ first standalone capital raising, with Origin retaining a 22.7% economic interest and investing US$140 million (about $210 million).

What did Origin Energy report?

• Kraken Technologies to raise US$1 billion in first standalone equity round at a US$8.65 billion valuation
• Origin to invest US$140 million (~$210 million) as part of the raise
• Major new licensing agreement for Kraken adds over 10 million customer accounts
• Origin to receive an extra 1.5% equity in Kraken by waiving Australian exclusivity
• Following these transactions, Origin maintains a 22.7% economic interest in Kraken and Octopus Energy

What else do investors need to know?

This is the first time Kraken Technologies is raising capital as a standalone entity, supporting its formal split from Octopus Energy, which is targeted for mid-2026. The capital raise brings in a pool of new and existing investors, including D1 Capital Partners and a major new customer.

Origin’s decision to waive exclusivity rights to Kraken in Australia clears the way for other utilities to access the platform. In return, Origin increases its direct holding in Kraken, helping to offset dilution from the raise and future-proofs its position as the technology expands domestically and globally.

After all transactions, Origin will directly hold 19.6% of Kraken and a further 3.1% through its stake in Octopus Energy, keeping its overall interest steady. The deals remain subject to regulatory approval and are expected to take effect once Kraken separates from Octopus Energy.

What did Origin Energy management say?

Origin CEO Frank Calabria commented:

We have been on a path to separate Octopus Energy and Kraken Technologies, and through execution of these transactions, have now laid the foundations necessary for this to occur and enable both the businesses to pursue their growth ambitions with greater focus and financial strength.

Origin has always held a deep conviction in the potential of Kraken, and we have been able to maintain our highly valuable equity stake in Kraken, while supporting the continued expansion of Octopus Energy.

We believe these transactions put Octopus and Kraken in a strong position to unlock their next phase of growth, underpinned by the appropriate capital structure. We look forward to participating in the ongoing growth of both businesses.

What’s next for Origin Energy?

The planned separation of Kraken Technologies from Octopus Energy is expected to complete by mid-2026, giving both businesses clearer focus and flexibility to chase their own growth strategies. Origin’s ongoing stakes in both Kraken and Octopus place it well to benefit from their projected expansion, particularly as Kraken moves closer to its target of 100 million customer accounts ahead of schedule.

Origin also opens the door for new Australian utilities to use the Kraken platform, potentially growing the market and forming new domestic partnerships, while shoring up the value of its long-term investment.

Origin Energy share price snapshot

Over the past 12 months, Origin Energy shares have risen 4%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Origin Energy retains 22.7% stake in Kraken after equity raise and Australian exclusivity waiver 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.