Tag: Stock pick

Some ASX dividend shares are providing investors with a big dividend yield. Part of the reason why the payouts are so large is because the businesses are undervalued, in my view. 

A good passive income stock is one that can provide resilient dividends and grow its underlying value over time.

There’s not much point buying high-yield ASX dividend shares if the share price and dividend decline over time.

So, I’m going to highlight two high-yield names that have a record of consistency and I think could deliver rising payouts over time.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop has a goal to become the leader of hair removal products in Australia, with its national store network selling a variety of male and female wet and dry shave products.

The company recently released its FY26 half-year result which included positive numbers.

In the six months to 31 December 2025, sales grew 2.2% to $128.6 million, operating profit (EBIT) grew 2.5% to $18.1 million and net profit after tax (NPAT) climbed 1.5% to $12.2 million.

Pleasingly, online sales increased by 7.4% and the gross profit margin grew 100 basis points (1.00%) to 46.5%). The main driver of the ASX dividend share’s gross profit improvement was the expansion of its private brand Transform-U.

Work on the store network in the HY26 period is supportive sales growth in the second half of FY26 and FY27. It opened two locations in the first half, with another one planned to open in March 2026. It also refitted one full store and relocated one in the half, with three full store refits and two relocations planned for the second half.

All of the above helped the business maintain its annual dividend per share at 4.8 cents per share in the HY26 result.

In terms of passive income appeal, the ASX dividend share increased its payout each year between FY17 and FY23, maintained it in FY24 and then grew it again in FY25 to 10.3 cents per share. That translates into a grossed-up dividend yield of 9.4%, including franking credits, assuming it just kept the dividend the same in FY26.

In the second half of FY26 to 22 February 2026, total sales grew 3.8%. I think this bodes well for another dividend increase in FY26, particularly if Transform-U continues growing.

Hearts and Minds Investments Ltd (ASX: HM1)

The other high-yield ASX dividend share I want to highlight is Hearts & Minds, a listed investment company (LIC).

Pleasingly, there are no management fees or performance fees involved with the portfolio. Instead, it donates 1.5% of its net assets each year to medical research to a variety of organisations. This could unlock life-changing, or life-saving, medical advancements.

The Hearts & Minds portfolio is constructed from two different sources. First, there’s a core group of fund managers that make picks for the portfolio. Second, it holds an annual investment conference where leading investment professionals choose a single stock that could perform.

This approach provides both diversification and can lead to solid returns. The three years to December 2025 showed an average portfolio return of 14.7% per year. That’s a high enough return to fund a large and growing dividend, while also seeing growth in the portfolio value.

Hearts & Minds recently declared a half-year dividend of 9.5 cents and intends to increase its payout by 0.5 cents per share every six months for the foreseeable future. The implied annual dividend per share of 19.5 cents for FY26 translates into a grossed-up dividend yield of 9.4%, including franking credits.

The post Get paid huge amounts of cash to own these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• This 10% yield is one I’m comfortable holding for the long-term
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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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 Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Mesoblast Ltd (ASX: MSB) share price is focus today after the company reported a surge in revenue to US$51.3 million, thanks to the successful commercial launch of Ryoncil® in the US.

What did Mesoblast report?

• Total revenue jumped to US$51.3 million (A$78.3 million), up from US$3.2 million in the previous period.
• Ryoncil® gross profit (excluding amortisation) was US$44.2 million versus nil a year ago.
• Net loss narrowed to US$40.2 million from US$47.9 million, an improvement of US$7.8 million.
• Net operating cash spend was US$30.3 million, with expectations for further reduction in the second half.
• cash and cash equivalents stood at US$130 million at period end.
• Mesoblast provided net revenue guidance for FY2026 of US$110 million to US$120 million.

What else do investors need to know?

Mesoblast’s growth is being driven by its flagship product Ryoncil®, which launched commercially in the US and is now covered by government and commercial payers representing around 280 million Americans. Forty-nine transplant centres have been onboarded, with the aim to reach sixty-four centres covering 94% of US transplants.

The company is also progressing its clinical pipeline. It finalised the Phase 3 protocol for expanding Ryoncil® into adult treatment for steroid-refractory acute graft versus host disease and is scaling up manufacturing for its next-generation therapy, rexlemestrocel-L.

What did Mesoblast management say?

Mesoblast Chief Executive Dr Silviu Itescu said:

Today we report strong operational and financial performance for the first half of FY2026, a period that marks an important inflection point in Mesoblast’s evolution from clinical development to sustainable commercial execution. Sales momentum for Ryoncil® continued to build, driving meaningful revenue and reinforcing the product’s value in addressing significant unmet medical need and the strength of our commercial strategy. Importantly, we have improved the Company’s financial position with positive cash flow generated from Ryoncil® sales, disciplined cost management, and a strategic refinancing, providing greater flexibility to support expansion and late-stage clinical programs. As we enter the second half of FY2026, we remain focused on accelerating commercial uptake, advancing regulatory and label expansion opportunities, and maintaining financial discipline to deliver sustainable long-term shareholder value.

What’s next for Mesoblast?

Looking ahead, Mesoblast expects continued revenue momentum as Ryoncil® gains traction in the US market. The company remains focussed on onboarding additional transplant centres, increasing patient access, and expanding the approved uses for Ryoncil® into broader inflammatory conditions.

Beyond Ryoncil®, work continues on rexlemestrocel-L for chronic low back pain and advanced heart failure, with pivotal US trials nearing completion and regulatory filings expected in the coming months. Management is aiming for sustainable growth through product lifecycle extensions and new approvals.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026 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 Harvey Norman Holdings Ltd (ASX: HVN) share price is in focus today after the company posted a double digit uplift in profit before tax and raised its interim dividend for the half-year ended 31 December 2025.

What did Harvey Norman report?

• Total system sales revenue up 6.9% to $5.16 billion
• Profit before tax increased 16.5% to $466.31 million
• Net profit after tax & non-controlling interests up 15.2% to $321.91 million
• EBIT up 14.4% to $527.53 million
• Fully-franked interim dividend increased 20.8% to 14.5 cents per share
• Basic earnings per share up 15.3% to 25.84 cents

What else do investors need to know?

Harvey Norman’s franchising operations posted a 14.2% increase in profit before tax, with better margins and robust sales. Overseas company-operated businesses delivered a notable profit lift, especially in Singapore, Malaysia, New Zealand, Ireland, Slovenia, and Croatia, partly offset by expansion costs in the UK.

The property segment’s profit before tax rose 7.8% to $178.82 million thanks to rental growth and low vacancies, and there was a fair value uplift in the New Zealand property portfolio. The balance sheet remains strong, with net assets at $4.95 billion and a low net debt to equity ratio of 13.02%.

Operating cash flows reached $392.88 million, supported by solid cash receipts from both retail sales and franchise fees, with a cash conversion ratio of 96.2%.

What did Harvey Norman management say?

Chairman Gerry Harvey said:

This is a very solid first-half result, with profit growth driven by higher system sales, disciplined cost control and strong performances across our franchising operations and overseas retail businesses.

What’s next for Harvey Norman?

Harvey Norman said sales momentum has continued into January 2026, with aggregated system sales up 4.6% and comparable sales up 4.3% over the prior period. The company remains focused on disciplined growth, cost control, and capital management, aiming to support further expansion in Australia and overseas.

The group’s strong asset base and low gearing leave it well-placed to continue investing in its retail and property operations despite ongoing competition and changing market conditions.

Harvey Norman share price snapshot

Over the past 12 months, Harvey Norman shares have risen 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Harvey Norman posts 1H26 result appeared first on The Motley Fool Australia.

More reading

• Alcoa announces March 2026 dividend
• Neuren Pharmaceuticals earnings: Profits up, pipeline builds in 2025
• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026
• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings

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 positions in and has recommended Harvey Norman. 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.

If I had to choose just one ASX stock to buy and hold right now, it would be ResMed Inc (ASX: RMD).

That does not mean it will always be my top pick. Markets change, valuations move, and new opportunities emerge. But as things stand today, I think ResMed combines scale, structural growth, innovation, and financial strength in a way that is hard to ignore.

Here is why.

A massive, underpenetrated opportunity

ResMed operates in sleep and breathing health, primarily treating obstructive sleep apnoea. The opportunity here is enormous.

According to the company’s recent investor presentation, more than 1 billion people globally are estimated to suffer from sleep apnoea, yet penetration remains low, with less than 20% of patients diagnosed or treated in the US and under 10% in the rest of the world.

That gap represents a very long runway for growth. Ageing populations, higher obesity rates, and increasing awareness of sleep health are all powerful structural tailwinds. Even the rise of GLP-1 medications appears to be increasing diagnosis and therapy uptake rather than reducing it, based on the real-world data shared in the company’s presentation.

This is not a short-cycle story. It is a decades-long healthcare trend.

Financial strength and operating momentum

ResMed’s latest results showed why I have confidence in the business model.

In the December quarter, ResMed delivered revenue of US$1.4 billion, up 11% year on year, with gross margin expanding to 61.8%. Operating income increased 18% and diluted earnings per share rose to US$2.68.

That combination of double-digit revenue growth and expanding margins tells me that it is not just growing, it is scaling.

The balance sheet also remains strong. As highlighted in the presentation, the company had a net cash position of US$715 million as at Q1 FY26. That provides flexibility for further R&D, acquisitions, dividends, and buybacks.

A connected ecosystem, not just a device maker

One of the biggest reasons I would choose ResMed over many other healthcare names is that it is no longer just a hardware company.

The company describes itself as a global leader in connected and digital health. It has processed more than 24 billion nights of respiratory medical data and has tens of millions of patients connected to its cloud platforms.

That data advantage is powerful. It strengthens clinical relationships, improves patient adherence, and creates switching costs. It also enables AI-enabled features such as Smart Comfort, which recently received FDA clearance and is designed to personalise therapy settings.

When I look for a single stock to hold long term, I want network effects and ecosystem advantages. ResMed increasingly has both.

Innovation is constant

Another reason I would be comfortable holding this ASX stock for many years is its culture of innovation.

The investor presentation outlines new product rollouts such as AirSense 11 in additional global markets and new fabric-based mask launches. It also highlights the expanding digital pathway from diagnosis through to long-term therapy adherence.

This is not a company standing still. It continues to invest in R&D and new technologies to support long-term growth. Over a five-year horizon, management has outlined high single-digit revenue growth with earnings growth above revenue growth.

That operating leverage is exactly what I want in a compounding business.

Foolish Takeaway

If I could only own one ASX stock today, I would want structural, non-cyclical demand, global exposure, strong margins and cash flow, a defensible competitive position, ongoing innovation, and a healthy balance sheet.

ResMed ticks all of those boxes.

Of course, no stock is risk-free. Healthcare regulation, competition, reimbursement changes, and macroeconomic factors can all influence performance. But when I weigh up the long-term drivers, scale advantages, and financial quality of the business, ResMed stands out to me as a high-conviction, buy-and-hold candidate right now.

The post If I could only buy and hold a single ASX stock, this would be it 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Qantas Airways Ltd (ASX: QAN) fell 9% on Thursday following the release of the airline’s half-year results.

That drop came despite Qantas delivering an underlying profit before tax of $1.46 billion and underlying earnings per share of 68 cents for the half. In other words, the result itself was solid.

So the question is not whether the numbers were weak. It is whether the pullback has created an opportunity.

Here is why I would be leaning towards yes.

Earnings funding a more profitable future

One of the most important themes in the release was fleet renewal.

CEO Vanessa Hudson made it clear that strong earnings are allowing Qantas to invest in “the largest fleet renewal in our history.” She also noted that the next-generation aircraft already in service are helping drive financial performance.

That matters.

Airlines are capital-intensive businesses. The difference between an average airline and a high-quality one often comes down to fleet age, fuel efficiency, maintenance costs, and network flexibility.

Qantas delivered nine new aircraft during the half and is accelerating deliveries, with 30 more expected over the next 18 months. Around 60% of Jetstar’s increase in profitability in the half was driven by its new aircraft, according to management.

In other words, earnings today are being reinvested into assets that should improve margins tomorrow.

Newer aircraft are more fuel efficient, cheaper to maintain, and open up new routes such as the ultra long-range A350s for Project Sunrise. Over time, that can structurally lift returns on capital.

A dominant position in a rational market

Airlines typically trade on low earnings multiples because they operate in brutally competitive markets.

But Australia is different.

Qantas operates in what is effectively a duopoly domestically, alongside Virgin Australia Holdings Ltd (ASX: VGN). That structure has historically supported rational capacity growth and healthier margins than seen in markets like the US or Europe.

Group Domestic delivered $1.05 billion in underlying EBIT in the half, up 14%. Loyalty also remains a high-quality earnings stream, with underlying EBIT of $286 million, up 12%.

When you combine the core airline business with a fast-growing, high-margin loyalty arm, you start to see why Qantas arguably deserves to trade at a premium to many global peers.

Valuation looks compelling

Qantas reported underlying earnings per share of 68 cents in the first half. If we annualise this to 136 cents, Qantas shares are trading at roughly 7.1 times earnings.

Yes, airlines often trade on low multiples. Cyclicality, fuel price volatility, and geopolitical risk justify some discount.

But I think Qantas is not a typical airline.

It has a dominant position in a relatively insulated domestic market, a dual-brand strategy through Qantas and Jetstar, a valuable and growing Loyalty division, a clear fleet renewal program that is already driving profit improvements, and strong liquidity of $12.6 billion at the end of the half.

That combination makes it closer, in my view, to a high-quality franchise than a marginal commodity business.

In some ways, I think of it like the Commonwealth Bank of Australia (ASX: CBA) of the airline industry. CBA trades at a premium to other banks because of its scale, brand, technology leadership, and dominant market position. Investors are willing to pay up for quality and consistency.

Qantas may never trade on a bank-like multiple. But if it continues to execute, invest in its fleet, grow Loyalty, and maintain pricing discipline in a rational market, I think 7.1 times earnings could prove dirt cheap.

So, should I buy Qantas shares after the 9% fall?

For me, a 9% pullback after a strong profit result is not a red flag. It is often the market digesting guidance, costs, or simply locking in gains after a strong run.

What matters more is whether the long-term story is intact.

Qantas is generating significant earnings. Those earnings are funding a younger, more efficient fleet. The loyalty business continues to expand. The domestic market structure remains rational. And the shares are trading on a low earnings multiple relative to that quality.

Airlines will always carry risk. Fuel costs, economic slowdowns, and operational disruptions can hurt profits quickly.

But at around 7 times annualised earnings, with structural improvements underway, I would be comfortable buying Qantas shares after this decline as part of a diversified portfolio.

The post Should I buy Qantas shares after their 9% decline? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

As February earnings season draws to a close, brokers are updating their outlooks on ASX shares following important announcements. 

Two S&P/ASX 300 Index (ASX: XKO) shares that received fresh guidance from Bell Potter yesterday were Capricorn Metals Ltd (ASX: CMM) and Elders Ltd (ASX: ELD). 

Both saw solid share price increases on Thursday for different reasons. 

Capricorn Metals released HY results, while Elders made headlines by announcing the sale of a key part of its business. 

Here’s what the companies released. 

Capricorn Metals delivers record profit

Capricorn Metals is a gold production company based in Perth, Western Australia. 

Investors reacted positively to half-year results from Capricorn Metals that included:

• Sales revenue up 64% to $350.1 million from the sale of 59,816 ounces of gold at an average price of $5,842 per ounce
• Underlying net profit after tax up 130% to $144.8 million
• Underlying EBITDA rose 101% to $215.3 million with a 62% margin
• Maiden fully-franked interim dividend of 5 cents per share ($22.8 million) declared.

Following yesterday’s 1.45% gain, its share price is now up 77.6% over the last 12 months.  

What did Bell Potter have to say?

Following the results, the team at Bell Potter said it was an excellent result that reflects operational performance, with the company tracking to the top end of guidance and maintaining its track record of delivery. 

It increased earnings per share by: FY26: +3%; FY27: +4%; and FY28: +25%. 

CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~115kozpa to ~300kozpa, potentially from 2HCY27, from two gold mines in WA, each with +10 year mine lives.

CMM is run by a management team that has an excellent track record of delivery.

As a result, the broker increased its price target on these ASX shares to $16.10 (previously $14.30). 

From yesterday’s closing price of $14, this indicates a potential upside of 15%. 

The broker also retained its buy recommendation. 

Elders shares downgraded

Elders is an agribusiness that provides goods and services to Australian primary producers.

Yesterday, the company announced it has agreed to sell its Killara Feedlot business to Australian Meat Group for approximately $195.8 million. 

Following the announcement, Bell Potter released updated guidance on the company. 

NPAT changes are -14% in FY26e, -9% in FY27e and -8% in FY28e incorporating the above and higher base interest rates. Our target price is now $9.00/sh (prev. $9.45/sh) reflecting earnings changes mitigated in part by higher Killara proceeds.

From yesterday’s closing price of $7.40, the broker still sees 21% upside for these ASX shares. 

The broker maintained its buy recommendation. 

Our Buy rating is unchanged. We see encouraging signs for FY26e, with livestock turnoff values exhibiting double digit YoY growth through 1H26TD, mitigated in part by dryer conditions through most of the summer cropping window and an easing in input price tailwinds.

The post Bell Potter just updated its guidance on these ASX 300 shares 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s usually a pretty good sign when senior management are forking out their own money for shares in a business, which is exactly what the Wisetech Global Ltd (ASX: WTC) Chief Executive Officer has done, shelling out more than $1 million this week.

Wisetech said in a statement to the ASX on Friday that CEO Zubin Appoo had bought 20,020 shares for $1,000,049.

The shares were bought on Thursday, 26  February, a day after the company reported its first-half results.

The company added:

Following settlement, Mr Appoo will hold (directly and indirectly) 102,160 shares in WiseTech, in addition to 6,289 unvested share rights under the Company’s Equity Incentives Plan for employees.  

Wisetech leaning into AI

And if analysts’ predictions for Wisetech shares are on the money, Mr Appoo could be sitting on a hefty profit in the year to come.

The team at Bell Potter ran the ruler over this week’s results and like what they see, but first, let’s have a look at what the company reported.

Wisetech said in a statement to the ASX on Wednesday that revenue for the first half was 76% higher at US$672 million, with EBITDA 31% higher at US$252.1 million.

Net profit fell 36% to US$68.1 million, while free cash flow was 24% higher at $153.6 million.

What piqued the interest rate of many market watchers was the company’s stance on artificial intelligence, with Wisetech flagging far-reaching staff cuts as AI adoption ramped up.

As the company said:

WiseTech is undergoing a deep AI transformation, as AI continues to be embedded across its software for customers and internal operations. This will accelerate productivity, automation and decision-making across the industry’s complex, regulated workflows, and across WiseTech’s own operations. WiseTech today announced the next phase of their efficiency program, starting in the second half of FY26 and continuing into FY27, expecting to reduce teams – initially product & development and customer service across the company, including e2open, by up to 50% in terms of headcount. As part of WiseTech’s long-term strategic focus on higher-margin recurring revenue, and WiseTech’s commitment to building a higher-performance culture, this program will likely result in a reduction of approximately 2,000 roles in FY26 and into FY27.

So the company is looking to maintain its rapid growth profile, while saving money with deep jobs cuts.

Wisetech shares looking cheap

The Bell Potter team said they had made modest changes to their calculations for Wisetech, slightly reducing their price target to $83.75 while maintaining a buy recommendation.

This compares with a price for Wisetech shares of just $49 currently, which is near the lower end of the company’s trading range over the past 12 months.

The post The boss of which tech company has just bought $1m worth of shares? appeared first on The Motley Fool Australia.

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

The TPG Telecom Ltd (ASX: TPG) share price is in focus today after the company reported a 4.2% rise in mobile service revenue and an 18.4% jump in EBITDA for 2025, underpinned by its strongest mobile subscriber growth since 2022.

What did TPG Telecom report?

• Service revenue increased 2.2% to $4,179 million, with mobile service revenue up 4.2% to $2,423 million
• EBITDA rose 18.4% to $1,660 million; on guidance basis, up 2.0% to $1,637 million
• Net profit after tax (NPAT) of $52 million, compared to a loss of $140 million in FY24
• Operating free cash flow (OFCF) of $1,291 million, up 98.9%
• Final dividend of 9.0 cents per share (30% franked), taking total FY25 dividends to 18.0 cents
• $3 billion capital return and $2.7 billion in bank borrowings repaid

What else do investors need to know?

TPG Telecom credited its 2025 performance to a successful regional mobile network expansion, which brought in 228,000 new mobile subscribers. Growth was strongest in digital-first brands and the EGW business, with average revenue per user ticking up to $35.51.

The company also completed the sale of key infrastructure and business units, making TPG a leaner, more mobile-focused business. Management noted that lower ongoing capital spending and new financing initiatives are expected to continue supporting healthy free cash flow.

What did TPG Telecom management say?

CEO and Managing Director Iñaki Berroeta said:

2025 was a transformational year for TPG Telecom. We delivered another year of mobile subscriber growth, cementing our position as Australia’s leading challenger telco… We are well-positioned to unlock further value for customers and shareholders. We are targeting continued growth in our share of Mobile Service Revenue, growing EBITDA margins as we keep costs strongly under control, and ongoing growth in free cash flow, earnings per share and return on capital.

What’s next for TPG Telecom?

Looking ahead, TPG Telecom has set guidance for FY26 EBITDA between $1,665 million and $1,735 million, with capital expenditure of around $750 million. The company expects continued mobile growth and tight cost control to support these targets.

Management is prioritising dividend growth in line with sustainable profits and cash flow, subject to Board approval, and will continue to drive efficiencies as it further streamlines its operations.

TPG Telecom share price snapshot

Over the past 12 months, TPG Telecom shares have declined 10%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post TPG Telecom FY25 earnings: Mobile subscribers drive profit 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 Virgin Australia Holdings Ltd (ASX: VGN) share price is in focus after the airline reported a 11.7% lift in underlying EBIT for the first half of FY26, with underlying NPAT up 20.7% to $279 million despite ongoing industry cost pressures.

What did Virgin Australia report?

• Revenue: $3.32 billion, up 9.3% on 1HFY25
• Underlying EBIT: $490 million, up 11.7%
• Underlying NPAT: $279 million, up 20.7%
• Statutory NPAT: $341 million, down 27.9% due to prior period tax benefits
• Underlying EBIT margin: 14.8%, up 40bps
• Net debt to underlying EBITDA: 0.9x, below target range

What else do investors need to know?

Virgin Australia’s transformation program delivered over $200 million in gross benefits, partially offsetting inflationary headwinds like airport charges. The company’s strong financial position is supported by $1.4 billion in liquidity and a net debt position well below its target range, even as it plans to purchase more aircraft in the second half.

Operationally, the airline achieved a domestic on-time departure rate of 72.6% and maintained a completion rate ahead of its competitors. Customer satisfaction continues to rise, with a three-point increase in Net Promoter Score and over 700,000 new Velocity members added during the half.

What did Virgin Australia management say?

Chief Executive Officer and Managing Director Dave Emerson said:

The Group’s continued strong performance clearly demonstrates that our constant focus on transformation and innovation is not only delivering strong financial outcomes but strengthens our ability to remain a robust competitor for years to come.

Virgin Australia is proud to play a critical role in delivering choice and value for Australian travellers, and we are laser-focused on serving our core customer groups of premium leisure, small and medium enterprises, and value-conscious corporates. Through careful cost management and decision making, we are striking the right balance between value, flexibility and quality, and our customers are responding well.

What’s next for Virgin Australia?

The airline expects demand for air travel to stay strong, with plans to increase domestic capacity by 2–3% in the second half of FY26 and 3% in early FY27. Virgin Australia targets continued EBIT growth, ongoing benefits from its transformation program, and growth in the Velocity loyalty business.

Investments include further aircraft purchases, with capex of $850–950 million anticipated for FY26, and much of the fleet will be upgraded with Wi-Fi. Ongoing discipline in capacity and cost management aims to keep the balance sheet strong and support future shareholder returns.

Virgin Australia share price snapshot

For the year to date, Virgin Australia shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Virgin Australia posts 1HFY26 earnings 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 WAM Capital Ltd (ASX: WAM) share price is in focus today after the company reported half-year profit of $24.1 million, an 83.9% decrease from the prior period, and declared an interim dividend of 7.75 cents per share, partially franked at 60%.

What did WAM Capital report?

• Revenue: $43.5 million, down 82.3% from the prior half
• Net profit after tax (NPAT): $24.1 million, down 83.9%
• Profit before tax: $30.2 million, down 85.5%
• Interim dividend: 7.75 cents per share, 60% franked, payable 29 May 2026
• Net tangible asset backing (after tax) per share: $1.61 (down from $1.68)
• Total shareholder return: 22.6% including franking credits for the half-year

What else do investors need to know?

WAM Capital’s investment portfolio gained 2.0% over the half, trailing the S&P/ASX All Ordinaries Accumulation Index return of 4.4% and the Small Ordinaries’ 17.4%. The value of the portfolio increased by $40.5 million, with returns weighed down compared to last year’s stronger performance.

The board confirmed the company’s fully franked dividend focus. Shareholders will receive the interim dividend with eligible participants able to access the dividend reinvestment plan at a 2.5% discount to the prevailing market price.

What’s next for WAM Capital?

Looking ahead, WAM Capital aims to preserve capital while continuing to pay steady dividends to shareholders. The level of franking on future dividends depends on tax paid on realised profits, while ongoing performance will be shaped by broader market cycles, the investment manager’s strategy, and economic conditions.

Management says it remains focused on supporting capital growth and maintaining a strong risk and governance framework, leveraging the depth of its investment team. Investors should consider the company’s focus on small-to-medium ASX-listed businesses and the ongoing volatility in equity markets.

WAM Capital share price snapshot

Over the past 12 months, WAM Capital shares have risen 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post WAM Capital earnings: Dividend steady as half-year profit falls appeared first on The Motley Fool Australia.

More reading

• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings
• Coles Group shares: Profit jumps, Supermarkets excel
• Block Q4 2025 earnings: Profit jumps as AI transformation begins
• PEXA Group posts 1H FY26 earnings

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.