Research notes

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%. We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp. SIG is targeting double-digit revenue and earnings growth for FY27. We have reduced our forecast by ~3.5%, which sees our TP reduce to A$3.19 (was A$3.30). The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital). We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

WES’s FY26 result was broadly in line with expectations, although trading in early FY27 was slightly softer, with management also flagging higher capex in FY27. Earnings from Bunnings, Kmart Group and Health were largely in line with expectations, while Officeworks was slightly above our forecasts. WesCEF was modestly weaker than anticipated. Management noted that while consumer demand remains resilient, cost-of-living pressures persist and customers continue to be value-conscious. We make minimal changes to FY27-29F group EBIT but decrease underlying NPAT by 1-2% due to higher net interest expense. Despite these changes, our target price rises to $85.00 (from $81.10) as we believe the increased investments WES is making in the near term will drive sustainable growth over the long term. This is particularly evident across its retail businesses (Bunnings, Kmart Group, Officeworks and Priceline), where investment should strengthen customer value propositions in a subdued consumer environment and position the divisions to capture stronger growth when economic conditions improve. ACCUMULATE rating maintained.

AIM's FY26 result was a revenue beat against MorgansF (a slower year on year decline than we had anticipated) while statutory EBITDA was in line with our expectations (higher revenue offset higher costs). Adjusted EBITDA of $2.1m was down 54% YoY on the higher product investment, though 2H26 Adjusted EBITDA of $2.5m was a sharp inflection from the 1H26 loss of $0.4m. Management has said FY27 ARR guidance will be provided at AIM’s AGM on 30 September 2026, so the key stock catalyst remains outstanding. We retain our HOLD rating with a target price of A$0.26 (previously A$0.22).

MIN delivered a strong FY26 result and FY27 guidance. Underlying NPAT was an 8% beat vs expectations and MIN declared a final dividend of 83cps (vs consensus 7.4cps). The stock gave back its early gains post the conference call after MIN flagged copper as a next potential growth pathway which we think unsettled some investors. Move to ACCUMULATE (previously BUY) with a A$71ps target price.

BLX reported a slightly better than expected FY26 result (~2%), with NPAT down 4.5% on an underlying basis. This was driven by improved momentum in the 4Q, where LFL sales growth was up 7.1% and momentum has continued into FY27. The trade business continues to deliver strong growth, +14.5% yoy. We expect trade sales to continue to grow at ~15% p.a. over the next few years. We have made modest revisions to earnings, down ~2% in FY27/28. Our valuation increases to $2.30 (from $2.13), and we maintain our BUY recommendation.

S32 delivered a broadly in line FY26 result, with FY27 guidance on unit cost and capex reflecting existing market expectations of continued cost pressure. Don’t count on S32 returning a meaningful part of the Alcoa deal proceeds, with the company going as far as talking down its commitment to its ordinary dividend. Similar to some of its peers, S32’s earnings have enjoyed a healthy upcycle, our concern is that it is starting to increasingly look factored in (while the company arguably swaps its earnings clout for a mid-cycle M&A war chest post Alcoa deal). With S32’s share price outperforming even its pure-copper ASX peers year-to-date on larger cycle leverage, we downgrade our rating to HOLD (from Accumulate).

HLO’s FY26 result was in line with recent guidance and our forecast. Reporting earnings growth was a credible outcome given the Middle East conflict materially impacted the 4Q26, albeit HLO benefited from acquisitions. While no formal earnings guidance has been provided for FY27, HLO highlighted the strength of its forward bookings. We have made modest changes to our EBITDA forecasts. We assume that the conflict continues to impact the 1H27, followed by a strong recovery in the 2H27. This could prove conservative given HLO’s strong bookings. HLO is materially undervalued, especially when we back out its investment in WJL from its EV. We think patient investors will be rewarded when a travel rebound eventuates given both its earnings and share price should be significantly higher.

WTC’s FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range. While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27. FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%. Our Underlying EBITDA forecasts are revised by +3%/-2% in FY27-FY28F and we retain our BUY rating with a price target of A$62.50ps (previously A$67.00ps).

Underlying NPAT of A$121.6m (+4.0% on the pcp) beat MorgansF A$117.8m and Visible Alpha A$119.4m and finished at the top end of pre-released guidance, but the beat was low quality, with EBIT up 1.0% to A$200.1m and carried by lower D&A (-15.7% on the pcp) and net interest expense. The balance sheet is strong, with net leverage down to 1.86x, free cash flow of A$164.1m and a 32.5cps final dividend (+51.2%) with a 50% payout ratio. FY27 started soft with -5.8% same-store sales (SSS) for the first 8 weeks. We maintain HOLD and lift our price target to A$20.00 (from A$17.60); we view the reset as necessary, but the recovery is cost led and volume growth needs to return.

FLT’s FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict. Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start. With one-off costs associated with Productive Operations and World360 Rewards now being placed above the line, we have made minor downgrades to our forecasts. While investors will need to be patient for another six months, FLT’s fundamentals remain attractive (FY27F PE of 11.6x) and we retain a Buy rating with a new A$14.25 price target. When operating conditions ultimately improve, both its earnings and share price will be materially higher.