Research notes

FY26 was strong with EBITDA +49% YoY and NPAT +60%. Management seemed comfortable talking up the outlook more generally - across iron ore, energy, gold, rare earths and lithium - however expectations for FY27 were tempered by framing it as a consolidation year. While we acknowledge that the 1H27 comp will be difficult (1H26 revenue +45% YoY), the key lead indicators suggest that strong growth will continue into FY27 and beyond, as the E&C order book has more than doubled YoY to nearly $1.2bn (from $570m at FY25). MND’s E&C business has never been better positioned to start the year and can capture more of the value chain during this development cycle (civils, NPI, fabrication), with the mega-projects still to be awarded (Nolans, P2000, Hemi and Mt Holland). We maintain our BUY recommendation. Target price unchanged at $35.80.

WDS delivered a 1H26 EBITDAX beat (+6%) and inline underlying NPAT result (+1%). Underlying NPAT of US$1,334m ~1% ahead of consensus and ~3% ahead of MorgansF, was driven by stronger realised pricing (+20% yoy) and trading activity. Costs were inside the ranges pre-announced with the Q2 report. The interim dividend of US57cps (+8% YoY) was held at an 80% payout of underlying NPAT despite gearing (20.6%) sitting marginally above the 10-20% target range. A H2 skew in production and realised prices will help, while management also announced a US$350m pa cost savings target from 2028. We maintain our HOLD rating and A$32.20 target price.

EMV's emu™ pivotal validation trial has surpassed key enrolment milestones across active US and Australian hospitals, supporting the pathway toward FDA De Novo clearance. EMV is preparing to add an acute ischaemia detection endpoint to the pivotal trial, which may broaden first-release clinical utility and commercial opportunity. The First Responder aeromedical feasibility and usability study with Royal Flying Doctor Service has been completed, with favourable feedback from flight nurses and patients in real-world operation. EMV remains well funded, with A$17.1m cash as at 30 June 2026 and A$4.6m of non-dilutive funding remaining under current grant programs.

TLX posted its 1H26 result, announcing revenue growth, market share gains and significant progress across clinical and regulatory milestones. TLX flagged that its strengthened balance sheet is enabling increased investment in late-stage programs, including ProstACT Global, market expansion opportunities within its precision medicine portfolio and manufacturing and supply chain capabilities. TLX completed refinancing of existing convertible bond structure, issuing US$600m of new convertible bonds, due 2031. TLX entered into a strategic collaboration with Regeneron to jointly develop and commercialise next generation radiopharmaceutical therapies.

We have updated our WRK model post the FY26 result. Off a low base, we have lowered our FY27F/FY28F EPS estimates by >10%, mainly reflecting slightly higher D&A expense assumptions. We published a detailed WRK update following the company's recent capital raising on 22 July, which included extensive disclosure around the FY26 result detail. This can be accessed through the following link: WRK - Capital raising and business update. We maintain our $0.12 target price and BUY recommendation.

Mixed result. Our key focus was whether 2H delivered the guided growth acceleration, it didn't, but trophon-only earnings confirmed the core business remains in excellent health regardless of the group-level miss and near-term OPEX requirements for the CORIS launch. Trophon's demonstrated EBIT growth ex-CORIS underwrites the thesis regardless of near-term CORIS spend, and the FY27 guidance step-down reads to us as front-loaded investment to land the launch properly, not any deterioration in the longer-term opportunity. We move to an ACCUMULATE (from BUY) with a TP of A$3.50 (was A$4.00).

We believe the commercial rollout has progressed further than the headline implant numbers suggest, but execution capacity has temporarily become a key variable. With 52 hospitals contracted, 30 activated and 90 physicians trained, management is now prioritising utilisation within existing accounts rather than adding more sites, an important transition from market access to proving repeatability and productivity. We view the recent A$150m capital raise as alleviating near-term funding concerns, while CMS’s NCD process, major health-system purchasing agreements and real-world safety data provide important building blocks for broader adoption. We reduce CY26 sales to reflect the slower near-term ramp but retain CY27-28 estimates, expecting the existing footprint to drive meaningful gains. Our DCF-based valuation moves to A$1.95, mainly on dilution from the capital raise. BUY.

Earnings softer than expected, but guidance maintained - 1H26 EBITDA of US$174m missed MorgansF by 13% and consensus by 9%, with higher diesel costs, a stronger AUD and weather-related disruptions weighing on margins. Despite the softer result, FY26 guidance was reaffirmed and free cash flow remained positive. Dividend paused as flexibility takes priority - The key surprise was the absence of an interim dividend. SMR has elected to prioritise balance sheet flexibility and potential growth opportunities, despite ending the half with a modest net debt position of US$72m and continued positive free cash flow generation. Coal prices remain the key earnings lever - FOB cash costs rose to US$101/t and fuel costs remain a risk to FY26 margins. However, the recent ~US$20/t increase in hard coking coal prices has the potential to more than offset higher diesel costs if sustained, supporting earnings and cash flow into the second half. We maintain our HOLD rating with a reduced-price target of A$2.75ps (previously A$2.80ps)

GLF’s 1H26 result beat consensus expectations and saw management upgrade FY26 underlying EPS guidance to 30.0-31.0 cps. We shift our recommendation from BUY to ACCUMULATE following recent share price strength. Our thesis is unchanged and we remain enthused by the incoming settlement volume ramp up.

VNT's 1H26 was robust, with soft revenue more than offset by margin expansion. Revenue fell 5% YoY, while EBITDA margins expanded +113bps to deliver EBITDA growth of +8%. NPATA grew +7%. Earnings seemingly contained more than the usual number of moving parts, benefitting from PP&E sales and a large provision unwind, and weighed on by de/mobilisation, redundancy and extra fuel costs. Importantly, FY26 NPATA guidance of +7-10% was reaffirmed, though a tough comp for revenue in 2H26 means it is likely that margins will once again need to do the heavy lifting. Our FY26 NPATA forecast (+8% YoY) is largely unchanged and we increase FY27 NPATA by +3%. Target price rises to $5.95 (from $5.85).