Azzet reports on three stocks with price moving updates today.
Graincorp falls after posting FY25 result ~
Shares in GrainCorp (ASX: GNC) were down 12.1% by 1:50 pm AEDT (2:50 am GMT) after announcing a mixed FY25 result, which fell short of market expectations.
Softer international grain margins undermined strong volumes on Australia’s east coast, with the group reporting a 35% fall in net profit after tax to $40 million for FY25, down from $62 million in FY24, while underlying net profit after tax lifted 13% from $77 million to $87 million.
Underlying earnings rose to $308 million from $268 million a year earlier, with the agribusiness handling 31.6 million tonnes of grain, up from 28 million in FY24, supported by higher production of 34.7 million tonnes across eastern Australia.
The board declared fully franked dividends of 48¢ per share, unchanged from last year, and reaffirmed a $75 million buyback program, of which $38 million has been completed.
While management told the market the group remains well positioned heading into the 2025–26 harvest, which has started strongly in northern regions, a cautious outlook played on market sentiment today.
The group expects the strong global supply of grains and oilseeds to sustain margin pressure, with receivals and exports for FY26 harvest progress tracking below last year’s levels.
“Although strong global supply of grains and oilseeds is expected to see a continuation of margin pressure, GrainCorp remains well-placed to capitalise on market opportunities as they emerge,” said GrainCorp’s CEO Robert Spurway.
Meanwhile, ABARES Eastern Crop Association Winter Crop forecast for FY25/26 is at 30 million metric tonnes (mmt), 7% lower year-on-year, while the ECA canola crop 11% below FY25 levels.
While GrainCorp isn’t expected to provide earnings guidance at its AGM in February 2026, the group has been quick to temper market expectations.
Having been on an upward trajectory since early April when it slumped at $6.45, the share price bounced to around $9 early October, and since then has fallen over 10% to $8.10.
Last week a settlement between parties in a class action over alleged noise and odour pollution from GrainCorp's Numurkah factory failed, with the matter likely to return to trial.
The agribusiness is defending allegations from a lead applicant living near its factory, who claims noise and odour emissions have ruined their quality of life.
Mid-October Bell Potter analysts downgraded their recommendation on the commodity trader’s stock from ‘buy’ to ‘hold’ but left its target price unchanged at $9.10.
The Bell Potter research note said that current indicators for 2025-26 east coast crop size, canola crush margins and grain trading margins “while volatile look within the band of outcomes to support our FY26 forecast”.
GrainCorp has a market cap of $1.8 billion; the share price is down 7% over one year and down 9% in the last month.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Orica rises after posting strong FY25 result
Shares in Orica (ASX: ORI) were up 1.8% after the explosives and mining services group supported its strongest earnings in 13 years with an equally robust FY26 outlook.
Orica reported a 32% rise in net profit after tax before significant items to $541 million for FY25, while statutory profit came in at $162 million after $379 million in previously disclosed one-off items.
Supported by demand for premium blasting products, digital mining solutions and strong operating discipline, earnings jumped 23% to $992 million.
The group declared a final unfranked dividend of 32 cents per share, lifting the full-year payout to 57 cents – up 21% on last year – and expanded its on-market buyback by $100 million to $500 million.
What also found favour with the market today were Orica’s expectations of earnings growth across all segments in FY26 on the back of higher digital adoption, gold sector demand and margin improvements.
Contributing to the group’s global leadership in digital solutions and specialty mining chemicals was the successful integration of recent acquisitions Terra Insights and Cyanco into the business.
Capital expenditure and financing costs are expected to remain steady, while the expanded buyback will be completed by March 2026.
Other key numbers announced today:
- Sales revenue of $8,144.5 million, up 6% from last year.
- Net operating cash flow of $949 million, up 18%
- Leverage at 1.39x, at the lower end of the company's target range.
- Return on Net Operating Assets (RONA) continues to improve, achieving 13.8%.
- EPS (pre-SI) (5) of 111.8 cents, up 25.4 cents and 29% from the previous period.
Commenting on today’s update, CEO Sanjeev Gandhi told the market that the highest earnings performance in 13 years reflected the successful execution of the group’s strategy, underpinned by the continued demand for its premium products and innovative technology solutions.
“By optimising our global manufacturing and supply network, and completing strategic upgrades at Winnemucca and Kooragang Island, we are ensuring long-term asset sustainability and reliable supply for our customers across the globe,” said Gandhi.
“Despite increasing volatility and geopolitical risks, our consistent performance demonstrates Orica’s adaptability and resilience, with our extensive global manufacturing and supply chain network remaining one of our key competitive advantages.”
Back in September, Orica was conditionally awarded $432 million in ARENA Hydrogen Headstart funding to support the operation of the Hunter Valley Hydrogen Hub (HVHH), subject to Financial Investment Decision (FID) anticipated in the first half of 2026 and requisite pre-conditions being met.
Orica has a market cap of $10.9 billion; the share price is up 33% on one year and up 8% in the last month.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Strong Buy.
Activeport jumps after signing Radian Arc deal
Shares in Activeport (ASX: ATV) were 14.3% higher today after the developer of software for telco providers and data centre operators secured a major contract with long-term partner Radian Arc to deploy its orchestration software for a Graphics Processing Units (GPU)-powered platform in Thailand.
The deal is expected to help Activeport capitalise on Thailand’s fast-growing $10 billion telco market and rising demand for sovereign cloud infrastructure.
The software will automate cloud gaming and AI services for Thailand’s largest telco, marking the first stage of Radian Arc’s plan to roll out a nationwide AI platform.
Recurring licensing revenue is expected from Q3 FY26, starting with 400 GPUs.
The service will stream over 500 premium games bundled with mobile data plans and later expand into Cloud PC and AI inferencing.
Commenting on today’s update, management told the market that the project is Raidan Arc’s first step toward delivering a nationwide AI platform for secure, low-latency inferencing with full data sovereignty in Thailand.
“Activeport, as Radian Arc’s software partner, is uniquely positioned to capture a substantial share by providing automated orchestration solutions for Thailand’s digital platforms,” the company said.
“Activeport earns a license fee per GPU per month for its orchestration software on Radian Arc’s GPU hardware.”
Radian Arc provides an infrastructure-as-a-service (IaaS) platform for running cloud gaming, artificial intelligence and machine learning applications inside telecommunication carrier networks.
Across the U.S, Australia, Central Europe, the Middle East, Malaysia, Singapore and Japan, Radian Arc offers telcos a GPU-based edge computing platform without the need for capital expenditure, facilitating low latency and improved economics for value-added services and the monetisation of 5G investments.
Today’s market update follows revelations earlier this week that Activeport has launched its network-to-network interconnect (NNI) exchange in the Middle East and North Africa region, enabling seamless connection between telco networks, data centres, and the Cloud.
Activeport CEO Peter Christie expects the new NNI exchange to capture a substantial share of the region’s growth by providing automated connectivity solutions for carriers.
Meanwhile, in an initiative aimed to reward existing shareholders without impacting the company’s cash reserves, Activeport has announced a pro-rata bonus issue of new unquoted options to its shareholders, offering one option for every five ordinary shares held.
Activeport has a market cap of $31 million; the share price is up 86% year-to-date and up 29% over the last week.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, the 20-day moving average is falling as upward momentum wanes.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
