Azzet reports on three stocks with price moving updates today.
IDP Education rallies in quirky 1H FY26 result ~
Longsuffering shareholders in IDP Education (ASX: IEL) received some welcome relief in the global education service provider’s recent share market slump, with investors overlooking a 65% drop in 1H net profit to $23.5 million in favour of upgraded FY26 adjusted earnings guidance.
While 1H revenue of $462.2 million fell 5%, it was still around 48% up on consensus expectations of $591 million.
Much of the stock’s 11% share price rise at the open can be attributed to revenue recognition changes and a 4% increase in full-year guidance at the midpoint of $125 million.
The board declared an interim dividend of 3.0 cents per share, which will be paid on 26 March.
Underpinning that guidance are management’s plans to boost its bottom line by focusing on higher margins in student placements and English testing, alongside a cost-cutting programme.
During the half, the group managed to slash direct costs by 6% and adjusted overhead costs by 2%, which keeps it on track to achieve a $25 million net reduction in its cost Base for FY26.
Commenting on today’s update, CEO Tennealle O’Shannessy told the market the group was delivering on its commitment to reset the cost base, simplify and strengthen our operating model and accelerate digital and AI adoption.
“We are expanding our reach, increasing conversion, improving student engagement, experience and outcomes, and improving productivity across our counsellor network and broader organisation,” he said.
“The work to reduce cost and focus on cash and working capital discipline will provide a good platform for reinvestment in future phases of the transformation to support profitable growth and shareholder returns.”
Other noteworthy numbers announced today:
- Adjusted earnings (EBIT) of $87.5 million, down 14%.
- Cash conversion of 59%.
- Student Placement volumes declined 25%.
- Student Placement yield increased 15%.
- $119.2 million of cash at 31 December 2025.
- Total current liabilities decreased by $28.6 million.
While the policy outlook for the international education sector remains uncertain, the group reminded the market that its global scale, strong market share, diversified business model, trusted brand, and ongoing investment in technology and productivity position it well to capitalise on stabilising market conditions.
IDP Education has a market cap of $1.4 billion; the share price is down 56% one year and up 1.3% in the last week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus is Moderate Buy.
Investors trying to size up today's brief 1H FY26 update - and the market’s ebullient reaction - should note that the period reflects a voluntary change in accounting policy for student placement revenue adopted in FY26, which led to restatement of comparative figures that influence how the market interprets the company’s earnings trajectory and asset metrics.
Management also clarified that the figures are expressed in Australian dollars, may include non-IFRS measures, and should not be relied upon as comprehensive financial advice or as a recommendation for investment decisions.
Tread carefully.
Cleanaway rallies on 1H update
Shares in Cleanaway Waste Management (ASX: CWY) were trading 8% higher at $2.58 this afternoon after reaching $2.71 at the open – after reporting a 13.7% increase in net revenue to $1,875.3 million and a 16.9% rise in underlying earnings to $228.2 million for the half-year ended 31 December 2025.
However, due to a $91 million spend on significant and non-recurring items, profit from operation (statutory EBIT) dropped 21.2% to $137.2 million.
Nevertheless, what also captured the market’s attention today was a slight upgrade to FY26 underlying earnings guidance, now expected between $480 million and $500 million (previously $470 million to $500 million).
What also made shareholders smile today was an announced fully franked interim dividend of 3.35 cents per share, up 19.6% and representing a payout ratio of 68.4% of underlying net profit.
Commenting on today’s update, management told the market that the 1H FY26 result reflects strong operational momentum and early integration benefits from the Contract Resources acquisition.
“This upgrade to guidance demonstrates both the underlying strength of our business… our refreshed strategy is designed to deliver strong and growing free cash flow,’ said Cleanaway CEO Mark Schubert.
He expects the refreshed strategy to deliver at least $35 million of annualised indirect costs savings from FY27, with initial benefits of $15 million to be realised in the second half of FY26.
This performance reflects the quality of the business and early integration benefits. “Having built positive momentum in the first half, we are confident that earnings and free cash flow will accelerate in the second half.”
Supported by robust price discipline, labour productivity improvements, and lower fleet costs, the Solid Waste Services segment delivered earnings and margin growth.
The period also included a five-month contribution from Contract Resources that exceeded the company’s expectations.
Key numbers announced today:
- Underlying EBIT was $228.2 million, an increase of 16.9%.
- $37.1 million of non-cash impairment charges.
- Underlying net profit after income tax increased by 17.8% to $109.7 million.
- Free Cash Flow2 decreased by 21.5% to $74.2 million.
- Solid Waste Services net revenue and underlying EBIT grew by 7.5% and 11.0% respectively.
- Oils & Technical Services and Health Services revenue was 5.1% lower, and underlying EBIT was 12.6% lower.
- Industrial Services segment revenue was 74.3% higher, while EBIT was 164.2% higher.
Looking forward, an improved second half of FY26 performance is expected to be driven by:
- Positive organic growth in Solid Waste Services and typical second half skew
- Robust performance across most business lines in Environmental and Technical Solutions • Contract Resources synergies of approximately $3 million.
- Initial indirect cost reduction benefits of approximately $15 million.
Cleanaway Waste Management’s market cap is $5.8 billion; the share price has flatlined over the last year and up 7% in the last week.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Strong Buy.
29 Metals dips after announcing return to profit
The market’s negative reaction to 29 Metals’ (ASX: 29M) update this morning should remind investors of the need to look beyond the headline numbers.
Shares in the base metals mining company were struggling to retain early gains (up 0.60%) after announcing a return to profitability for FY25, with a net profit of $24.2 million, driven by stronger earnings from its Golden Grove operation in the Mid-West region of WA and substantial cost reductions.
While this marks a significant turnaround from the $177.6 million loss recorded in FY24, market insiders clearly worry about the sustainability of these gains.
The share price kicked lower on 20 January after the company launched a $150 million entitlement offer, with new shares priced at 40 cents each. This represented a whopping 35.5% discount to the last traded price of 62 cents, which most likely triggered a sharp sell-off as the market adjusts to the lower price and the dilution of existing holdings.
What’s adding to downward pressure on the share price is the mixed to negative analyst sentiment.
In mid-January, Jefferies analyst Mitch Ryan cut his rating on the miner to Underperform from Hold after a strong share price rally, highlighting operational issues and an 86% zinc production shortfall at the Xantho Extended mine.
To the uninitiated, 29Metals is focused on copper and zinc production.
In addition to Golden Grove, it owns Capricorn Copper mines in the North West Minerals Province of Qld.
Commenting in today’s update, CEO James Palmer reminded the market that the substantial increase in Golden Grove earnings to $178 million - despite interruptions to mining of high-grade ore sources at Xantho Extended - highlights the underlying asset quality of Golden Grove.
Over the near term, he expects the asset quality of Golden Grove to become even more apparent as capital expenditures reduce substantially post 2026 and the mine plan is optimised with the two highest grade ore sources, Xantho Extended and Gossan Valley, feeding the mill.
“At Capricorn Copper, the team continued to make excellent progress towards a successful and sustainable future restart of production, with progress made on an application for a new Tailings Storage Facility and substantial water level reductions achieved through 2025,” he said.
“Excellent progress through 2025 provides the confidence to undertake a Restart Definitive Feasibility Study through 2026 to further progress the asset towards a restart decision.”
Key numbers announced today:
- Total revenue of $567 million (2024: $551 million), up 3%.
- Cost of sales of $482 million (2024: $563 million), down 14%.
- Golden Grove earnings of $178 million (2024: $101 million), up 76%.
- Golden Grove C1 Costs of US$2.49/lb (2024: US$2.56/lb), down 3%.
- Group earnings of $176 million (2024: $58 million).
Drawn Debt at 31 December 2025 was $188 million (31 December 2024: $262 million), a $74 million reduction.
In terms of production, copper output saw a slight increase, reaching 22.3 kilotonnes.
However, zinc production experienced a decrease, falling to 34.7 kilotonnes from the 56.7 kilotonnes recorded in the previous year.
Within a second update today, 29 Metals told the market that exceptional drilling results from the 2025 drill program has contributed to a 10% increase of Ore Reserve tonnes and 17% increase of Mineral Resources tonnes at Golden Grove, extending mine life and demonstrating the ongoing exploration upside potential of the asset.
The miner plans to increase the exploration spend in 2026 to $15-20 million, up from $11 million in 2025 and $4 million in 2024, to further test high priority exploration targets across the portfolio and reinstate the exploration program at Capricorn Copper.
However, some analysts believe 29Metals' balance sheet remains "strained" with a high debt-to-cash ratio and significant cash burn, leading to the necessity of repeated capital raisings to maintain liquidity.
29Metals has a market cap of $725 million; the share price is up 164% in one year and down 2% in 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 upwards momentum wanes.
Consensus is Moderate Sell.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
