Azzet reports on three stocks with price moving updates today
Nufarm soars on market update ~
Shares in Nufarm (ASX: NUF) were up 12.6% by 1:05 pm AEST (3:05 am GMT) after the agricultural chemicals giant posted a strong market update that highlighted strong earnings growth and new cost-saving initiatives.
What pleased the market today were revelations that the underlying EBITDA for H1 FY26 is expected to land between $239 million and $244 million, which at the mid-point represents a notable 17% increase compared to the previous period.
The company has also unveiled a further $50 million cost-cutting program as part of a broader strategy reset, on top of $50 million already achieved, with implementation costs of about $15 million and full benefits expected by the end of FY27.
Underpinning today’s update are improved margins in crop protection, expansion in hybrid seeds, and solid gains within the emerging omega-3 and bioenergy platforms, while cost savings will be through the optimisation of Nufarm’s assets - including footprint and products, manufacturing costs and SG&A.
Despite higher input and energy costs linked to the Middle East war, the company told the market that trading momentum had continued into April, which it is managing through pricing and inventory controls.
What the market also liked today were Nufarm’s efforts to fortify its balance sheet, with net debt as of March 31 at around $1.23 billion, reflecting a reduction of $130 million year-on-year.
The deleveraging has brought the net debt to LTM EBITDA ratio - a financial metric used to assess a company's leverage and its ability to pay off its debt - down to 3.6x, a 20% improvement on the previous period.
Today’s update follows the appointment of Rico Christensen as the company’s next CEO and a $165 million full-year FY25 loss, mostly due to $142.4 million of predominantly non-cash material items from seed technologies business review and performance improvement plan.
Nufarm has a market cap of $952 million; the share price is down 37% in one year and up 25% in the last month.
The stock appears to be in a medium-term rally, confirmed by multiple indicators.
Consensus is Moderate Buy.
Virgin Australia rallies on update
Shares in Virgin Australia (ASX: VGN) were trading 7.7% higher after the country’s second-largest airline group revealed that it was maintaining its full-year 2026 earnings guidance despite a significant fuel price "shock" caused by the Middle East war.
Like all airlines, fuel is one of Virgin's highest costs.
But due largely to strong hedging coverage, Virgin has maintained its FY26 earnings before interest and tax guidance, with only a $30 million to $40 million increase in fuel costs.
For early FY27, the company has continued strong hedging, 93% of Brent crude, however, only 15% of refining margin.
The airline reports continued supply assurance from its fuel suppliers for operations into May.
Virgin has lifted airfares and adjusted capacity to offset higher costs, with unit revenue now expected to rise about 5% in 2H FY26 and 6% in the June quarter, while domestic capacity growth has been trimmed.
However, while management expects refining hedging to reduce to 15% in 1H FY27, the airline has left investors guessing how far higher fuel costs will drag on in FY27.
While reviews are underway to adjust capacity if volatility persists, management remains confident in its flexible cost and hedging strategies to navigate uncertainty.
Other key numbers reported by Virgin Australia today:
- 2H FY26 underlying EBIT and EBIT margin both expected to be higher than 2HFY25.
- Group leverage at 0.8x net debt/underlying EBITDA, below its 1–2x target range.
- Liquidity position of $1.5 billion at 31 March 2026.
- Fuel costs of $554.7 million for 1HFY26, representing 21% of total operating expenses.
- 2H FY26 RASK (revenue per available seat kilometre) growth expected at approximately 5%, up from prior 3–4% guidance.
Assuming there are no major changes to demand, jet fuel prices, or fuel supply in the near term, management reassured the market that the outlook for FY26 remains solid.
At this stage, Virgin still expects second-half underlying earnings to be higher than the previous corresponding half, when it reported annual earnings of $664.4 million.
To put the airline’s exposure to refining costs in context, they have soared from around US$20 a barrel in February, when the Iran war began, to a peak of around US$120.
Virgin Australia has a market cap of $1.9 billion; the share price is down 13% in one year and up 8% in the last week.
The stock’s shares are in a downtrend confirmed by multiple indicators.
Consensus is Moderate Buy.
Andromeda Metals trades flat post-update
Shares in Andromeda Metals (ASX: ADN) gave back early gains of 11% to trade flat after the mineral explorer/developer announced the completion of its on-site Early Works program at its flagship Great White Project, located on the Eyre Peninsula in SA – including mine access roads and geotechnical drilling.
With key preparatory activities, also including environmental compliance payments, site clearance, bulk earthworks, grade control, and insurance arrangements now complete, the junior miner is now advancing site readiness for Stage 1A+ development.
As a world-class kaolin resource designed to produce high-quality industrial minerals, Stage 1A+ production at the Great White project is understood to be targeting a production capacity of 100,000 tonnes per annum.
A $75 million debt facility has been credit-approved by Merricks Capital, and recent cost-saving measures have reduced the remaining equity funding needed for a Final Investment Decision (FID) to approximately $40 million.
All key regulatory approvals, including the Program for Environment Protection and Rehabilitation (PEPR), are in place to allow construction to proceed once final funding is secured.
In July 2024, the project entered into a 100% binding offtake agreement for its initial Stage 1A+ production, including a major deal with global trader Traxys Europe.
Commenting on today’s update, acting CEO Sarah Clarke told the market that Early Works delivered tangible value, validating key design assumptions, improving project readiness, and enabling a more efficient construction schedule, alongside reducing the required equity balance for FID.
The company will continue to update the market on the GWP funding process.
The stock recently raised $14 million through a successful placement of new fully paid ordinary shares.
At the end of the December quarter, the stock had cash and cash equivalents at the end of $10,062k, an increase of $5,715k from the previous quarter's closing balance of $4,347k.
Andromeda Metals has a market cap of $46 million; the share price is flat over 12 months and up 11% in the last week.
The stock shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
