Azzet reports on four ASX stocks with notable trading updates today.
SGH drops after revealing leadership transition at Boral
Shares in SGH (ASX: SGH), formerly Seven Group Holdings opened 4% lower this morning after the diversified industrial large cap told the market that Vik Bansal will step down as CEO of Boral early in 2026 and join the SGH board as a non-executive director.
As a diversified operating company, SGH owns WesTrac, Boral, Coates SGH Energy, a 30% shareholding in Beach Energy (ASX: BPT) and a 40% shareholding in Seven West Media (ASX: SWM).
Under Bansal’s leadership at Boral the former ASX-listed construction company is understood to have undergone a significant transformation with the ‘Good to Great’ strategy underpinning performance momentum within Australia’s infrastructure and residential markets.
While Matt McKenzie, currently executive general manager, will become chief operating officer, SGH CEO Ryan Stokes told the market that appointing a new CEO that will build on current momentum.
However, the market clearly didn’t know what to make of the plans to move Bansal from Boral’s CEO role to the SGH board.
In light of the critical role Bansal has played in Boral’s transition over the past three years, the market is clearly a little spooked by his new appointment and the uncertainty around finding someone new to fill his shoes.
Given that Boral Way is closely aligned with SGH’s operating philosophy, Bansal is clearly expected to play a more significant role across the company’s broader portfolio of assets.
At face value, it looks as if Bansal’s ascent to the SGH board is all about weaving his magic on SGH’s group financials.
While SGH’s return on equity (ROE) is decent enough, the group’s does use a high amount of debt to increase returns and currently has a debt to equity ratio of 1.02.
Acting as something of a lightning rod for SGH’s other business interests, Boral has delivered mid-teen earnings margins through the cycle and captured long-term growth across Australia’s infrastructure and residential markets.
Commenting on today’s planned transition, Stokes acknowledged Bansal’s outstanding leadership and contribution to Boral over the past three years.
“As we plan for the next chapter, our priority is to appoint a CEO who will enhance the Boral Good to Great journey and build on this momentum, ensuring we continue to unlock value and deliver long-term performance,” said Stokes.
SGH has a market cap of $21.7 billion; shares are up 43% over one year and is up around 16% year to date.
The stock appears to be in a long-term uptrend as confirmed by multiple indicators.
Consensus is Moderate Buy.
Biome jumps after updating on record FY25 revenue
Shares in Biome (ASX: BIO) were up around 6.5% at the open after the biotech small cap reported record FY25 revenue of around $18.4 million, up 41% from FY24.
The June quarter brought in $5 million, and the month of June alone saw $2.1 million in sales, up 50% on the previous period.
Following six consecutive quarters of positive earnings the company expects to post an inaugural full-year net profit.
Biome’s lead brand, Activated Probiotics, remains the fastest-growing in its category, and the company has also laid international foundations in Canada, Ireland, the UK and NZ.
Biome has entered FY26 with a $20 million run rate, and management claims the company is on track to reach its Vision 27 cumulative revenue target of over $75 million.
Commenting on today’s update Biome Australia’s founder and managing director, Blair Vega Norfolk told the market that Biome's exceptional sales revenue growth for FY25 significantly outpaced category growth by 7-10 times.
Our Activated Probiotics have now secured the number two position in total probiotic revenue within community pharmacy,” he said.
“I look forward to sharing further updates on the international markets, which have been a key focus of development in FY25 in supporting the business maintaining its position as a high-growth, profit-generating company for many years to come.”
Biome Australia develops, licenses, commercialises and markets innovative, evidence-based live biotherapeutics (probiotics) and complementary medicines, many supported by clinical research.
Back in May the biotech announced plans to launch four new products, including natural medicines and formulations, with evidence-based therapeutic applications.
Biome has a market cap of $06 million; the share price is down 19% in one year and up 5.43% over one month.
The stock’s shares appear to be weak with little demand from investors.
Consensus is Strong Buy.
IAG and Suncorp move higher on today’s updates
Shares in both IAG (ASX: IAG) and rival Suncorp (ASX: SUN) were marginally higher at noon after both major insurers announced market updates this morning.
Firstly, the market appeared a little underwhelmed by IAG’s revised FY profit guidance with the share price trading relatively flat and up 0.22% today.
For the 12 months through 30 June, IAG now expects to report insurance profits of between $1.6 billion and $1.8 billion - up from previous guidance of $1.4 billion and $1.6 billion.
Underscoring the revised guidance is a materially lower natural perils cost which is expected to come $200 million lower than the initially expected $1.28 billion.
The insurer also raised its reported insurance margin guidance which is now expected to land closer to the end of 15.5% to 17.5% - up on the previous guidance of $13.5% to 15.5%.
What the market clearly didn’t like about today’s update was weaker than expected gross written premium (GWP) growth which - due in part to the impact of the Coles exit - is now expected to sit between 4% and 4.5% for the year.
The GWP downgrade is materially lower than both the mid-to-high single-digit guidance provided in February and the 6% reported in 1H.
“[GWP] growth is around 8% in Retail Insurance Australia’s direct business with positive customer and unit momentum,“ IAG said.
“IAG is delivering solid GWP growth in direct home and motor segments in Australia, however the NZ commercial business is experiencing softer market conditions. IAG NZ expects to report broadly flat GWP growth in A$ terms (up around 1% in NZ$).”
IAG has a market cap of $21.4 billion; the share price is up 21% in one year and up 7% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Meanwhile, Suncorp shares were up a little over 1% in afternoon trading after IGA’s peer told the market that the reinsurance market appeared to have stabilised following a period of rapid price rises that had flow through to customers.
Suncorp CEO Steve Johnston told the market today that over the past couple of years, reinsurers have materially reset their appetite for deploying capital to cover small or mid-sized events in both Australia and NZ.
“This, and increased reinsurance pricing, have seen the cost of insurance, particularly home insurance, increase rapidly,” Johnston said.
“While the pricing of household policies will continue to reflect underlying risks and broader economic inflation, it’s pleasing that this major input cost appears to have stabilised.”
Johnston also updates the market on the comprehensive strategic review of its reinsurance program undertaken following the sale of Suncorp Bank to ANZ.
“The review concluded that our clear objectives of optimising outcomes for our shareholders and customers would be best met by the program announced today,” Johnston said.
“In the current market, capacity has increased significantly for the main catastrophe cover and pricing has improved. For other types of cover, including aggregate covers, capacity remains limited and expensive.”
As well as re-confirming plans to return excess capital to shareholders, Suncorp also expects the total cost of the FY26 CAT reinsurance program to be lower than last year.
This reflects strong reinsurance rate reductions and changes to the program, partially offset by exposure to growth in the portfolio.
Suncorp has a market cap of $123.6 billion; the share price is up 27% in one year and up 15% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
