ASX materials stock Wagners Holding Co Ltd (ASX: WGN) is in focus today after its share price jumped 7.8% on the back of its most recent earnings result.
The company is an Australian construction materials provider. It produces and sells construction materials through its Composite Fibre Technologies and Earth Friendly Concrete business.
Investors reacted positively to its H1 FY26 results.
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What did the company report?
Included in yesterday's report were key financial highlighted:
- Operating EBIT $35.0 million (+72% versus H1 FY25), exceeding H1 guidance range
- Net Profit After Tax (NPAT) of $21 million (+70% vs $12.3 million in H1 FY25)
- Revenue of $251.7 million, driven by growth from core Construction Materials (CM) business (+21%) and uplift in demand for Composite Fibre Technology (CFT) products (+36%).
The company also released a FY26 guidance update.
The company upgraded full-year FY26 Group Operating EBIT. It is now expected to be in the range of ~$62 to $66 million.
Commenting on the results, Wagners' Managing Director, Cameron Coleman said:
The Group has continued its strong performance into H1 FY26, delivering improved top line and earnings performance. Achieving impressive growth across Construction Materials and Composite Fibre Technologies, these results have been driven by the elevated demand for Wagners' products and services, strong market conditions and a commitment to improving efficiencies in all aspects of our operations to drive sustainable margin improvement.
Share price snapshot
This ASX materials stock rose 7.8% higher yesterday following this result.
It has now risen 22.5% year to date, and 171.6% in the last 12 months.
After such a rise, investors may be wondering if they missed their chance to gain exposure to this stock at an attractive entry point.
However, the team at Morgans believes there is more growth to come.
Here's what the broker said.
Materials stock upgraded
Morgans said the company delivered an exceptional set of results, with 1H26 EBIT beating guidance (+9.5%), Morgans expectations (+8.4%), and consensus (+10.6%).
Full year guidance was materially upgraded, with the implied 2H26 EBIT of $27-$31m a 32% beat vs prior guidance and consensus, as strong demand continues across construction materials, while CFT poles are on track to triple (vs FY25).
Morgans also said the balance sheet is also now net cash, with the business well positioned to execute on its capex plans and capture continued demand for cement/concrete in South-East Queensland, along with CFT demand.
Based on this guidance, Morgans upgraded its recommendation to a buy, along with a $5.00 price target.
From yesterday's closing price of $4.40, this indicates a further upside of 13.64%.
