That event kicked off the global defence spending megatheme.

More countries, including Australia, are now committing more funding to defence as world order splinters further.

Last year, the 32 NATO nations agreed to more than double defence spending from 2% to 5% of GDP over 10 years.

In April, Australia said it would increase defence spending to 3% of GDP by 2033 by adopting NATO's definitions of spending.

The Federal Government will spend an additional $14 billion over the next four years, and an additional $53 billion over the decade.

Since 2022, several ASX shares within the defence segment have recorded incredible share price growth.

Can they remain on the same trajectory?

In a recent article, CommSec equity strategist James Gruber said global defence spending "looks set to soar over the next decade". 

But he also poses a key question for investors: how much of that is already factored into ASX share prices?

Gruber says:

That depends a lot on how much the ASX-listed businesses can continue to take market share and grow their order books in coming years, and that will depend on creating and maintaining superior technological products versus their peers.

With this in mind, let's take a look at the ratings and 12-month price target ranges from the experts.

Austal Ltd (ASX: ASB)

The Austal share price has ascended 97% since June 2022, and hit an all-time high of $8.82 in January.

On Thursday, Austal shares are $3.83, down 2.7%.

Austal is an Australian defence shipbuilder that builds ships for the Australian Navy, US Navy, and others.

Gruber said:

Austal has a track record as a shipbuilder for defence forces, and it could benefit from the expected ramp up in global defence spending.

One risk is that it is the only foreign-owned contractor that builds and maintains warships for the US.

If America decides that outsourcing this function to foreigners does not make sense, then Austal may be impacted.

On the CommSec platform, the consensus rating among nine analysts rating Austal shares is a moderate buy.

On the TradingView website, three analysts have a 12-month target price range of $6.60 to $7.71.

That indicates 70% to 100% upside ahead.

Droneshield Ltd (ASX: DRO)

The Droneshield share price has soared 1,288% since 2022, and hit a record $6.71 in October.

Today, the Droneshield share price is $2.78, up 0.4%.

Droneshield is a counter-drone technology systems company.

Gruber said:

It was one of the earliest companies in counter-drone technology and that first-mover advantage has helped it grow revenue from $5m in 2020 to $227m in 2025. Most of the revenue comes from military forces in the US.

It predominantly sells hardware, but a growing number is from software as a service as the company's AI software requires continuous updates.

The company has spent up to 20% of revenue on research and that has depressed profits. What net margins it may achieve in future is a key question.

Risks primarily revolve around competition, with big players in the market, including Leonardo from the UK. Besides competition, the other main risk is obsolescence, with the possibility of superior technology emerging.

Recently, the Chairman and CEO decided to step down from their leadership positions, resulting in a sharp, one-day drop in the share price.

Three analysts on CommSec give a consensus hold rating for Droneshield shares.

On TradingView, three analysts have a 12-month target price range of $2.28 to $4.80.

That suggests Droneshield shares could fall by nearly 20%, or may rise by up to 70%, over the next year.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are 410% higher since June 2022, and hit a peak of $12.58 in March.

On Thursday, the Electro Optic Systems share price is $9.39, down 4.2%.

The company specialises in defence technology, developing advanced weapon systems and counter-drone solutions.

Gruber said:

The company has a strong order book of $459m, up from $136m at the end of 2024. It aims to realise 40-50% of this order book in 2026.

The company is a small defence contractor on the global stage and that may be why it has continued to struggle to post underlying profits in recent years (FY25 underlying earnings were -$24m).

Nonetheless, it could benefit from the increased global spending on defence going forward.

In March, its the shares had a big drop after it was revealed that the CEO and CFO intended to sell a large portion of their stakes in the company.

Four traders on CommSec have a consensus strong buy rating on Electro Optic Systems shares.

On TradingView, four analysts have a 12-month target price range of $10.60 to $16.

That indicates about 10% to 70% upside ahead.

The post ASX defence shares like Droneshield have soared since 2022. Is there any growth left? appeared first on The Motley Fool Australia.

The staunch US 'America First' policy under US President, Donald Trump, exacerbated it.

NATO's massive commitment last year to more than double its defence spending from 2% of GDP to 5% within 10 years reflected it.

And today, the Iran war has brought defence capabilities into even sharper focus, says CommSec analyst, James Gruber.

Defence spending continues to rise

In an article, Gruber says global defence spending has increased by almost 30% over three years – the fastest rise since the 1980s.

This has directly impacted the earnings of ASX defence companies, whose share prices have soared since 2022.

In 2024, the global defence spending trend was strong enough to warrant the launch of three exchange-traded funds (ETFs) on the ASX.

Then came the Iran war, which further highlighted the need for domestic defence capacity, not to mention energy security, for all nations.

ASX defence shares and ETFs had a particularly strong run in 2024 and 2025.

They have cooled in 2026, alongside the rest of the market, despite the Iran war keeping the defence theme front of mind for investors.

Bearing in mind that many factors can influence a company's stock value, let's take a look at the share price movements of four ASX defence shares and three thematic ASX ETFs since 2022, and also since the Iran war began on 28 February, to get an idea of the impact.

Austal Ltd (ASX: ASB)

Austal is an Australian defence shipbuilder and services provider that builds ships for the Australian Navy, US Navy, and other clients.

The Austal share price has doubled over the past four years. The ASX defence share hit a record $8.82 in January.

The Iran war began on 28 February. Since then, Austal stock has dropped 22% to $4.01 per share.

Droneshield Ltd (ASX: DRO)

Droneshield is a counter-drone technology company that makes drone defence systems.

Gruber says DroneShield has a niche, offering a range of equipment for detection and neutralisation, and aims to be a one-stop shop.

The Droneshield share price has soared 1,133% over the past four years. The ASX defence share hit a record $6.71 in October.

Since the Iran war began, Droneshield shares have fallen 18% to $2.96 per share.

Titomic Ltd (ASX: TTT)

Titomic manufactures lightweight titanium parts and provides industrial-scale metal additive solutions.

These solutions include its patented Titomic Kinetic Fusion cold spray technology for fast repairs of military equipment.

The Titomic share price has leapt 145% since 2022. The ASX defence share hit a 52-week high of 36 cents in October.

Since the Iran war began, Titomic shares have lifted 17% to 25 cents apiece today.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic specialises in advanced weapon systems, counter-drone solutions, and space domain awareness.

The Electro Optic Systems share price has ripped 468% since 2022. The ASX defence share hit a record $12.58 in March.

Since the Iran war began, Electro Optic Systems shares have risen 20% to $10.80 today.

What about ASX defence ETFs?

The following three ASX ETFs were launched in 2024. Let's take a look at their performance.

Vaneck Global Defence ETF (ASX: DFND)

DFND ETF holds just 36 shares and tracks the MarketVector Global Defence Industry (AUD) Index before fees.

DFND ETF is 75% higher since inception in September 2024. The ASX defence ETF hit a record $45.47 per unit in January.

Since the Iran war began, DFND ETF units have drifted 11% lower to $35.25 today.

Global X Defence Tech ETF (ASX: DTEC)

ASX DTEC invests in 37 shares and seeks to track the Global X Defense Tech Index before fees.

The DTEC ETF price has increased 59% since inception in October 2024. The ASX defence ETF hit a record $21.50 in January.

Since the Iran war began, DTEC ETF units have fallen 16% to $15.96.

Betashares Global Defence ETF (ASX: ARMR)

ASX ARMR invests in up to 60 companies headquartered in NATO nations or allied countries, such as Australia and Japan.

It seeks to mirror the returns of the VettaFi Global Defence Leaders Index before fees.

ARMR ETF units have ascended 55% since launching in October 2024. The ASX defence ETF hit a record $29.35 in January.

Since the Iran war began, ARMR ETF units have descended 11% to $23.50 today.

The post Iran war impact on ASX defence shares and ETFs appeared first on The Motley Fool Australia.

For comparison, the S&P/ASX 200 Index (ASX: XJO) rose roughly 0.7%. 

Let's see what was behind the massive jump and what experts are anticipating moving forward. 

Vista Group International Ltd (ASX: VGL)

Vista Group engages in the sale, support, and associated development of software for the film industry.

Yesterday, its share price shot almost 13% higher on the back of a key announcement.

Vista Group announced that Cinemex has signed a five-year agreement to move its Mexico cinema operations back onto Vista's software platform. 

The rollout will begin during 2026 and follows the successful transition of Cinemex's US cinemas to Vista's systems in 2025. Cinemex is the second-largest cinema operator in Mexico, with more than 2,800 screens across 289 locations.

Speaking on the deal, Vista Group CEO, Stuart Dickinson, said: 

We are delighted to welcome Cinemex back to Vista Group and to empower their team with our market leading solutions, including Vista Cloud's Digital Empowerment capability.

Following the 13% share price rise, investors may be wondering if there is any more upside for these ASX shares. 

Recent estimates from brokers indicate there is. 

Shaw and Partners recently placed a price target of $3.70 on Vista Group shares. 

That indicates a further 72% upside. 

Austal Ltd (ASX: ASB)

Austal shares soared nearly 8% higher yesterday, rebounding after a tough start to 2026. 

It is an Australian-based shipbuilder that specialises in the design, construction, and support of defence and commercial vessels globally.

It seems investors have woken up to the value in the company after it tumbled more than 30% year to date despite strong contract momentum. 

This ASX defence stock appears to be well positioned to benefit from rising global defence spending, and appears to have plenty more upside. 

It closed yesterday at $4.25 per share, significantly below its yearly high of over $8 per share. 

Broker targets have been placed around $6.94 for this ASX defence stock, indicating a further upside of 63%. 

Megaport Ltd (ASX: MP1)

Megaport shares gained nearly 9% yesterday. It seems investors and brokers have been looking at the software-defined network (SDN) service provider with renewed optimism. 

Catalysts for the rise could be the major contract wins from the company's newly acquired Latitude.sh business. 

Following yesterday's gain, Megaport shares closed at $14.98. 

Unfortunately, it appears much of the upside is now priced in for these ASX shares. 

Ord Minnett recently placed a price target of $14.50 on the company, while Morgans has a price target of $15.50. 

The post These ASX shares shot higher this week – can they keep rising? appeared first on The Motley Fool Australia.

After some morning wobbles, the ASX 200 spent most of the session in green territory, and ended up closing with a happy 0.69% rise. That leaves the index at 8,717.7 points.

This pleasant Wednesday session for Australian investors comes after a mixed return to trading for the American markets last night, following Monday's public holiday.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up some initial optimism to close down 0.23%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared better, gaining a solid 1.19%.

But let's return to the local markets now and look a little closer at what was happening with the different ASX sectors this hump day.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

After kicking off the trading week on a positive note yesterday, investors couldn't keep up the momentum, with the index opening in the red this morning and staying that way all session. By the time the markets closed up shop, the ASX 200 had lost 0.39% and finished up at 8,657.8 points.

The US markets were closed for the Memorial Day public holiday last night, so the small gains we saw 'Stateside last Friday are still holding.

So, without further ado, it's now time to take stock of how the various ASX sectors fared amid today's frosty trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

However there is a pivotal point where ASX shares, despite these headwinds, become especially attractive to value investors.

This arbitrary number can be difficult for investors to pinpoint. 

However looking at expert estimates can help identify ASX shares that have been oversold, and now represent a buy low candidate. 

Here are three such options that may have reached that price after hitting fresh 52-week lows yesterday.

Seek Ltd (ASX: SEK)

Seek is a global leader in the online employment marketplace, serving Australia, Asia, Latin America, and beyond.

Its share price tumbled 5% yesterday to hit a new 52-week low of $12.08 per share. 

This was despite no price sensitive news from the company. 

Seek shares are now down 48% year to date. 

It seemed they had finally shaken AI replacement fears during April as its share price recovered somewhat. 

However the downslide has since continued during May. 

These ASX shares now appear too cheap to ignore. 

At the time of writing, 14 analysts offering a one year forecast have an average price target of $23.12 on Seek shares. 

This indicates an upside potential of 91% from current levels. 

Austal Ltd (ASX: ASB)

Austal is an Australian-based shipbuilder that specialises in the design, construction, and support of defence and commercial vessels globally.

Its products include naval vessels, defence surface warfare combatants, high-speed support vessels, patrol boats for law enforcement, offshore vessels, as well as passenger and vehicle ferries.

The company enjoyed a defence craze in 2025, as its share price rocketed over 100% during the last calendar year. 

However since the start of 2026, it has crashed 44%. 

This has come despite contract wins and a record order book of $17.7 billion in contracted work, up from $13.1 billion just eight months earlier. 

It now has a decade of work locked in the pipeline, yet has been heavily sold off. 

Broker targets are hovering around $6.94 for this ASX defence stock. 

This is 83% higher than its current share price, making it an enticing buy low option. 

Energy One Ltd (ASX: EOL)

Energy One engages in the development and provision of software solutions to the electricity and gas sector.

Its share price slumped 5% yesterday and it now sits 32% lower today than the start of 2026. 

These ASX shares also now appear oversold, as recent price targets have been placed on the company as high as $17.10. 

From yesterday's closing price of $11.63, this indicates a 47% upside. 

The post Are these oversold ASX shares too cheap to ignore? appeared first on The Motley Fool Australia.

Countries around the world are increasing their spending commitments, led by Europe and the United States, which are investing more and more into their defence budgets.

Australia has a vibrant defence industry that will benefit from this structural tailwind. 

The question for investors is which stocks can best capture this opportunity?

DroneShield Ltd (ASX: DRO)

DroneShield has become one of the most closely watched and exciting defence technology stocks on the ASX, and for good reason.

The company develops artificial intelligence-enabled counter-drone systems used by military forces, governments, and critical infrastructure operators around the world. 

In FY 2025, DroneShield posted revenue of $216.5 million, up 276% year on year, and a $3.5 million profit.

The company also reported a $2.3 billion sales pipeline and confirmed that $104 million in revenue for 2026 had already been secured. 

It is still early days in the DroneShield story, and with a premium valuation, many risks still exist for the investment thesis. 

But the focus on counterdrone technology is definitely a strong tailwind that will provide many future growth opportunities. 

A recent pullback in the share price due to an ongoing ASIC investigation may provide investors with an attractive entry point. 

The one question investors should be asking is to what point this future growth has already been priced in?

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems develops and manufactures advanced electro-optic technologies for defence and space markets, including remote weapon systems, high energy laser weapons, and counter-drone solutions. 

Clearly in a massive growth phase, the company signed $424 million worth of contracts during FY 2025, compared to just $70 million in FY 2024. 

Key wins included a $125 million high energy laser weapon export contract, the world's first of its kind, a $108 million LAND 400-3 remote weapon systems contract, and multiple Slinger counter-drone system orders. 

The company ended FY 2025 with $106.9 million in cash after repaying all borrowings, giving it a clean balance sheet heading into a busy delivery year. 

Bell Potter seems to agree on the positive direction of the company: 

We retain our Buy rating and [increase] our TP to $10.40 on lower CY27e earnings. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. Through both its kinetic and directed energy solutions, EOS has a long runway for growth.

Austal Ltd (ASX: ASB)

Austal is a more established name in the defence space and offers a compelling investment proposition.

The company is Australia's largest defence shipbuilder, designing and constructing advanced naval and patrol vessels for governments and defence forces around the world, operating yards in Australia, the United States, Vietnam, and the Philippines. 

Austal has had great momentum as of late, winning many key contracts. 

As of February 2026, Austal carried a record order book of $17.7 billion in contracted work, up from $13.1 billion just eight months earlier. 

Recent highlights include a $1.029 billion contract to build 18 Landing Craft Medium vessels for the Australian Army, and a separate approximately $4 billion contract to build eight Landing Craft Heavy vessels under the Commonwealth's Strategic Shipbuilding Agreement. 

Austal's contracts are often long term, providing a very sticky revenue base for the company. 

Austal has over a decade of work now locked in, offering investors a level of revenue visibility that is rare among ASX-listed companies of its size.

Foolish Takeaway

The structural shift in global security spending looks set to persist for years.

DroneShield and EOS offer higher-risk, higher-upside exposure to this trend.

Austal, on the other hand, with a record order book and long-term government contracts already on hand,  provides investors a more grounded and established investment opportunity.

The post 3 ASX stocks positioned to benefit from rising global defence budgets appeared first on The Motley Fool Australia.

The US and Iran launched missile strikes against each other in the Strait of Hormuz overnight as the US tried to restore shipping.

Meanwhile, the Reserve Bank of Australia (RBA) raised interest rates for a third consecutive time to 4.35% today due to rising inflation.

In a statement, the RBA said:

Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of this increase reflected greater capacity pressures.

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation.

There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services.

The Brent crude oil price hit a four-year high earlier today as the market becomes increasingly pessimistic that the war will end soon.

Economists are warning that oil shocks have a long-tail economic impact, and the RBA appears acutely aware of the upside risk to CPI.

Today, four of the 11 market sectors finished in the red, with energy in the lead, up 0.89%, while financials lagged, down 0.5%.

Scores of ASX 200 shares hit fresh 52-week lows today.

They included former market darling CSL Ltd (ASX: CSL) and retail stalwart Wesfarmers Ltd (ASX: WES) shares.

Let's take a look.

CSL Ltd (ASX: CSL)

The CSL share price hit a 9-year low of $122.48 today.

The ASX 200 healthcare giant has lost half its value over the past 12 months.

Company issues have compounded the impact of a broader ASX 200 healthcare sector rout due to many global headwinds.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price reached a 52-week low of $71.31 today.

The market's largest ASX 200 consumer discretionary share is down 9% over 12 months.

Consumer sentiment is crumbling in Australia today.

Last month, the consumer sentiment index recorded its biggest fall since the beginning of the pandemic five years ago.

Amcor Ltd (ASX: AMC)

The Amcor share price hit a 12-year low of $51.42 today, and is down 28% over 12 months.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price fell to a record low of $3.13 today, and is down 22% over 12 months.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price hit a 52-week low of $4.39 today.

Stock in the ASX 200 furniture retailer has tumbled 15% over 12 months.

Ansell Ltd (ASX: ANN)

The Ansell share price dropped to a 2-year low of $25.35 today, and is down 18% over 12 months.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price hit a 3-year low of $11.47 on Tuesday, and is down 12% over 12 months.

Austal Ltd (ASX: ASB)

Austal shares fell to a 52-week low of $4.01 today.

The ASX 200 industrial share has fallen 21% over 12 months.

ARB Corporation Ltd (ASX: ARB)

The ARB Corporation share price hit a 52-week low of $17.89 today, and is down 43% over 12 months.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price hit a 52-week low of $14.03, and has cooled 18% over 12 months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price hit a 2-and-a-half-year low of $5.29 today.

This ASX 200 retail share has lost 69% of its market capitalisation in 12 months.

Inghams Group Ltd (ASX: ING)

The Inghams share price descended to a 52-week low of $1.71 today.

The ASX 200 consumer staples share has fallen 51% over 12 months.

Centuria Office REIT (ASX: COF)

Centuria shares dipped to a 52-week low of 92 cents today.

The ASX 200 real estate investment trust (REIT) has decreased 26% over 12 months.

Accent Group Ltd (ASX: AX1)

Accent shares hit a 13-year low of 51 cents, and are down 72% over 12 months.

Adairs Ltd (ASX: ADH)

The Adairs share price hit a 52-week low of $1.25, and is down 51% over 12 months.

The post CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows appeared first on The Motley Fool Australia.

The ultra-long-term return of the ASX share market has been approximately 10% per year, so anything capable of outperforming that benchmark could be very attractive.

Brokers have highlighted two businesses that released promising updates this year, and could therefore could deliver significant returns in the year ahead. Let's look at those ideas.

Megaport Ltd (ASX: MP1)

Megaport said it's changing how businesses manage their infrastructure, with one smart and simple platform. The company says it brings "network and compute together seamlessly and deploy[s] secure, scalable infrastructure closer to users, data and clouds."

It noted that it's trusted by leading companies across the world, partnering with service providers, data centres and system integrators.

The ASX share continues to win sizeable contracts – it recently announced a major new customer contract for compute and storage. That customer signed a 36-month contract with a total value of approximately US$25.1 million, or A$35.4 million. That adds US$8.4 million (A$11.8 million) in annualised recuring revenue (ARR).

The company said that its subsidiary Latitude.sh is in an ideal position as a critical infrastructure platform to continues to capture the "unprecedented AI-driven demand for CPU, GPU and storage."

Megaport's network ARR continues to grow strongly, with the figure reaching A$272 million as at 31 March 2026, representing 23% year-over-year growth on a constant currency basis. Excluding India, network ARR increased 20% on a constant currency basis.

According to CMC Invest, there have been nine recent analyst ratings on the business, with eight of those being a buy and one being a hold. The average price target of those ratings is $15.39, implying a possible rise of around 70% from where it is, at the time of writing.

Austal Ltd (ASX: ASB)

Austal is another ASX share that experts have tipped to deliver potentially large returns.

It's a global shipbuilder and defence contractor that designs, constructs and maintains some of the world's most advanced commercial and defence vessels. The business is Australia's largest defence exporter.

Austal has shipyards in Australia, the USA, the Philippines and Vietnam, with service centres across the world.

Some of its major clients include the US Department of Defense, the US Coast Guard, the Australian Department of Defence and the Australian Department of Home Affairs.

Its FY26 half-year result was impressive, with revenue growth of 34% to $1.1 billion operating profit (EBIT) growth of 41% to $60.4 million and net profit after tax (NPAT) growth of 21% to $30.5 million.

There are a number of positives for the business, including its Australian order book being at record levels, providing "years of growth". Additionally, it's expanding its Alabama shipyard which will help its US earnings and capabilities.

Its HY26 order book reached $17.7 billion, suggesting plenty of future revenue and earnings are locked in.

According to CMC Invest, of three recent ratings on the business, the average price target is $6.94. That implies a possible rise of around 65% from where it is, at the time of writing.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months appeared first on The Motley Fool Australia.

What did Austal report?

• Correction: Contract price for two Evolved Cape-class Patrol Boats updated to approximately $150.3 million (up from $136 million)
• Contract is for the Australian Border Force
• Austal continues to expand its defence vessel contracts globally

What else do investors need to know?

This correction ensures investors have the accurate contract value for Austal's recent deal with the Australian Border Force. The contract further strengthens Austal's position as a leading defence exporter and strategic shipbuilder for the Australian government.

Austal has a major presence both in Australia and overseas, supplying advanced vessels to defence and commercial customers in over 59 countries. The company has now contracted more than 360 vessels globally during its nearly 40-year history.

What's next for Austal?

Austal will continue delivering on its contract for the two Evolved Cape-class Patrol Boats, with the updated value reflecting the scope of work. The company remains focused on its major defence programs and leveraging its role as the Commonwealth's Strategic Shipbuilder in Western Australia.

With multi-national shipyards and a sustained pipeline of defence projects, Austal expects to maintain its industry-leading position supplying vessels to governments and agencies worldwide.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Austal issues correction for Border Force contract price appeared first on The Motley Fool Australia.

What did Austal report?

• Secured a contract extension to build two more Evolved Cape-class Patrol Boats, worth approximately A$136 million
• This raises the total number of ECCPBs for the Australian Border Force to six vessels
• Record order book now exceeds A$17.7 billion, including other major defence projects
• Ongoing delivery of Evolved Cape-class Patrol Boats to the Royal Australian Navy, with ten already handed over
• Annual contribution of A$500–700 million to the order book from local and international defence programs

What else do investors need to know?

Austal has a strong track record, having delivered eight original Cape-class patrol boats to the Australian Border Force from 2012 to 2015, plus further deliveries to other customers including the Royal Australian Navy and Trinidad and Tobago Coast Guard.

The company continues to benefit from Australia's focus on sovereign shipbuilding, with support from federal programs and Defence partnerships. The new award signals ongoing faith in Austal's ship design and delivery capability.

The company provides in-service support from multiple sites around Australia and remains a key supplier in the Pacific Patrol Boat Replacement Project (SEA3036-1), approaching completion of 24 vessels.

What did Austal management say?

Chief Executive Officer Paddy Gregg said:

Austal has delivered ten Evolved Cape-class Patrol Boats to the Royal Australian Navy in just over five years, and construction is well advanced on the first four vessels for the Australian Border Force. These additional two vessels further strengthen our record order-book of more than A$17.7 billion, which includes eighteen Landing Craft Medium and eight Landing Craft Heavy vessels to be delivered to the Australian Army, under the Strategic Shipbuilding Agreement with the Commonwealth of Australia.

What's next for Austal?

Looking ahead, construction of the two new patrol boats will take place at Austal's Henderson shipyard in Western Australia, supported by a national supply chain and close collaboration with Defence.

Austal's record order book gives strong long-term revenue visibility, with projects spanning both military and government customers at home and overseas. Management's focus remains on on-time delivery and growing its sustainment and export businesses.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Austal wins extra $136m patrol boat contract, lifts order book above $17.7bn appeared first on The Motley Fool Australia.

The uptick isn't too surprising, given that the counter-drone technology company is one of many ASX defence stocks in the spotlight right now. 

Tensions in the Middle East have seen heavy government defence spending as many nations around the world realise that global volatility could well continue, or even escalate further.

At the time of writing, DroneShield shares are up 0.7% to $3.64 a piece. The shares are now up nearly 10% year to date and are 172% higher than this time 12 months ago.

While DroneShield presents a great success story, it hasn't been a smooth ride. After soaring to an all-time high of $6.60 in October last year, DroneShield shares have swung anywhere between $1.16 to $4.74 a piece. 

Analysts still tip more upside, around 22%, to an average target price of $4.40 at the time of writing.

The upside is impressive, but there are a few other ASX defence stocks I'd rather buy instead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS shares are up 1.13% at the time of writing, to $9.81 each. It's a 1.5% decline for the year-to-date, but an enormous 691% higher than a year ago.

The Aussie defence company develops and produces advanced electro-optic technologies, so it has benefited from surging demand for exposure to the defence sector in 2026. 

The company has won several major contracts over the past few months, helping build investor confidence, keeping the share price hovering around an all-time high. 

Analysts are very bullish on the EOS share price, expecting further upside. All four analysts on TradingView data have a strong buy consensus. 

The maximum target price is $16, which implies a potential 63% upside at the time of writing. Even the average $12.79 target price represents a potential upside of 31% from here.

Titomic Ltd (ASX: TTT)

I also like the look of the lesser-known defence stock, Titomic. The company is a high-tech manufacturing company that uses advanced technology to print 3D metal parts on an industrial scale. 

These are mainly used in defence, aerospace, mining, and oil & gas to produce things like satellite structures, hypersonic shielding, drone parts, and large structural components.

The company posted its latest quarterly update in January, revealing global expansion plans, new defence contracts, and strong cash reserves. 

Titomic also recently announced plans to relocate its corporate headquarters to the US as part of its strategy to grow its defence and aerospace business. 

It looks like there is plenty of growth ahead for the ASX defence stock. At the time of writing, Titomic shares are down 3.45% to 28 cents per share. But the shares are still up 14% for the year-to-date and 19% over the year.

Analysts tip a 75% upside to 50 cents per share over the next 12 months.

Austal Ltd (ASX: ASB)

Austal is an Australian-based global shipbuilding company. The company designs and constructs naval vessels, defence surface warfare combatants, high-speed support vessels, law enforcement patrol boats, offshore vessels, and even passenger and vehicle ferries. 

The company has secured some big contract wins recently, including a $4 billion contract with the Australian Government in February. 

Austal also posted its first-half FY26 results in the same month, revealing a 34.4% year-on-year increase in revenue. Its EBIT also climbed 41.3%, and net profit climbed 21.4%.

Analysts are bullish that the shipbuilding company can keep growing this year. TradingView data shows that three out of six analysts have a strong buy rating on the defence stock. Another two have a hold rating. 

The average target price of $6.69 implies a potential 55% upside at the time of writing. Although some think the shares could jump up to 79% higher to $7.71 each.

The post Forget DroneShield shares, I'd buy these ASX defence stocks instead appeared first on The Motley Fool Australia.

After a shaky and volatile session that saw the index whipsaw quite a lot, the ASX 200 ended up closing 0.078% lower by the time the markets closed up shop. That leaves the index at 8,786.5 points as we head into the weekend.

This inglorious end to the trading week for ASX investors follows a red night up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't in a good mood, shedding 0.36%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared worse, though, dropping by 0.89%.

But let's return to the local markets now and see how the various ASX sectors ended their respective weeks today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

A new report from Betashares points out the strange timing, considering the US's war in Iran.

Tom Wickenden, investment strategist at Betashares, said the first 12 days of the Iran conflict alone are estimated to have cost the US around US$16.5 billion, a reminder of how quickly modern warfare depletes equipment. 

In response, the US is planning a sharp increase in defence spending, with a proposed budget of around US$1.5 trillion. If approved, it would represent the most significant year-on-year defence budget growth in history.

Importantly, that spending is expected to flow not only to traditional defence contractors, but also to newer players.

These could include areas such as AI, cybersecurity, and autonomous systems. These are becoming central to how wars are fought.

What is global defence?

"Global defence ASX shares" refers to companies listed on the Australian Securities Exchange that are involved – directly or indirectly – in the defence and military sector.

These companies often have customers or operations beyond Australia.

In general terms, these companies fall into a few broad categories:

• Defence contractors and manufacturers
• Technology and cybersecurity firms
• Engineering, logistics and services providers

Prominent names in the ASX defence sector over the last year include:

• Droneshield Ltd (ASX: DRO)
• Austal Ltd (ASX: ASB)
• Electro Optic Systems Hldgs Ltd (ASX: EOS). 

Global defence spending continues

The aforementioned ASX defence stocks all shot higher in 2025 as global defence investment skyrocketed. 

According to Betashares, while valuations do remain elevated, these increasingly reflect expectations of sustained profit growth rather than hype.

As a result of global spending developments, for the second year in a row major defence contractors saw their order books grow by over US$100bn. 

The defence contractor order books we track now collectively exceeded US$1 trillion for the first time in history. Record levels of contracted future orders are a positive sign for future profit growth and may support a sustained longer-term rise in defence company share prices.

How to target defence ASX ETFs

Betashares said the Iran war is likely to lead to increased spending to restock US inventories. This reinforces the need for Europe to boost its defence capabilities.

However, it may be the longer-term implications that matter most for investors, long after any resolution in Iran.

Russia's invasion of Ukraine accelerated defence spending, Trump coming back into power fractured the US security umbrella, and now the Iran conflict may be turning these geopolitical trends into a lasting influence on investment markets, rather than a short-term disruption.

For investors, this may strengthen the case for long-term exposure to the defence sector, as part of a broader equities allocation.

Two ASX ETFs investors may consider are: 

• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR) – Seeks to provide focused exposure to leading companies that are headquartered in NATO or closely aligned countries, and which derive more than 50% of their revenues from the development and manufacturing of military and defence equipment as well as defence technology.
• Global X Defence Tech ETF (ASX: DTEC) – Targets companies at the forefront of defence innovation — specifically capturing AI, drones, and cybersecurity as the future drivers of defence.

The post Will global defence ASX ETFs keep climbing? Expert appeared first on The Motley Fool Australia.

At the time of writing, the defence shipbuilder's shares are down 1.25% to $4.73. This leaves the stock down 20% over the past month and not far above its 52-week low of $4.04 reached during the March 2025 market sell-off.

Let's take a closer look at what has happened and whether Austal shares can turn the clock back.

A clear reset in expectations

The recent decline follows a material shift in expectations after Austal downgraded its FY26 earnings guidance.

The company revealed that its prior outlook had included an overstatement tied to incentives within its US operations. This resulted in EBIT guidance being reduced to approximately $110 million.

While the company still reported solid top-line growth in its most recent half, the downgrade has weighed on sentiment.

There are also ongoing pressures within the US business. Cost challenges and legacy contract issues continue to impact margins, even as revenue in that segment remains solid.

Share price trend remains weak

The trend in Austal shares is still pointing lower.

Over the past several months, the stock has formed a pattern of lower highs and lower lows. The recent move back toward the $4.70 range has reinforced that downward momentum.

In addition, the relative strength index (RSI) has been sitting in the lower range, pointing to weak buying interest. While it has not reached deeply oversold levels, it indicates the stock is still lacking strong support from buyers.

Key support appears near the $4 to $4.20 range, close to the previous 52-week low. On the upside, resistance may sit around $5.50, where the stock traded before the latest sell-off.

What could drive a turnaround?

Despite the recent weakness, Austal continues to operate in a sector supported by long-term demand.

The company has a $17.7 billion order book and remains exposed to rising defence spending, particularly in the United States and Australia.

In the near term, performance is likely to come down to execution rather than broader industry trends.

If the company delivers on its revised guidance and improves margins in its US operations, investor confidence may begin to recover.

Foolish Takeaway

Austal remains a sizeable defence contractor with a strong pipeline of work. However, recent events have shifted the focus back to its operational performance.

The downgrade has reset expectations, and the burden is now on management to deliver consistent results from here.

Until that happens, the market may remain hesitant.

The post Down 20% in a month, can this ASX defence stock make a turnaround? appeared first on The Motley Fool Australia.

After a brief dip into negative territory this morning, the ASX 200 spent the rest of the day in the green, closing up 0.31%. That leaves the index at 8,640.6 points.

The optimism that we saw on the local markets this Wednesday followed a similarly optimistic morning on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, gaining a timid 0.1%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was more decisive though, rising 0.47%.

But let's get back to the Australian markets now and check out what was happening amongst the different ASX sectors this session.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Investors are scrambling to get in on the action, too. 

ASX defence stock superstars like Droneshield Ltd (ASX: DRO) and Electro Optic Systems Holdings Ltd (ASX: EOS) have seen their share prices skyrocket over the past 12 months.

Droneshield shares have jumped 293.2% over the past year alone. The counter drone technology company was one of the fastest-growing stocks on the planet last year. 

Meanwhile, EOS has secured several major contract wins recently, and its shares have risen 728% over the same 12-month period. 

The returns are impressive, and investor and analyst sentiment suggest the share prices of these ASX defence stocks could keep climbing higher this year.

But there are some other lesser-known ASX defence shares which could also experience a boom in value this year.

Titomic Ltd (ASX: TTT)

Titomic specialises in metal additive manufacturing (cold spray technology), which has applications in defence (and other markets). The company manufactures, repairs, and upgrades military equipment using advanced materials such as titanium. This can be done while the equipment is active in the field.

The company's quarterly update, posted in late January, revealed global expansion plans, new defence contracts, and strong cash reserves of $35.8 million as of 31st December 2025.

Titomic also recently announced plans to relocate its corporate headquarters to the US as part of its strategy to grow its defence and aerospace business. 

At the time of writing, the Titomic share price is up 2.27% to 22 cents. Over the past month, the shares have climbed 7.14%, but they're still 13.46% lower over the year.

Just yesterday, Bell Potter confirmed its speculative buy rating and 50 cents price target on the ASX defence stock. That implies a 122.22% upside at the time of writing. The broker said it thinks 2027 could be the year that Titomic's production really starts to kick off. 

Austal Ltd (ASX: ASB)

Austal is an Australian-based global shipbuilding company specialising in the design, construction, and support of defence and commercial vessels.

These include naval vessels, defence surface warfare combatants, and law enforcement patrol boats.

The company also installs and maintains vessel command and control systems, communication and radar technology, and information management systems.

At the time of writing, Austal shares are down 1.25% for the day to $4.75 each. Over the past month, the shares have fallen 18.49%, but they're still 24.98% higher than this time 12 months ago.

The company recently cut its earnings guidance for FY26, citing an accounting issue. The news spooked investors and triggered a sell-off.

Most analysts continue to hold a bullish stance on the ASX defence stock. Data shows three out of six analysts have a strong buy rating, two have a hold rating, and one has a strong sell rating.

The average target price is $6.70, which implies a potential 40.96% upside over the next 12 months, at the time of writing. Although some think the shares could jump 61.97% to $7.71 each.

The post These 2 lesser-known ASX defence stocks are tipped to soar appeared first on The Motley Fool Australia.

From market close on 30 January through to the closing bell on 27 February investors sent these five stocks tumbling 26% to 32%.

Here's what put these companies under heavy selling pressure.

Austal Ltd (ASX: ASB)

The Austal share price tumbled 25.9% in February.

Shares in the Aussie ship builder crashed 22.8% on 13 February after management revealed they had inadvertently overstated the ASX 200 stock's potential earnings.

Ahead of Austal's half-year results release, the company reported that a US$17.1 million "overstatement had been included in the Company's FY2026 EBIT guidance".

EBIT guidance for FY 2026 was subsequently lowered to approximately AU$110 million.

Austal shares closed down another 11.0% on 23 February following the release of the ship builder's half-year results.

Cochlear Ltd (ASX: COH)

The Cochlear share price also had a month to forget, closing down 26.1% in February.

Shares in the ASX 200 stock, which manufactures and sells cochlear implantable devices,

Much of that pain was delivered on 13 February. Cochlear shares slumped 18.9% on the day following the release of the company's half year results.

While sales revenue was up 1% year-on-year to $1.18 billion, revenue was down 2% in constant currency.

And investors were favouring their sell button's, with Cochlear reporting a 9% decline in underlying net profit to $194.8 million.

Zip Co Ltd (ASX: ZIP)

The third ASX 200 stock investors would have done well to avoid buying and holding in February is buy now, pay later (BNPL) company Zip.

Zip shares fell 27.9% over the month just past.

All of that pain, and then some, was delivered on 19 February. The Zip share price closed down 34.4% on the day after the company released its – you guessed it – half year results.

Investors punished the stock despite Zip achieved an 85.6% year-on-year increase in cash EBTDA to $124.3 million. As the Motley Fool's James Mickleboro pointed out on the day, that looked to be fuelled by concerns of moderating profit growth, with management flagging that H2 cash EBTDA is likely to be broadly in line with the first half earnings.

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares also took a beating in February, shedding 29.4% of their value over the month.

Shares in the health imaging company tumbled 23.9% on 12 February after the company reported its own half-year results.

That sharp selloff came despite the ASX 200 stock reporting a 28.4% year-on-year increase in half year revenue to $124.8 million. And underlying profit before tax of $90.7 million was up 29.7%.

But investors look to have gotten swept up with rising concerns about the potential for AI to disrupt the global software industry.

Temple & Webster Group Ltd (ASX: TPW)

Rounding off the list with the biggest monthly loss is online furniture and homewares retailer Temple & Webster.

Temple & Webster shares crashed 31.6% in February, with the share price plunging 32.6% on 12 February.

I'm sure I don't need to tell you why.

Yep, the company reported its half-year results on the day.

The ASX 200 stock came under intense selling pressure despite achieving 20% year-on-year revenue growth to $376 million.

But investors were clearly not pleased with depreciation and amortisation costs, which saw Temple & Webster's net profit before tax for the six months decline 28% to $7.4 million.

The post The five worst performing ASX 200 stocks bought and held in February unmasked appeared first on The Motley Fool Australia.

Not all ASX 200 shares climbed with the market. For example, the four named below fell 20% or more during the month. Here's why:

Austal Ltd (ASX: ASB)

The Austal share price was out of form and sank 26% in February. This was driven by the release of a disappointing earnings guidance update from the ship builder. Austal advised that it previously overstated its potential earnings for the year after accidentally including incentives that had already been recognised in Austal USA's forecast. This meant there was a US$17.1 million overstatement included in its FY 2026 EBIT guidance. In light of this, Austal downgraded its EBIT guidance for FY 2026 to approximately A$110 million from A$135 million previously.

CSL Ltd (ASX: CSL)

The CSL share price was sold off and crashed almost 20%. This was driven by a combination of a soft half-year result from the biotech giant and news that its CEO, Dr Paul McKenzie, resigned out of the blue a day earlier. CSL's chair, Dr Brian McNamee AO, said: "Paul and the Board have determined that now is the right time for new leadership to continue to drive CSL's strategic transformation and performance." As for its results, CSL posted underlying NPATA of US$1.9 billion, which was down 7% on the prior corresponding period and short of expectations. However, it did reaffirm its guidance for FY 2026.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in February. A good portion of this came after the health imaging technology company released its half-year results. Pro Medicus reported a 28.4% increase in revenue to $124.8 million and a 29.7% lift in underlying profit before tax to a record of $90.7 million. This was softer than some were expecting. Pro Medicus' CEO, Dr Sam Hupert, said: "Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half." In addition, concerns over AI disruption weighed heavily on software stocks last month.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price was a poor performer and sank 32% last month. This followed the release of the online furniture retailer's half-year results. The company reported a 19.8% increase in revenue to $375.9 million and a more modest 13% lift in EBITDA to $14.9 million. This ultimately led to Temple & Webster recording a net profit that was over 30% lower than consensus estimates.

The post These ASX 200 shares sank 20% or more in February appeared first on The Motley Fool Australia.

At this level, the shipbuilder is sitting at a 9-month low. The stock has also tumbled nearly 40% in just one month following its latest half-year results and guidance downgrade.

After doubling in 2025 and hitting a record high above $8 in January, investor confidence has deteriorated quickly. The key question now is whether the recent sell-off marks a bottom, or if further downside lies ahead.

What did Austal report?

For the 6 months ended 31 December 2025, Austal delivered solid top-line growth.

Revenue rose 34.4% to $1.1 billion. Earnings before interest and tax increased 41.3% to $60.3 million, with EBIT margins improving to 5.4%. Net profit after tax (NPAT) climbed 21% to $30.5 million.

Despite the strong growth, two issues weighed heavily on investor sentiment.

First, the company reduced its FY26 EBIT guidance to around $110 million, down from prior guidance of $135 million. Second, net cash fell to $241.4 million following significant capital expenditure to expand US manufacturing facilities.

While management highlighted a record $17.7 billion order book and stronger Australasian operations, the earnings downgrade ultimately overshadowed those positives.

Why the heavy selling?

The guidance reset came after Austal identified discrepancies related to incentives in its US T-ATS program. An estimated $11.7 million overstatement had been included in prior guidance.

In addition, US operations continue to face cost pressures and legacy contract issues. Although revenue in the US segment rose, EBIT declined year over year.

The change in guidance sparked heavy selling, with the shares dropping from $8 in January to the $4 range within a few weeks.

What are brokers saying?

Broker reactions have been mixed.

Bell Potter maintained a 'hold' rating and cut its price target to $6.30. Macquarie trimmed its target to around $7.55. Citi reportedly downgraded the stock to 'sell' following the result.

Even after those downgrades, most broker targets remain above the current $4.88 share price, suggesting potential upside if the company delivers on its plans.

Is this the bottom?

At current levels, Austal trades on materially lower expectations than just a month ago. The company still has a record order book, long-dated defence contracts, and exposure to higher global defence spending.

However, execution risk remains significant, particularly in the US business as it transitions to new shipbuilding programs and expands capacity.

If management delivers on its revised $110 million EBIT guidance and restores confidence in the reliability of its earnings, the recent sell-off may prove overdone.

Whether this is the bottom will likely depend less on defence tailwinds and more on Austal's ability to meet its targets.

The post Austal shares down almost 40% in a month. Is this the bottom? appeared first on The Motley Fool Australia.