So some investors might notice something strange has happened to Soul Patts shares today. For a very long time, Washington H. Soul Pattinson has traded under the ticker code 'SOL', as we touched on above. However, searching for that ticker code today would be an unsuccessful endeavour. Shares under the SOL ticker last traded yesterday and are frozen at $40.32 each. They don't appear to be available on the market anymore. 

However, if one is searching for a company called Washington H. Soul Pattinson and Co, one might come across an almost identical listing. It's called Washington H. Soul Pattinson, or something very similar at least. Its ticker code, however, isn't entirely familiar. Rather than SOL, these shares are trading under the ticker 'SOLDA'.

SOLDA shares are having a great day thus far. Rather than the $40.32 SOL stock closed at yesterday, these SOLDA shares are up 3.77% to $41.84 each at the time of writing.

So what's going on here?

What's up with Soul Patts shares right now?

Well, nothing too odd or nefarious. This is the first stage of the blockbuster merger that Soul Patts is currently undertaking.

Back in June, we revealed that Soul Patts and its longtime ASX cousin, Brickworks Ltd (ASX: BKW), had agreed to a merger. This would see both companies dissolve and reform into a single entity.

Soul Patts and Brickworks have been partners for decades. Both owned significant ownership stakes in the other, so this merger arguably makes a lot of sense through that lens.

Since the merger has gotten the ticks of approval from both shareholders and regulators, it was put into motion this week. Yesterday was the last day that both Brickworks and the old 'SOL' Soul Patts shares traded in their own rights. 

Today, both SOL and Brickworks shares have been suspended from the stock exchange. In their place are 'deferred settlement' shares of the new company. This new company has the temporary name 'TopCo' but will eventually regain the old title of Washington H. Soul Pattinson and Co Ltd.

So buying SOLDA shares today is effectively a purchase of the new Washington H. Soul Pattinson. The shares will officially complete their metamorphosis from SOLDA back to SOL by 25 September. That's when Brickworks and the old SOL shares will officially delist from the ASX. 

It's a big transition for two of the ASX's oldest shares. 

The post SOLDA? Here's why Soul Patts shares look a little different today appeared first on The Motley Fool Australia.

Birckworks is a popular blue-chip stock, so its loss will be felt by many an ASX investor. This ASX 200 company, as you might guess, is primarily a manufacturer of building supplies. But it has quite an interesting business model outside the world of brickmaking. Brickworks is also famous for its property portfolio, which it adds to by using exhausted sites previously used for its manufacturing activities.

The company is also known for its massive investment in another ASX 200 stock – Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Brickworks and Soul Patts are well-known for a unique and complex cross-ownership arrangement. In a nutshell, Soul Patts has an approximatle 43% ownership stake of Brickworks, while Brickworks in turn owns 26% of Soul Patts.

This arrangement was originally designed decades ago to stop corporate raiders from taking control of either company, but it remains to this day.

But not a day longer. As we alluded to earlier, today marks the last time Brickworks shares traded in their own right on the ASX. Tomorrow, neither Brickworks nor Soul Patts shares will exist, at least in their familiar forms.

As investors in either company would know, Brickworks and Soul Patts have decided to make their decades-long affair official with a marriage.

Brickworks shares to elope from the ASX

It was first announced that the two companies would be tying the knot back in early June. This is not a true takeover, though. Both companies will technically be dissolved, with a new one to take their place. This new company will initially be known as 'TopCo', but will eventually rebrand back to Washington H. Soul Pattinson.

The marriage will see Soul Patts investors receive a new 'TopCo' share for every Soul Patts share owned. Meanwhile, Brickworks shareholders will receive 0.82 shares in the new company for every share held.

Last week, the union received the final green lights from shareholders and regulators to go ahead. It proved exceedingly popular, with more than 97% of shareholders in both companies voting in favour. This means that today is the last day that Brickworks shares traded on the ASX.

The marriage will become official on 24 September later this month. As one ASX story ends, another begins.

The post It's time to say farewell to Brickworks shares on the ASX appeared first on The Motley Fool Australia.

What did Brickworks report?

• 97.4% of Brickworks shareholders present and voting supported the Share Scheme resolution
• 98.81% of the total votes cast by Brickworks shareholders were in favour
• At the corresponding Soul Patts meeting, 96.84% of shareholders voted in favour
• General meeting resolutions to grant performance rights to the incoming CEO were also carried

What else do investors need to know?

The combination between Brickworks and Soul Patts will now progress to final court approval, with court hearings scheduled for 12 September 2025. If the conditions are satisfied and the court gives its blessing, both Brickworks and Soul Patts shares are expected to be suspended on the ASX after trading closes on 15 September 2025.

Eligible shareholders will receive Topco shares, with Brickworks holders to get 0.82 Topco shares for each Brickworks share on record as at 17 September 2025. Deferred settlement trading in Topco shares is expected to commence on 16 September, moving to normal settlement from 24 September.

What's next for Brickworks?

The key remaining hurdle is court approval of the schemes, due soon. Once finalised, the merged entity—listed as Topco—will bring together the investment and industrial strengths of both companies, aiming to deliver ongoing returns and stability for shareholders.

Brickworks says any changes to the indicative timetable will be announced to the ASX. Investors can access more details through the company website or dedicated shareholder information lines.

View Original Announcement

The post Brickworks shareholders approve merger with Soul Patts: Key results and next steps appeared first on The Motley Fool Australia.

Wilsons Advisory has released some early predictions for changes, and says the aforementioned merger is likely to lead to Soul Patts (as SOL is known) being added to the S&P/ASX 50 Index (ASX: XFL), with Amcor Plc (ASX: AMC) likely to be removed.

When it comes to the S&P/ASX 100 Index (ASX: XTO), Wilsons expects payment company Zip Co Limited (ASX: ZIP) to be added, and plumbing supplies company Reece Limited (ASX: REH) to be dropped.

A second interchange sits at the upper end of what we consider 'possible,' as Reliance Worldwide is ranked #115, just outside the strong removal threshold of #116. If its rank deteriorates to #116, a second interchange would be expected, with Reliance Worldwide removed and Capricorn Metals being expected to be added.

Inclusion in an index is notable for a stock, as inclusion means it must be purchased by fund managers or exchange-traded funds that track the index.

Wilsons is not predicting any changes to the S&P/ASX 20 Index (ASX: XTL) this quarter.

The post Index changes could create a buying opportunity appeared first on The Motley Fool Australia.

Luckily for those investors, we have, thanks to reporting in the Australian Financial Review (AFR),  recently heard from some experts at the 2025 Livewire conference as to which shares they view as most compelling in today's markets.

Let's discuss some of their best ASX stock picks today.

Experts name best ASX stock picks in 2025

First up, Simon Mawhinney of Allan Gray picked medical supplies stock Ansell Ltd (ASX: ANN).

Mawhinney noted that while Ansell is often regarded as a 'boring' company, its prudent capital management sets it apart. Here's some more of what he said:

It's one of the very, very few companies, bar a recent equity raise … [where] the share count is lower than it was 15 years ago, so it has perpetually been buying back shares…

Neil Salmon is the CEO, and he's a very steady, methodical thinker and seemingly a very good capital allocator. And if you've got someone at the helm who's stewarding your investments … I think nine-10ths of the job is done.

Popular stock picker Jun Bei Lie, of TenCap, had a spicier pick with the embattled Domino's Pizza Enterprises Ltd (ASX: DMP). Domino's has had a shocking 2025, down more than 50% year to date. However, Liu argues that it is ripe for a turnaround, with "potential for profits to double":

The company has now identified what they need to do … close unmarketable stores, stop this rampage of store rollout… If franchisees make more money, then they will roll out more stores, and it's good for you.

Qiao Ma from Munro Partners, is looking to the United States for inspiration. Her best stock pick is chip maker NVIDIA Corporation (NASDAQ: NVDA), which she says is "only three years in of a decades-long AI boom". Ma reckons the chipmaker is still cheap at current pricing, stating that:

The stock is at $US168. That is less than 17 times price to earnings, for one of the best growers… This decade is going to be the Nvidia decade.

Back to the ASX now, our final stock pick is investing house Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Ausbil's David Lloyd calls Soul Patts "the market's next Berkshire Hathaway", and is even more bullish on it following the plans to merge with Brickworks Ltd (ASX: BKW). Lloyd reckons the merger will result in a "unique can-invest-through-the-cycle" stock with liquidity and room for a higher valuation.

He went on to note that the merger "is turning Souls into a $14 billion investment house [that's] starting to look a little bit like a Berkshire Hathaway or a Blackstone" and should add liquidity and "room for a higher valuation".

The post ASX stock picks from Australia's top fund managers appeared first on The Motley Fool Australia.

The new company, initially to be known as Topco, will be renamed Washington H. Soul Pattinson and Company, or Soul Patts for short, and will be further capitalised with $1.4 billion in new equity raised through the issue of 34 million new Topco shares.

Soul Patts has long been one of the favourite companies on the ASX for dividend investors, having increased its dividend every year since 2000.

The company's lead independent director David Baxby said at the scheme meeting on Wednesday the company would have a strong balance sheet from day one, and the operating strategy, "including its management, governance and investment philosophy – will remain consistent with Soul Patts''.

Who owns what in the new Soul Patts?

Soul Patts shareholders will receive one share in Topco for each SOL share they hold, with the approximate ownership of the company post-merger to be 72% owned by Soul Patts shareholders, 19% Brickworks shareholders, and 9% new shares in Topco.

The merger was unanimously supported by the Soul Patts board, with Mr Baxby saying it would boost the net asset value of the firm as well as net cash flow from investments on a per-share basis.

It would also increase the exposure to private markets and property for Soul Patts shareholders through Brickworks' building products division, while the latter's industrial property assets would further diversify the portfolio.

Mr Baxby said the merger would give more financial flexibility to the company, which would mean more opportunities to invest.

We are poised to take advantage of the current market cycle, with property assets supported by tailwinds such as e-commerce growth and the undersupply of housing both here and in North America.  On balance, your board firmly believes the combination is a compelling opportunity for shareholders to be part of a larger ASX-listed company, with greater clarity and operational scale.

An independent expert's report, which assessed the merits of the proposal, concluded that it was in the best interests of Soul Patts shareholders.

Details of the shareholder vote will be released to the ASX late on Wednesday. Topco shares will trade on the ASX starting on September 24, following the scheme being approved by the Federal Court on Friday, September 12.

The post Investment powerhouse launched as Soul Patts merger waved through appeared first on The Motley Fool Australia.

Being added to or removed from an S&P/ASX Index is a big deal as it dictates whether certain fund managers and exchange-traded funds (ETFs) that track the indices must buy or sell a stock.

Three stocks which Wilsons predicts are strong candidates to drop from the S&P/ASX 200 Index (ASX: XJO) in the next shuffle are uranium producer Boss Energy Ltd (ASX: BOE), chicken wholesaler Inghams Group Ltd (ASX: ING), and intellectual property services group IPH Ltd (ASX: IPH).

With only about 15% of the calculation period elapsed, we see likely index moves across the ASX50, ASX100 and ASX200. In the ASX200, Catalyst Metals Limited (ASX: CYL) has been named to fill Brickworks' M&A gap subject to scheme approval, and we expect Pantoro Gold Limited (ASX: PNR) to replace Gold Road Resources Limited (ASX: GOR) if its scheme meeting is approved. After those M&A substitutions, the likely additions to replace Boss Energy, Inghams and IPH are Resolute Mining Limited (ASX: RSG), Catapult Group Limited (ASX: CAT) and Regis Healthcare Limited (ASX: REG).

Wilsons says Domino's Pizza Enterprises Limited (ASX: DMP) is also at risk of dropping out, which could lead to the inclusion of Aussie Broadband Limited (ASX: ABB).

At this stage, we see Catapult Group and Regis Healthcare as only marginally priced for inclusion. With Catalyst now earmarked to replace Brickworks, we expect the market to price in Catapult's likely inclusion over the coming days. We do not believe Aussie Broadband's potential inclusion is being priced in and so we view this as an attractive asymmetric opportunity given its valuation discount to Superloop Limited (ASX: SLC). Aussie is also a key beneficiary of the September NBN changes, which could support the share price and help it begin screening for index inclusion.

The next changes to the indices are announced on December 5 and come into effect after market close on December 19.

The post How to play some likely ASX 200 Index moves for your gain appeared first on The Motley Fool Australia.

What did Brickworks report?

• Brickworks will be removed from the S&P/ASX 200 Index effective before trading opens on Tuesday, 16 September 2025
• This follows a proposed acquisition by Washington H Soul Pattinson & Company Limited, subject to scheme meeting and final court approval
• The S&P/ASX 200 Index change will see Brickworks replaced by Catalyst Metals Ltd (ASX: CYL)
• No regular financial or operational results were reported in this announcement

What else do investors need to know?

Brickworks is set to leave the major Australian index as part of its transition to new ownership, pending approval from shareholders and the courts. The company's removal comes after S&P Dow Jones Indices reviewed its composition following notice of acquisition.

Index changes like this occur whenever there are significant corporate actions, ensuring the S&P/ASX 200 continues to reflect the largest and most liquid companies on the market.

What's next for Brickworks?

If the acquisition receives all necessary approvals, Brickworks will cease trading as an independent listed company. Investors will want to follow announcements from both Brickworks and Washington H Soul Pattinson for updates on the timeline and integration plans.

Meanwhile, Catalyst Metals will take Brickworks' place within the S&P/ASX 200, reflecting ongoing changes in the makeup of major ASX indices.

Brickworks share price snapshot

For the year to date, Brickworks shares have soared 42%, far outpacing the ASX 200 index which is up 7% over the same timeframe.

View Original Announcement

The post Why are Brickworks shares about to exit the S&P/ASX 200 Index? appeared first on The Motley Fool Australia.

Yesterday, the ASX All Ords streaked to a new all-time intraday high of 9,173.2 points on news of lower unemployment in July.

The positive jobs data bodes well for another interest rate cut this year. The Reserve Bank cut the official cash rate by 0.25% on Tuesday.

As earnings season continues, ASX companies are readying themselves to pay out millions of dollars in dividends.

Fun for us investors, right?

Next week, a small group of ASX shares will go ex-dividend.

That means they will start trading without the latest dividend attached from a certain date.

Why watch the ex-dividend date?

If you've had any of these ASX shares on your watch list for a while, and you've done your research and are ready to buy, then why not do it before the ex-dividend date?

That way, you'll pick up a handy short-term return.

Having said that, some investors might prefer to wait until the ex-dividend date to buy because the share price will likely fall on the day.

That commonly occurs because the stock is less valuable without the upcoming dividend attached.

Here are several ASX shares going ex-dividend next week. We also recap how much these companies will pay investors and when.

9 ASX shares about to go ex-dividend

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) increased its annual dividend for the 27th year in a row this earnings season.

The ASX 200 financial stock will pay a final fully franked dividend of 59 cents per share, taking the annual dividend to 103 cents per share.

This makes FY25 the 27th year of consecutive dividend increases.

Soul Patts investors will vote on the $14 billion proposed merger with Brickworks Ltd (ASX: BKW) on 10 September.

Soul Patts and Brickworks have held significant stakes in each other's businesses for many decades.

Brickworks shares also go ex-dividend next week.

Brickworks will pay a final fully franked dividend of 48.4 cents per share for FY25.

The post 9 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

The diversified investment house dubbed 'Soul Patts' will pay a fully franked final dividend of 59 cents per share for FY25.

The ex-dividend date is 21 August. Investors will be paid on 5 September.

The final dividend of 59 cents represents a 7.3% increase on the FY24 final dividend of 55 cents.

This takes Soul Patts' total annual dividend to 103 cents per share for FY25.

This makes FY25 the 27th year of consecutive dividend increases.

The Soul Patts share price closed out last week at $40.32, down 0.64% on Friday but up 13% over the past 12 months.

This means Soul Patts shares are now trading on a trailing dividend yield of 2.55%.

Soul Patts shares' impressive dividend history

Soul Patts shares have paid a dividend to investors every year since listing on the ASX in 1903.

The investment house has increased the annual dividend amount every year since 1998.

Trading update

Soul Patts announced the final dividend and provided a trading update on Friday.

On a preliminary, unaudited basis, Soul Patts' net asset value (pre-tax) for FY25, which the company defines as the 12 months to 31 July, is expected to be between $12.18 billion and $12.68 billion.

This compares to $11.8 billion in FY24.

Soul Patts expects the net cash flow from investments to be between $485 million and $535 million.

The net cash flow from investments in FY24 was $468 million.

What did management say?

Soul Patts' Managing Director & CEO, Todd Barlow said:

Our performance remains solid during a period of heightened market volatility.

Measuring our performance on a total shareholder return basis, we delivered 17.5% outperforming the All Ords Accumulation Index by +5.7% in financial year 2025.

We are confident that our diversified portfolio – and recent focus on private credit and private equity – can continue generating long-term capital and income growth, with a robust liquidity position supporting new investment opportunities.

Soul Patts expects to deliver its finalised FY25 numbers on 30 September.

What's happening with the Brickworks merger?

On Friday, Soul Patts and Brickworks Ltd (ASX: BKW) announced that the NSW Supreme Court had given the go-ahead for their scheme meeting.

Soul Patts and the building products manufacturer and property investment company announced a proposed $14 billion merger in June.

The next step is registering the 'Combination Booklet' with the Australian Securities and Investment Commission (ASIC).

It will then be sent to shareholders.

The booklet will provide further information on the proposed merger, including the required independent expert's report about the merger.

The scheme meeting and merger vote will take place on Wednesday, 10 September.

Soul Patts and Brickworks have held substantial stakes in each other's companies for many decades.

Under the merger, Soul Patts shareholders will receive one new share in the new entity, called TopCo for now, for every share they hold.

Brickworks shareholders will receive 0.82 shares in TopCo for every share they hold.

Once the merger is complete, Soul Patts shareholders will own about 72% of TopCo and Brickworks shareholders will own about 19%.

Brickworks also announces boosted dividend

On Friday, Brickworks revealed it would pay a final fully franked dividend of 48.5 cents per share for FY25.

That's 12.8% higher than last year's final dividend of 43 cents per share.

Brickworks said:

Consistent with the terms of the Combination Deed, the value of the Dividend is equivalent to 0.82 of the final dividend per Soul Patts share in respect of the financial year ended 31 July 2025 which is declared or determined by Soul Patts.

The Dividend will be paid irrespective of whether the BKW Share Scheme proceeds.

The ex-dividend and payment dates are the same as for the Soul Patts dividend — 21 August and 5 September, respectively.

Soul Patts and Brickworks share price snapshot

As the chart below shows, the Soul Patts share price has lifted 13% over the past 12 months, while Brickworks stock has risen 13.2%.

The post Which ASX 200 stock just raised its dividend for the 27th consecutive year? appeared first on The Motley Fool Australia.

At the time of writing, Brickworks shares are roughly 5% off all-time highs, and long-term shareholders have likely made a good return. But with earnings season just around the corner, is it a buy, hold, or sell?

What the brokers are saying

Macquarie recently maintained a neutral rating and a price target of $31.70 per share. The broker expects strong performance in the property division, with 2H FY25 EBITDA in this division far exceeding the first half of the year.

However, performance in the building products division is expected to remain sluggish in both Australia and the US. North American operations, in particular, continue to underwhelm, with soft market conditions putting pressure on earnings.

Analysts at UBS, on the other hand, cut their rating from buy to neutral, noting the recent share price appreciation following the announcement of the Brickworks – Soul Patts merger. The broker, however, lifted its price target to $34.25 (from $29.00), driven primarily by mark-to-market gains in Brickwork's listed investment portfolio (which includes Soul Patts).

Earnings picture: Mixed

The upcoming result will likely show strength in the property division and modest improvement in Australian building products. However, UBS highlights that US operations for building products are still facing headwinds.

Both brokers seem to agree that following the recent "merger gains", there is not much of a near-term catalyst for the share price to rise significantly higher.

Foolish Takeaway

Brickworks, over the years (and Soul Patts too for that matter), has been a solid company to build a portfolio on.

However, the verdict ahead of earnings seems to be a solid hold. Perhaps there is a lesson in there somewhere. Buying even great companies at high valuations can yield mediocre results. But also, long-term buying and holding is about buying and holding for the long term.

In truth, no one knows for sure how Brickworks will perform when it announces its full-year 2025 results, but if we are talking about the very long term, the combined Brickworks and Soul Patts company seems to be a great company worth hanging onto.

The post Are Brickworks shares a buy, hold or sell ahead of earnings season? appeared first on The Motley Fool Australia.

According to the release, in seasonally adjusted terms:

• The total number of dwelling units commenced rose 11.7% to 47,645 dwellings.
• New private sector house commencements rose 6.3% to 27,923 dwellings.
• New private sector other residential commencements rose 21.8% to 18,161 dwellings.
• The value of total building work done rose 0.5% to $38.9b.

The 11.7% surge in dwelling starts – particularly the 21.8% jump in multi‑residential and 6.3% in houses highlights a construction upswing.

With the total value of building work up 0.5% to A$38.9 billion, momentum is building and potentially accelerating with interest rates stabilising.

Despite a strong March quarter, building activity remains well behind targets set in the Australian Government's Housing Accord.

The target agreed by all parties was to build one million new well‑located homes over 5 years from mid‑2024.

According to Master Builders Australia CEO Denita Wawn, just 134,466 new dwellings have commenced. 

To stay on track, 60,000 starts per quarter would be needed moving forward – we are about 25 per cent short of that pace.

So what does this mean for investors?

With new dwelling commencements and building activity on the rise, and pressure for The Australian Government to meet housing targets, here are some ASX materials shares that could potentially be set to benefit from these emerging tailwinds. 

Brickworks Ltd (ASX: BKW)

Brickworks engages in the manufacture and distribution of building products, supplying bricks, pavers, roofing, and industrial materials.

It has a strong domestic presence and a growing North American footprint. 

So far in 2025 its share price has risen an impressive 30.53%. 

This was influenced by strong revenue in H1 25 for this ASX materials share.

For the first half of 2025, Brickworks reported an underlying net profit after tax of $76 million, significantly improving from a loss of $37 million in the prior corresponding period. Statutory net profit after tax was $21 million. 

The company could be set to benefit from the rise in dwelling commencements because increased housing and apartment construction directly boosts demand for building materials, improving volumes and margins across its national operations.

James Hardie Industries PLC (ASX: JHX)

James Hardie Industries is the world's leading producer and marketer of fibre cement building products. 

Its share price has fallen 20.67% so far this year. 

However broker Bell Potter sees a turnaround on the horizon, with a "buy" recommendation and $63.00 price target on this ASX materials share.

This suggests 59.9% upside from its current price. 

The company could benefit from rising building activity in Australia, which could boost demand for its fiber cement products used in new homes and multi-residential buildings. 

With operational leverage and growing builder preference for durable, low-maintenance materials, increased construction activity supports stronger local volumes and margin expansion.

The post Building activity on the rise – will ASX materials shares benefit? appeared first on The Motley Fool Australia.

Brickworks operates across four divisions: Building Products Australia, Building Products North America, Property, and Investments. 

It is one of Australia's largest building material manufacturers, with products including clay bricks and pavers, roof tiles, and stone pavers. These are sold under well-known brands, including Austral Bricks.

Brickworks also co-owns two real estate joint venture (JV) trusts with Goodman Group (ASX: GMG).

Finally, the company has a cross-shareholding arrangement with investment conglomerate Washington H. Soul Pattinson (ASX: SOL).

Brickworks shares made headlines last month after the company revealed it would be merging with Soul Patts. As reported back then by The Motley Fool's James Mickleboro, the deal will see Brickworks and Soul Patts combine under a newly capitalised ASX-listed entity. This will be known for now as TopCo, creating a diversified powerhouse with greater scale, a stronger balance sheet, and a simplified corporate structure.

Soul Patts' CEO, Todd Barlow, described the merger as "making a lot of strategic and financial sense". He said it would simplify the structure, add scale, and create a more investable company.

Both Brickworks and Soul Patts shareholders appeared to agree, with their share prices rising 27% and 17% respectively that day. 

For the year to date, Brickworks shares are up an impressive 36%.

Have they peaked, or do they have further to rise from here? Let's see what one broker had to say.

Macquarie revises Brickworks price target

On 30 June, after reviewing Brickworks shares' latest trading update, broker Macquarie Group Ltd (ASX: MQG) revised its price target. 

The broker cut its target from $32.20 to $31.70. 

Yesterday, Brickworks shares closed at $34.57. 

While the broker retained its neutral rating, this revised price target suggests the share price will decline over the next 12 months. 

When issuing this revision, Macquarie said:

Retain Neutral. Cap rate compression was a positive outcome for the Property segment, while Building Products outcomes are still soft. The merger ratio is relevant (inferring $34.45ps on SOL's spot price), but we also note that SOL is now trading at a material premium (~34%) to its underlying NAV.

The broker also pointed out that Building Products North America remains weak, driven by economic uncertainty, elevated interest rates, and subdued consumer sentiment.

What should I buy instead?

Given this forecast, ASX investors looking for exposure to the building materials sector might want to consider alternative options. 

In an 18 June research note, Macquarie flagged its preference for Reliance Worldwide Corporation Ltd (ASX: RWC) for US building materials exposure, and SGH Ltd (ASX: SGH) for Australian exposure.

Macquarie has assigned an outperform rating and price target of $5.55 on Reliance Worldwide shares. Yesterday, they closed at $4.10, suggesting 35% upside from here.

Macquarie also expects SGH to outperform and has given it a price target of $59.25. Yesterday, SGH shares closed at $52.52, suggesting a 13% upside from here.

The post After soaring 36% this year, does Macquarie forecast more upside for Brickworks shares? appeared first on The Motley Fool Australia.

While this was a strong return, there were some ASX 200 shares that materially outperformed the benchmark index.

Let's see which were the best-performing shares during the month:

Zip Co Ltd (ASX: ZIP)

The Zip share price was the best performer on the ASX 200 index in June with a gain of 55%. The catalyst for this was the release of a guidance update from the buy now pay later provider. Zip revealed that its cash earnings before tax and depreciation (EBTDA) is now expected to be at least $160 million for FY 2025. This is up from its prior EBTDA guidance of at least $153 million. Zip's CEO, Cynthia Scott, commented: "Zip's momentum has continued throughout May, particularly in the US where TTV has continued to grow above 40% year on year, reflecting the resilience of our business model and disciplined execution of our strategy."

Brickworks Ltd (ASX: BKW)

The Brickworks share price was on form and raced 25% higher over the month. Investors were buying this building products company's shares after it announced plans to merge with Washington H. Soul Pattinson & Co Ltd (ASX: SOL). The agreement will see Brickworks shareholders receive 0.82 shares in a newly formed entity, TopCo, for each share held. While this valued Brickworks shares at a 10.1% premium of $30.28 at the time, an increase in the Soul Patts share price has boosted its value further.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price wasn't far behind with a gain of 20% in June. This was driven by the release of the quick service restaurant operator's full year results for FY 2025. Collins Foods reported a 2.1% increase in sales to $1,519.5 million but a 14.8% decline in underlying net profit after tax to $51.1 million. However, the latter was ahead of the $44.3 million that analysts were expecting. Management also guided to net profit after tax growth in the low to mid-teens for FY 2026.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price was on form and raced 18% higher during the month. Investors were buying this building products company's shares ahead of the closing of its proposed acquisition of AZEK Company. In addition, with its shares down in the dumps, it is possible that bargain hunters were also swooping in.

Santos Ltd (ASX: STO)

The Santos share price was a strong performer and jumped 16% in June. This followed news that the energy giant received a non-binding indicative proposal from a consortium led by Abu Dhabi National Oil Company (ADNOC), along with Abu Dhabi Development Holding Company (ADQ) and global private equity firm Carlyle. The consortium offered to acquire all outstanding Santos shares for US$5.76 per share (approximately A$8.89 per share at the time) in cash via a scheme of arrangement. This values Santos at A$30 billion.

The post These were the best ASX 200 shares to buy in June appeared first on The Motley Fool Australia.

Brickworks shares are doing even better than the broader market this session. The ASX 200 construction materials manufacturer closed at $34.30 a share last week. But this morning, those same shares opened at $34.22 before rising as high as $34.68. At the time of writing, Brickworks stock is up 0.99% at $34.64 a share.

This healthy gain comes after the company released a trading update to investors this morning. Which has clearly gone down well.

The headline development from Brickworks' update was that "Property EBITDA for 2H25 is expected to exceed that reported in 1H25 due to revaluation gains and development profits in 2H25".

The gain in earnings before interest, tax, depreciation and amortisation (EBITDA) comes to $65 million for Brickworks' Industrial Property Trust. This was made possible by "a moderate compression of capitalisation rates during the period". This amounted to 15 basis points on average.

In addition, Brickworks also revealed that "a development profit of around $39 million is expected" from its Oakdale East Stage 2 project, reflecting "development progress by the end of July 2025".

Even so, the company told investors that net trust income for the second half of the 2025 financial year "is anticipated to be broadly in line" with the income from the first half.

Overall, Brickworks is anticipating that its 'Building Products Australia' division will bring in a second-half EBITDA "slightly ahead" of the first half.

Brickworks shares rise 1% after mixed ASX trading update

It wasn't all good news, though. Brikworks also revealed that it is expecting only a "marginally positive" EBITDA result for the entire 2025 financial year from its 'Building Products North America' division. This was blamed on "ongoing economic uncertainty, elevated interest rates and subdued consumer sentiment".

As a result of these headwinds, together with "high construction costs" and "diminished cost efficiency and margin compression", Brickworks is expected to recognise a post-tax, non-cash impairment charge of $75 million for its North America division in the current half of the financial year.

Even so, Brickworks was unable to provide a formal guidance figure for the company's net profit after tax for the period. That's thanks to the company's ongoing 25.64% position on the ownership of Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Speaking of which, Brickworks did also state that nothing in today's update has any impact whatsoever on Brickworks' plans to merge with Soul Patts later this year.

Regardless, it seems investors are happy with what Brickworks has reported today. That's judging by what's happening with Brickworks shares at present.

After today's gain, the Brickworks share price is now up by more than 36% year to date.

The post Brickworks shares rise 1% on trading update appeared first on The Motley Fool Australia.

One way is through buildings products giant Brickworks Ltd (ASX: BKW) and the another is through plumbing parts company Reliance Worldwide Corporation Ltd (ASX: RWC).

But only one of these is worth buying right now according to the team at Macquarie Group Ltd (ASX: MQG). Let's find out which one the broker is bullish on.

Reliance Worldwide or Brickworks shares?

According to a note out of the investment bank this morning, its analysts think that investors should be skipping Brickworks and focusing on Reliance Worldwide.

While Macquarie is a fan of Brickworks, it believes its shares are fully valued following a strong rise since the announcement of plans to merge with Washington H Soul Pattinson & Co Ltd (ASX: SOL).

Commenting on the merger and its valuation, the broker said:

Brickworks and Washington H. Soul Pattinson & Co (SOL) have announced the intent to merge. The removal of a complex cross-holding is a key positive. Tax authority rulings are a key condition, which mgt appear confident of. A strong price move by both BKW and SOL lift our SOTP-based TP to $32.20ps. We maintain a Neutral opinion on BKW, with the merger economics now key.

As mentioned above, Macquarie currently has a neutral rating and $32.20 price target on Brickworks' shares. Based on its current share price of $33.21, this implies potential downside of 3% for investors.

Big return potential

Unlike Brickworks, the broker sees significant value in Reliance Worldwide shares following a reasonably sharp pullback this year.

This morning, Macquarie has reaffirmed its outperform rating and $5.55 price target on its shares. Based on its current share price of $4.25, this suggests that upside of 30% is possible between now and this time next year.

In addition, the broker is forecasting a modest 1.6% dividend yield in FY 2026, boosting the total potential return further.

Macquarie feels that the market is undervaluing Reliance Worldwide's shares, highlighting the lower than normal multiples that they currently trade on. This is despite its belief that the company is well-positioned for the future. It explains:

We think RWC remains attractive, positioned well for tariffs and geared to any recovery (and somewhat insulated from remodelling pressures). RWC is still attractively valued, with our TP implying 12.8x EV/ EBIT vs 5-year average of 13.5x.

The post Why does Macquarie prefer Reliance Worldwide over Brickworks shares? appeared first on The Motley Fool Australia.

This investment business has been operating for 120 years, providing investors with stable earnings and a dividend in each of those years.

It's a great business, but every investor needs to come to a conclusion about what price they'd be willing to pay to invest in Soul Patts shares.

The importance of the net asset value

Some businesses have a lot of assets on their balance sheets, such as real estate investment trusts (REITs). For businesses like that, it's important to pay attention to the connection between the share price and the reported net asset value (NAV).

However, for other businesses, the underlying value is influenced by the earnings. ASX growth shares are often priced for their expected future earnings rather than the (relatively small) size of the balance sheet.

Sometimes businesses can provide exposure to a mixture of both a strong balance sheet and rising earnings. I certainly think that description applies to Soul Patts shares – the business has a large investment portfolio and its private equity earnings are growing.

The company is invested in a number of areas including telecommunications, resources, swimming schools, financial services, property, credit, electrification, agriculture, funerals and more.

Each time the company announces its result every six months, it tells investors what its NAV is.

When it announced its FY25 half-year report, it revealed that its pre-tax net asset value was $12.1 billion. Of course, that NAV value changes every day as share prices of its investments on the ASX change.

Brickworks merger

However, following the merger announcement with Brickworks Ltd (ASX: BKW), the company has shot higher. According to the broker Macquarie, on 2 June 2025, Soul Patts shares were trading at a premium of around 40% to its underlying NAV.

But, since then, the Soul Patts share price has dropped 7.7%, so its valuation is more appealing now than it was near the start of the month.

Despite that, some investors may be looking at Soul Patts shares as expensive.

For at least a couple of reasons, I think it could be unwise to underestimate the current value offered by the investment house.

Firstly, the business has a number of private equity/private business investments that I think could be worth more than what Soul Patts is valuing them at.

Second, I think Brickworks is worth more than what Soul Patts is paying for it, particularly if we factor in expected interest rate cuts in the next 12 months. While it seems as though there's a large premium today, I think the building product businesses and industrial properties could be worth materially more in a year compared to today.

My 2 cents on Soul Patts shares

I wouldn't call the investment house cheap today. It is trading higher than its NAV, but I'd say it's worthy of trading at a premium.

With the Soul Patts share price now trading at a cheaper price than it did initially after the merger, I think it looks more compelling.

I'd still be willing to buy Soul Patts shares, though it'd be even more appealing at a smaller discount compared to the NAV. But, in five years, I think the company's NAV and share price could be substantially higher, which is why I'm focused on the long-term returns.

The post What are Soul Patts shares worth? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) closed the week 0.96% higher at 8,515.7 points.

Eight of the 11 market sectors finished the week in the green.

Let's recap.

CBA shares and Soul Patts merger boost ASX 200 financials

Last week began with news that diversified investment house Washington H. Soul Pattinson and Co Ltd (ASX: SOL) would partner with building products manufacturer and property investment company Brickworks Ltd (ASX: BKW) in a $14 billion merger.

The merger made sense to shareholders given the two companies have held substantial stakes in each other for many decades.

Under the agreement, Brickworks shareholders will receive 0.82 shares in the new entity, called TopCo for now, for every share they hold.

Soul Patts shareholders will receive one new share for every share they already hold.

Once the merger is complete, Soul Patts shareholders will own about 72% of TopCo and Brickworks shareholders will own about 19%.

The news certainly boosted the ASX 200 financials sector last week.

Soul Patts shares screamed 16.4% higher after the announcement on Monday and hit a new record of $43.04 on Wednesday.

The Soul Patts share price finished the week up 8.53% at $40.08.

The Brickworks share price also ripped on Monday, up 27.6%, and also reached a new record of $35.20 on Wednesday.

Brickworks shares finished the week at $32.42, up 17.85%.

Also propelling the ASX 200 financials sector last week were the major ASX 200 bank shares.

The Commonwealth Bank of Australia (ASX: CBA) share price reached another milestone, touching $182 per share on Thursday.

Overall, CBA shares lifted 2.24% over the week to close at $179.90 on Friday.

Macquarie Group Ltd (ASX: MQG) shares lifted 0.81% to finish the week at $215.94.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed 1.58% higher at $29.50.

Westpac Banking Corp (ASX: WBC) shares rose 1.9% to finish at $33.18.

National Australia Bank Ltd (ASX: NAB) shares closed the week at $38.58, up 1.53%.

What about other financial stocks?

The big ASX 200 insurance shares also finished the week in the green.

The Insurance Australia Group Ltd (ASX: IAG) share price crept 1.39% higher to $8.76.

The Suncorp Group Ltd (ASX: SUN) share price rose 2.62% to $21.17.

Medibank Private Ltd (ASX: MPL) shares lifted 1.68% to $4.85. The Medibank share price hit a record $4.96 on Tuesday.

QBE Insurance Group Ltd (ASX: QBE) shares rose 2.33% to $23.70. The QBE share price hit a 15-year high of $24.20 on Thursday.

The share price of buy now, pay later stock Zip Co Ltd (ASX: ZIP) rose 10.05% to $2.19 despite no price-sensitive news last week.

Block CDI (ASX: XYZ) shares lifted 1.78% to $98.23.

Shares in financial services company AMP Ltd (ASX: AMP) lost 0.8% to close at $1.24 on Friday.

HMC Capital Ltd (ASX: HMC) shares fell 4.55% to $4.82. The stock is down by more than 50% in the year to date.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Record CBA share price and blockbuster merger push ASX 200 financials sector to the top appeared first on The Motley Fool Australia.

This week's outperformers cover the building sector, mining, and payments. And with just a few hours of trade left today, they've posted one-week gains of 12% to 18%.

So, which ASX 200 shares are smashing the benchmark this week?

Read on!

ASX 200 shares setting the bar high this week

The first ASX 200 share delivering outsized returns this week is Zip Co Ltd (ASX: ZIP).

Shares in the buy now, pay later (BNPL) company closed last Friday, trading for $1.99. At the time of writing, shares are changing hands for $2.22 apiece. That puts the Zip share price up 11.6% for the week.

There's no fresh price-sensitive news from the company this week. But Zip shares have been in a strong uptrend (up 86%) since hitting one-year lows on 7 April. Investors may be buying shares this week amid expectations of more US Fed and RBA interest rate cuts this year. BNPL companies tend to perform better in lower-rate environments.

Moving on to the second ASX 200 share leaping higher this week, we have James Hardie Industries PLC (ASX: JHX).

Shares in the building materials company closed last week at $23.30 and are currently trading for $26.62 each. This sees the James Hardie share price up 14.3% over the week.

Investors responded favourably to Tuesday's announcement that the company had syndicated new senior secured credit facilities totalling US$3.5 billion, with James Hardie citing "broad support" including 30 participating banks.

"Their participation in these new credit facilities underscores the market's confidence in our value proposition and conviction in our future," said Rachel Wilson, CFO of James Hardie. "With this action, we will be executing on our growth strategy from an attractive and flexible financial position."

Which brings us to the third ASX 200 share that's amply rewarded stockholders this week, Lynas Rare Earths Ltd (ASX: LYC).

Shares in the Aussie rare earths miner closed last Friday at $7.89 and are currently swapping hands for $9.20 apiece. That puts the Lynas share price up 16.6% for the week.

There hasn't been any price-sensitive news out from the miner since its quarterly update in April. But investors look to have been bidding up Lynas shares this week amid the ongoing trade rift between the United States and China, with China upping the ante by limiting its rare earths exports.

The top weekly performer

Rounding off with the top-performing ASX 200 share on my list for the week, we have Brickworks Ltd (ASX: BKW).

Shares in the building products company closed last Friday at $27.51 and are currently trading for $32.40. This puts the Brickworks share price up 17.8% for the week.

All of those gains, and then some, were delivered on Monday. The Brickworks share price closed up a blistering 27.6% on the day after announcing a $14 billion merger with diversified investment house Washington H. Soul Pattinson and Company Ltd (ASX: SOL).

And, in case you're wondering, the Sol Patts share price is up 8.4% this week.

The post 4 ASX 200 shares racing ahead of the benchmark this week appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is down 3% to $10.41. This may have been driven by the release of the details of the Virgin Australia IPO yesterday. According to the term sheet, the airline will be offering its shares at $2.90 per share. This values the company at $2.32 billion. It is possible that some investors are taking profit on Qantas shares and looking to invest in this IPO now. The Qantas share price is up almost 70% since this time last year.

Resimac Group Ltd (ASX: RMC)

The Resimac share price is down 12% to 89 cents. This has been driven by the non-bank lender's shares going ex-dividend this morning for its special divided. Earlier this week, Resimac announced plans to pay shareholders a fully franked special dividend of 12 cents per share. This decision follows a comprehensive strategic review of its operating assets and capital requirements, which found that surplus capital was not essential for supporting its strategic objectives. Resimac will be paying this dividend later this month on 23 June.

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is down 10% to 82.5 cents. Investors have been selling this payments company's shares following news that its CEO is leaving. According to the release, Tyro's CEO and Managing Director, Jon Davey, is stepping down after accepting the CEO role at a private equity backed business. He said: "It's been a privilege to lead Tyro. I'm proud of what we've achieved and confident in the company's future. I remain fully committed to supporting the business and ensuring a seamless handover to the next CEO."

Washington H Soul Pattinson and Company Ltd (ASX: SOL)

The Soul Patts is down 3% to $40.14. This appears to have been driven by profit taking from investors after some very strong gains this week. Investors were buying the investment company's shares following news that it is merging with building products company Brickworks Ltd (ASX: BKW). Commenting on the deal, Soul Patts CEO, Todd Barlow, said: "Merging Soul Patts with Brickworks makes a lot of strategic and financial sense. It simplifies the structure, adds scale, and creates a more investable company. In many ways Soul Patts and Brickworks have evolved together and shared in the capital stability provided by our cross-shareholding over the past 56 years."

The post Why Qantas, Resimac, Tyro, and Soul Patts shares are falling today appeared first on The Motley Fool Australia.