An ASX small-cap share typically has a market capitalisation of between approximately $300 million and $2 billion.

The S&P/ASX Small Ords Index (ASX: XSO) is down 9.8% versus a 2.3% dip in the S&P/ASX All Ords Index (ASX: XAO) year to date.

However, Morgans sees opportunity with these three ASX small-cap shares.

Let's find out why.

Tasmea Ltd (ASX: TEA)

The Tasmea share price is $8.14, down 1.1% today and up 94% in the calendar year to date (YTD).

Tasmea is a skilled services company that provides essential maintenance, engineering, and specialised project services.

The company operates in many industries, including mining, oil and gas, waste and water, power and renewable energy, and defence.

Morgans has a buy rating on this ASX small-cap share in the industrials sector.

In a new note, the broker raised its 12-month share price target substantially from $5.25 to $9.15 following acquisition news.

Morgans said:

TEA has agreed to acquire Victorian specialist electrical contractor Maxim Group for up to $254m (~5.4x FY26F EV/EBIT).

The deal is ~31% EPS accretive, scales TEA's Electrical segment to >$100m EBIT and diversifies earnings away from resources into data centres, infrastructure and Battery Energy Storage Systems (BESS).

TEA will look to leverage its regional expertise as data centres increasingly move out of metropolitan areas.

Maxim's owner-led team is retained and aligned via scrip and a three-year earn-out.

We make meaningful EPS changes of +30-34% in each of FY27 and FY28. BUY maintained.

Vysarn Ltd (ASX: VYS)

The Vysarn share price is 94 cents, up 2.4% today and up 28% YTD.

Vysarn provides production-critical services to the resources, construction, and utilities industries. 

Morgans upgraded this ASX materials small-cap share after Vysarn announced it was buying an irrigations systems company.

The broker lifted its rating from speculative buy to buy, and raised its target price from 90 cents to $1.10.

The broker said:

VYS is acquiring NewGround, adding highly accretive (~25% EPS) annuity-style earnings that, alongside greater customer-base diversification in the industrial division, materially increases earnings visibility.

The limited upfront cash component of $8.3m preserves balance sheet flexibility, providing further capacity to continue building out its integrated water-services platform via acquisitions.

Incorporating NewGround from early October, we raise our EPS forecasts in FY27 and FY28 by +19 and +24% respectively.

Reflecting the improvement in earnings quality and reduced volatility, we upgrade VYS from Speculative Buy to Buy.

While the Kariyarra asset management business carries a binary outcome, at the current share price, investors are getting this optionality for free.

Tourism Holdings Ltd (ASX: THL)

The Tourism Holdings share price is $2.06, up 1.5% today and down 10% YTD.

Tourism Holdings rents and sells holiday campervans in Australia, New Zealand, and the US.

Morgans has a buy rating on this ASX industrials small-cap share with a $2.58 target.

In a new note, the broker said:

Unsurprisingly, given the conflict in the Middle East, THL has revised its FY26 NPAT guidance given weaker than expected RV sales.

The conflict, higher fuel prices and cost of living pressures push out the earnings recovery despite all of THL's internal initiatives to improve the business.

Tourism Holdings is also listed on the New Zealand Stock Exchange at NZ$2.47 per share.

Morgans notes that BGH Capital and the Trouchet shareholders have issued a revised takeover offer of NZ$3.10 for the company.

The post 3 ASX small-cap shares to buy: Morgans appeared first on The Motley Fool Australia.

Still time to buy

But for those who aren't holders of the company, there's still the potential to buy in and receive the dividend, with the company setting an ex-dividend date of Wednesday, 10 June.

But it gets even better – should the share price hold up.

Shareholders will be able to take part in the company's dividend reinvestment plan, which offers new shares in the company at $6.85 per share.

Calculated at today's share price of $8.04, that would constitute an immediate windfall gain of 17.4%.

Tasmea said it encouraged shareholders to take advantage of the dividend reinvestment plan, and "the company's founders and executive directors have indicated their intention to participate''.

The company said the decision to grant a special dividend was spurred by its strong performance.

As it said:

The decision to return capital to shareholders at this time is underpinned by a combination of strong performance metrics, continued strategic momentum and the Board's wish to acknowledge and reward the loyalty of their long-term shareholders. The Company remains well positioned to deliver organic and programmatic growth opportunities across key sectors, including resources, energy, infrastructure, and water, and continues to experience strong customer demand as a consequence of essential maintenance and the electrification of its customers' operations.

Tasmea said it expected continued profitable growth, and it expected to issue guidance for FY27 by the end of June once budgeting processes had been finalised.

Data centre move

News of the special dividend followed Tasmea earlier in the week, announcing the acquisition of Maxim Group for up to $254 million.

That deal would be paid for with an initial $72 million in shares and $112 million in cash, with further earn-out payments to come in the years up to FY29.

The company said regarding the deal:

Maxim Group is a market-leading specialist electrical contractor headquartered in Victoria, with established credentials across Data Centres, Major Government Infrastructure and Battery Energy Storage System (BESS) and Renewable Energy markets. Maxim has delivered over 450 projects, employs approximately 600 full-time staff including a deep cohort of HV-accredited and rail-inducted specialists. Maxim is currently active on approximately 30 projects across its core end-markets. The acquisition represents a defining step in Tasmea's programmatic acquisition strategy and establishes Tasmea as a leading specialist electrical platform with national scale and direct exposure to Australia's structurally growing Data Centre, BESS and Major Infrastructure markets.

The post This special dividend could deliver a windfall gain, and it's not too late to buy in appeared first on The Motley Fool Australia.

Just last week, this ASX small cap was already catching attention after rising more than 120% over the prior 12 months.

Since then, Tasmea shares have surged another 20% after the engineering and maintenance services company announced a major acquisition that could materially expand its growth opportunity.

Tasmea is buying Victoria-based Maxim Group in a deal worth up to $254 million.

The acquisition is significant because it gives Tasmea a clear entry into one of the hottest infrastructure markets in Australia right now: data centres.

So, what has investors excited?

Why Tasmea shares are rising

The company provides specialist trade services to essential Australian industries, including mining, oil and gas, infrastructure, defence, power, water, renewables, and telecommunications.

That work includes maintenance, shutdowns, emergency breakdown services, brownfield upgrades, and labour solutions.

In simple terms, Tasmea helps keep important physical assets operating.

That may not sound glamorous. However, the share market often becomes interested when a practical business combines recurring demand, disciplined execution, and strong earnings growth.

The Maxim acquisition could add another important ingredient: exposure to structural demand from artificial intelligence, cloud computing, battery storage, and electrification.

A move into data centres

Maxim Group is an electrical contractor based in Victoria. It specialises in electrical work for large digital infrastructure assets, including wiring and cabling.

Maxim has around 600 workers and is currently working on 30 projects.

Approximately 55% of Maxim's work reportedly comes from data centres, while the remaining 45% comes from industrial-scale battery storage projects and rail electrification.

That is an attractive mix.

Data centres are benefiting from rising demand for artificial intelligence processing, cloud computing, and digital storage. Meanwhile, battery storage and rail electrification are linked to the broader energy transition and infrastructure spending.

Tasmea Managing Director Stephen Young reportedly described data centres as the hottest market in Australia. He also said Maxim had a seven-year pipeline of work worth around $1.3 billion.

That long pipeline appears to be one reason investors have responded so strongly.

Why this deal could matter

Tasmea was already growing quickly before this acquisition.

In FY25, the company reported statutory revenue growth of 37% to $547.9 million. Statutory operating earnings (EBIT) rose 60% to $74.4 million, while net profit after tax increased 74% to $53.1 million.

Importantly, earnings per share (EPS) increased 53% to 23.2 cents.

That matters because it suggests shareholders were not just seeing a bigger company, but a more profitable one on a per share basis.

The company also completed the acquisition of WorkPac Group in December 2025. That deal expanded Tasmea's workforce solutions capabilities and strengthened its exposure to skilled labour markets.

The Maxim acquisition now appears to give Tasmea another meaningful platform for growth.

Tasmea already operates across multiple separate businesses. If management can continue acquiring quality operators, integrating them carefully, and supporting growth across the group, the company may have a much larger opportunity than the market appreciated a year ago.

What are the risks?

Tasmea shares have already had a very strong run. When a share price rises quickly, expectations can rise just as fast.

That means any disappointment around earnings, margins, integration, or future guidance could lead to volatility.

Acquisitions also require careful execution. Tasmea needs Maxim to retain key staff, continue winning work, maintain customer relationships, and deliver on its pipeline.

The final acquisition price also includes a three-year earn-out of up to $70 million, meaning part of the total consideration depends on future performance.

There is also a broader point to consider. Data centres may be a booming market, but a hot sector does not automatically guarantee strong shareholder returns.

Foolish Takeaway

Tasmea's latest share price surge shows how quickly the market can re-rate an ASX small-to-mid cap when the investment story evolves.

Only recently, Tasmea looked like a fast-growing specialist services business with strong earnings momentum.

Following the Maxim acquisition, it now has more direct exposure to data centres, battery storage, and electrification.

That does not remove the risks. After such a sharp share price rise, investors should be careful not to ignore valuation or execution challenges.

However, this acquisition could prove to be a significant step in Tasmea's long-term growth strategy.

The post Tasmea share price rockets as it enters data centre race appeared first on The Motley Fool Australia.

Plenty of investors have been dealing with a choppy S&P/ASX 200 Index (ASX: XJO), stretched bank valuations, weaker technology sentiment, and plenty of uncertainty around interest rates, inflation, and global markets.

Yet hidden beneath the broader market noise, one ASX small cap has been quietly doing something very different.

At the time of writing, Tasmea Ltd (ASX: TEA) shares have surged more than 120% over the past 12 months, including a sharp rise of more than 20% in just the past few weeks.

That is a very different outcome to the broader market. As a rough benchmark, the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which tracks the ASX 200, is up only around 2.3% over the same 12-month period, excluding dividends.

So, what is going on?

The boring business delivering exciting returns

Tasmea is not a flashy technology company. It is not riding an artificial intelligence boom. It is not promising to reinvent finance, healthcare, or mining.

Instead, it provides specialist trade services to essential Australian industries.

The company operates across maintenance, shutdowns, emergency breakdown work, brownfield upgrades, and labour solutions. Its customers include asset owners across mining and resources, oil and gas, infrastructure, defence, water, power, renewables, telecommunications, and other critical industries.

In plain English, Tasmea helps keep important physical assets running.

That might not sound exciting. However, the share market often becomes interested when a business combines practical demand, strong execution, and rising earnings.

Tasmea appears to be doing exactly that.

Earnings growth is doing the heavy lifting

One reason Tasmea shares have been charging higher is simple: the company is growing quickly.

In FY25, Tasmea reported statutory revenue growth of 37% to $547.9 million, operating earnings (statutory EBIT) growth of 60% to $74.4 million, and net profit after tax growth of 74% to $53.1 million.

Importantly, earnings per share (EPS) rose 53% to 23.2 cents.

That matters because EPS growth is one of the cleanest ways to measure whether shareholders are actually participating in a company's growth. Revenue growth is nice. Net profit growth is very nice. EPS growth is often nicer again.

The company has also guided for further strong growth in FY26. Based on its previously stated guidance, EPS is expected to move towards around 30 cents per share, implying another significant step higher.

That is before investors fully consider the potential longer-term benefits from the WorkPac acquisition.

Why WorkPac could matter

Tasmea completed the acquisition of WorkPac Group in December 2025.

WorkPac is a workforce solutions business, and the strategic logic is fairly clear. Tasmea already operates in industries where skilled labour is critical. By adding WorkPac, the company strengthens its ability to source, mobilise, and deploy labour across its existing operating divisions.

This could help Tasmea support organic growth, improve labour certainty, and potentially unlock synergies over time.

Of course, acquisitions come with risk. Integration has to be managed carefully. The business also needs to keep winning work, maintaining margins, and avoiding the temptation to grow just for the sake of size.

However, if management executes well, WorkPac could make Tasmea a more powerful platform than the market appreciated a year ago.

The small-cap sweet spot

This is where Tasmea becomes interesting from a long-term investing perspective.

Small caps that successfully grow into mid-cap or large-cap businesses can potentially reward shareholders in two ways.

First, earnings can grow. That means the underlying business becomes more valuable over time.

Second, the market may eventually decide the business deserves a higher valuation multiple. That can happen when investors gain confidence in the quality, durability, and scale of the company's earnings.

That combination — earnings growth plus multiple expansion — can be powerful.

Foolish takeaway

Tasmea shares have already had a huge run, so investors should not ignore the risks.

The stock is no longer undiscovered. Expectations are rising. Any slowdown in earnings growth, acquisition misstep, margin pressure, or weakness in end-market demand could lead to volatility.

However, Tasmea remains a useful reminder that strong returns do not always come from the loudest corners of the market.

Sometimes they come from underappreciated businesses doing essential work, growing earnings, and steadily building scale in the background.

The post Could this surging ASX small cap still be hiding in plain sight? appeared first on The Motley Fool Australia.

However there were pockets of the market that enjoyed strong runs. 

Three such ASX shares that soared to record highs last week were: 

• Weebit Nano Ltd (ASX: WBT)
• Cobram Estate Olives Ltd (ASX: CBO)
• Tasmea Ltd (ASX: TEA)

Here's what drove the strong performance and what experts are tipping for these high-performing ASX shares. 

Weebit Nano continues strong year

Weebit Nano develops and commercialises silicon oxide and Resistive Random-Access Memory technology. Its products are used in various applications, such as in computers, consumer electronics, smartphones, tablets, enterprise storage, automotive infotainment and navigation systems, healthcare, wearables and IOT.

Last week, it gained 20% on Thursday, followed by an 11% gain on Friday. 

Its share price has now risen more than 270% in the last year and now sits at an all time high.

Last week's rise came after the company announced it had raised another $15 million and a new major shareholder emerged.

The company told the ASX that its share purchase plan, priced at $4.05 a share, had raised additional funds, taking the total capital raised, including an institutional placement to $102 million.

These ASX shares ultimately closed last week at $6.80 per share, however broker estimates (via TradingView) see a further 12% upside for this ASX technology stock.

Cobram Estates hits fresh 52-week highs

Cobram Estates produces and markets premium quality extra virgin olive oil. It owns two Australian brands, Cobram Estate and Red Island, which account for about half of the olive oil market share in Australian supermarkets by value.

It closed last Friday at a new 52-week high following a 2% gain. 

It is now up more than 100% over the last 12 months. 

Cobram has surged due to its profit jumping sharply on the back of record olive harvests, high global olive oil prices, and strong earnings guidance. 

Investors have also become more optimistic about the company's long-term growth story, particularly its expanding US operations and premium olive oil branding.

Despite these tailwinds, estimates from experts (via TradingView) indicate it is currently close to fully valued. 

Growth continues for Tasmea

Tasmea s a skilled services company. It provides essential maintenance, engineering, and specialised project services and solutions across the following four service streams to the mining and resources; oil and gas; waste and water; power and renewable energy; and defence and infrastructure industries.

It has been a steady climb for this ASX industrials stock over the last year. It is now up 121% in that span after gaining another 2% last Friday. 

According to trading view, 4 analysts offering a one year price target have an average forecast of $5.63 on these ASX shares. 

This target is 8% higher than the current share price.

The post Are these ASX shares a buy, hold or sell after rocketing to record highs last week? appeared first on The Motley Fool Australia.

Right now, that has meant plenty of focus on war, energy shocks, inflation pressure, and whether artificial intelligence will upend huge parts of the software sector.

And yet, while much of the market has been distracted by those headline themes, two ASX small caps have simply kept getting on with the job.

Duratec Ltd (ASX: DUR) and Tasmea Ltd (ASX: TEA) are not the kinds of businesses that usually dominate cocktail-party investing conversations. They are not glamorous. They are not promising to reinvent the world. Yet, over the past 12 months, their share prices have climbed over 73% and 107% respectively.

That is a useful reminder that great investing does not always come from the loudest story. Sometimes it comes from relatively mundane businesses executing well in the background.

Two businesses built around essential work

Duratec is an engineering and contractor group with growing exposure to complex remediation, infrastructure, defence, and energy and resources work.

Recent announcements show why the market has been warming to it. In March, Duratec secured a contract at Newmont's Lihir site in Papua New Guinea that is expected to generate around $45 million of revenue over an initial 12-month period, with potential for more scope over time. Management said the deal supported its strategy of doing more work with existing clients while expanding into new regions.

Then in April, Duratec's 50:50 joint venture with Ertech was awarded a $281 million contract tied to infrastructure upgrades at HMAS Stirling in Western Australia. That followed an earlier $5.2 million early contractor award, taking the total value of the works to just under $300 million. The main works contract is expected to run for around 24 months.

That matters. Investors often pay more attention when a business starts shifting towards larger, longer-duration projects with better revenue visibility.

Tasmea, meanwhile, is a diversified specialist trade services group. It owns and operates 26 inter-dependent Australian specialist trade skill services businesses that support essential maintenance, shutdowns, emergency breakdown work, brownfield upgrades, and labour hire for blue-chip fixed plant asset owners.

Its operations reach across mining and resources, oil and gas, defence, infrastructure and facilities, power and renewables, telecommunications, retail, aged care, waste, and water. In other words, Tasmea sits inside parts of the economy that still need skilled hands, regardless of whether investors are currently obsessed with software or geopolitics.

Why business momentum has been strengthening

Tasmea's recent half-year results gave the market more evidence that its growth is not just a story.

For the first half of FY26, Tasmea reported revenue of $400.5 million, up 62.4% on the prior corresponding period. Underlying operating profit (EBIT) rose 35.8%, while underlying net profit (NPAT) increased 31.8%. It also lifted its interim dividend by 20% to 6 cents per share.

Management has highlighted more than 100 executed master services agreements, high recurring revenue, and a twin-pillar strategy built on organic growth plus disciplined acquisitions.

That model helps explain the market's growing confidence. Tasmea is not relying on a single product or a one-off trend. It is building scale across fragmented, essential services markets.

Duratec's strengthening appears a little different, but still compelling. The company is winning work in sectors where trust, capability, and project execution matter. The PNG award expands its energy and resources footprint, while the HMAS Stirling contract strengthens its credentials in defence infrastructure and gives it more revenue visibility across the next two years.

The bigger lesson for investors

There is a reason these sorts of businesses can be overlooked.

They are not flashy. They do not fit neatly into the biggest market narratives of the moment. And they rarely get described as "world-changing".

But the share market does not only reward excitement. It also rewards businesses that keep compounding through contract wins, earnings growth, disciplined expansion, and exposure to essential industries.

That is what makes Duratec and Tasmea interesting.

While investors worried about war headlines and AI disruption, these two ASX small caps kept doing practical work in the real economy, and the market noticed.

Sometimes, the big returns are hiding in plain sight.

The post While the market worried about war and AI, these 2 ASX small caps kept climbing appeared first on The Motley Fool Australia.

These ASX industrials companies rose by 2.45% and 9.6% yesterday respectively following half-year results.

Here's what both companies reported. 

SKS Technologies Group Ltd (ASX: SKS) 

The company develops and distributes technology products. It provides audiovisual products & solutions and electrical and communications cabling for commercial, retail, health, defence and education markets.

For the half year to 31 December 2025, it reported: 

• A 52.5% increase on pcp in net profit after tax (NPAT) to $8.81 million
• EBITDA of $14.02 million, up 42.9% on pcp
• An earnings per share increase of 49.6%
• A 3.5 cents per share fully franked interim dividend.

Investors reacted positively to this result, with the share price climbing 2.45%. 

It is now up 16.6% year to date and 120% over the last 12 months. 

Tasmea Ltd (ASX: TEA)

Tasmea is a skilled services company. 

It provides essential maintenance, engineering, and specialised project services and solutions across the following four service streams to the mining and resources; oil and gas; waste and water; power and renewable energy; and defence and infrastructure industries.

Yesterday, it reported its H1 FY26 Results.

This included: 

• Revenue A$400.5m, increase of 62.4% on A$246.7m in H1 FY25
• Underlying EBIT A$44.3m, increase of 35.8% on A$32.6m in H1 FY25
• Underlying NPAT A$26.5m, increase of 31.8% on A$20.1m in H1 FY25
• Interim fully franked dividend of 6.0 cents per share, up 20% on 5.0 cents in H1 FY25.

Investors gobbled up shares in this ASX industrials stock following this announcement. 

Its share price is now up 31.5% over the last year. 

What did Morgans have to say about these ASX Industrials stocks?

Following these results, Morgans provided updated guidance. 

For SKS Technologies, the broker said NPAT and PBT margins, net cash generation, and the interim dividend all beat expectations. 

We upgrade our FY26-28F EPS forecasts by +19%/+15%/+14% based on SKS' recent FY26 revenue & improved margin guidance. Our blended DCF/P/E-based price target lifts to $5.10/sh (from $4.25). This sees SKS now trading with a TSR of ~15%, we therefore move to an ACCUMULATE rating.

From yesterday's closing price of $4.60, this revised price target indicates a further upside of 10.87%. 

Meanwhile, for ASX industrials stock Tasmea, the team at Morgans said 1H26 was modestly below its expectations. 

Strong performances in Civil (EBIT +92% YoY) and Electrical (+29% YoY) were encouraging, though these gains were more than offset by softer earnings in the seemingly lumpy Mechanical segment (-24% YoY).

The broker lowered its price target to $5.25 (previously $5.40). 

From yesterday's closing price, that indicates an upside of approximately 35%. 

The post How does Morgans view these soaring ASX industrials stocks following earnings results appeared first on The Motley Fool Australia.

There are some large winners that are well-known and grow profit virtually every year. But, small companies and cyclical businesses can also be exciting ideas if we buy them at the right time.

Experts from the funds management business Wilson Asset Management (WAM) have outlined two ASX shares in the WAM Capital Ltd (ASX: WAM) portfolio that could be exciting opportunities.

WAM could be well worth listening to because it has outperformed the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA) over the past three years, five years, ten years, and since inception in August 1999. Before fees, expenses and taxes, the WAM Capital portfolio has returned an average of 15.3% per year since 1999.

Maas Group Holdings Ltd (ASX: MGH)

WAM describes Maas Group as a diversified Australian construction materials, equipment and services provider with exposure across civil infrastructure, renewables, mining and real estate markets.

The fund manager pointed out that the Maas share price rose in December after the company announced a major project worth approximately $200 million for its electrical infrastructure subsidiary called JLE Group.

This project aims to supply, deliver and install modular electrical infrastructure for an artificial intelligence (AI) factory builder and operator with the delivery expected throughout the 2026 calendar year.

Excitingly, the project has enabled the ASX share to expand its addressable market into the fast-growing digital infrastructure market. WAM said that if the initial contract value awarded is extrapolated across the remaining pipeline, it "implies a substantial runway exists with JLE Group".

Tasmea Ltd (ASX: TEA)

The other ASX share that the fund manager highlighted from the WAM Capital portfolio was Tasmea, which operates a portfolio of trade-skilled services businesses, including electrical, mechanical, civil and water (and fluids) services.

In December, the company announced that it had completed the acquisition of WorkPac Group, a leading provider of workforce solutions in Australia.

WAM noted the deal adds to the ASX share's earnings in the high single digits, with a number of long-term benefits including revenue and cost synergies that will "support multi-year earnings growth".

Despite that positive, the Tasmea share price fell alongside the broader market – the ASX share declined 12%. WAM believes this drop was because of some concerns that this acquisition was "off strategy".

The fund manager thinks that the market is underestimating emerging pressures within the east coast labour market, with the WorkPac Group acquisition "positioning the company strongly to capitalise on an expected surge in activity associated with the Brisbane Olympics. WAM also said that the broader commodity price backdrop remains "supportive for demand" within its core verticals.

The post 2 ASX shares these experts rate as a buy right now appeared first on The Motley Fool Australia.

That pullback comes after a blistering run earlier in 2025, when the ASX industrials stock surged more than 115% in just six months and firmly put itself on investors' radars.

So has Tasmea flown too close to the sun, or is this the kind of pullback long-term investors tend to watch closely?

What does Tasmea actually do?

Tasmea operates a portfolio of specialist industrial service businesses across Australia and New Zealand. Its operations span asset maintenance, engineering services, infrastructure support, and industrial contracting — work that tends to be recurring, non-discretionary, and closely tied to essential infrastructure.

That positioning has become increasingly attractive as capital spending cycles lift across energy, utilities, transport, and industrial assets. Unlike more cyclical industrials, Tasmea's exposure is spread across maintenance and operational services rather than one-off construction projects.

This has helped underpin steady revenue growth and improve earnings visibility, which has been a major driver behind the share price rally seen through the first half of 2025.

Why the Tasmea share price surged in 2025

Tasmea's strong performance this year has been driven by a combination of operational execution and sector tailwinds.

The company has continued to expand margins, integrate acquisitions effectively, and benefit from ongoing demand for outsourced industrial services. At the same time, broader market interest has shifted toward profitable, cash-generative industrial growth stocks after several ASX stalwarts began to stumble.

As one recent analysis highlighted, investors have increasingly looked beyond traditional blue chips and into businesses offering steady growth without relying on speculative narratives.

Tasmea fitted that brief neatly.

Brokers still see upside

Despite the recent pullback, at least one broker remains constructive on the outlook.

A recent broker note suggested Tasmea still has meaningful upside potential from current levels, pointing to earnings momentum, disciplined capital allocation, and ongoing demand across its end markets.

Importantly, the broker's thesis does not rely on short-term multiple expansion. Instead, it assumes continued growth in revenue and profits as infrastructure owners prioritise maintenance, reliability, and compliance over the coming years.

That distinction matters in a market where sentiment can swing quickly.

Short-term nerves versus long-term fundamentals

None of this guarantees a rising share price in the near term.

Equity markets remain on edge, valuations across many sectors are being reassessed, and even high-quality ASX growth stocks are not immune to bouts of volatility. After such a strong run earlier in the year, some degree of consolidation was always likely.

However, long-term investors tend to focus less on month-to-month share price fluctuations and more on whether a business can sustainably grow its earnings over many years.

If Tasmea continues to execute in 2026 as it has recently — growing revenue, maintaining margins, and deploying capital sensibly — history suggests that the share price should eventually reflect that progress, even if the path is uneven.

Foolish Takeaway 

Tasmea's pullback looks less like a structural break and more like a pause after a rapid ascent.

For investors hunting ASX stocks for growth with exposure to real-world infrastructure and industrial services, Tasmea remains one to watch. The business fundamentals appear intact, sector tailwinds remain supportive, and broker sentiment suggests the long-term growth story is far from over.

Whether the current price proves attractive will ultimately depend on time horizon — and patience.

The post Is this ASX industrials stock a buy after a 20% pullback from all-time highs? appeared first on The Motley Fool Australia.

Tasmea is a skilled services company. 

The company provides essential maintenance, engineering, and specialised project services and solutions across the following four service streams to the mining and resources; oil and gas; waste and water; power and renewable energy; and defence and infrastructure industries.

In the last week it has shed almost 15% which may have created a buy the dip opportunity. 

Following the recent share price drop, the team at Morgans has upgraded its view on this ASX industrials stock. 

Here is the latest from the broker. 

WorkPac Acquisition reason for optimism

Earlier this week, Tasmea acquired 100% of the issued capital in WorkPac Group Pty Ltd. 

WorkPac is a workforce solutions business. It specialises in tailored, end-to-end solutions in workforce management, recruitment, skills and career development across diverse sectors including Mining, Industrial, Construction, Engineering, Healthcare, Social Care and more.

Commenting on the acquisition, Tasmea's Managing Director, Stephen Young said:

This transaction reflects our disciplined approach to growth and our commitment to building a diversified, scalable platform across Australia.

It seems the team at Morgans saw this as a positive move for the ASX industrials stock. 

In a note out of the broker on Thursday, it said WorkPac gives Tasmea a deeper labour pool which will be helpful in a tight market as it endeavours to self-perform all its services. This has the capacity to positively impact margins.

The WorkPac acquisition is +10% EPS accretive or +5-6% including the dilution from the recent equity raise. This transaction is a step-out from the company's strategy to acquire more specialised services businesses, though it sends a clear signal about TEA's visibility over demand in its key end-markets.

The broker also believes Tasmea should benefit from improved speed of mobilisation, which is critical given the fast-paced nature of some of its responsive services. 

Target price increase from Morgans

The team at Morgans has maintained its buy recommendation on this ASX industrials stock. 

The broker also increased its price target to $5.40 (previously $5.00). 

Based on this new price target, Morgans sees an upside of 20% for Tasmea shares. 

The post Broker tips 20% upside for this ASX industrials stock appeared first on The Motley Fool Australia.

Among the payers this week were BHP Group Ltd (ASX: BHP), which paid a fully franked dividend of 91.9 cents per share yesterday.

Telstra Group Ltd (ASX: TLS) also paid out a fully franked final dividend of 9.5 cents per share yesterday.

Some companies that reported their financial results late in the August earnings season are yet to go ex-dividend.

That means you still have time to strategise how to make their ex-div dates work for you.

Make the ex-dividend date work for you!

Ex-dividend dates provide two opportunities for investors.

After a company announces its next dividend, investors have a small window of opportunity to buy the ASX share with the payment attached.

If you do this, you can generate a quick return via short-term income.

Alternatively, you might like to wait until the ex-dividend date to buy, because the price will likely fall, creating a buy-the-dip opportunity.

Share prices typically fall on ex-dividend dates because the stocks are fundamentally less valuable without the next dividend attached.

As usual, there have been many examples of ASX shares falling on their ex-dividend dates this year.

On Monday, New Hope Corporation Ltd (ASX: NHC) shares fell 7.35% after the coal mining stock went ex-dividend.

Next week, a slew of real estate investment trusts (REITs) and other ASX shares will go ex-dividend.

19 ASX shares with ex-dividend dates next week

Here is a sample of the ASX shares with ex-dividend dates next week.

The post 19 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

For those looking beyond the banks and blue-chip healthcare giants, industrials and infrastructure are emerging as compelling alternatives. These sectors offer exposure to essential services, government-backed projects, and structural tailwinds like population growth, the energy transition, and the digital economy. 

Four industrial stocks showing strong momentum

Duratec (ASX: DUR)
Duratec specialises in asset remediation and protective coatings. Its work helps extend the life of critical infrastructure, from bridges and ports to defence facilities. With governments and corporations alike focusing on maximising the use of existing assets rather than building from scratch, Duratec has seen growing demand. Its recent results highlighted a robust project pipeline and a steady lift in revenue, supporting share price gains in 2025.

Tasmea (ASX: TEA)
Tasmea is an integrated engineering and services group working across mining, utilities, and industrial clients. It generates a large share of revenue from recurring maintenance contracts, which provide visibility and resilience in uncertain times. The company has reported strong order book growth and is building a reputation as a reliable partner for essential industries. Investors have begun to notice, with Tasmea's shares steadily trending higher this year.

GenusPlus (ASX: GNP)
As Australia's energy grid shifts toward renewables, GenusPlus stands to benefit. The company provides design, construction, and maintenance services for electrical infrastructure, including transmission lines and substations. With major investment planned in renewable projects and interconnectors, GenusPlus is positioned squarely in the middle of the energy transition. The company recently posted rising earnings and a solid pipeline of contracted work, helping its shares outperform the broader market.

NRW Holdings (ASX: NWH)
NRW Holdings has become one of the most diversified contractors on the ASX, with exposure to mining, civil, and urban infrastructure projects. The company recently acquired Fredon, a specialist electrical services business, boosting its exposure to energy and resources. Its share price has surged over 75% in the past 6 months, prompting Macquarie to upgrade the stock to outperform with a higher price target. 

Classic ASX infrastructure plays

Vanguard Global Infrastructure ETF (ASX: VBLD)
For those seeking a broad approach, VBLD offers exposure to more than 130 infrastructure companies worldwide. Its largest weighting is to the United States, but it also holds assets across transport, energy, and telecommunications. Infrastructure spending is expected to exceed $80 trillion globally by 2040, and this fund gives investors a simple, diversified way to ride that megatrend.

Transurban (ASX: TCL)
Toll roads may not be glamorous, but they're some of the most dependable infrastructure assets around. Transurban operates major road networks in Sydney, Melbourne, Brisbane, and North America. Its revenues are often inflation-linked, while traffic volumes continue to climb with population growth. The company recently reported steady increases in toll revenue, reinforcing its reputation as a reliable income generator.

APA Group (ASX: APA)
APA owns and operates Australia's largest network of gas pipelines. While traditional energy assets face transition risks, APA has been diversifying into renewables and storage. Its regulated asset base provides steady cash flow, supporting dividends that appeal to income-focused investors. Management has flagged new growth opportunities as the energy system evolves, positioning APA as a defensive yet forward-looking infrastructure play.

NextDC (ASX: NXT)
Data centres have become critical infrastructure in the digital age. NextDC provides secure, high-capacity facilities for cloud providers, enterprises, and government clients. The company is expanding across Australia and Asia, with more than 100MW of capacity in development. Demand for cloud and artificial intelligence workloads is surging, and fund managers like WAM Leaders are bullish on its long-term growth prospects. NextDC has delivered solid earnings and guided to further revenue and operating earnings growth in FY26, making it a standout in digital infrastructure.

Foolish Takeaway

With some ASX blue chips stumbling, investors are increasingly searching for fresh growth and reliable income elsewhere. Industrials and infrastructure stocks combine defensive characteristics with exposure to megatrends such as energy transition, transport demand, and the rise of digital connectivity.

The post Where money is moving after ASX stalwarts stumble appeared first on The Motley Fool Australia.

While tech stocks often dominate the headlines, these industrials are proving that smart execution, strong sector tailwinds, and disciplined management can deliver exceptional results. From asset maintenance to infrastructure upgrades and defence tech, here are three industrials shares to watch closely this earnings season.

1. Duratec Ltd (ASX: DUR)

At the time of writing, the Duratec share price has rallied more than 22% over the past 12 months — and there's reason for the optimism.

Duratec specialises in the remediation, protection, and life extension of critical infrastructure in sectors such as mining, energy, marine, defence, and transport. The company provides full asset lifecycle solutions, from condition assessments to maintenance and decommissioning.

Last week, Duratec expanded its national footprint with the acquisition of EIG Australia, an electrical infrastructure provider with expertise in fuel and fluid transfer systems. This strategic move strengthens Duratec's position in high-barrier, high-value sectors such as defence and mining.

With a healthy order book and growing capabilities in critical infrastructure, Duratec appears well-positioned heading into FY25 results.

2. Tasmea Ltd (ASX: TEA)

To date, the Tasmea share price has risen more than 150% in a year. The company has delivered outsized returns while quietly executing its industrial services and acquisition strategy.

Tasmea operates a national network of over 20 integrated businesses, offering maintenance, shutdown, and engineering services to sectors such as mining, renewables, defence, and water infrastructure. Many of its blue-chip clients are secured through long-term service agreements, providing a solid base of recurring revenue.

The company reported a 76.6% jump in first-half profit for FY25, reaffirmed full-year guidance of $52 million of NPAT, and rewarded shareholders with a fully franked special dividend. A recently upgraded FY26 forecast — now targeting $70 million in profit — signals management's confidence in ongoing growth.

Much of that momentum has come from smart acquisitions, including Future Engineering Group, which elevated its high-margin electrical division. 

3. GenusPlus Group Ltd (ASX: GNP)

As of today, GenusPlus shares have climbed over 100% over the past 12 months, fuelled by consistent contract wins and strong execution across power and telecom infrastructure.

Founded in 2017, the company operates across three core divisions — infrastructure, communications, and industrial services — offering end-to-end solutions from design and construction to maintenance and decommissioning.

GenusPlus posted a 33% increase in 1H FY25 revenue, with about 90% of its FY25–FY27 revenue already under contract, according to Bell Potter. Analysts see upside potential driven by structural demand in renewables, transmission upgrades, and telecom rollouts, especially as recent acquisitions expand its reach.

A strong balance sheet and upgraded earnings guidance round out what's been a breakout year for this small cap.

Foolish Takeaway

While market attention often shifts toward high-growth tech or dividend-heavy blue chips, these ASX industrial shares have been quietly delivering and may continue to do so this earnings season.

With sector tailwinds, strong order books, and smart strategic execution, Duratec, Tasmea, and GenusPlus are all worth watching as results roll in. Investors looking for exposure to infrastructure, energy, and asset services might find compelling opportunities hiding in plain sight.

The post These 3 industrial shares are quietly outperforming on the ASX appeared first on The Motley Fool Australia.

One standout? Tasmea Ltd (ASX: TEA). This "boring" but brilliant industrial services company has quietly surged over 115% in the past 12 months — and paid dividends along the way.

What does Tasmea do?

Tasmea isn't a flashy growth stock burning through cash. Tasmea operates a national network of over 20 integrated businesses delivering essential maintenance, engineering, and shutdown services to some of Australia's most important industries. These include mining, oil and gas, renewable energy, infrastructure, defence, and water management — sectors where equipment uptime and operational safety are non-negotiable.

The company is structured across four key service streams: industrial electrical, mechanical, civil engineering, and fluid systems. This means Tasmea's teams might be maintaining high-voltage electrical assets at a remote mining site, delivering mechanical shutdown services for a gas plant, or installing geomembranes and fluid drainage systems for water infrastructure.

Each subsidiary brings niche trade skills, but operates under a cohesive model, allowing the group to deliver turnkey solutions to blue-chip clients like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Santos Ltd (ASX: STO). These relationships are locked in through long-term Master Service Agreements, ensuring high levels of recurring revenue.

In an economy undergoing an energy and infrastructure transformation, Tasmea is strategically positioned to thrive and keep Australia's industrial engines running smoothly.

An IPO that's delivered

Tasmea listed on the ASX in April 2024 and closed its first day at $1.85 — a 19% gain for IPO investors. The share price then traded sideways for several months before starting its current trajectory following earnings results in August 2024. Tasmea achieved annual revenue of $400 million, representing a 25% increase from the previous year, pro forma operating earnings (EBIT) of $54.8 million, and net profit after tax (NPAT) of $36.9 million, 10% above guidance.

Growth accelerating in FY25

The momentum continued in the first half of FY25. 1H revenue jumped 27.6% to $246.6 million, while net profit after tax (NPAT) surged 76.6% to $27.9 million.

The company capped off the financial year 2025 by surprising investors with a fully franked special dividend of 12 cents per share, citing "strong financial performance" and confidence in its business model. Investors will be eager to read the full-year results, which will be released soon, although the company recently reaffirmed FY25 NPAT guidance of $52 million.

A key driver for FY25 was the acquisition of Future Engineering Group, which transformed Tasmea's Electrical division into its highest-margin unit. Management has smartly positioned this division to capture tailwinds from Australia's energy transition and renewables push.

Updated guidance shows confidence

On 25 June 2025, Tasmea upgraded its FY26 guidance, now expecting earnings growth to achieve an operating profit of $110 million and NPAT of $70 million

These revised figures imply further earnings growth and demonstrate management's conviction in both organic and acquisition-led expansion.

Founders still have skin in the game

As of the time of writing, founders Stephen Young and Mark Vartuli still hold a significant share ownership and work within the business. This kind of insider ownership provides alignment with shareholders and signals long-term confidence in the company's trajectory.

Foolish thoughts

Of course, no company is without risks. Tasmea's growth relies on successfully integrating acquisitions — a strategy that can come unstuck if execution falters. But so far, the company has delivered operationally and financially, building a resilient business with strong recurring revenue and industry relevance.

In a market often captivated by hype, Tasmea's performance is a reminder that consistent execution and essential services can still win the day.

The post This ASX share is up 115% in a year — and flying under the radar appeared first on The Motley Fool Australia.