In Australia and globally, several powerful themes are driving investment. Electrification is reshaping energy systems, requiring significant spending on transmission infrastructure, renewable generation, and storage. At the same time, strong commodity prices are supporting mining companies, while large-scale infrastructure projects — including those linked to the Brisbane 2032 Olympics — are lifting activity domestically.

Against this backdrop, two ASX-listed companies, Wagners Holding Company Ltd (ASX: WGN) and NRW Holdings Ltd (ASX: NWH), have delivered standout share price performance over the past 12 months, rising over 157% and 94%, respectively.

But after such strong gains, are the fundamentals keeping pace?

Riding the infrastructure and construction wave

Wagners is a construction materials and infrastructure business with exposure to concrete, cement, composite materials, and aviation services. The company generates revenue by supplying essential inputs into infrastructure, civil construction, and mining projects — sectors that are currently benefiting from elevated investment levels.

Recent updates suggest Wagners has been experiencing strong trading momentum, supported by higher demand across its key divisions. In particular, infrastructure activity in Queensland and major project pipelines have been contributing to increased volumes and improved pricing outcomes.

The company has also continued to invest in its proprietary composite technologies, which offer lighter and more durable alternatives to traditional materials. This positions Wagners to benefit not only from near-term construction demand but also longer-term structural shifts in how infrastructure is built.

Looking ahead, the outlook appears supported by sustained infrastructure spending and population growth, particularly in regions such as southeast Queensland. If project activity continues to ramp up, Wagners could see further earnings growth, provided cost pressures remain controlled.

NRW Holdings: Leveraged to mining services growth

NRW Holdings operates as a mining services contractor, providing civil, mining, and drill and blast services to resource companies. Its revenue is largely tied to contract work across mine development, production, and infrastructure.

The company has benefited from strong commodity prices, which have left many miners with robust balance sheets and the ability to fund expansion projects and exploration programs. This has translated into a growing pipeline of work for contractors like NRW.

Recent results highlight solid profit growth and a healthy order book, with the company securing new contracts and maintaining strong utilisation across its fleet. Importantly, NRW's diversified exposure across commodities and clients helps mitigate reliance on any single project or resource.

The outlook remains favourable as mining investment continues, particularly in bulk commodities and critical minerals linked to the energy transition. As long as commodity markets remain supportive, demand for mining services is likely to stay elevated.

What could drive the next leg of growth?

Both ASX shares are benefiting from trends that appear durable rather than cyclical in nature.

Electrification requires significant capital investment in infrastructure. Mining companies are expanding to meet demand for key resources. And government-backed infrastructure pipelines remain strong.

However, after such significant share price appreciation, future returns may depend more heavily on continued earnings growth rather than multiple expansion.

For Wagners, this means maintaining margins while scaling production and delivering on project demand. For NRW, it comes down to converting its order book into sustained revenue and profit growth while managing costs.

If both companies can continue to grow revenue and earnings, maintain or expand margins, and avoid valuation compression, there is potential for further upside over time.

As always, the key will be execution.

The post 2 ASX shares booming on electrification and mining. Is there more upside ahead? appeared first on The Motley Fool Australia.

The company is an Australian construction materials provider. It produces and sells construction materials through its Composite Fibre Technologies and Earth Friendly Concrete business.

Investors reacted positively to its H1 FY26 results.

What did the company report?

Included in yesterday's report were key financial highlighted: 

• Operating EBIT $35.0 million (+72% versus H1 FY25), exceeding H1 guidance range
• Net Profit After Tax (NPAT) of $21 million (+70% vs $12.3 million in H1 FY25)
• Revenue of $251.7 million, driven by growth from core Construction Materials (CM) business (+21%) and uplift in demand for Composite Fibre Technology (CFT) products (+36%). 

The company also released a FY26 guidance update. 

The company upgraded full-year FY26 Group Operating EBIT. It is now expected to be in the range of ~$62 to $66 million. 

Commenting on the results, Wagners' Managing Director, Cameron Coleman said: 

The Group has continued its strong performance into H1 FY26, delivering improved top line and earnings performance. Achieving impressive growth across Construction Materials and Composite Fibre Technologies, these results have been driven by the elevated demand for Wagners' products and services, strong market conditions and a commitment to improving efficiencies in all aspects of our operations to drive sustainable margin improvement. 

Share price snapshot 

This ASX materials stock rose 7.8% higher yesterday following this result. 

It has now risen 22.5% year to date, and 171.6% in the last 12 months. 

After such a rise, investors may be wondering if they missed their chance to gain exposure to this stock at an attractive entry point. 

However, the team at Morgans believes there is more growth to come. 

Here's what the broker said. 

Materials stock upgraded

Morgans said the company delivered an exceptional set of results, with 1H26 EBIT beating guidance (+9.5%), Morgans expectations (+8.4%), and consensus (+10.6%). 

Full year guidance was materially upgraded, with the implied 2H26 EBIT of $27-$31m a 32% beat vs prior guidance and consensus, as strong demand continues across construction materials, while CFT poles are on track to triple (vs FY25).

Morgans also said the balance sheet is also now net cash, with the business well positioned to execute on its capex plans and capture continued demand for cement/concrete in South-East Queensland, along with CFT demand. 

Based on this guidance, Morgans upgraded its recommendation to a buy, along with a $5.00 price target.

From yesterday's closing price of $4.40, this indicates a further upside of 13.64%. 

The post This ASX materials stock just climbed 8% on earnings results and hasn't finished rising appeared first on The Motley Fool Australia.

The company, which was holding its annual general meeting on Friday, said in a statement to the ASX that it expected both half-year and full-year earnings to come in well above last year's results.

The company stated that it expected first-half EBIT to be in the range of $31 to $33 million, compared with $20.3 million for the same period last year, and full-year EBIT to be $52 to $56 million, compared with $41.8 million for FY25.

The company's shares hit a 12-month high of $3.77 on the news before settling back to be 10.6% higher at $3.70.

Solid results across the board

Managing director Cameron Coleman told the AGM on Friday morning that the last quarter of FY25 had been "particularly strong" for the company, and this had continued into the current financial year.

In the company's construction materials division, the demand for cement and concrete volumes had increased relative to last year, with margins improving in concrete due to high plant utilisation.

In the company's project services division, there had been "some improvement" in the bulk haulage business, "with scheduled price increases and lower repair and maintenance costs delivering improvement compared to the same period last year''.

Mr Coleman said:

Looking at the full year, a buoyant construction sector across South-East Queensland will provide strong demand for our construction materials. With the opening of at least two new plants in FY26, concrete volumes are expected to improve on the prior year, which drives volumes through our cement, fly ash and quarry businesses. Market conditions are expected to improve resulting in margin expansion.

Investing for the future

Mr Coleman said the company's capital expenditure would increase this financial year, "as we expand the business in preparation for the expected increase in demand for our products and services''.

The company had raised $30 million in a capital raise to fund this spending, but Mr Coleman said the benefits of the increase capex spend would not flow through to earnings until "FY27 and beyond".

Beyond FY26, he said, "The residential housing market in South-East Queensland coupled with the infrastructure demand for the Brisbane 2032 Olympics is anticipated to drive business growth''.

Wagners remains well placed to build on the momentum that is expected. Targeted capital investments will expand capacity, improve operational efficiency, and position the Group for long-term success.

Wagners was valued at $669.1 million at the close of trade on Thursday.

The post This All Ords construction products company has hit a record high on a trading update   appeared first on The Motley Fool Australia.

Small-cap stocks can offer investors greater growth prospects compared to established blue-chip options. 

With that in mind, here are two with "accumulate" ratings from Morgans. 

Wagners Holding Company Limited (ASX: WGN)

Wagners Holding Company Limited (ASX: WGN) is a diversified Australian construction materials and services provider and an innovative producer of New Generation Building Materials. 

The Wagners share price has increased by 120.57% in 2025. 

The team at Morgans has highlighted the opportunity for the business and construction materials demand across South East Queensland (SEQ). This is particularly relevant in the lead up to the 2032 Olympics. 

The level of underlying demand, along with the anticipated contribution from Olympics, has WGN well positioned for future project wins.

The team stated that, based on the additional market data and considering the current share price, there is cause for optimism in the lead-up to the 14-Nov AGM. 

On this basis, Morgans has upgraded this ASX small-cap stock to accumulate with a $3.10 price target.

Today, shares are trading at $3.11 each. 

MAAS Group Holdings Limited (ASX: MGH)

MAAS Group Holdings Ltd (ASX: MGH) is an Australian construction materials, equipment, and services provider.

In a note from the broker yesterday, it stated that while FY26 guidance fell short of VA Consensus expectations, the outlook from management was positive. 

MGH noted margin pressure in the civil construction and hire segment, while the electrical and transmission business is ramping up and expected to play a larger role in future earnings. 

The group's project pipeline is strong, with no reported delays, and guidance reflects the project type and timing rather than weaknesses.

The broker has retained its price target of $5.45 with an accumulate rating.

Based on today's share price of $4.49, the price target from Morgans indicates an upside of 21.38% for this ASX small-cap stock. 

The post Morgans is optimistic on these two ASX small-cap stocks appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) has risen roughly 5% in that span. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up almost 8% in the same period. 

However, one ASX materials stock that has flown past the average in the last 12 months has been Wagners Holding Co Ltd (ASX: WGN). 

Why has it exploded in the last year?

Wagners is an Australian construction materials provider. 

It produces and sells construction materials through its Composite Fibre Technologies and Earth Friendly Concrete business. 

Its segment includes Construction Materials, Project Services, Composite Fibre Technology, and Earth Friendly Concrete.

The stock price rise has possibly come on the back of strong performance in the last financial year. 

The company reported impressive growth in FY25, including: 

• Operating EBIT $41.8 million (+9% versus FY24)
• Net profit after tax (NPAT) of $22.7 million (versus $10.3 million in FY24)
• Revenue of $431.3 million

Speaking about the previous financial year, Wagners' Managing Director, Cameron Coleman, pointed to growth in two core segments: Construction Materials and Composite Fibre Technologies as contributing factors. 

He said these results were driven by strong demand for Wagners' products and services, improved market conditions, and enhanced efficiencies in the company's operating and manufacturing processes, which drove margin improvement.

Can this ASX materials stock keep rising?

The team at Morgans released fresh guidance on this ASX materials stock yesterday. 

The broker said, based on the strong outlook for South East Queensland construction markets and the WGN share price, the business has taken the opportunity to raise an additional $30m via an institutional placement, while the Wagner Family has sold an additional $36m of stock to reduce their holding to c.44%. 

Despite 14% of share on issue being transacted in the past month (across these transactions), the stock is up c.8.2%. Despite the strong demand signals across South East Queensland (SEQ) and our expectation this can drive earnings higher in FY27/28, a stretched valuation sees us reduce our recommendation to a HOLD with a $2.90/sh price target.

Based on yesterday's closing price of $2.80, the broker sees an upside of approximately 3.5%. 

Broker Bell Potter seems to also believe this ASX materials stock is trading close to fair value. 

It has a price target of $2.75. 

The post Up 225% in one year! What's next for this ASX materials stock? appeared first on The Motley Fool Australia.

That suggests those in the know believe their company is trading at attractive prices. So much so, that they'll throw their hard-earned cash into the stocks.

Indeed, one S&P/ASX 200 Index (ASX: XJO) company has seen six directors buy its shares over the last fortnight.

Let's take a look at the 52-week lows apparently tempting ASX directors to buy into ASX shares lately.

5 ASX insiders buying shares at near 52-week lows

We can't talk about recent insider buying without mentioning Reliance Worldwide Corporation Ltd (ASX: RWC). The ASX 200 industrial share hit a new 52-week low of $2.96 on Tuesday.

Most of the company's board has been bolstering their holding in the company lately, with six of its directors forking out an approximate total of $385,000 for 123,250 shares. That saw them paying an average of around $3.12 per share.

The largest parcel was snapped up by chair Stuart Crosby, who bought 31,250 shares for $99,389.65 on 28 October.

Directors Sharon McCrohan, Darlene Knight, Christine Bartlett, Brad Soller, and Russell Chenu have also made recent purchases.

Meanwhile, Bega Cheese Ltd (ASX: BGA) deputy chair Peter Margin has taken a slice of the ASX 200 dairy favourite's shares. Margin bought 10,786 shares for $35,162.36 in late October, paying around $3.17 apiece.

The Bega share price hit a 52-week low of $3.12 on 21 October. It has since recovered 3.5% to trade at $3.23 today.

Shares in All Ordinaries Index (ASX: XAO) biotechnology company Starpharma Holdings Limited (ASX: SPL) are also both the subject of recent insider buying and trading near 52-week lows today. The stock hit its lowest point since 2015 earlier this week, falling to 49 cents.

Two of the company's leaders, chair Rob Thomas and CEO and director Dr Jackie Fairley, snapped up 50,000 shares, worth a combined $52,000, in the company in late October.

Thomas got the better deal, buying each share for 52 cents while Fairley paid 52.8 cents apiece.

The share price of All Ords construction materials and services company Wagners Holding Company Ltd (ASX: WGN) also hit a multi-year low earlier this week when it slumped to 73 cents.

But the company's chair and co-founder Denis Wagner seems to think the recent downturn has presented a buying opportunity. He bought 61,669 shares in the company in late October, paying nearly $50,000, or around 80 cents apiece.

The final ASX insider buying target trading at around 52-week lows is gold miner Red 5 Limited (ASX: RED). The stock hit a 52-week low of 15 cents in late October. It has since recovered to trade at 17.5 cents.

The company's managing director Mark Williams and director Ian MacPherson both recently bolstered their stake in the company. They did so through a share purchase plan, which offered shares for 16 cents apiece.

The post 5 ASX shares trading near 52-week lows that insiders have been buying appeared first on The Motley Fool Australia.

The ASX-listed construction materials supplier released its FY22 results this morning. The Wagners share price opened at $1.07 per share but has fallen 26.29% to its intraday low of 78.5 cents at the time of writing.

What did Wagners report for FY22?

Whilst the Wagners share price is swimming in a bloodbath, let's check out the key financial results for FY22.

• Revenue increased by 5% to $336.8 million relative to FY21
• Net profit after tax (NPAT) went backwards by 24% to $7.6 million
• Net tangible assets per share increased from 59 cents to 63 cents

Both the construction materials & services (CMS) and composite fibre technology (CFT) segments grew revenue by $5.7 million and $10.4 million respectively.

CMS is the biggest revenue segment, recording $294.2 million in FY22. However, it recorded a slightly lower margin due to the timing of large projects.

CFT products are innovative and environmentally sustainable building materials and recorded revenue of $41.9 million. Cost pressures and start-up costs in the US also put downward pressure on margins in this segment.

The company said shipping and fuel costs increased significantly in the second half of FY22. The rise in costs of raw materials also played a key role in the fall in margins as well.

These were the biggest detractors to Wagners' bottom line.

This essentially explains why operating cash flow fell from $53.1 million to $3.9 million. Payments to suppliers for raw materials and wages soaked a lot of the revenue.

Wagners also ramped up investment in plant and equipment, deploying $24 million in FY22 compared to $15.5 million in FY21.

What else happened in FY22?

The most notable event in FY22 was when the Wagners share price rocketed 16% amid the company landing a $140 million contract for the Sydney Metro-Western Sydney Airport Project.

This was a 20-month contract supplying 67,000 precast concrete tunnel segments.

The Cross River Rail tunnel project was completed in the 1H of FY22, which partially offset the increased sales.

Management remains focused on the future

The CFT and EFC segments remain the future pillars of growth as management strives to enter new markets and invest in automation.

Further capital will be used to invest in R&D to identify new markets and products.

Wagners expects strong cement volumes throughout FY23 due to the high level of activity in the southeast Queensland construction sector. As a result, management will continue to expand its concrete plant network.

The aforementioned Sydney Metro-Western Sydney Airport project will commence in October 2022. Management remains positive about the precast segment outlook with projects like Inland Rail and the 2032 Olympic Games presenting big opportunities.

Wagners share price snapshot

In the last year, the Wagners share price has more than halved, falling by 57% and has dropped 32% in the last month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) only fell 7% in the last year and managed to rise by 3% in the last month.

The current market capitalisation for Wagners is around $152 million.

Its price-to-earnings (P/E) multiple is around 10 times. On this basis, the Wagners share price might seem cheap but the FY22 results show how exposed the business is to external factors. I think this is important to consider when evaluating the Wagners share price.

The post Wagners share price plummets 26% as FY22 net profit declines appeared first on The Motley Fool Australia.

At the time of writing, the Australian construction materials provider's shares are swapping hands at $1.38, up 15.97%.

What did the ASX All Ordinaries share announce?

Investors are fighting to get a hold of Wagners shares after the company announced it has secured a significant contract.

In its statement, the ASX All Ordinaries share advised it has won a material contract for the Sydney Metro – Western Sydney Airport Project.

This will see the supply of more than 67,000 precast concrete tunnel segments, manufactured from the company's facility in Wacol, Brisbane.

Production of the segments will commence in late 2022 with the final segments scheduled for completion in early 2024.

The project is being delivered by the CPB Contractors Ghella (CPBG) joint venture, and involves the construction of 9.8 kilometres of twin metro rail tunnels.

Following the project's completion, this will provide a public transport service to the new Western Sydney International (Nancy-Bird Walton) Airport.

Subject to timing parameters, Wagners is expected to reap around $140 million over the 20-month period of the contract.

Speaking on the news fuelling this ASX All Ordinaries share today, Wagners CEO Cameron Coleman commented:

The Sydney Metro-WSA-SBT is a significant project providing important transport infrastructure for the people of Sydney.

Wagners are extremely proud to work with the CPBG joint venture on this critical scope of works for the project which will also deliver significant job opportunities. The segments will be manufactured locally at our Wacol precast facility, before being transported to Sydney for installation into the project.

Wagners have been involved in the construction of the last three significant tunnel projects in Queensland, and is looking forward to being able to utilise this expertise in the manufacture and delivery of these segments for the Sydney Metro-WSA-SBT project.

About the Wagners share price

Despite its strong gains today, the Wagners share price has tumbled 42% over the past 12 months.

When looking at the year to date, its shares are down 15%.

Based on today's price, this ASX All Ordinaries share has a market capitalisation of $212.01 million and a price-to-earnings (P/E) ratio of 16.7.

The post Guess which ASX All Ordinaries share is soaring 16% on a new $140 million contract win appeared first on The Motley Fool Australia.

There has been plenty of volatility in recent weeks as investors react to the Russian invasion of Ukraine as well as concerns that fast inflation could spark rapid interest rate increases.

If multiple brokers all rate a business as a buy then it could indicate to investors that there is an opportunity to buy. Of course, it's possible that all of those analysts are wrong at the same time as well.

With that in mind, these two ASX shares are rated as a buy:

Wagners Holding Company Ltd (ASX: WGN)

Over the last 10 months, the Wagners share price has fallen more than 40%. But brokers now think that it is an opportunity. It's rated as a buy by at least three brokers including Credit Suisse.

The broker's price target is $1.90. That's almost 40% higher than where it is today.

If you haven't heard of Wagners before, it's a major producer of construction materials and services for Australian and international markets.

The recent FY22 half-year result saw revenue rise by approximately 10%, thanks to growth from cement, concrete, steel and composite fibre technologies (CFT).

Operating earnings before interest and tax (EBIT) increased from $11.6 million to $12.6 million. The company continues to experience costs as it seeks to expand in the USA. Concrete margins are also seeing pressure, leading to a "disappointing" contribution from fixed concrete plans.

In the second half of FY22, it plans to start manufacturing CFT at its Texas facility and begin manufacturing 'earth friendly concrete' in outer London, which is currently under construction.

Credit Suisse thinks that the second half could see stronger performance. It's keeping an eye on the margins though.

BWX Limited (ASX: BWX)

BWX is a natural beauty business with plenty of brands including Sukin and Go-To Skincare. The ASX share also owns e-commerce platforms like Nourished Life and Flora & Fauna.

The BWX share price has fallen 45% since the start of the year.

Brokers see this sell-off as a buying opportunity, with at least three buy ratings. UBS has a buy rating on the business with a price target of $5.50. That implies a possible upside of more than 130% over the next 12 months. It was trading close to that level at the end of June 2021.

The broker noted that both revenue and spending were lower than expected in the first half of FY22, leading to the business generating a bit more profit than expected. But the lower-than-expected sales were a disappointment, with like for like growth of 5%.

BWX said that its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 26.2% to $14.3 million and underlying net profit after tax (NPAT) grew by 22.1% to $4.7 million. But it made a statutory net loss of $2.3 million with a $3.5 million expense related to the cost of an equity-linked strategic partnership with Chemist Warehouse. There were also $3 million of one-off acquisition costs.

The ASX share said that it's expecting "strong" underlying revenue and EBITDA growth in the second half of FY22. Sales momentum seen in the FY22 second quarter is continuing into the third quarter.

UBS thinks it's trading at 13x FY23's estimated earnings.

The post Brokers rate these 2 top ASX shares as buys in March 2022 appeared first on The Motley Fool Australia.

It's possible that these stocks with multiple buy ratings are opportunities. But it is also possible that all of those brokers are wrong at the same time.

Here are two ASX shares that brokers really like:

Wagners Holding Company Ltd (ASX: WGN)

Wagners is currently rated as a buy by at least three brokers.

This business is a diversified Australian construction materials and services provider. It says it's an innovative producer of new generation building materials. It makes cement, concrete, aggregates, new generation composite products and aims to provide products that reduces environmental impacts. It also provides transport services, precast concrete and reinforced concrete.

One of the brokers that likes Wagners is Credit Suisse, which has a $2.50 price target on the business. Credit Suisse believes that the mining sector earnings are helping, as well as improving profit margins.

The ASX share's FY21 result was better than the broker was expecting, leading it to increase its profit predictions for this year and next year.

Wagers said that its outlook for the second half of the year is good due to a few different reasons.

There's the ongoing contributions from its major contracts in precast concrete and quarries. Next, there is continued strong performance of its bulk haulage business. There's also increased activity in the domestic pedestrian infrastructure and bridge division of composite fibre technologies (CFT). The company is working on establishing a USA manufacturing facility for CFT after delays caused by COVID-19. Finally, it's seeking external investment in its low carbon concrete technology.

Goodman Group (ASX: GMG)

Goodman is currently rated as a buy by at least six brokers.

One of the brokers that likes Goodman is Morgan Stanley, which has a price target of $23 on Goodman.

The broker likes the development potential of Goodman, with its large amounts of development land in Sydney.

Last month the industrial property business released its third quarter update. It said the three months to 31 March 2021 reflected a strong operating performance, underpinned by customer led demand for assets in its chosen markets.

The ASX share explained that changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new spaces, particularly through multi-storey and higher intensity buildings within its urban locations.

In that quarterly update, Goodman said that it had $52.9 billion of total assets under management (AUM). It achieved 3.3% like for like net property income (NPI) growth in its managed partnerships. There was a 98% occupancy rate across the partnerships.

Goodman also said that it has $9.6 billion of development work in progress (WIP).

At the time, it reaffirmed its FY21 operating profit forecast of $1.2 billion, representing earnings per security (EPS) growth of 12%.

According to Morgan Stanley, the Goodman share price is valued at 28x FY22's estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

Wagners is a diversified Australian construction materials and services provider. It produces cement, concrete, aggregates and composite products. It offers a 'Earth friendly concrete' product and it also provides transport services, precast concrete and reinforcing steel.

What did Wagners report in the FY21 half-year result?

The building products business reported that total revenue increased by 26.9% to $155.8 million. Wagners said that revenue increased due to improved transport, quarry, concrete and cement sales.

There was a 15% increase in crossarm sales offset by lower activity in pedestrian infrastructure, mainly due to COVID-19 delays.

Gross profit went up by 30.9% to $88.1 million. Most types of expenses increased for Wagners in line with increased business activity.

The earnings before interest, tax, depreciation and amortisation (EBITDA) of Wagners more than doubled, rising by 116% to $18.6 million. EBIT soared 415% to $10.3 million.

The EBIT margin improved by 4.1 percentage points to 10.6% in the construction materials and services division, whilst new generation building materials saw a 3.7 percentage points increase in the EBIT margin to 8.8%.

There was an improvement of net profit after tax (NPAT) of $6.2 million, leading to a bottom line profit of $6.1 million.

Wagners reported that it generated $32.4 million of pro forma cash flow from operations, up $43.2 million from the prior corresponding period.

Net debt improved by $21.9 million to $61.1 million, which was helped by the improved operational cashflow from better business performance.

Growth plans

It has invested in automation in Australia and increased capacity for its crossarm production facilities to achieve higher productivity and lower cost of production of the new generation building materials. There has been no growth in the USA with the impact of COVID-19, but the pultrusion machine has arrived in USA and it's also pursuing opportunities with manufacturing from Australia.

Wagners boasted that there has been around 20,000 tonnes of CO2 emissions saved by using Wagners low carbon concreate technology Earth friendly concrete (EFC). it said there is increased demand in UK and Europe. The global regulatory focus on CO2 emissions provides a perfect platform for EFC, according to management.

The company said that there was a significant increase of sales of cement in the first half of FY21, with the market outlook looking promising. Wagners is also expecting increased demand in FY21 for concrete with the commencement of infrastructure projects.

The post HY21: Wagners (ASX:WGN) share price soars, cements plan for growth appeared first on The Motley Fool Australia.

The construction materials manufacturer has seen poor performance in recent times and the sudden jump in the Boral share price has caught many investors unaware.

What's driving the Boral share price?

With more than a 45% leap in only a couple of weeks, the Boral share price is appreciating faster than many of its S&P/ASX 200 Index (INDEXASX: XJO) peers. There are a number of factors at play here. 

Firstly, the company won a legal battle against Wagners Holding Company Ltd (ASX: WGN) in Queensland last week. Boral is Wagners' largest cement customer and was accused of trying to force down cement contract prices. As a result of the ruling, Boral will continue to purchase cement from Wagners until 2031 at lower rates, reflecting competition in the marketplace.

This followed a snap investment by Kerry Stokes' company Seven Group Holdings Ltd (ASX: SVW), purchasing 10% of the company. Seven Group capitalised on a shake up in the MSCI index last week, buying the Boral shares as investors off loaded them prior to the company being moved out of the index. 

I believe Seven Group is likely to push for a seat on the Boral board. It may also increase its shareholding in a bid to bolster its influence. 

What are the issues for Boral?

Boral posted a reduction in interim profit of 39% in February amidst a weak outlook for Australian sales. The Boral share price has also had a generally lacklustre performance over the past couple of years. The company is, however, currently undertaking a strategic review with Macquarie Capital and Flagstaff Partners. It is also searching for a replacement for current CEO Mike Kane.

Furthermore, talk of asset sales are swirling around the company. Some industry analysts are suggesting the US-based stone business would be easiest to divest, with Boral's light building products being substantially harder to move. In September 2019, however, investment banker John Wylie approached Boral's chairman suggesting a company break-up. Boral chose to reject this recommendation.  

Foolish takeaway

I believe the Seven Group position in Boral, combined with a strategic review underway, bodes well for the Boral share price. With positive market sentiment likely to continue in the short term, and action afoot to correct lagging performance, I believe we will continue to see rises in the Boral share price.

The post Can the Boral share price continue to rise? appeared first on The Motley Fool Australia.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Citi, its analysts have downgraded this iron ore producer's shares to a sell rating with an increased price target of $11.10. Citi has responded to a lift in iron ore prices by upgrading its earnings and dividends estimates for Fortescue. And while it notes that its 88 cents per share dividend estimate for FY 2021 implies a generous yield, it expects a meaningful decline in iron ore prices to lead to a sharp dividend cut in FY 2022. In light of this, it believes the company's valuation is getting stretched now. The Fortescue share price ended the week at $13.58.

TechnologyOne Ltd (ASX: TNE)

Analysts at UBS have downgraded this enterprise software company's shares to a sell rating but lifted the price target on them to $8.20. According to the note, TechnologyOne's half year update fell a touch short of its expectations last week. As a result, the broker suspects it might be hard for the company to deliver on its full year expectations now. All in all, it doesn't believe the company's shares deserve to trade on such a high earnings multiple. TechnologyOne's shares finished the week at $9.91.

Wagners Holding Company Ltd (ASX: WGN)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and slashed the price target on this building materials company's shares to 80 cents. The broker notes that the Supreme Court of Queensland has delivered its judgement on its pricing dispute with Boral Limited (ASX: BLD). While the orders will remain confidential for a couple of weeks, Macquarie doesn't appear optimistic. In addition to this, Macquarie has concerns over Wagners' outlook and thus remains bearish. The Wagners share price was trading at 82 cents at the close of play on Friday.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

The MNF Group Ltd (ASX: MNF) share price has dropped almost 9% to $4.29 following its first half results release. During the half, MNF delivered a 14% increase in revenue to $112 million and a 52% lift in EBITDA to $16.9 million. Whilst this was strong, management's guidance for the full year appears to have spooked investors. It has downgraded its net profit after tax guidance from between $13.5 million and $15.5 million to the range of $10 million to $12 million.

The Mosaic Brands Ltd (ASX: MOZ) share price has fallen 13.5% to $1.55. Investors have been selling the fashion retailer's shares after the release of a disappointing half year result this morning. Due largely to the negative impact of the bushfire tragedy on 20% of its stores, Mosaic reported 10.9% decline in half year revenue to $413.8 million. And while the bushfire impact appears to be easing, the company now faces potential disruption to its China supply chain caused by the coronavirus outbreak.

The Wagners Holding Company Ltd (ASX: WGN) share price has crashed 17.5% lower to $1.47. This follows the release of the building products supplier's half year results. Although Wagners posted just a slight decline in revenue, its EBIT fell by over 84% to $2.5 million during the half. Management blamed this profit decline on higher operating costs. Looking ahead, the company has downgraded its full year EBIT guidance to a range of $12.5 million to $17.5 million.

The Webjet Limited (ASX: WEB) share price is down 6% to $11.65. Global travel stocks were sold off overnight after the market began factoring in the increase in coronavirus cases in Italy and South Korea. There are concerns that travel bookings will be subdued for a longer than expected period if coronavirus cases outside of China continue to increase.

The post Why MNF, Mosaic, Wagners, & Webjet shares are dropping lower today appeared first on The Motley Fool Australia.

Wagners' 1H20 results

Wagners reported total revenue of $122.3 million, down from $123.8 million in 1H19. HY20 sales declined compared to HY19 due to lower volumes in cement attributable to the Boral dispute, with offtake recommenced in late October 2019. While there was no major project revenue, concrete plants, quarries and transport revenue increased, albeit at a lower margin. 

Earnings before interest and tax (EBIT) fell to $2.5 million from $16.1 million in the prior corresponding period (pcp). Wagners attributed this to higher operating costs, with repairs and maintenance costs rising to $12.3 million from $8.9 million due to increased utilisation of transport and quarry assets. Subcontractor and services costs also rose, up to $6.3 million from $3.7 million, with increased costs incurred to meet short term contracts in transport and quarry businesses. 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) halved compared to the pcp, down to $11.3 million from $22.4 million. Pricing pressure in the South East Queensland cement and concrete markets significantly impacted margins. Earnings were also impacted by increased costs associated with litigation and the establishment of the concrete plant roll out. 

A net loss of $1.2 million was reported for the period, down from $6.9 million of profits in 1H19. 

Cash flow and working capital

Cash flow from operations has been impacted by lower EBITDA and a negative working capital movement. The working capital position was negatively impacted by higher debtors as the result of the award of new contracts and sale of concrete plants, which have since been received.

Capital expenditure (capex) was reduced during the half with major spends in concrete plant expansion and stay-in-business capex for quarries and transport. 

Net debt at the end of the half was $70.4 million, down from $90.3 million at 31 December 2018. Debt was reduced thanks to Wagners' $40 million rights issue, although this was partially offset by capital spend during the year. Wagners reports significant headroom on term debt and equipment finance facilities. 

Outlook 

Wagners has decreased its full-year EBIT outlook to a range of $12.5 million to $17.5 million. Reduced earnings expectations are due to continued challenges in the South East Queensland construction materials business and uncertainty of the timing of commencement of major projects.

No allowance has been made for the outcome of litigation Wagner is currently involved in. 

The post Wagners share price plummets 30% as profits disappear appeared first on The Motley Fool Australia.

Four shares that have climbed more than most today are listed below. Here's why they are storming higher:

The Appen Ltd (ASX: APX) share price has climbed 4% to $24.54. Appen's shares have been strong performers this week despite there being no news out of the content relevance provider. However, some investors may believe that recent share price weakness is a buying opportunity. Especially given its recent guidance upgrade.

The Pro Medicus Limited (ASX: PME) share price is up over 4.5% to $23.44. On Monday the healthcare technology company provided an RSNA update. CEO Sam Hupert reiterated that the company is trading comfortably ahead of its target year to date. Pleasingly, the chief executive said "there is nothing to indicate that this trend won't be sustained."

The SRG Global Ltd (ASX: SRG) share price is up 4% to 41.5 cents despite there being no news out of it. But as I wrote here yesterday, Commonwealth Bank of Australia (ASX: CBA) has been buying the shares of the engineering-led specialist construction, maintenance and mining services company recently. The banking giant has lifted its interest in SRG Global from 7.43% to 8.48% through the purchase of over 5 million shares earlier this month.

The Wagners Holding Company Ltd (ASX: WGN) share price has risen a sizeable 7% to $2.45. This strong gains appears to be in response to a major contract win that was announced on Monday. The contract is for the supply of precast concrete tunnel segments for the Brisbane Cross River Rail project's Tunnel and Stations Works package. Tunnelling works are planned to commence in FY 2021. Management estimates the contract to be worth $40 million.

The post Why Appen, Pro Medicus, SRG Global, & Wagners are storming higher appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 1.63% to 6.849.70
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 1.57% to 6,952.30
• AUD/USD at US 69 cents
• Gold at US$1,475.14 an ounce
• Brent Oil at US$64.60 a barrel

One of the best-performing ASX 200 shares today was the Saracen Mineral Holdings Limited (ASX: SAR) share price which climbed 8.2%.

Brexit has boosted the share price of Virgin Money UK Plc (ASX: VUK) by a further 8.1% today.

The share price of Perenti Global Ltd (ASX: PRN) dropped by 18.7% after giving a guidance update to the market.

The Nearmap Ltd (ASX: NEA) share price was one of today's top performers after last week's acquisition.

A takeover offer sent the share price of National Veterinary Care Ltd (ASX: NVL) higher by 52.5%.

The share price of Smartgroup Corporation Ltd (ASX: SIQ) dropped 14.7% after giving a negative about regarding its sales of insurance products.

The Northern Star Resources Ltd (ASX: NST) share price was unmoved today after going into a trading halt.

Finally, the share price of Wagners Holding Company Ltd (ASX: WGN) despite securing a contract for the Brisbane Cross River Rail project.

Here are some of today's top stories:    

• How the ASX aims to become mini NASDAQ with a new tech index
• Afterpay rival Openpay tumbles 15% after listing on the ASX
• Will the Afterpay share price reach $40 in 2020?
• Should you buy this unloved ASX dividend stock for the 7% yield?

The post ALL ORDINARIES finishes higher Monday: 8 ASX shares you missed appeared first on The Motley Fool Australia.

What did Wagners announce today?

Wagners secured a contract for the production and haulage of quarry materials for Carmichael mine and rail projects. The contract is with Adani Mining Pty Ltd as part of its operations in the Galilee Basin.

The Wagners share price has been climbing higher in early trade following the positive news for shareholders.

The project value for the group is expected to be over $35 million over two stages. Mobilisation to site will commerce immediately. This initial stage will require the production and haulage of 735,000 tonnes of quarry materials in the next 15 months.

Wagners expects to second stage of the works to commence in late 2020 or early 2021.

How has the Wagner share price performed this year?

The Aussie small-cap stock has had a tough year in 2019 as investors have watched the Wagner share price slump lower.

Wagners shares closed yesterday at $2.09 per share, which is a long way shy of its $3.33 52-week high set back in February.

The company does offer a 2.65% dividend yield but that looks to be more price-driven than earnings-driven. That means the yield could appear to be better value than it really is due to price declines rather than dividend increases.

Is there still good value in the Materials sector?

Despite the Wagner share price troubles in 2019, there are other shares that could provide good yield in the ASX Materials sector.

BHP Group Ltd (ASX: BHP) shares have been climbing higher this year and yet still offer a 5% dividend yield.

It's been a similar story with Brickworks Ltd (ASX: BKW), which has seen strong capital growth in 2019. Brickworks shares are also yielding a tidy 3.09% at the moment despite trading near their 52-week high of $19.33 per share.

The post Why the Wagners share price is climbing higher today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher are listed below. Here's why they are tumbling lower:

The Cann Group Ltd (ASX: CAN) share price has crashed 22.5% lower to 57 cents. Late last week the cannabis company revealed that it would be staging the commissioning of its Mildura facility in response to weaker demand. Investors appear concerned that Cann Group may never generate the level of revenue it forecast previously.

The Collection House Limited (ASX: CLH) share price is down 6% to $1.14. Investors have been selling the receivable management company's shares after it announced the sudden departure of its managing director and chief executive officer, Anthony Rivas. Collection House revealed that it has promoted CFO Doug McAlpine to the top job with immediate effect.

The Nufarm Limited (ASX: NUF) share price is crashing lower on Monday and is down 18% to $5.07. Investors have been selling its shares due to a costly accounting error. When reconciling accounts with German customers for the 2019 calendar year, Nufarm identified additional sales rebate claims from customers. This is expected to result in a $9 million impact to its first half EBITDA. In addition to this, it warned that trading conditions have been difficult in FY 2020.

The Wagners Holding Company Ltd (ASX: WGN) share price is down 7% to $2.04. This morning the building supplies company provided an update on its dispute with Boral Limited (ASX: BLD). According to the release, Wagners was expecting a resolution of its dispute with Boral in court this week. However, the trial has been adjourned until February.

The post Why Cann, Collection House, Nufarm, & Wagners shares are tumbling lower appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they dropped lower:

The Monadelphous Group Limited (ASX: MND) share price has tumbled 4% to $17.26 after the release of a softer than expected result from the engineering company. Monadelphous reported revenue of $1.6 billion and underlying net profit after tax of $57.4 million in FY 2019. This was a 9.8% and 19.5% decline, respectively, on FY 2018's result.

The Saracen Mineral Holdings Limited (ASX: SAR) share price has fallen 5.5% to $3.50. Saracen and the rest of the gold miners have sunk lower today after a pullback in the gold price overnight. The spot gold price fell over 1% after risk appetite improved and demand for risk-off assets eased. At the time of writing the S&P/ASX All Ords Gold index is down a sizeable 2.6%.

The Virtus Health Ltd (ASX: VRT) share price has dropped almost 6% to $4.63 after the fertility treatment company posted a 2.3% decline in EBITDA to $63.5 million and a 7.6% drop in NPAT to $35.4 million in FY 2019. Management blamed a negative change in its revenue mix for the earnings decline.

The Wagners Holding Company Ltd (ASX: WGN) share price is down 5.5% to $1.45 following the release of the building supplies company's full year results after the market close on Monday. Wagners posted a disappointing 35% decline in EBIT due to delays in large mobile concrete and precast infrastructure projects, increased costs associated with the establishment of its concrete business, and disruption in the south east Queensland cement market. The latter appears to have continued in FY 2020 and could weigh on its performance this year.

The post Why Monadelphous, Saracen Mineral, Virtus Health, & Wagners dropped lower today appeared first on The Motley Fool Australia.