In the world of investing, small-cap stocks often fly under the radar until they start delivering results too strong to ignore. For investors with an eye for opportunity, these moments can be rewarding—provided the businesses have solid fundamentals and structural tailwinds behind them. Two Australian small-cap names in the broader financial ecosystem have recently caught the attention of analysts: Generation Development Group (ASX: GDG) and Acrow (ASX: ACF).

Though they operate in different parts of the financial services value chain, both are riding strong momentum into FY25. GDG is benefiting from growth in retirement-focused wealth solutions, while ACF has transformed into an industrial access services leader with counter-cyclical resilience. Let’s take a closer look at why these two are making waves right now.

Why These Two Now?

1. Generation Development Group (GDG): The company has just posted double-digit revenue growth and record inflows into its wealth products. Its scale has also been boosted by the expanding managed accounts platform of Lonsec, its subsidiary. Updated FY24 and 1H FY25 numbers show that this momentum is carrying through into the current year.
2. Acrow (ACF): The business confirmed record revenue for FY25, driven by its Industrial Access division. External recaps suggest double-digit top-line growth, along with resilient earnings despite some cost and leverage considerations.

Both companies are tapping into structural growth stories—one driven by long-term savings and retirement needs, the other by essential industrial services

Generation Development Group (ASX: GDG) at a Glance

Generation Development Group runs a diversified wealth management platform. Its portfolio includes:

1. Investment bonds – appealing as tax-effective savings vehicles.
2. Managed accounts – powered by Lonsec, one of Australia’s leading investment research houses.
3. Annuity solutions – targeting retirees with guaranteed income products.

In FY24, GDG saw record inflows across these businesses, which translated into higher Funds Under Management (FUM). The company also signaled its transition into a more conventional listed-company model by ceasing its status as a Pooled Development Fund (PDF) in June 2024.

GDG’s Latest Numbers

1. FY25 revenue: $219.5 million, up 101% year on year.
2. Net profit after tax (NPAT): $38.25 million, up 555% year on year.

This dramatic step-up reflects both organic growth and scaling benefits across the Lonsec platform.

What’s Driving GDG?

1. Structural Tailwinds
   Australia’s superannuation system and retirement-focused tax settings are elevating demand for products like investment bonds and annuities. GDG is well-positioned with both depth and distribution in these segments.
2. Platform Effect
   Lonsec’s rising FUM and strong adviser relationships create a powerful platform effect. As advisers use Lonsec’s managed accounts, GDG captures additional fee revenue and cross-selling opportunities.

Watch Items for GDG

1. Dividends remain modest, as much of the company’s cash is reinvested for growth.
2. Execution risks exist in scaling managed accounts and gaining wider adoption of annuities, especially amid competition.
3. The transition away from PDF status and ongoing acquisitions will require careful capital allocation and adviser engagement.

Acrow (ASX: ACF) in Focus

Acrow provides engineered formwork, scaffolding, and industrial access services—safety-critical solutions essential for industries like resources, energy, and infrastructure. While traditionally tied to formwork cycles, the company’s growth story is now increasingly anchored by its Industrial Access division.

This pivot has underpinned record revenue and improved visibility, giving Acrow a stronger foundation even when construction activity fluctuates.

ACF’s Latest Updates

1. FY25 sales revenue: $241 million, up 25% year on year, with growth primarily from the Industrial Access business.
2. Revenue guidance for FY25: $260–270 million.
3. Management has indicated solid EBITDA delivery, supported by new contracts and diversification.

Earnings Texture at ACF

1. Analysts point to revenue growth in the 23–25% range for FY25.
2. Some earnings per share (EPS) pressure has appeared due to acquisition costs, business mix, and leverage.
3. Despite this, NPAT remained resilient, thanks to contract wins and diversification.
4. Community research also notes ongoing EBITDA growth and dividend capacity, consistent with a maturing services platform.

What’s Powering ACF?

1. Counter-Cyclical Demand
   Industrial access is critical for maintenance, shutdowns, and large project execution. This demand is steady, even when construction slows. Analysts estimate that industrial services now account for around half of revenue.
2. Inorganic Growth
   Acrow has pursued bolt-on acquisitions, expanding its geographic footprint and sector reach. This has given the company greater exposure to defense, energy, and heavy industry, while also adding engineering capability.

Watch Items for ACF

1. Integration costs and higher net debt remain areas to monitor.
2. The traditional formwork market is softer, though the industrial book helps offset this cyclicality.
3. Delivering on EBITDA guidance and maintaining strong cash conversion will be crucial for reducing leverage and sustaining dividends.

Final Thoughts

Both Generation Development Group (ASX: GDG) and Acrow (ASX: ACF) showcase how small-cap financial sector stocks can evolve into bigger players when backed by structural trends.

GDG is leaning into the growing demand for retirement savings and income solutions, with its Lonsec platform creating significant scalability.

ACF is transforming from a formwork-dependent business into a resilient industrial services player with recurring demand.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The lithium sector has always been cyclical. Prices soar when demand from electric vehicles (EVs) and energy storage ramps up, only to cool off when supply outpaces expectations. For investors, this volatility can feel intimidating—but it also creates opportunity. When lithium cycles turn, those who do the homework on balance sheets, cost positions, and upcoming catalysts are usually the first to benefit.

Right now, two ASX-listed companies look particularly interesting: Mineral Resources (ASX: MIN) and Lithium Energy (ASX: LEL). Both are trading at inflection points, where near-term challenges mask longer-term upside. While MinRes is simplifying and de-risking its portfolio to be ready for a price upturn, Lithium Energy has reshaped its balance sheet and is actively hunting for new growth avenues. Let’s dive into why these two undervalued lithium stocks deserve a closer look.

Mineral Resources (ASX: MIN) – A diversified engine tightening costs

Mineral Resources, or MinRes, is one of Australia’s most diversified mining names. It has cash flow coming not just from lithium, but also from iron ore and its high-margin mining services division. The company has had a difficult FY25 on paper, with lower commodity prices, impairments, and even a pause on dividends. But beneath the headlines, the business is actively reshaping itself for the next upcycle.

FY25 Snapshot

Revenue: $4.5 billion

Statutory NPAT: −$896 million, hit by $632 million in impairments

Mining Services: Delivered record volumes and $737 million in underlying EBITDA, up 34% year-on-year

While earnings from lithium and iron ore took a hit, Mining Services provided resilience—a reminder of how important diversification is in cyclical markets.

Operating Momentum

A key highlight has been the Onslow Iron project, which reached a 35Mtpa annualised run rate in August 2025, with full nameplate capacity targeted in Q1 FY26. This is a big deal: iron ore remains a strong cash engine, and lower FOB cost guidance ($54–$59/t at Onslow) positions the project competitively.

At the same time, MinRes has reset lithium costs:

Wodgina: $730–$800/t (FOB, SC6 equivalent)

Mt Marion: $820–$890/t (FOB, SC6 equivalent)

Bald Hill: Moved to care & maintenance to preserve value

This cost discipline means that even if prices stay weak, MinRes can ride through the cycle and be in pole position when prices normalize.

Why It Looks Undervalued

Markets often focus too heavily on recent losses or paused dividends, but they miss the bigger picture. MinRes has:

Reset its cost curve for lithium assets

Proven strength in Mining Services earnings

A major new iron ore project adding volume and cash flow

If lithium prices stabilize or rise, MinRes’ scale and leverage could translate into powerful earnings torque. Add to that the optionality of restoring dividends once the balance sheet strengthens, and this is a company that looks stronger than current sentiment suggests.

Lithium Energy (ASX: LEL) – Cash in hand and optionality in play

On the other end of the spectrum sits Lithium Energy, a micro-cap company that has undergone major changes in 2025. Unlike MinRes, which is already a heavyweight, LEL is a smaller player repositioning itself for the future. What makes it intriguing is that it has used smart asset sales to build cash reserves while retaining exposure to the lithium story.

Solaroz Sale – A Balance Sheet Reset

Lithium Energy sold a large stake in its Solaroz brine project in Argentina to Chinese partners. As of April 2025, the company had received US$33.8 million (~A$52 million) in deposits and completion proceeds, plus access to a US$15 million loan to progress ongoing evaluation. The full completion is targeted for January 2026.

This transaction de-risked Solaroz while bringing in material cash, giving LEL breathing space and financial flexibility.

New Strategic Direction

With fresh cash on hand, Lithium Energy is now aiming to:

1. Pursue acquisitions in lithium and adjacent battery minerals like copper, cobalt, vanadium, manganese, and rare earths
2. Advance its Burke Graphite Project in Queensland, positioned as a potential future anode material opportunity
3. Complete the Solaroz transaction steps while meeting ASX requirements for reinstatement to quotation

This pivot allows LEL to shop for undervalued assets at a time when many juniors are struggling, effectively buying low during a weak cycle.

Why It Looks Undervalued

Micro-caps are often punished during transition periods, as investors wait to see clear direction. But LEL already has cash proceeds banked, a lean enterprise value, and the optionality to acquire new projects at attractive prices. Add the graphite project to the mix, and you get multiple pathways to value creation. If management executes well, upside could be significant once market sentiment turns.

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What Investors Should Watch

For Mineral Resources (MIN):

1. Onslow Iron hitting nameplate production in FY26
2. Delivery of lower lithium FOB costs at Wodgina and Mt Marion
3. Any reinstatement of dividends once leverage improves
4. Further portfolio streamlining or new JV deals

For Lithium Energy (LEL):

1. Timing and completion of remaining Solaroz sale proceeds
2. Specific acquisition targets and deal terms
3. Technical milestones at Burke Graphite that open an anode pathway
4. Re-listing process and market reaction to its refreshed strategy

Bottom Line

Mineral Resources and Lithium Energy offer exposure to the lithium sector, but through very different lenses. MinRes brings scale, diversified cash engines, and proven cost discipline, giving it the torque to rebound strongly when lithium prices recover. LEL, on the other hand, offers high-risk, high-reward potential: it’s smaller, but armed with cash, new strategic direction, and optionality in both lithium and graphite.

For investors willing to position ahead of the next lithium upturn, these two undervalued names could be worth adding to the watchlist. MinRes provides stability with upside, while LEL offers speculative leverage with room to surprise.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Dividend hunters often look at the same familiar names—banks, miners, and telcos. But sometimes the most interesting opportunities lie just outside the spotlight. Two such “hidden gems” on the ASX are Adairs Ltd (ASX: ADH), a household retailer undergoing a strategic reset, and GTN Ltd (ASX: GTN), a global traffic-audio advertising network with a strong balance sheet. Both companies may not get the same coverage as the blue-chip dividend giants, but they are quietly delivering cash returns to shareholders while setting themselves up for future growth.

Let’s take a closer look at why Adairs and GTN are worth a spot on the radar of income investors.

Adairs (ASX: ADH): Cash Returns While Resetting the House

Adairs is a familiar brand for many Australians, known for its stylish homewares and furnishings. But beneath the surface, the company has been doing more than just selling cushions and linen. Its FY25 results signaled a reset year, where management focused on cleaning up margins and improving operational efficiency—while still rewarding investors with dividends.

FY25 Snapshot

• Group Sales: $618.1 million (+4% year on year)
• NPAT: $25.7 million
• EPS: 14.6 cents, with margins impacted by product mix and freight costs
• Dividend: Final fully franked 4.0 cents per share (payable 7 October 2025), bringing total FY25 dividends to 10.5 cents

While the dividend was lower than FY24, it remains comfortably covered by both earnings and cash flow. Importantly, the company reported a strong start to FY26, with sales in the first eight weeks up 22.6% compared to the prior year—driven mainly by the core Adairs brand.

What’s Changing

Adairs is rolling out a strategic reset, which includes:

• Tighter control of inventory levels
• Supply chain improvements
• Sharper brand positioning
• Productivity gains in its Focus on Furniture division

These changes are aimed at boosting margins and supporting sustainable growth.

Why It’s a Hidden Gem

The market often penalizes retailers during periods of transition. However, Adairs has shown it can maintain dividend payments even while reshaping its business. If the early signs of sales momentum in FY26 continue, investors could enjoy the double benefit of earnings recovery plus franked dividends. That makes ADH more than just a retailer—it’s a potential income compounder in disguise.

GTN (ASX: GTN): High Yield, Capital Return, and a Net Cash Buffer

GTN may not be a household name for consumers, but if you’ve listened to traffic updates on radio, you’ve likely encountered its product. The company operates one of the largest traffic-audio advertising networks globally, with long-term partnerships across multiple regions.

FY25 was a noisy year for GTN. Revenue softened slightly, and the company posted a bottom-line loss. Yet, instead of retreating, management doubled down on shareholder returns—an unusual move for a company under pressure.

FY25 Snapshot

• Revenue: $180.2 million (−2% year on year)
• Reported NPAT: −$6.1 million (largely due to non-cash items)
• Bank Debt: Reduced by $8 million
• Net Cash Position: $21.1 million at 30 June 2025

Cash to Shareholders

Despite the headline loss, GTN kept rewarding investors:

• Paid $8.2 million in dividends during FY25
• Announced a capital return of $0.23 per share in August 2025
• Conducted on-market buybacks

At recent share prices, the trailing yield for shareholders works out to be in the double-digits—a rare feat in today’s market.

Outlook

The company’s affiliate partnerships, especially in autos and furniture advertising, remain strong. With a lean cost base and no net debt burden, GTN is well-placed to benefit when the advertising cycle turns upward. The presence of major shareholder Viburnum also adds confidence, given its track record of active stewardship.

Why It’s a Hidden Gem

Most investors overlook GTN because of its earnings volatility and advertising-market exposure. But with a net cash buffer, continued capital distributions, and leverage to a cyclical recovery, GTN offers an unusual mix of income and upside. For dividend hunters, this is the kind of asymmetric opportunity that rarely appears in large-cap stocks.

Income Angles to Consider

When looking at dividend stocks, sustainability matters just as much as the yield headline. Here’s how these two stack up:

• Franking Credits: Adairs offers fully franked dividends, while GTN’s franking depends on the level of Australian tax paid.
• Payout Frequency: Both pay semiannual dividends, but GTN supplements with buybacks and special capital returns.
• Sustainability: Adairs’ payout is supported by earnings and improving sales momentum. GTN’s is supported by its net cash position, though an advertising rebound will be key to longer-term stability.

Key Risks

No stock is risk-free. Investors should keep an eye on:

• Adairs: Retail margin pressure from freight costs, consumer spending sensitivity, and execution risk in its Focus on Furniture division.
• GTN: Dependence on ad spending cycles, foreign exchange impacts across global operations, and the need to keep affiliate partnerships locked in.

Final Thoughts

Hidden gems aren’t always about explosive growth stories. Sometimes they’re about reliable cash returns tucked inside businesses going through a reset or navigating a cycle.

Adairs is rebuilding margins while still paying franked dividends. GTN is distributing hefty amounts of cash to shareholders despite market challenges, thanks to its net cash position. Both companies prove that dividend opportunities on the ASX don’t have to come only from the banking giants or resource heavyweights.

For investors willing to look beyond the obvious, ADH and GTN show that quiet achievers can sometimes be the most rewarding sources of income.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Global politics is no longer just about diplomacy and treaties—it’s shaping markets, industries, and investment opportunities. As geopolitical tensions rise, defence spending is surging across the Indo-Pacific, Europe, and the Middle East. Countries are racing to secure supply chains, modernize fleets, and protect critical infrastructure from emerging threats such as low-cost drones.

For investors on the ASX, two names stand out as direct beneficiaries of these shifts: Austal Limited (ASX: ASB) and DroneShield Limited (ASX: DRO). One is a naval shipbuilder with a multi-decade pipeline, the other a counter-drone technology leader riding explosive demand. Together, they capture both the long-cycle and fast-cycle sides of defence spending.

Austal: Australia’s Strategic Shipbuilder

Austal isn’t new to defence, but FY2025 marked a real turning point. The company, best known for designing and building naval ships, now holds a position at the heart of Australia’s sovereign shipbuilding ambitions.

• FY2025 performance: Revenue jumped 24% YoY to $1,823.3 million, while net profit after tax surged 503% YoY to $89.7 million. That’s not just growth—it’s a reset in profitability.
• Balance sheet strength: Austal ended FY2025 with $583.9 million in cash reserves . Operating cash flow also turned positive at $406.3 million, giving the company ample room to expand capacity.
• Order book visibility: At 30 June 2025, Austal’s order book stood at a near-record $13.1 billion, with another $420 million in options exercised post-year-end. This includes 49 vessels under construction or scheduled and 73 vessels under sustainment worldwide.

The real game-changer, though, is Austal’s Strategic Shipbuilding Agreement (SSA) with the Australian Commonwealth. Signed in FY2025, the deal designates Austal as the Strategic Shipbuilder for Tier-2 surface combatants in Western Australia. This 15-year framework ensures continuous naval shipbuilding in the region, locking Austal into future programs like the LAND8710 landing craft (LC-Medium and LC-Heavy).

Why geopolitics helps Austal:
With the Indo-Pacific becoming the world’s most contested maritime zone, demand for naval vessels is accelerating. Australia, alongside allies such as the US and Japan, is investing heavily in maritime defence to secure sea lanes and deter regional tensions. Austal’s role as a sovereign supplier ensures a steady stream of work, while its US operations give it exposure to allied fleet recapitalisation. The combination creates multi-year earnings visibility rarely seen outside infrastructure.

DroneShield: Riding the Counter-Drone Wave

If Austal is about building fleets, DroneShield is about protecting them. The Sydney-based company specializes in counter-drone and electronic warfare systems—a market that has exploded as drones become the weapon of choice in modern conflicts.

1. Revenue momentum: In the first half of FY2025, DroneShield reported $72.32 million in revenue, up 210% year-on-year. Even more striking, the company has already locked in more revenue for FY2025 than it generated across the entire FY2024.
2. Geographic diversification: Sales are now more evenly spread, with the Asia-Pacific contributing 27%, Europe 16%, and the US 20%.
3. Product mix shift: Fixed-site solutions (think base and critical infrastructure defence) rose to 60% of sales, up from just 19% in FY2024. This points to long-term, higher-value contracts rather than one-off mobile deployments.
4. Contract wins: FY2025 has already included large deals, such as European defence orders worth $40–61 million and a $32.2 million Asia-Pacific military contract. These wins highlight both urgency and trust from major buyers.

Why geopolitics helps DroneShield:
From Ukraine to the Middle East, drones are rewriting the rules of combat. Cheap to produce but capable of serious damage, they’re forcing militaries worldwide to accelerate counter-drone procurement. DroneShield, with its proven systems and software-based revenue streams (such as subscriptions and warranties), is well placed to benefit. Unlike traditional defence projects that take years to materialize, counter-drone demand is immediate, recurring, and global.

Why These Two Stocks Work Well Together

For investors considering exposure to defence, Austal and DroneShield offer complementary strengths:

1. Exposure mix: Austal delivers long-cycle cash flows through shipbuilding and sustainment programs. DroneShield offers short-cycle, high-growth opportunities tied directly to current threat environments.
2. Funding strength: Austal’s net-cash balance and sovereign agreement give it room to expand capacity without stretching finances. DroneShield’s growing cash position supports R&D and inventory build without the need for constant capital raises.
3. Strategic positioning: Austal anchors Australia’s maritime capacity, while DroneShield tackles one of the most urgent new threats in modern warfare. Together, they cover both legacy and emerging defence needs.

Risks to Keep in Mind

Like all defence stocks, these names come with execution and geopolitical risks:

Austal: Program execution remains critical as order volumes ramp up. Investors should also watch the pace of capital deployment versus potential shareholder returns, especially given the company withheld an FY2025 dividend to prioritize expansion.

DroneShield: Rapid growth creates working capital pressure, and timing of deliveries can swing results. Competition from larger defence primes is also a factor, while valuations can be sensitive to news flow on conflicts or contract wins.

The Bottom Line

Global geopolitics is no longer background noise—it’s a central driver of defence spending and industrial strategy. Austal and DroneShield stand out on the ASX as companies already benefiting from these shifts, not just waiting for them.

Austal now has a decade-plus pipeline secured through its Strategic Shipbuilding Agreement, near-record order book, and strong cash position.

DroneShield is riding an unprecedented wave of counter-drone demand, with contracts across Europe, Asia-Pacific, and the US, and triple-digit growth to show for it.

For ASX investors seeking to position themselves in line with rising defence priorities, this duo offers a blend of stability and growth. One builds the fleets; the other protects them. And both are on the right side of today’s geopolitical realities.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

If you’re looking for practical ways to keep your portfolio ahead of inflation, it’s worth looking past flashy headlines and focusing on companies that can actually grow their cash flows and payouts year after year. Two ASX stocks that consistently show up in this conversation are Transurban Group (TCL)—the toll road operator—and Woolworths Group (WOW)—Australia’s grocery giant. Both have put up strong numbers in the face of rising prices, with business models built for the long haul. Here’s why these two stand out as top picks for inflation-conscious investors.

Transurban Group (ASX: TCL): Cash Flows With Traffic

Imagine a company that collects money every time a car, truck, or bus drives through a major Australian or North American city. That’s Transurban. Their business is simple: operate, expand, and collect tolls on some of the busiest urban expressways. What makes this model so attractive when prices are rising?

Resilience Built on Pricing Power

Transurban’s FY25 results showed real resilience. The company delivered a final distribution of 65 cents per stapled security, up 4.8% on the prior year—a solid increase that outpaces most bank accounts and fixed-rate investments. Their average daily traffic grew by 2.2% across all markets, and proportional toll revenue jumped 5.6% to $3.73 billion, reflecting both growing cities and regular toll hikes linked to inflation. Operational costs were kept flat, while margins actually improved, climbing to 75.1%.

The real edge? Contractual toll increases. Many of Transurban’s contracts allow for direct pass-through of inflation, meaning that as consumer prices rise, so do tolls—helping to protect both their revenue and margins.

Reliable Distributions, Growing Payouts

For income-focused investors, Transurban’s distributions are the main draw. Free cash per security for FY25 came in at 85.6 cents—covering the dividend comfortably and leaving plenty of flexibility for future growth. Management expects a further 6% increase in the payout next year, guiding to a distribution of 69 cents per security for FY26. At current share prices, that implies a yield north of 4.5%, which is above its five-year average and attractive in an environment where inflation is eroding savings returns.

Where Growth Comes From

Transurban isn’t just relying on organic growth. The company is actively expanding—building new roads and investing in digital upgrades like license plate recognition and flexible tolling. As cities grow and congestion worsens, demand for their roads only increases. North America, in particular, has been a standout, with traffic up 6.4% and revenue up about 20% year-on-year.

Risks to Keep in Mind

Transurban is not risk-free. Higher interest rates can increase financing costs, and regulatory changes—like potential toll caps in New South Wales—could impact future growth. But with strong cash flows, inflation-linked contracts, and a focus on operational efficiency, the company is well-placed to weather most economic conditions.

Woolworths Group (ASX: WOW): The Everyday Inflation Hedge

When inflation bites, one thing is certain: people still need to eat. Woolworths dominates Australia’s supermarket sector, with a network of stores, liquor outlets, and a rapidly growing online business. Their model is built on selling the things everyone needs, every day.

Pricing Power and Recurring Revenue

The company’s business is straightforward—sell groceries, household essentials, and alcohol. These are not luxuries; they are everyday necessities. This means revenue is both recurring and defensive. When prices rise, Woolworths can—and does—adjust shelf prices to reflect higher costs, helping to protect margins even as input prices climb.

Navigating Cost Pressures

FY25 was a tougher year for Woolworths, with cost inflation squeezing profitability. Despite this, the company remained profitable and continued to generate strong cash flow. Their focus has shifted to cost efficiency—driving savings through supply chain improvements, automation, and expansion of private-label products, which typically offer better margins than branded goods. The company is also investing heavily in online sales, which now make up a meaningful share of the total business.

Distributions Reflect Discipline

Woolworths cut its full-year dividend by 21% for FY25, with the final payout set at 45 cents per share (ex-dividend 2 September, payment 26 September 2025), bringing the total dividend for the year to 84 cents. While that’s a reduction, it remains a clear signal of commitment to shareholder returns. The dividend yield currently sits around 2.9%, modest but still attractive in the context of a defensive business and the expectation that payouts will track earnings as the company returns to growth.

Long-Term Value in Real Assets

Like Transurban, Woolworths owns a portfolio of real assets—stores, distribution centres, and a growing online platform. These assets tend to hold their value and can even appreciate as prices rise, giving investors an extra layer of protection against inflation.

Potential Downsides

Woolworths faces regulatory scrutiny, especially around grocery pricing, and is exposed to potential government intervention. Labour costs, supplier squeezes, and competition from rivals are ongoing challenges. Still, the company’s scale, brand, and focus on cost control position it well to maintain profitability through tough times.

Why These Stocks Outpace Inflation

Recurring Revenue and Pricing Power

Both Transurban and Woolworths generate revenue from services and goods that are essential—whether it’s paying a toll or buying groceries. This means demand is stable, and both companies have the ability to adjust prices in response to inflation. These are not discretionary businesses; people use them no matter the economic weather.

Real Asset Ownership

Transurban’s expressways and Woolworths’ store networks are long-lived, tangible assets that tend to become more valuable when inflation picks up. Owning these kinds of companies means you’re investing in real things, not just financial engineering.

Distribution Discipline

Despite inflationary pressures, both companies have maintained or even grown shareholder payouts. Transurban’s yields are particularly attractive, while Woolworths’ dividend, though reduced, remains reliable and is expected to recover as earnings improve.

Risks to Monitor

Interest rates: Both companies carry significant debt, so rising rates can increase their borrowing costs.

Regulation: For Transurban, government decisions on tolls are crucial. For Woolworths, ongoing scrutiny over supermarket pricing could bring further challenges.

Macroeconomic swings: If inflation cools, the benefit of these companies’ pricing power may diminish, but the defensive nature of their cash flows should still hold.

Final Thoughts Investors looking to keep pace with inflation need companies that can pass on higher costs, grow their distributions, and own tangible assets that appreciate over time. Transurban Group and Woolworths Group fit this bill. One moves people, the other moves food—both are built for the long run, and both have demonstrated the ability to deliver when prices are rising. If you’re looking for inflation-beating stocks on the ASX, these two

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

When you think about dividend-paying stocks, it’s easy to picture big companies with big debt loads. But the real winners for income investors are often those that not only deliver attractive yields but also keep their balance sheets lean. In other words—companies that reward shareholders without borrowing heavily to do so.

That’s where New Hope Corporation (ASX: NHC) and Bisalloy Steel Group (ASX: BIS) stand out. Both companies operate in very different industries, but they share two traits that make them extremely appealing: low debt and high dividends. Let’s dive into the numbers and see why they deserve a spot on your watchlist.

New Hope Corporation (NHC): Coal Cash Keeps Flowing

New Hope is one of Australia’s most consistent thermal coal producers. While coal isn’t the flashiest sector, New Hope has shown remarkable financial discipline and continues to generate shareholder value.

1. Dividend yield: As of FY2025, New Hope boasts a dividend yield of 9.3%, far above the market average. Importantly, this payout is supported by both earnings (around 61%) and operating cash flow (about 70%), meaning dividends are backed by real profits—not debt.
2. Debt profile: The company’s debt-to-equity ratio is just 13.6%, which is impressively low for a mining business where heavy borrowing is the norm.
3. Cash position: New Hope holds a healthy $807 million in cash, giving it the flexibility to ride out coal price cycles and continue rewarding shareholders even in tougher years.
4. Dividend history: Over the past decade, New Hope hasn’t just maintained dividends—it has steadily grown them, creating compounding returns for investors who’ve stayed the course.
5. Outlook: Despite softer coal prices this year, New Hope’s strong cash position and minimal debt mean it can comfortably sustain its dividends. The company also has the option to pursue share buybacks, enhancing shareholder returns further.

For income-focused investors, New Hope is the classic “cash cow”: a business with stable earnings, low debt, and a track record of distributing wealth directly to shareholders.

Bisalloy Steel Group (BIS): Niche Steel, Big Dividends, Almost No Debt

While New Hope thrives in the resources sector, Bisalloy Steel Group is carving its own path in manufacturing. Known for its high-strength, wear-resistant steel products, Bisalloy serves niche markets like defense, mining, and construction. And it’s doing so while keeping debt near zero.

1. Dividend yield: On a trailing basis, BIS offers a 7.9% yield, with forward estimates closer to 8%. For an industrial stock, that’s outstanding.
2. Debt profile: The company carries virtually no net debt, a rarity in manufacturing where heavy machinery often drives large borrowings.
3. Profit performance: FY2025 saw net profit jump 24.4% year-on-year to $19.6 million. While revenue was relatively flat, better margins and efficiency gains boosted profitability.
4. Dividend history: Bisalloy declared a 16.5 cents fully franked final dividend, taking total dividends for the year to 24.5 cents per share. Even more impressive, dividends have grown at a 30% compound rate over the past three years.
5. Upcoming payout: Investors should note the next ex-dividend date—22 September 2025, with payment scheduled for 3 October 2025. With strong profits and a clean balance sheet, dividends look well-supported.

Bisalloy represents the kind of under-the-radar small-cap that income investors dream about: disciplined financial management, strong profit growth, and consistent dividend increases.

Why These Two Stand Out

New Hope and Bisalloy may be in very different sectors—coal mining and specialty steel—but they share financial discipline that sets them apart.

1. Low debt: Both companies have kept borrowing to a minimum, reducing financial risk.
2. Strong cash positions: This allows them to keep paying dividends even when markets turn volatile.
3. Sustainable yields: Their dividends aren’t fueled by borrowing but by earnings and cash flow.
4. Proven track record: Both have histories of rewarding shareholders with consistent or growing dividends.

For investors, that combination is rare and valuable. It means income you can rely on without the hidden risk of debt-heavy balance sheets.

Risks to Keep in Mind

No investment is without risk, and it’s important to be aware of what could impact these two companies.

1. Coal prices: New Hope’s earnings remain tied to coal prices, which are subject to global demand and regulatory pressures. If prices fall significantly, profits (and dividends) could shrink.
2. Demand cycles: Bisalloy’s niche steel products depend on industries like defense and construction. A slowdown in these sectors could hit sales and profitability.
3. Global economic conditions: Both companies are exposed to global trade and commodity cycles. While low debt insulates them somewhat, broader market downturns could still impact results.

The key difference, though, is that low debt gives both companies flexibility. They’re less vulnerable to interest rate rises and credit squeezes, making them better positioned than debt-heavy peers.

Bottom Line

If you’re an investor chasing big dividends without the baggage of big debt, both New Hope Corporation (ASX: NHC) and Bisalloy Steel Group (ASX: BIS) deserve serious attention.

1. New Hope is the dependable cash generator, using coal profits and strong reserves to deliver one of the market’s highest yields.
2. Bisalloy is the small-cap growth story that’s quietly becoming a dividend machine, all while keeping its balance sheet squeaky clean.

Together, they prove that the best dividend stocks don’t have to borrow their way to success. Instead, they use strong earnings, low debt, and disciplined management to keep delivering for shareholders.

For income-focused investors, these two companies tick all the right boxes: reliable, sustainable, and rewarding. And in a market where true dividend stability is rare, that’s exactly what makes them stocks you shouldn’t miss.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

When people think of renewable energy on the ASX, the big names often come to mind—large solar developers, listed utilities, or wind farm operators. But beneath those headline giants lies a busy layer of small-cap companies doing the real work of wiring, fueling, and enabling the clean energy transition. These smaller players often fly under the radar, yet they offer investors an interesting blend of growth potential and exposure to the megatrends of decarbonisation and energy security.

Two such companies are Southern Cross Electrical Engineering (ASX: SXE) and Delorean Corporation (ASX: DEL). Though very different in business models—one builds and maintains the electrical backbone for renewables and digital infrastructure, while the other turns organic waste into renewable gas—they both stand at the forefront of Australia’s energy transformation.

Southern Cross Electrical Engineering (SXE): Wiring the Energy Transition

If renewable energy is the heart of the clean economy, SXE is one of the arteries. The company specialises in the design, construction, and maintenance of electrical systems that power batteries, wind farms, solar farms, airports, and increasingly, data centres. In many ways, SXE is a “picks and shovels” business for the energy transition: it doesn’t own the mines of electrons, but it builds the backbone that makes them flow.

The company’s FY25 results show clear momentum:

Revenue: $801.5 million, up 45% year on year.

Net Profit After Tax (NPAT): $31.7 million, also up 45%.

Profit margin: 4.0%, with EPS at 12.0 cents.

This strong growth was driven by large infrastructure programs, particularly in batteries and data centres. SXE played a central role in the Collie battery energy storage system (BESS) project, one of the most significant grid projects in Western Australia. It also continues to win work in airport upgrades and digital infrastructure, sectors benefiting from broader trends like travel recovery and artificial intelligence.

Momentum is also supported by recent contract awards: in August 2025, SXE announced $110 million in new services and manufacturing work, providing clear revenue visibility into FY26. The company exited the year with a solid balance sheet—no net debt, strong cash reserves, and an active dividend policy.

Strategically, SXE is broadening into higher-margin, recurring revenue streams through acquisitions such as Force Fire, while leaning further into secular demand from renewables and electrified infrastructure. For investors, this makes SXE not just a project contractor but also a business with recurring cash flow ambitions.

Why it matters: SXE is positioned at the very centre of the electrification boom. As batteries, solar, and wind projects expand, and as data centres demand more power, SXE’s expertise in building and maintaining large-scale electrical systems becomes indispensable.

Delorean Corporation (DEL): Turning Waste Into Renewable Gas

While SXE focuses on wiring electrons, Delorean focuses on cleaner molecules. The company converts organic waste into biomethane and renewable power—essentially transforming food scraps, agricultural residues, and wastewater into pipeline-grade gas and electricity.

FY25 was a year of transition for Delorean. The company reported $19.8 million in revenue, with total assets of $48.3 million and cash and cash guarantees of $10.7 million. Management described FY25 as a “pivot year” as Delorean shifts from delivering projects under engineering contracts to owning and operating bioenergy facilities. This build-own-operate (BOO) model is crucial because it sets up recurring revenue streams for the long term.

Key project milestones include:

• SA1 Salisbury (South Australia): Construction is progressing, with first biomethane revenues expected by April 2026. Financing has been secured through a $37 million corporate debt facility and a $6.1 million ARENA grant.
• Yarra Valley Water Food Waste-to-Energy (Victoria): Construction delays pushed revenue recognition into FY26, but multi-year operation and maintenance (O&M) revenues will follow.
• NSW1 (with Brickworks, Horsley Park): Development approval was granted in July 2025, with the project set to supply biomethane directly to industrial users.
• VIC1: Expected to begin construction in FY26.

Policy support is strengthening the outlook. Recent government reforms now recognise biomethane as a natural gas equivalent, paving the way for Renewable Gas Guarantee of Origin (RGGO) certificates. These certificates improve project bankability and provide a clearer framework for monetising renewable gas.

At the end of FY25, Delorean still had $10.6 million in cash and a development pipeline stacked with BOO projects. If execution goes as planned, FY26 will be a turning point as its first owned projects start generating cash.

Why it matters: As electricity grids decarbonise, industries like manufacturing and food processing still need firm, drop-in fuels. Delorean’s model addresses this need by providing renewable gas directly into pipelines and industrial systems. At full scale, its projects generate revenue from multiple streams—gas sales, power sales, certificates, and long-term O&M contracts.

Why These Two Deserve a Spot on a Renewables Watchlist

Tracking SXE and DEL provides exposure to two very different, but complementary, parts of the clean energy transition:

SXE: Short-to-medium term growth from infrastructure rollouts, with consistent earnings visibility from services and construction.

DEL: Medium-to-long term potential, with annuity-like cash flows once bioenergy plants are operational.

For investors, SXE offers leverage to electrification and data centre growth, while DEL offers a unique play on renewable gas—a market with huge potential but still in its early innings in Australia.

Key Risks to Watch

1. SXE Risks: Timing and margin pressure on large projects, integration of acquisitions, and cyclical exposure to construction and resources.
2. DEL Risks: Execution risk during construction and commissioning, financing hurdles, and policy timing around renewable gas certificates.

Final Thoughts

The Australian clean energy landscape is not just about the big solar and wind players. Small caps like SXE and DEL highlight the depth and diversity of opportunities in the sector. One provides the electrical wiring that keeps renewable electrons flowing; the other monetises waste to produce renewable molecules for industry.

Both companies are on different timelines—SXE is delivering growth now, while DEL’s real cash flows will start materialising in FY26 and beyond. For investors willing to look past the giants, these two names are worth a closer watch as Australia continues its path toward a low-carbon future.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

For many investors, dividends remain one of the most rewarding aspects of building wealth. A company that consistently pays dividends not only signals financial strength but also provides investors with steady cash flows, making it a reliable choice for income seekers. While some sectors are known for their high dividend payouts—think banks and utilities—the mining sector in Australia has also proven to be a consistent contributor to dividend income.

Two names that stand out in this space are Fortescue Metals Group (ASX: FMG) and Rio Tinto Ltd (ASX: RIO). Both companies have managed to balance capital investment for long-term growth with strong dividend distributions for shareholders. In FY25, their latest updates confirmed that dividends remain a central part of their capital allocation frameworks. Let’s take a closer look at what makes these stocks attractive for income investors.

Fortescue Metals Group (FMG): Payout Discipline Through the Cycle

Fortescue Metals Group has built its reputation as one of the world’s lowest-cost iron ore producers. Even in a year where iron ore prices softened and investment commitments grew, FMG stuck to its stated dividend policy of paying out between 50% and 80% of underlying net profit after tax (NPAT).

1. Dividend highlights: For FY25, FMG declared a final dividend of $0.60 per share (ex-date 1 September 2025; pay date 26 September 2025). This brought the total FY25 dividend to $1.10 per share, representing a 65% payout of NPAT. The dividend was fully franked, meaning Australian investors will also benefit from tax credits.
2. Operational performance: The company posted record FY25 iron ore shipments from its Pilbara operations and even lifted its shipment target for FY26. This shows that operational momentum remains strong, ensuring that dividend payments can continue even if profit margins narrow.
3. Shareholder programs: FMG continues to run its dividend reinvestment plan (DRP), giving investors the option to reinvest payouts back into the company.

Why FMG is worth watching: The transparency of its payout policy, combined with fully franked dividends and reliable operational delivery, make FMG a core income stock for investors who want exposure to iron ore without sacrificing dividend cash flows. Its strong cost leadership adds another layer of resilience, ensuring that even during weaker commodity price cycles, FMG can still deliver returns.

Rio Tinto (RIO): Resilient Payouts Backed by Tier-One Projects

Rio Tinto, one of the world’s largest diversified miners, continues to stand out for its disciplined dividend framework. Unlike Fortescue, which operates primarily in iron ore, Rio Tinto’s portfolio is broader, spanning iron ore, copper, aluminium, and other commodities. This diversification provides an added layer of stability to its earnings and dividend distributions.

• Dividend highlights: Rio Tinto declared a 2025 interim dividend based on its through-the-cycle policy of paying out 50% of underlying earnings. The ex-dividend date was set for 14 August 2025, with the payment scheduled for 25 September 2025.
• Currency aspect: Although Rio declares its dividends in US dollars, ASX investors receive their payments converted into Australian dollars. For FY25, currency conversion was set for mid-September, ahead of the payment date.
• Operational milestones: A major highlight this year was Rio’s first shipment from the Simandou project, one of the world’s largest undeveloped iron ore deposits. Alongside this, continued progress in its Pilbara iron ore operations and the Oyu Tolgoi copper project demonstrates that Rio is not only paying dividends today but also building future earnings capacity.

Why Rio is worth watching: Investors can count on Rio’s semi-annual dividend cadence and the stability provided by its diversified operations. Its disciplined 50% payout ratio, combined with long-life, low-cost assets, makes Rio’s dividends predictable and sustainable. Furthermore, the delivery of large growth projects like Simandou and Oyu Tolgoi ensures that Rio’s capacity to reward shareholders should expand in the coming years.

Gold Rush 2.0? Why Iron Ore Giants Still Matter

While 2025 has seen renewed enthusiasm around gold, with prices rallying and headlines highlighting the so-called “Gold Rush 2.0,” diversified iron ore majors like Fortescue and Rio Tinto remain the bedrock of Australia’s income-paying mining sector.

What makes them stand out is not just their ability to generate free cash flows but also their commitment to disciplined payout frameworks. Both companies managed to maintain meaningful dividends in FY25 despite softer commodity pricing, proving their resilience. Importantly, their projects under development—whether it’s FMG’s expanding shipment volumes or Rio’s progress at Simandou—are geared to refresh earnings and sustain dividends well into the next cycle.

Key Dates to Note

For income investors, timing matters. Here’s a quick reference to the upcoming dividend events for both companies:

Fortescue (FMG):

• Final dividend of $0.60 per share
• Ex-dividend date: 1 September 2025
• Record date: 2 September 2025
• Payment date: 26 September 2025
• Total FY25 dividends: $1.10 per share, fully franked

Rio Tinto (RIO):

• Interim dividend at 50% of underlying earnings
• Ex-dividend date: 14 August 2025
• Currency conversion: 16 September 2025
• Payment date: 25 September 2025

What to Watch Going Forward

While both companies look attractive for dividend investors today, future performance depends on a few important drivers:

Fortescue (FMG): Watch for shipment volumes in FY26, cost management in Pilbara operations, and how the balance sheet evolves after higher investment spending in FY25. Any change in the 50–80% payout policy would also be key for dividend expectations.

Rio Tinto (RIO): Investors should keep an eye on Pilbara production costs, the ramp-up pace at Simandou, and contributions from copper assets like Oyu Tolgoi. These will determine Rio’s ability to maintain or even grow distributions.

The Bottom Line

For investors looking to combine exposure to global resources with consistent dividend payouts, Fortescue Metals Group and Rio Tinto deserve a place on the watchlist. Both companies are committed to disciplined dividend frameworks, supported by world-class iron ore operations and growth projects that will fuel future cash flows.

While market cycles will always influence commodity prices, the ability of FMG and Rio to generate cash today while investing in tomorrow makes them standout dividend payers. Whether you’re chasing immediate income through fully franked dividends or seeking long-term stability backed by global scale, these two mining giants remain dependable choices in the Australian market.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The gold market has been buzzing again. Prices have sprinted to record highs in 2025, and history shows that when this happens, the real winners are often the big, profitable gold producers. They’re the ones with the balance sheets, cash flow, and projects ready to ride the wave.

Two names that stand out right now are Northern Star Resources (ASX: NST) and Regis Resources (ASX: RRL). Both just reported their FY25 results, and the numbers make a strong case that they’re not just surviving the cycle—they’re leading it.

Northern Star: A Powerhouse with Cash to Burn

For Northern Star, FY25 wasn’t just another good year—it was transformational. The company hit records on multiple fronts:

Free cash flow surged, fueling bigger fully franked dividends.

Shareholders got a buyback on top of dividends.

The balance sheet flipped to net cash, with about $1.6 billion in reserves.

Growth options expanded after acquiring De Grey’s Hemi project.

Financially, the company reported EBITDA of $3.5 billion and NPAT of around $1.34 billion. That’s serious earnings power, and it came with healthy margins across its operations.

Strategically, management balanced short-term payouts with long-term growth. The Hemi acquisition deepens the pipeline, while the ongoing Fimiston Mill Expansion at KCGM is set to lift production capacity over the next few years. In short, Northern Star managed to: pay investors today, build for tomorrow, and keep its balance sheet rock-solid.

Why it matters:
Northern Star is positioned perfectly in this gold cycle. With record cash returns already in shareholders’ pockets, plus major growth projects lined up, the company has both defense and offense covered. If gold prices stay strong, it compounds faster. If the cycle cools, the net cash position provides resilience.

What to watch:

1. Progress on integrating Hemi and timelines for first production.
2. Execution at the KCGM mill expansion and its impact on costs per ounce.
3. Ongoing capital returns—especially whether buybacks continue alongside dividends.

Risks:

1. Rising costs and project delays could pressure margins.
2. Gold price volatility—today’s tailwind could turn quickly.

Regis Resources: From Repair Mode to Reward Mode

Regis has had a quieter but equally impressive turnaround. A couple of years ago, the focus was on fixing the balance sheet. Now, FY25 shows that work paying off:

Production hit 373 koz, the top end of guidance.

EBITDA came in at record levels, supported by gold prices.

NPAT jumped to $254 million, a sharp reversal from last year’s loss.

Debt was completely repaid, leaving the company debt-free.

Shareholders got a 5c fully franked dividend.

Looking ahead, Regis guided for FY26 production of 350–380 koz at AISC of $2,610–2,990/oz. That’s broadly consistent with FY25 but comes with a cleaner, more disciplined approach. Management emphasized stable output, cost control, and balanced reinvestment.

Why it matters:
Regis has shifted from “fixing the ship” to “returning value.” Debt-free and cash-generative, it’s now in a position to steadily reward shareholders while keeping growth optionality alive. It’s not chasing aggressive expansion—it’s sticking to stable, compounding returns.

Risks:

1. Cost pressures (labour and inflation) could bite.
2. Any operational hiccups at key mines could trim margins.

The Bigger Picture: Gold’s Tailwind

Gold itself has been one of the standout assets of 2025. In the first half alone, it gained nearly 26% in USD terms, setting multiple all-time highs. Demand has been broad—central banks, ETFs, and retail investors have all piled in as geopolitical tensions and shifting rate expectations pushed the metal higher.

While the ride has been bumpy at times, the overall backdrop still looks supportive. Analysts lean towards a slightly bullish outlook into the second half, though volatility is expected. For producers, even if prices stabilize near current levels, margins remain attractive.

The Takeaway

If we’re truly in Gold Rush 2.0, Northern Star and Regis are positioned as leaders.

Northern Star offers scale, record payouts, and a pipeline of big growth projects—all while holding a fortress balance sheet.

Regis has emerged from its turnaround debt-free, profitable, and committed to steady shareholder returns with disciplined growth.

For investors looking to capture gold’s momentum without taking on the higher risks of small explorers, these two names are worth watching closely. They’re not just riding the wave—they’re helping shape it

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The world’s digital engine runs on two things: concrete and code. On the ground, premium real estate with massive power budgets is being converted into AI‑ready data centres. In the network, enterprises are ditching clunky, fixed circuits for software‑defined, on‑demand connectivity that links clouds, sites, and data centres in minutes. Two ASX names sit right where these trends are accelerating: Goodman Group (ASX: GMG) and Megaport (ASX: MP1). Different toolkits, same tide—more data, more compute, more connectivity.

Goodman Group: Data centres move to the core

Goodman’s FY25 update confirmed what the market has been sensing for two years: data centres are now the centre of gravity in its global development engine. The company’s model—secure scarce metro sites and power, develop at scale, partner long‑term, and recycle capital—continues to compound operating earnings while expanding fee streams.

1. Where the build is happening
   Work‑in‑progress (WIP) stands at about $12.9 billion across 57 projects in 12 countries, with a forecast yield on cost of 7.5% and an annualised production rate of $6.1 billion. Crucially, data centres now account for 57% of WIP, and roughly 130 MW of fully fitted projects are already underway—evidence that Goodman is moving beyond powered shells into turnkey capacity for hyperscalers.
2. The power moat
   Goodman has assembled an estimated 5.0 GW “power bank” across 13 major global cities. Of that, around 2.7 GW is secured (about 0.7 GW stabilised, 0.3 GW work‑in‑progress, 1.7 GW secured pipeline), with a further ~2.3 GW in advanced procurement. Management is targeting approximately 0.5 GW of data centre development underway by June 2026, a scale that puts it among the most credible global developers outside the hyperscalers themselves.
3. Partner, rotate, repeat
   New data centre partnerships were established in Europe and Hong Kong, an Australian partnership launched, and another European partnership is planned for FY26. One completed data centre was sold into the Japan DC partnership—classic capital rotation that frees balance sheet capacity while keeping management fees and performance incentives inside the ecosystem.
4. Portfolio strength, earnings momentum
   Total portfolio value is about $85.6 billion as at 30 June 2025 (up 9% year on year). FY25 operating earnings rose roughly 9.8%, and the company is guiding to around 9% operating EPS growth in FY26. Occupancy sits at about 96.5%, with like‑for‑like net property income up 4.3%—resilient base metrics that fund the pivot.

Why it benefits from global trends: AI and cloud require power‑dense, low‑latency, urban‑adjacent capacity—and that’s precisely where supply is constrained. Goodman’s control of metro land plus multi‑gigawatt power paths creates a durable competitive edge. As more tenants seek fully fitted, accelerated deployments, the mix shift supports attractive development margins and expanding fee income.

What to watch:

1. Conversion of the 5.0 GW power bank into live projects; cadence of fully fitted deployments versus powered shells.
2. Launches and scaling of new partnerships (Australia active, Europe next) as vehicles for capital recycling and fee growth.
3. Build‑cost control and grid connection timing as pipelines move from paper to energisation.

Megaport: Software‑defined connectivity for a multi‑cloud world

Megaport’s Network‑as‑a‑Service (NaaS) turns legacy networking on its head. Instead of waiting weeks for fixed circuits, enterprises point‑and‑click to spin up private, high‑speed links between clouds, data centres, and on‑prem sites in minutes—and scale bandwidth up or down as AI and data bursts require. FY25 showed the model gaining depth and reach.

1. Headline momentum
   Total revenue reached approximately $227.1 million in FY25, up 16% year on year. Net Revenue Retention sits at about 107% (up one point), a sign that existing customers are expanding spend and use cases. The company reported cash of around $102.1 million—useful firepower for network expansion and sales execution.
2. Bigger logos, bigger footprint
   “Large customers” rose 18% to about 629, while total logos climbed 9% to roughly 2,873. Megaport enabled a net 115 new data centres in FY25 and, in August 2025, surpassed 1,000 Megaport‑enabled data centres globally—a scale milestone that boosts network effects. A 400G backbone now operates across 29 metros, better suited to AI‑era data flows.
3. Going wider, going faster
   Megaport entered Brazil and Italy, launched internet services in nine additional countries, and now operates across 26 countries. For global enterprises and AI workloads that need predictable, low‑latency, multi‑cloud paths, a broader mesh equals higher relevance—and higher wallet share over time.

Why it benefits from global trends: As networks modernise for hybrid cloud and AI, CIOs prefer elastic, usage‑based connectivity over long‑term fixed circuits. NRR >100% and a swelling backbone footprint indicate that this is structural, not cyclical. As more workloads become data‑intensive and distributed, the “dial‑up, dial‑down” connectivity model grows in value.

What to watch:

1. Further uplift in Net Revenue Retention as large customers add regions, bandwidth, and services.
2. Continued site adds and metro 400G rollouts to deepen coverage and performance.
3. Penetration and ARR compounding in new geographies, plus attach of higher‑margin services.

Why these two make sense together

1. Physical plus programmable: Goodman scales the physical substrate—electricity, floorspace, cooling—where compute lives. Megaport scales the programmable fabric that binds that compute together across clouds and geographies. Own both, and a portfolio captures value from the same megatrends through two orthogonal angles.
2. Visibility plus velocity: Goodman’s development book and power bank provide multi‑year revenue visibility; Megaport’s usage‑based model provides velocity, with quick customer expansion when workloads spike (think AI training bursts, data migration, or regional launches).
3. Optionality in the AI decade: As inference moves closer to end‑users and training camps concentrate in power‑rich metros, demand for both premium sites and agile interconnects should rise. These are not “one‑cycle” stories—they compound as digital density increases.

Growth levers to track next

Goodman

1. Power bank conversion rates and time‑to‑energise.
2. Mix of fully fitted deployments and the margin impact.
3. New partnership vehicles (especially in Europe) to recycle capital and scale fee income.

Megaport

• Net Revenue Retention moving higher as large accounts deepen multi‑cloud usage.
• Acceleration of 400G backbones and incremental data centre adds.
• Expansion wins in new countries translating to ARR compounding.

The takeaway

Digital demand manifests in two places: real assets and virtual pipes. Goodman is scaling the former with a multi‑gigawatt power bank and a majority‑data‑centre development book. Megaport is scaling the latter with growing NRR, global reach, and a denser high‑speed backbone. Different business models, shared macro: more data, more compute, more connectivity—and tangible revenue tied to a multi‑year buildout.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.