Daily Roundup

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Xero Reports Strong FY26 Results, Accelerating US Growth

Xero Limited (ASX: XRO) has delivered an impressive set of financial results for the 2026 fiscal year, reporting a 31% increase in revenue to NZ$2.8 billion and an 18% growth in adjusted EBITDA to NZ$757 million. The company's 3x3 + AI strategy is paying off, with the US market emerging as a key driver of growth.

Xero's global customer base grew 11% to 4.9 million, with the Melio acquisition contributing to the company's expansion in the US. Xero is now firmly positioned as an AI winner, with its innovative technologies powering enhanced customer value and operational excellence.

Looking ahead, Xero expects to maintain its strong financial performance, with revenue growth and adjusted EBITDA margin in line with its FY25-FY27 strategy. The company is well-positioned to capitalize on the ongoing digital transformation of small businesses globally, leveraging its cutting-edge 3x3 + AI capabilities.

Megaport Secures Major Compute, Network & Storage Contracts

Megaport Limited (ASX: MP1) has announced a significant win, securing three major GPU, CPU, network, and storage contracts with a combined total contract value of approximately USD$182.9 million (AUD$254.0 million). This represents around USD$65.2 million (AUD$90.6 million) in Annualised Recurring Revenue.

The binding, fixed-term contracts will deliver strong returns and align with Megaport's infrastructure and capital deployment strategies. The company will fund the incremental capital expenditure through a combination of existing cash reserves and a newly-upsized debt facility.

Megaport reaffirmed its FY26 revenue and EBITDA guidance, while noting that the new customer contracts could increase its FY26 capital expenditure by up to AUD$140.3 million. The company sees itself as an essential platform for powering the applications of tomorrow, providing on-demand, software-enabled performance of dedicated hardware with the flexibility of a global network.

Bapcor Provides Turnaround and Trading Update

Bapcor Limited (ASX: BAP) has reported positive sales momentum across all its business segments in the February-April 2026 period, a turnaround from the declines seen in the previous six months. However, the company has revised its FY26 earnings guidance due to softer trading conditions and higher costs, including the impact of the Middle East conflict and rising interest rates.

Bapcor now expects to deliver underlying FY26 EBITDA of AUD$144 million to AUD$150 million (post AASB16) and AUD$62 million to AUD$68 million (pre AASB16). The company is implementing initiatives to strengthen its competitiveness and improve performance, including enhancing profitability, optimizing costs, improving capital efficiency, and returning to growth.

Kingsgate Acquires Royalty and Water Rights at Nueva Esperanza

Kingsgate Consolidated Limited (ASX: KCN) has announced the acquisition of the royalty and water rights for its Nueva Esperanza Silver-Gold Project in Chile. The transaction eliminates US$2 million in annual pre-production royalties, removes the 5% and 3% net smelter return (NSR) royalties, and secures long-term water rights, removing US$0.8 million in annual payments.

Kingsgate believes the acquisition significantly enhances the value and development potential of the Nueva Esperanza project. The company is now focused on accelerating key technical workstreams to optimize the project's development pathway, including assessing the potential for heap leach processing.

oOh!Media Provides Strategy & Trading Update, 2026 AGM Materials

oOh!Media Limited (ASX: OML) has reported Q1 revenue growth of 7% in Australia and 4% for the group, slightly ahead of previous projections. The company has launched an Operational Excellence program, which is expected to deliver $12 million in annualized pre-tax savings from FY27.

However, oOh!Media's 1H gross margin is expected to be softer than anticipated due to industry-wide pressure on Billboards. The company's underlying adjusted opex for 1H is expected to be slightly lower than the prior corresponding period, with one-offs in 1H to cost around $6 million.

oOh!Media also provided materials for its 2026 Annual General Meeting, including addresses from the Chair, CEO, and other senior executives. The company remains optimistic about the structural growth in the Out of Home sector and is executing its strategy to cement its market leadership.