Daily Roundup

ABB.ASX FRI.ASX AX1.ASX SXE.ASX EOS.ASX

Aussie Broadband Completes Major Acquisition and Outlines Migration Plans

Aussie Broadband has completed its acquisition of AGL Energy's telecommunications business, marking a significant expansion of its customer base. The company will migrate AGL's 350,000 NBN services and mobile connections during Q2 FY27, with the deal expected to deliver $21 million in underlying EBITDA within the first 12 months post-migration. Separately, the migration of More and Tangerine Telecom connections remains on track for completion by June 2026 and is forecast to contribute $12 million in annualized underlying EBITDA from FY27 onwards.

For the current financial year, Aussie Broadband expects earnings to land in the middle of the $162 million to $167 million range, with capital expenditure at the upper end of the $55 million to $60 million range. Management believes the strategic transactions will contribute immediately to earnings with limited incremental capital requirements or execution risk following migration.

Finbar Group Completes Bel-Air Apartments Project

Finbar Group has completed its Bel-Air Apartments project in Belmont, Perth, with titles now issued for the 194-unit residential development. The company sold 193 residential units and both commercial tenancies, generating $113.4 million in sales. Settlements are expected to commence by the end of June 2026, with the company reaffirming its FY26 profit guidance of $18 million to $22 million. Finbar notes that settlements may occur across both FY26 and FY27, and will update the market if recognition differs materially from expectations.

Takeover Battle Heats Up for Accent Group

Frasers Group plc has launched an on-market takeover bid for Accent Group Limited at A$0.65 per share, with the offer period running from June 30 to July 30, 2026. Frasers, which already holds approximately 22.9% of Accent Group, has expressed concerns about the company's recent financial performance and strategic direction. However, Accent Group's board has advised shareholders to take no action on the offer, noting that the A$0.65 price matches the last closing price and represents no premium. The board has also highlighted that Frasers' recent purchases of Accent shares were at higher prices, suggesting shareholders could be better served waiting for a formal recommendation or exploring alternative proposals.

Southern Cross Electrical Engineering Raises Guidance and Capital

Southern Cross Electrical Engineering has announced a significant uplift in its financial outlook following the securing of over $150 million in new works awards. The company has raised its underlying FY26 EBITDA guidance to at least $75 million and is forecasting FY27 EBITDA of at least $100 million. To support this growth trajectory, the company is launching a fully underwritten institutional placement to raise $150 million, alongside a non-underwritten share purchase plan targeting up to $15 million. Key contract wins include initial electrical and communications works for Multiplex at NEXTDC's S4 Data Centre and switchboard orders for Trivantage Manufacturing. Trading in SXE shares has been halted pending announcement of the equity raising results, with trading expected to resume on June 16, 2026.

Electro Optic Systems Reports Strong Demand and New Contracts

Electro Optic Systems is experiencing elevated enquiry levels for its products, driven by ongoing global conflicts. The company has secured a new £85 million contract with a Middle Eastern customer and a $5 million order from L3Harris for a counter-drone weapon system. EOS is also launching its combined EOS and MARSS business at the Eurosatory Defence and Security Exhibition in Paris, with MARSS headquarters now based in Nice, France. For 2026, EOS expects full-year revenue of $240 million to $270 million for its base business, excluding MARSS. The company is currently assessing the timing of revenue recognition for MARSS contracts and will provide a further update on the MARSS revenue outlook within the next two months.