Daily Roundup

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Pro Medicus Lands Major U.S. Healthcare Contract

Pro Medicus has secured a significant seven-year deal worth A$23 million with St. Luke's Health System, Idaho's largest private employer and not-for-profit healthcare provider. The contract will see Visage Imaging, Pro Medicus's U.S. subsidiary, implement its Visage 7 Enterprise Imaging Platform across St. Luke's 10 medical centers. The platform will run on the cloud, with the go-live targeted for Q1 2027. The deal is structured on a transactional licensing model with potential upside, and comes as the company's pipeline remains robust across all market segments.

Commonwealth Bank Posts Strong Results and Boosts Dividend

Commonwealth Bank of Australia delivered solid financial performance for the year ended June 30, 2026, with cash net profit after tax climbing 7% to $11 billion. Pre-provision profit also rose 6% to $16.5 billion, while return on equity improved to 14.0%. The bank's operating income grew 6%, driven by customer and volume growth alongside a stable underlying net interest margin. CBA achieved growth across all five core domestic product categories and maintained its market-leading mortgage finance insured share at 34.2% in retail and 26.0% in business.

The board declared a final dividend of $2.70 per share, fully franked, bringing the total FY26 dividend to $5.05 per share. The full-year dividend payout ratio came in at 77%, comfortably within the bank's target range of 70-80%.

On the capital front, CBA maintains a strong position with a Common Equity Tier 1 ratio of 12.0%, well above APRA's minimum regulatory requirement of 10.25%. The bank's leverage ratio stood at 4.6%, while its Liquidity Coverage Ratio reached 132% and Net Stable Funding Ratio hit 115%, both comfortably above regulatory minimums. Looking ahead, CBA enters FY27 focused on deepening primary customer relationships, maintaining discipline in volume and margin choices, and improving productivity through technology investments.

AGL Energy Delivers Solid Results with Higher Dividends

AGL Energy reported a strong FY26 with statutory profit after tax of $756 million, a significant jump from $112 million in the prior year. Underlying EBITDA edged up 2% to $2,100 million, while operating free cash flow surged 60% to $850 million. The company declared a fully franked final dividend of 26 cents per share, totaling 50 cents for the full year.

The energy company has been active on the strategic front, signing long-term power purchase agreements for 228 MW of renewable energy and advancing key projects including the 500-megawatt Liddell Battery and the 220 MW Kwinana Swift Gas 2 Project. AGL also divested its 19.9% stake in Tilt Renewables for $750 million.

For FY27, AGL guided for underlying EBITDA between $1,900 and $2,200 million and underlying net profit after tax between $470 and $670 million. The company targets a dividend payout ratio of 55-60% of underlying net profit after tax, expected to remain fully franked. This guidance reflects stable consumer energy margins, full-year earnings from the Liddell Battery, lower operating costs, and lower wholesale electricity prices through hedged positions.

Bapcor Confirms Guidance and Secures Financial Flexibility

Bapcor Limited has confirmed its FY26 guidance, expecting underlying EBITDA between $144 million and $150 million post AASB16, or $62 million to $68 million pre AASB16. The automotive parts distributor has also secured revised covenant arrangements with its lenders to support its operational turnaround. The Net Leverage Ratio has increased to 3.5 times adjusted EBITDA by end-2026, reverting to 3.0 times by mid-2027, while the Fixed Charge Cover Ratio will decrease to 1.30 times adjusted EBITDA by mid-2027 before returning to 1.75 times by year-end 2027. The additional financial headroom will aid the company's business reset efforts.

Sports Entertainment Group to Acquire New Zealand's MediaWorks

Sports Entertainment Group has agreed to acquire MediaWorks Topco Limited, New Zealand's leading audio business, for an enterprise value of NZ$130 million (approximately A$107.4 million). The deal is expected to be materially accretive to SEG's earnings per share, boosting them by 59% on a pre-synergies basis. The acquisition will create a leading trans-Tasman audio, digital, and entertainment group with a combined weekly audience exceeding 5 million listeners across Australia and New Zealand.

The acquisition will be funded through a combination of existing cash reserves and a new $87.6 million senior debt facility from Commonwealth Bank of Australia. Completion is targeted for October 1, 2026, subject to customary conditions. SEG had requested a trading halt pending the announcement, which was lifted once the acquisition details were disclosed.