To The Moon

Market Overview

The Australian sharemarket posted modest gains this week, with the ASX 200 edging up 0.22% to 8,980 as strength in financials and real estate offset softness in energy and healthcare. By late August, the divergence between sectors remains clear: consumer and travel names are delivering upbeat results, while miners and energy producers grapple with weaker commodity prices.

Pilbara Minerals: Production Up, Prices Down

$PILBARA MINERALS LTD(PLS.AU)$ rose as much as 3.8% after reporting a 4% lift in spodumene production to a record 754,600 tonnes and a 7% jump in sales volumes. But revenue dropped 39% to $769 million, and underlying EBITDA plunged 83% to $97 million as lithium prices slumped. Despite a statutory loss of $196 million, the market seems to have priced in the weakness, focusing instead on operational improvements and long-term growth potential.

Fortescue: Record Shipments, Lower Profits

$FORTESCUE LTD(FMG.AU)$ slid 3% as investors reacted to a sharp profit drop. Full-year revenue fell 15% to US$15.5 billion, with underlying EBITDA sliding 26% and margins narrowing to 51%. Net profit dropped 41% to US$3.4 billion. Management maintained its low-cost advantage but cut the final dividend by 32.6% to A$0.60 per share, reflecting softer iron ore pricing despite record shipments of 198.4 million tonnes.

Coles: Supermarkets and E-commerce Drive Growth

$COLES GROUP LTD(COL.AU)$ surged nearly 8% after posting strong FY25 results. Revenue grew 3.6% to $44.35 billion, with supermarket sales up 4.3% and e-commerce revenue jumping 24.4% to $4.5 billion. Underlying NPAT climbed 3.1% to $1.18 billion, supported by efficiency gains and robust consumer demand. A fully franked final dividend of $0.32 was declared, and the company flagged a steady start to FY26 with supermarket sales up 4.9% year to date.

Wesfarmers: Diversified Retail Strength

$WESFARMERS LTD(WES.AU)$ gained 1.5% after reporting revenue of $45.7 billion, up 3.4% year-on-year. Statutory NPAT jumped 14.4% to $2.93 billion, with underlying NPAT up 3.8%. Divisions like Bunnings and Kmart continued to deliver strong earnings growth. Alongside a final dividend of $1.11 per share, the company proposed a $1.50 capital management initiative, reflecting its solid cash generation.

Santos: Resilient Operations Amid Lower Prices

$SANTOS LIMITED(STO.AU)$ climbed 1% as the energy producer delivered H1 2025 revenue of US$2.6 billion, down 4.3% due to weaker prices. EBITDAX slipped 4.8% to US$1.8 billion, while NPAT fell 33.4% to US$439 million. Investors were encouraged by management’s guidance that production will rise by ~30% by 2027, driven by the near-complete Barossa LNG project and the Pikka Phase 1 development. An interim dividend of 13.4 US cents was declared, slightly above last year’s payout.

Qantas: Profits Soar with Travel Demand

$QANTAS AIRWAYS LIMITED(QAN.AU)$ soared more than 10% after the airline posted an 8.6% revenue rise to $23.82 billion and a 28% jump in statutory NPAT to $1.61 billion. Underlying profit before tax increased 15% to $2.39 billion, buoyed by strong domestic and international demand. A fully franked final dividend of 16.5 cents and a special dividend of 9.9 cents were declared, supported by $12.2 billion in liquidity and aggressive fleet renewal plans.

Broader Market Picture

This week’s earnings underscored a clear theme: consumer and travel sectors are outperforming, while mining and energy remain pressured by pricing headwinds. Coles and Wesfarmers continue to capture resilient consumer demand, while Qantas benefits from sustained travel recovery. On the other hand, Fortescue and Pilbara Minerals are focusing on operational discipline as commodity markets soften, and Santos is leaning on its low-cost model and project pipeline to offset cyclical pressures.

Today’s Topic

What’s your take on this week’s earnings? Are consumer names like Coles and Wesfarmers the safer bet, or will miners and energy stocks bounce back as global demand strengthens? Share your thoughts below.

Disclaimer: This material is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Past performance is not indicative of future results. All investments carry risk, including the possible loss of principal. You should conduct your own research and consult a licensed financial adviser before making any investment decision.