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The December quarter update from national property player The Agency Group Australia (ASX:AU1) reads like a sales brochure that actually delivers - with double-digit growth across all key operational metrics and an ambitious eye toward even bigger targets in 2026.

For the three months ending 31 December 2025, The Agency posted $29.7 million in revenue, a 17.2% year-on-year increase, while Gross Commission Income (GCI) surged 41.4% to $44.3 million. That jump wasn’t just a statistical quirk. It was underpinned by $2.6 billion in gross property sales value - a 40.2% increase on the prior corresponding period - and 1,915 settled sales, up 14%.

East Coast ascends while WA plays catch-up

The standout geographical contributor was the East Coast, which delivered $1.7 billion of those sales - a thumping 69% increase on the December 2024 quarter. New South Wales alone made up about $1.3 billion of that tally. Victoria and Queensland also kicked in strongly, with YoY transaction volumes rising 67% and 64% respectively.

In contrast, Western Australia continues to wrestle with tight housing supply. Sales there totalled $939.6 million, up just 8% from the prior year, while listings nationally remained largely flat at 1,825, with WA’s constrained volumes offsetting East Coast improvements.

This geographical imbalance underscores the benefits of a national footprint - a theme that Executive Director Paul Niardone was keen to highlight.

“With a $150 million GCI run-rate, a growing circa $10 million pipeline and improving market depth across the East Coast, we are well positioned to continue building scale, strengthening our brand of choice position and delivering sustainable earnings growth through FY26 and beyond,” Niardone said.

Agents, managements, and milestones

Agent headcount grew to 474 by quarter-end - up from 442 in June - with the company’s direct engagement model continuing to attract high performers looking for more control and better economics than traditional franchises can offer.

Meanwhile, property management also grew handsomely. The Agency now manages 12,413 properties, of which 5,499 are owned directly and 6,914 sit under service agreements. That's a 17.4% jump overall - including a 33% rise in the service agreement portfolio, which is typically less capital-intensive.

The business has hit its initial FY26 GCI run-rate target of $150 million - a figure flagged back in August and reiterated in the September quarterly update. Now, eyes are set on the next milestone: $175 million. The group reports a $10 million pipeline of annualised GCI from prospective agents already on the radar, offering clear visibility toward that next goalpost.

The march toward $175 million follows a five-year climb from $38.6 million in FY19, with the agent cohort growing from 272 to 474 over the same period.

Market landscape - tight in the west, deeper in the east

The broader market dynamics underpinning AU1’s performance are a tale of two coasts. WA remains characterised by historically low listing volumes, buyer competition that’s still red-hot, and sellers showing little urgency. Price strength persists, but supply simply isn’t keeping pace with demand.

On the East Coast, particularly in Victoria and Queensland, the picture is more balanced. Increased listings and stock levels have deepened the market, albeit with slightly moderated price momentum - perhaps a more sustainable backdrop for transaction growth as the year progresses.

Strategic footing and outlook

AU1 now ranks as the 9th largest residential agency by market share nationally - and notably, it’s the only one in the top ten that doesn’t rely on a franchise model. For a business that was flying under the radar not too long ago, that’s no small feat.

Importantly, the company is no longer just winning market share - it’s also converting that scale into operating leverage. According to the company, the first $25 million increment in new-agent GCI (if realised) is expected to contribute roughly $3 million in additional EBITDA margin - a not insignificant boost given the lean platform economics AU1 operates under.

The strategic focus from here is clear: continue scaling on the East Coast, support agents through investment in tech and training, and maintain dominance in WA while patiently waiting for that supply thaw.

The Agency’s growth story may not be a classic overnight success, but it’s certainly shaping up as a tale of disciplined national ambition paying off. As the business eyes a $175 million GCI run-rate and plots a path toward $200 million, the next few quarters could prove pivotal.

For now, shareholders can take comfort in the company’s ability to not only grow, but grow while strengthening margins - a rare combo in today’s real estate environment.

Defence Becomes Structural, Not Cyclical

If there was ever any doubt that defence is now a structural, not cyclical, theme for Australian industry, Argonaut’s Defence Sector Update makes the case with conviction. Between Canberra’s estate reshuffle, Washington’s blunt burden-sharing demands and the slow but steady drumbeat of AUKUS infrastructure, the opportunity set for local contractors is widening - particularly for larger, more liquid players capable of absorbing multi-year work programs .

Rendering of SSN-AUKUS submarine (BAE Systems)

The note, authored by Argonaut analyst Pia Donovan, argues that recent share price weakness across listed defence names has created a more attractive entry point just as policy, funding and geopolitics are aligning in the sector’s favour.

The Defence Estate Audit: Selling to Spend More

At the centre of the domestic reset is the Defence Estate Audit and the planned divestment of 67 defence sites. Argonaut stresses this is not a contraction but a redistribution of capital and resources, away from surplus or poorly located assets and towards Northern Australia and key naval precincts.

The divestment program could generate around $3 billion in proceeds, even after allowing for approximately $1.2 billion in relocation and remediation costs.

Importantly, all proceeds are to be recycled back into defence priorities, accelerating spending on bases, ports, airfields and hard-stand infrastructure at locations such as HMAS Stirling, Henderson and Osborne.

For industry, this translates into a visible pipeline of work across construction, electrical infrastructure, remediation and sustainment.

Washington Turns Up the Heat

The global overlay is becoming harder to ignore. The unclassified US 2026 National Defence Strategy reinforces Washington’s demand that allies lift defence spending to 3.5% of GDP. Australia remains well short of that mark, currently spending around 2% of GDP, with forecasts rising only modestly.

Argonaut views this gap as a growing catalyst for further domestic defence funding, particularly as tensions in the Indo-Pacific intensify and timelines for AUKUS-related projects accelerate.

Billions Already Locked In

Defence spending is already on a steep upward curve. Since 2020, the Australian Government has added nearly $70 billion in planned defence funding over the next decade, lifting total investment in defence capabilities to close to $350 billion. Annual defence spending is expected to rise from around $59 billion today to almost $100 billion by 2034.

HMAS Stirling Navy Base. (stock image) Credit: Supplied

Infrastructure is a key beneficiary. HMAS Stirling alone is expected to require around $8 billion of upgrades to support nuclear-powered submarines, while the shipyards at Osborne in South Australia and Henderson in Western Australia are slated for multi-billion-dollar redevelopments.

Austal (ASX: ASB): Liquidity and Leverage to the US

Austal remains the largest and most liquid defence stock in Argonaut’s coverage. The completion of the Guardian-class patrol boat program removes a headline revenue stream, but Argonaut notes this has already been offset by the $1.03 billion Landing Craft Medium contract.

Beyond Australia, Austal’s exposure to the US defence market is a key differentiator. The broker highlights that accelerated US defence spending and ship procurement under the FY26 defence bill directly align with Austal’s existing capabilities and pipeline. Recent share price weakness prompted Argonaut to trim its price target to $7.50, but also to upgrade the stock to a Buy, arguing the pullback offers a more compelling risk-reward for investors seeking scale and liquidity.

Civmec (ASX: CVL): Heavy Engineering with Defence Optionality

Civmec is positioned as a diversified engineering and construction group with increasing leverage to defence infrastructure. A key overhang for the stock had been the timing and certainty of the Perth Park precinct, but Argonaut points out that construction commenced in early February, materially de-risking that project.

With established relationships across naval infrastructure and heavy engineering, Civmec is seen as well placed to capture work at Henderson and Osborne as defence spending ramps up. Argonaut reiterates its Buy rating and $1.90 price target, viewing Civmec as a steady beneficiary of long-dated infrastructure investment rather than a single-project story.

Duratec (ASX: DUR): Near-Term Catalysts at HMAS Stirling

Duratec stands out for its specialist capabilities in remediation, electrical infrastructure and asset maintenance – all highly relevant to defence base upgrades. Recent contract wins, including a $25.8 million electrical infrastructure project with CSIRO, reinforce its credentials in technically demanding work.

Argonaut sees Duratec as one of the most leveraged names to near-term defence infrastructure awards, particularly at HMAS Stirling. The broker lifted its price target to $2.50 and continues to flag the company as a key pick, citing strong margins, balance sheet capacity and growing defence exposure.

Bhagwan Marine (ASX: BWN): Small Cap, Big Optionality

Bhagwan Marine offers the highest total shareholder return across Argonaut’s defence coverage. The acquisition of Riverside Marine is expected to lift margins and diversify earnings, while also increasing the group’s exposure to defence-related marine services.

While defence is not yet the dominant earnings driver, Argonaut notes that Bhagwan’s capabilities position it well to benefit from increased naval and port activity over time. The broker retains a Buy rating and a $0.75 price target, highlighting strong cash flow as a key attraction.

Saunders (ASX: SND): Recovery Story with Defence Exposure

Saunders remains the most cautious name in the near term, with Argonaut flagging a weaker first half due to reduced activity levels. However, multiple contract awards announced late in calendar 2025 are expected to support a stronger second half and FY27 recovery.

The broker lifted its price target to $1.05 and retains a Buy rating, noting that Saunders’ exposure to defence and infrastructure projects provides leverage to improving conditions, albeit with more earnings volatility than peers.

Valuations Adjust, Conviction Remains

Across the sector, Argonaut has adjusted price targets to reflect updated earnings profiles and valuation multiples, but conviction remains high. All five companies under coverage retain Buy ratings, with Civmec and Duratec highlighted as key picks and Austal offering renewed appeal following its share price pullback.

The conclusion from Pia Donovan’s analysis is measured rather than promotional. Defence spending will not be perfectly linear, labour constraints remain a risk and government timelines can slip. But with Canberra reallocating its defence estate, Washington applying pressure and AUKUS infrastructure shifting from planning to execution, Australia’s listed defence contractors are increasingly operating in a target-rich environment rather than a speculative one.

FBR Limited (ASX:FBR), the robotic construction innovator behind the Hadrian® bricklaying system, has bolstered its board with the appointment of construction heavyweight Lindsay Partridge AM as an independent Non-Executive Director. The move signals a clear intent to elevate the company’s strategic capabilities as it transitions from development to global commercialisation.

Partridge, best known for transforming Brickworks Limited into a $6 billion diversified multinational over a 25-year tenure as CEO, brings more than four decades of commercial and operational nous to FBR’s table.

Industry Heavyweight With Manufacturing Cred

With a background in ceramic engineering and a leadership career that spans market cycles and cross-border growth, Partridge’s credentials tick multiple boxes for a company like FBR that sits at the intersection of industrial automation, manufacturing, and construction.

His achievements at Brickworks - taking it from a domestic building materials supplier to a global manufacturing force - resonate with FBR’s ambitions to scale its Hadrian® and Mantis™ technologies across international markets. Notably, he led Brickworks’ asset base growth from $500 million to over $6 billion by his retirement in 2024.

Partridge was appointed a Member of the Order of Australia in 2012 for services to the building industry and received the Sir Phillip Lynch Award of Excellence from the HIA in 2018.

Alignment with Scale-Up Strategy

FBR Chair Shannon Robinson framed the appointment as a major endorsement of the company’s next phase:

“Lindsay’s experience in building an Australian manufacturing company into a world-renowned organisation will be invaluable as we execute our strategic vision,” she said.

The company plans to issue Partridge 12.5 million shares at a deemed issue price of 0.4 cents (subject to shareholder approval) in lieu of cash director fees during his first year - a move that ties his remuneration directly to shareholder value creation.

Partridge himself acknowledged the company's strong platform and future-facing tech:

“The technology sector is driving significant change across the global economy, and FBR has established a strong foundation for future success with Hadrian, Mantis and all the other opportunities created by the core technology the team has developed,” he said.

Focused on Commercial Execution

FBR has made steady technical strides with its Hadrian® robotic bricklaying system and Mantis™ welding platform, both underpinned by its proprietary Dynamic Stabilisation Technology® (DST®). The Hadrian® is now offered via its unique “Wall as a Service®” model or direct purchase, targeting both residential and industrial builders seeking automation gains.

The addition of Partridge provides FBR with a depth of expertise in scaling manufacturing operations and navigating global commercial pathways - precisely the terrain it is now entering.

With demand for faster, safer, and more sustainable construction mounting globally, particularly in housing-starved markets, FBR is poised to capitalise. The question has always been execution - and Partridge’s appointment appears to be a calculated answer to that.

For investors, the signal is clear: FBR is building not just walls, but a leadership team capable of delivering scale.

In a sharp boost to its commercial rollout strategy, reproductive biotech outfit Memphasys (ASX:MEM) has received Therapeutic Goods Administration (TGA) approval for its Felix™ System - a full two months ahead of schedule. The green light from the Australian regulator now enables immediate commercial sales and clinical deployment across the country, effectively pulling forward revenue potential and signalling confidence in the company’s execution capabilities.

A Fertile Window Opens

The approval marks the inclusion of Felix™ on the Australian Register of Therapeutic Goods (ARTG), making Australia the latest high-regulatory market where Memphasys can now operate commercially. With over 60,000 fresh IVF cycles performed annually in Australia, the opportunity for early traction is significant.

The Felix™ System - designed to gently and efficiently select the most viable sperm cells for assisted reproduction - has already earned its CE Mark in Europe. The addition of TGA approval rounds out Memphasys' credentials in another major regulatory jurisdiction, complementing ongoing efforts across compliant international markets.

“This is a strong validation of the quality of the technology, the robustness of our regulatory strategy and the discipline of our execution,” said chair Lindley Edwards.

Speedy Approval, Swift Revenue Path

The original guidance had pegged approval for April 2026, but the TGA’s February decision materially de-risks the near-term and accelerates Memphasys' revenue curve. With regulatory hurdles cleared ahead of time, the company is now transitioning from pre-commercial readiness into full-scale deployment.

Specifically, Memphasys is now authorised to:

• Market and sell Felix™ domestically,

• Install consoles in IVF labs,

• Supply cartridges on a recurring, per-procedure basis.

This lays the groundwork for a recurring revenue model closely linked to IVF cycle volumes - a potentially lucrative arrangement in a sector built on repeat procedures.

Commercial Conversations Turn Tactical

Crucially, Memphasys has been busy behind the scenes. Advanced commercial discussions with IVF clinics and distributors have been underway in parallel with the regulatory push. Now, with approval in hand, those talks can shift gears from planning to execution.

The company’s strategy hinges on building an installed base of Felix™ consoles and leveraging that footprint for ongoing cartridge sales. Given that each IVF cycle could potentially use a cartridge, volume-based scale could come quickly if adoption ramps.

Technology with Tailwinds

Felix™ represents a shift from the traditional centrifugation methods still widely used in IVF labs. The system uses a combination of electrophoresis and size-exclusion membranes to isolate high-quality sperm more gently, reducing cellular stress and DNA damage. This approach aims to enhance success rates while also streamlining laboratory workflows.

It’s not just a marginal improvement - it’s a potential new standard. And with IVF clinics increasingly focused on both clinical outcomes and lab efficiency, Felix™ is well-positioned to tap into both decision-making vectors.

Outlook: From Approval to Acceleration

With regulatory boxes ticked in both Europe and now Australia, Memphasys enters a new chapter. The next milestone will be converting installed systems into recurring cartridge revenues and expanding regulatory approval into additional jurisdictions.

Shareholders can expect further updates as commercial agreements are locked in and as international momentum continues to build. For now, the company has gained more than just a product listing - it’s earned a head start.

And in the world of biotech commercialisation, being two months early is as good as gold. Or in this case, maybe even better.

Queensland-based agricultural biotech outfit Terragen Holdings (ASX:TGH) has locked in $7 million in fresh equity funding, aimed squarely at accelerating its global ambitions and diversifying its range of naturally derived microbial products. The raise marks a pivotal step for the company as it moves from niche domestic player to international contender in the fast-growing bioagriculture space.

The equity raising comprises a two-part placement of fully paid ordinary shares priced at 2.2 cents apiece - an 8.3% discount to the last traded price before the raise. The Institutional Placement brought in approximately $2.78 million under ASX Listing Rules 7.1 and 7.1A, while a further $4.22 million is expected to come via a Conditional Placement subject to shareholder nod in late March.

On a post-deal basis, Terragen’s cash balance will jump to a pro forma $9.8 million (pre-transaction costs) as of 31 December 2025 - a significant war chest for a company still carving its market path.

Big names back big bugs

Two standout investors are leading the charge. Non-executive director and major shareholder Scobie Ward is tipping in a hefty $2.25 million, though this is contingent on shareholder approval under ASX Listing Rule 10.11. Meanwhile, WAM Investments, run by market veteran Geoff Wilson, is emerging as a new heavyweight backer, taking up $3.29 million worth of stock and expected to hold 19.3% of the register post-settlement.

The share issuance - approximately 318.2 million new shares in total - will represent around 63% of Terragen’s existing issued capital, bringing significant dilution but also potentially transformative strategic capital.

Where the bugs go from here

Terragen CEO Richard Norton was bullish about the direction of travel, pointing to a $28 billion global addressable market across cropping, intensive animal feed, companion animals, and even domestic gardens.

“Terragen’s patented microbial strains are delivering meaningful productivity gains across agriculture,” Norton said. “Our biostimulant ranked first in independent testing against 21 competitors for its ability to decompose organic waste”.

Productivity is the magic word here - with Norton claiming returns of up to 10x on product investment in beef and lamb feedlots. The company’s current commercial workhorses include its ruminant probiotic (TPR) and the plant biostimulant Great Land Plus, both sold in Australia and New Zealand.

But eyes are now firmly set on global pastures. The funds will support R&D into high-value crop applications and a canine probiotic, as well as efforts to secure distribution partnerships with major agriculture and animal health players.

The company also intends to bolster its manufacturing capabilities and internal commercialisation muscle by expanding product manager resources and building out its partner network.

Board shuffle adds gravitas

Coinciding with the raise, Terragen also announced a board shake-up. Long-time chair Michael Barry has stepped down, staying on as a non-executive director, while Dr Michele Allan AO has assumed the chair from 5 February.

Dr Allan, a governance veteran with deep agrifood experience, didn’t mince words about the opportunity: “The Australian market for biostimulants is now around $200 million per annum. Globally, markets are prioritising climate-smart food systems that use nature-based products to lift productivity. Terragen is strategically positioned to benefit from this shift”.

Her appointment adds weight as the company pitches to partners and institutional capital with global reach.

A microbe-fuelled growth story?

While the company isn’t yet profitable and no firm global distribution deals have been inked, this capital raise could mark a turning point. The presence of cornerstone investors and insider participation shows confidence, and the pivot towards high-value, scalable agricultural systems plays into current global ESG and productivity narratives.

What remains to be seen is whether the microbe magic can scale commercially and sustainably. But for now, with $7 million in the kitty and a refreshed board at the helm, Terragen’s spores are spreading. Watch this space.