Why is Soul Patts (ASX: SOL) up ~8%?
Washington H. Soul Pattinson (ASX: SOL) has jumped more than 8% towards $49.00 today, significantly outperforming a weak market following its FY26 result. Revenue nearly doubled to $1.87bn, while reported NPAT surged to $2.19bn from $364m and the final dividend increased 6.8% to 63c per share, extending Soul Patts’ long track record of dividend growth.
However, the headline profit needs some context, with the result benefiting from an $805m one-off tax gain associated with the Brickworks merger, rather than purely reflecting stronger underlying earnings. However, the combination of higher revenue, another dividend increase and the benefits emerging from the transformational Brickworks transaction has clearly been well received, with SOL rallying despite the ASX 200 falling ~100-points.
- We like SOL but the risk/reward is diminishing as it heads towards $50.
