Stock Spotlight: Qantas Airways Limited (ASX:QAN)
This week's Stock Spotlight is ASX-listed Qantas Airways Limited.
About Qantas Airways Limited
Qantas operates international and domestic air transportation services, the sale of worldwide and domestic holiday tours and associated support activities including catering, information technology, ground handling and engineering and maintenance.
Source: ASX
Key Stats
Key Stats
Source: Yahoo Finance. Data as of 31/07/25.
Price Performance
Growth Potential
- Buoyant conditions in the domestic leisure market and improving corporate travel demand.
- Dual brand strategy is being executed well given the strong Jetstar results.
- Return of a fully franked dividend policy is a positive.
- EV/EBITDA multiple is now back at the top end of the long-term trading range.
- The strength in the balance sheet and expected future growth in the business will continue to support the increase in fleet investment, ongoing customer and people initiatives, and future shareholder returns. Net debt remained at $4.1bn as at 31 December 2024 with the acquisition of new aircraft and return of capital to shareholders through on-market share buy-backs. Net debt is expected to be at or below the middle of the target range for FY25, which is forecast to be $4.7 - $5.8bn by FY25-end, with capex of $3.8 - $3.9bn for the year weighted to 2H25.
- Aiming for all segments to deliver return on invested capital > weighted average cost of capital.
- Strong position in the domestic market (Qantas Domestic and Jetstar continue to remain the two highest margin earning airlines in the domestic market).
- Jetstar is well positioned for growth and rising demand in Asia.
- Partnership with Woolworths for Loyalty bodes well for membership and earnings.
- Oil price hedging in FY25 could contribute to performance.
- Increased competition in the international segment.
- Relative to peers, strong balance sheet strength; investment grade credit rating.
Key Risks
- Disasters that could hurt the QAN brand.
- Earnings recovery gets pushed out again due to travel restrictions or return of another Covid-19 variant.
- Ongoing price led competition forcing QAN to cut prices affecting margins.
- Leveraged to the price of oil.
- Adverse currency movements result in less travel.
- Labour strikes.
- Depressed economic conditions leading to less discretionary income to spend on travel.
- Dividend being cut again.
Subscribe to our newsletter
Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
About Energy One Ltd Energy One Limited engages in the provision of software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in the Australasia, and Europe. It offers egssPort Gas, a SaaS solution for gas shippers that handles natural gas and LNG operations; EnergyOffer, a bidding, offering, dispatch, and logistics solution; enFlow, a tool for automating and managing business processes, and for integrating systems; and enPrice, a scalable commodity retail pricing solution. The company also provides enTrader, an ETRM solution for energy markets; enVoy, a communications tool that provides an automated system for sending and receiving energy industry data; EOT that offers front, middle, and backoffice solutions; and eZ-Ops, an energy trading platform that focuses on automating physical gas, power logistics, and short-term portfolio. In addition, it offers NemSight, a Windows-based platform that displays information, including live prices, demand, constraints, generation, bidstacks and temperatures for the Australian electricity, gas and renewables markets; pypIT, a gas pipeline contracts management and scheduling platform; and SimEnergy, an energy trading and risk management (ETRM) solution that offers deal capture, settlements, and risk capability for traders, large customers, retailers, and generators. Further, the company provides power plant management system that manages daily market communication, intraday and day-ahead trading, and nominations for a power plant; energy advisory services; demand and weather linked risk management solutions; generation services; outsourced operations services; plat outage insurance; and managed services. Energy One Limited was incorporated in 1996 and is based in North Sydney, Australia. Key Stats
How festive-season consumer behaviour influences market confidence, sector performance and year-end investment positioning.
2025 is emerging as a key transition year. We explore the financial shifts shaping markets in 2026 and what they may mean for investors and portfolios.
A clear look at how rare earths drive EVs, wind power and AI hardware, and what supply constraints mean for long-term investment themes.
About Medtronic Plc Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients in the United States, Ireland, and internationally. The Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves, and percutaneous coronary intervention products, percutaneous angioplasty balloons, and other products. The Neuroscience Portfolio segment offers medical devices and implants, biologic solutions, spinal cord stimulation and brain modulation systems, implantable drug infusion systems, and interventional products, as well as nerve ablation system under the Accurian name. The segment offers its products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, urogynecologists, and interventional radiologists, as well as ear, nose, and throat specialists, and energy surgical instruments. The Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure and electrosurgery products, AI-powered surgical video and analytics platform, robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology products, gastrointestinal and hepatologic diagnostics and therapies, and therapies to treat diseases and conditions, and patient monitoring and airway management products. The Diabetes Operating Unit segment provides insulin pumps and consumables, continuous glucose monitoring systems and sensors, and InPen, a smart insulin pen. Medtronic plc was founded in 1949 and is headquartered in Galway, Ireland. Key Stats
The Fed’s latest rate cut marks a key shift in policy. Explore its impact on global markets, inflation risks, and how investors should position heading into 2026.
About Waste Management Inc Waste Management, Inc., through its subsidiaries, provides environmental solutions to residential, commercial, industrial, and municipal customers in the United States, Canada, Western Europe, and internationally. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, recovery facility, or disposal site; owns and operates transfer stations; and owns, develops, and operates landfill gas-to-energy facilities that produce renewable electricity and renewable natural gas. It also operates materials processing and commodities recycling services, including cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company collects recyclable food and yard waste, as well as markets and sells mulch, compost, soil amendments, and renewable energy; offers remediation and construction, and industrial waste services; and manages and markets fly ash. Further, it provides Regulated Waste and Compliance Services (RWCS), which offers compliance programs, as well as collection, processing, and disposal of regulated and specialized waste, including medical, pharmaceutical, and hazardous waste; and Secure Information Destruction (SID) services that includes the collection of personal and confidential information for secure destruction and recycling of sorted office paper. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was founded in 1968 and is based in Houston, Texas. Key Stats
How U.S.–China competition in semiconductors shapes AI, manufacturing, and global markets, and what investors need to know.
Insights on the Fed’s next move, market implications and what investors should expect heading into 2026.
As December unfolds, explore the Santa Claus Rally and uncover its drivers, risks, and potential impact on investors this year.
