Alpha HPA (ASX:A4N) delivered a better-than-expected fiscal 2026 result with an earnings before interest and tax loss of AU$46 million, but the sales result was 56% below forecast, RBC Capital Markets said in a Tuesday note.
Overall cost control was better than expected, but sales results were dragged down by both pricing and volumes falling short. Marketing momentum was positive.
Ongoing losses are expected over the next two years while the firm focuses on the construction and delivery of the second stage of its project, which is due late in 2027, and marketing activity to secure off-take deals for its 10,000 per annum to 12,000 per annum targeted production.
The investment firm retained its sector perform rating on Alpha HPA and cut the price target to AU$0.70 per share from AU$0.75 per share.
