LYL: A Growth Driven ASX stock, led by Pipeline Expansion

LYL received multiple projects in CY26, strengthening its pipeline and revenue growth, which will help them to deliver strong results in the long term.

Lycopodium Limited (ASX: LYL)

is one of the top ASX stocks to watch out for in the current market, with a market capitalisation of $781.69M and a fully franked dividend yield of 2.39%.

LYL announced on 7 August 2026 that Lycopodium has received the Engineering, Procurement and Contraction Management (EPCM) contract for Artemis Gold’s Expanded Phase 2 (EP2) project at the Blackwater Mine in Canada. The contract is valued at approximately $93M with an exchange rate of A$1 = C$0.985 within Artemis Gold’s overall EP2 budget.

Blackwater is an open-pit and shovel gold and silver mine located approximately 160 km southwest of Prince George and 446 km northwest of Vancouver. The total production capacity of the mine will be 21 million tonnes per annum, making it one of the three largest gold mines in Cananda.

LYL has been providing EPCM services for the delivery of Phase 1A and was also involved in the early stages of EP2 development, preparing the Feasibility Study and Front End Engineering and Design (FEED) services for the new plant.

Earlier, Lycopodium announced on 29 July 2026, stating that the company had received a detailed engineering services contract by Pilgangoora Operation Pty Ltd. The contract is valued at ~$22M, and work commences immediately. LYL has to deliver FEED for the plant, including the design of the Wet Plant for PLS progress to the final investment decision for the P2000 Expansion Project at the Pilgangoora Operation in Western Australia.

The P2000 Expansion Project, if approved by the PLS board, will involve the construction of a new processing plant at the Pilgangoora Operation expanding production capacity to approximately 2 million tonnes per annum of lithium spodumene concentrate. The new processing facility and crushing circuit will be located to the east of the existing Pilgan Plant.

LYL had announced on 18 February 2026 its half-yearly results of FY26 for the period ended in December 2025. Lycopodium reported revenue of $174.5M, led by record project delivery activity across its global operation. EBITDA reached to $29.6M and NPAT increased to $18.3M with an NPAT margin of 10.5%, making an EPS of 46 cents per share. This growth was supported by a committed contract that grew to $415M, and the revenue opportunity pipeline has also expanded to $1.3B.

Lycopodium has strength in its balance sheet, led by high liquidity and low debt, giving financial flexibility. The cash balance by the end of H1 FY26 was $80M, supported by strong operating cash flow. The shareholder equity increased by 3.7% to $156M compared to FY25, and Return on Equity (RoE) reached 11.8%. The net tangible assets reached $3.52 per share, and LYL has also announced a fully franked dividend of 22 cents per share.

Outlook

LYL has updated its management guidance for FY26, with revenue expected to be in the range of $370-$410M, an expected increase of 15% YoY. The net profit after tax of $37M-41M, an increase of 8% YoY. The management stated that this growth is driven by an increased project delivery volume in the second half of FY26.

Conclusion

Lycopodium has reached three large projects in CY26 located all across the globe, providing long-term sustainable growth in revenue and cash flow generation ability. LYL has delivered strong H1 FY26 results and expects improvement in H2 FY26, led by improved delivery and pipeline expansion, making it a fundamentally strong company for long-term investment.

(Source: Company Announcements)