Watch 2 ASX penny stocks exhibiting strength in a weak market
Eden Innovations and Alfabs Australia are two penny stocks are improving fundamentals and gaining momentum from high demand in their respective markets.
Eden Innovations Limited (ASX: EDE)
on 28 January 2026 reported a strong December 2025 quarter as operational momentum continued to build across both its EdenCrete and OptiBlend product lines.
The company completed a major financial restructuring during the period and reduced total debt by $16 million since June 2025 through asset sales, equity funding and refinancing of high-interest borrowings.
Commercial traction improved as with Holcim Ecuador placed its largest order to date for EdenCrete Pz7 which lifted cumulative purchases from the customer to more than $1 million.
In the United States, EdenCrete continued to be specified in large infrastructure and commercial projects while OptiBlend sales accelerated which was supported by strong demand from data centres and government facilities.
OptiBlend orders reached nearly US$500,000 in just two weeks during October 2025 and live quotations of more than US$4.1 million at the end of the quarter point to a strong near-term sales pipeline.
Eden’s share price has surged around 190% year-to-date which has lifted the company’s market capitalisation to almost $80 million while Management is targeting positive cash flow in calendar year 2026.
Alfabs Australia Limited (ASX: AAL)
now has a market capitalisation of $65.18 million and operates as a diversified industrial services and equipment provider which supports Australia’s mining and infrastructure sectors through fabrication, engineering, protective coatings and asset refurbishment.
The stock has surged 24% year-to-date and the company operates a vertically integrated business model which allows it to deliver end to end solutions while maintaining cost control, quality and scalability across large projects.
In FY25, the company delivered EBITDA of $27.6 million which represents growth of 39% year-on-year and offers an annual dividend yield of 6.53%.
Net profit after tax increased to $12.2 million which is up 76% and highlights strong operating leverage as revenue scaled across both the mining and engineering divisions and EBITDA increased 39% year-on-year.
The current share price is $0.49 and the company distributed total dividends of 3.2 cents per share which were fully franked in FY25, while Alfabs has planned a $31 million capital investment program for FY26 which is focused on acquiring and refurbishing underground mining equipment to expand its hire fleet.
(Source: Company Announcements)
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