Equities Update: BP, Travis Perkins, Domino’s, Ferrexpo, Palantir…

BP’s strong Q2, regaining momentum

Lale Akoner, global market analyst, says: “BP delivered a solid performance in Q2 2025, showing it is regaining momentum after a shaky few years. Profits nearly doubled from the previous quarter thanks to strong oil trading and a rebound in refining margins, despite weaker oil prices. The company continues to cut costs and improve efficiency, which helped lift cash flow and fund a generous $750M share buyback. Notably, BP’s retail and Castrol businesses saw strong growth, showing resilience beyond just pumping oil. A major new oil discovery in Brazil also highlights renewed exploration success.

“We think this new find adds meaningful long-term value and supports CEO Murray Auchincloss’s renewed focus on traditional energy. It’s the kind of discovery investors want to see as it is deepwater, large-scale, and in a proven basin. While the energy transition remains part of its long-term plan, BP is clearly leaning back into its oil roots, which is positive. The company isn’t the cheapest among its peers like Shell, but it’s finally delivering on its promise of reliable earnings and stronger shareholder returns.

“Overall, we think that this quarter is a sign of regained discipline and strategic clarity. After years of mixed signals, BP is now showing it can balance near-term performance with long-term potential. The focus on execution, capital discipline, and shareholder returns is paying off. If it can keep this up, sentiment around the stock and the story could shift meaningfully.”

Travis Perkins struggles as construction remains sluggish

Adam Vettese, market analyst for eToro says: “Travis Perkins’ half year results highlight the pressures of a challenging UK construction market. The group’s 24% drop in adjusted operating profit and fresh revenue declines confirm just how subdued demand remains across core merchanting operations. The interim dividend cut to 4.5p per share is particularly notable as it is the lowest in recent memory and signals management’s clear pivot toward cash conservation albeit the payout remains in line with their 30-40% of earnings policy.

“Toolstation was a bright spot with a 50% rise in operating profit, demonstrating the benefit of strong execution and targeted investment, but it isn’t enough to offset wider sector headwinds. On the positive side, cash generation and debt reduction show management is taking necessary actions to preserve financial flexibility. Looking ahead, the outlook remains uncertain, while leadership changes and operational refinements are welcome, structural improvement in UK construction activity will be needed to reignite growth.

“For investors who have seen shares near enough halve in less than 12 months this report will not make particularly encouraging reading. Travis Perkins is having to prioritise resilience over returns in the current climate, with potential upside only likely if and when the wider building sector rebounds. The company has maintained full year guidance despite the challenges so investors will have a keen eye on whether new management can deliver in H2.”

Profit warning from Domino’s as costs spiral and customers feeling the pinch 

Mark Crouch, market analyst for eToro, says: “Domino’s Pizza Group may be selling more pizzas, but profits are being eaten away by rising costs. Despite revenue growing and higher like-for-like sales, profits have dropped sharply, and store openings have slowed, a troubling combination for a growth-focused franchise model. The group has now downgraded its full-year earnings outlook, blaming higher employment costs and weaker demand as inflation-weary customers pull back.

“That’s not just a Domino’s problem; it may be an early warning sign for the wider UK consumer economy. A business known for efficiency and value is struggling to protect margins, even as volumes rise.

“While Domino’s franchisees remain engaged and long-term plans for 2,000 stores persist, near-term fragility shouldn’t be ignored. If fast affordable food is feeling the pinch, what does that say about the broader consumer landscape? Investors may see a resilient brand, but the numbers point to structural headwinds that go beyond pizza.”

From warzone to tax frontline, Ferrexpo battles for stability 

Mark Crouch, market analyst for eToro, says: “Ferrexpo began 2025 with momentum, delivering its highest production since the Russian-Ukrainian conflict began. But the real battle now for Ferrexpo seems to be with the Ukrainian tax authorities. The suspension of VAT refunds to its local subsidiaries has stifled liquidity and forced a brutal downscaling of operations. The fallout has been immediate with production plummeting and sweeping cost cuts with over a third of the company’s workforce furloughed or on reduced hours, a blow not just to the company, but to the communities that rely on it.

“While Ferrexpo has shown resilience under extraordinary conditions, this tax dispute introduces a new and destabilising variable. Combined with the ever-present geopolitical and commodity price volatility, Ferrexpo’s investment case hinges on resolving institutional frictions as much as geopolitical ones. Until there is clarity on the tax front and production normalises, the stock remains overshadowed by uncertainty, regardless of underlying asset quality.”

Profits under pressure on weak commodity prices

Adam Vettese, market analyst for eToro says: “The headlines of Glencore’s half year report do not read particularly well. Earnings were clearly pressured, with a 14% drop in adjusted EBITDA and a net loss of $655 million, driven by weaker coal and copper prices and significant impairments, most notably at Cerrejón. Margins are down and copper output underwhelmed, with risks from volatile markets and operational delays still front and centre.

“Despite these headwinds, there is some silver lining. Revenue held flat year on year, highlighting the strength of its trading arm and the resilience of its diversified portfolio. The sale of Viterra and the resulting Bunge stake not only bolstered Glencore’s balance sheet, reflected in a healthy boost in liquidity but also added optionality going forward. Importantly, management is focusing on self-help, a $1 billion cost saving program is underway all the while shareholder returns remain generous, with $3.2 billion committed for the year.”

Palantir preview: all eyes on execution as AI hype meets high expectations

Lale Akoner, global market analyst, says: “Palantir has had a monster run this year, up over 100%, fuelled by AI optimism and strong government demand. But heading into Monday’s earnings, the stock feels priced for perfection. The company’s AI platform is gaining traction, especially in U.S. commercial markets, where hands-on AIP bootcamps have helped accelerate adoption. Still, the leap from pilots to large-scale, recurring revenue remains more promise than proof.

“Its government business remains a stable backbone. That said, recent headlines about a “$10 billion” Army deal are a bit misleading as it’s not new money, but rather a bundling of existing contracts into a single agreement. It streamlines procurement but doesn’t guarantee future spending or revenue growth.

“Meanwhile, competition is heating up. Major players like OpenAI, Google, and Anthropic are winning defence-related AI contracts, and commercial rivals like Snowflake and Databricks are aggressively expanding. Palantir’s premium pricing could become a hurdle as enterprises seek cheaper or more flexible alternatives.

“What matters now is whether Palantir can deliver consistent topline growth, margin expansion, and clear signs of AI monetisation. With the stock trading at a sky-high multiple, any softness in results or guidance could trigger a sharp pullback. This quarter needs to deliver.”