PWR Holdings (PWH) investor relations material

Executive summary

• Revenue declined 6.7% to $130.1M, in line with guidance, due to factory relocation, Cyclone Alfred disruptions, and OEM contract completions.

• Operating EBITDA fell 37.4% to $28.3M; statutory NPAT dropped 60.5% to $9.8M, reflecting relocation costs and growth investments.

• Strategic priorities delivered: new Australian factory operational, IMD platform matured, and global operating model advanced.

• Strong order book and pipeline for FY 2026, with increased capacity and expanded capabilities in Australia, US, and UK.

• Factory transition to new Stapylton HQ is on track, with phase one completed and full transition expected by end of CY25.

Financial highlights

• Revenue: $130.1M, down 6.7% year-over-year, at the upper end of guidance.

• Operating EBITDA: $28.3M, down 37.4%; statutory NPAT: $9.8M, down 60.5%; operating NPAT: $12.4M, down 50%.

• Aerospace and defense revenue grew 28% year-over-year; motorsports up 4%; OEM and aftermarket declined.

• Cash conversion remained robust at over 100%; free cash flow negative due to investment cycle.

• Final dividend of $0.02 per share, total $0.04 for FY 2025, in line with 40–60% payout policy.

Outlook and guidance

• FY 2026 expected to see profitable growth, with strong order book and pipeline in aerospace, defense, and motorsports.

• Modest margin improvement expected in FY 2026, with medium-term NPAT margin recovery weighted to the back end of the 3–5 year period.

• U.S. government project ($9M) expected to be delivered mainly in 1H FY 2026.

• Direct tariff impact in FY 2026 estimated at $1.5M; ongoing efforts to mitigate through supply chain and customer negotiations.

• Full transition to new Australian HQ expected by end of CY25; productivity gains anticipated.