NRW Holdings (NWH) H2 2024 earnings summary

Executive summary

• Revenue grew 9.2% to AUD 2.9 billion, with strong profit growth and margin expansion across all business units, especially civil and MET, driven by Primero's performance.

• EBITDA increased 15.9% to AUD 334.8 million; EBITA rose 17.4% to AUD 195.1 million, including an AUD 8.1 million gain from the Spartan Resources share sale.

• Normalized NPAT increased 18.6% to AUD 123.8 million; normalised EPS up 17.7% to 27.3 cps.

• Record cash holdings of AUD 246.6 million and a strong order book of AUD 5.5 billion.

• Fully franked final dividend of AUD 0.09 per share, total FY24 dividend AUD 0.155 per share (up 11.1%), with a 57% payout ratio.

Financial highlights

• EBITDA margin at 11.5%; EBITA margin at 6.7%.

• Cash conversion at 94.9%; net debt at AUD 78.8 million, with gearing at 12.1% (5.1% excluding leases).

• CapEx for FY 2024 was AUD 192.9 million, expected to decrease by 5–10% in FY 2025.

• Sale of Spartan holding contributed AUD 33.0 million; borrowings increased due to Wärtsilä settlement.

• Working capital increased to AUD 25.2 million, reflecting business growth.

Outlook and guidance

• FY 2025 revenue guidance is AUD 3.1 billion, with EBITA expected between AUD 205–215 million.

• 90% of expected FY 2025 revenue is already in the order book, with strong tender activity and multi-year opportunities in iron ore and infrastructure.

• Active tenders total AUD 5.5 billion; pipeline remains robust at AUD 16.4 billion.

• Margin expansion is anticipated, driven by normalization post-COVID, improved cost discipline, and a diversified business model.

• Cash conversion and gearing expected to remain consistent with long-term averages.