NRW Holdings (NWH) H2 2024 earnings summary

Executive summary

• FY24 delivered record results with revenue up 9.2% to AUD 2.9 billion, strong growth across all business segments, and significant increases in EBITDA, EBITA, and NPATN year-over-year.

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

• NPATN grew 18.6% to AUD 123.8 million; normalised EPS up 17.7% to 27.3 cps.

• Record cash holdings of AUD 246.6 million with a 94.9% cash conversion rate and a strong order book of AUD 5.5 billion.

• Fully franked final dividend of AUD 0.09 per share, totaling AUD 0.155 per share for FY24, up 11.1% year-over-year, with a 57% payout ratio.

Financial highlights

• Revenue increased 9.2% year-over-year to AUD 2.9 billion.

• EBITDA rose 16% to AUD 334.8 million; EBITA was AUD 195.1 million, including AUD 8.1 million from the Spartan Resources share sale.

• Excluding the Spartan gain, EBIT was AUD 187 million, up 12.5% year-over-year; EBITA margin improved to 6.7%.

• Net charge from non-recurring transactions totaled AUD 28.1 million, mainly from the Wärtsilä settlement and investment revaluations.

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

Outlook and guidance

• FY25 revenue guidance is AUD 3.1 billion, with expected EBITA between AUD 205–215 million.

• Strong pipeline and order book, with AUD 5.5 billion in work-in-hand and AUD 16.4 billion in the pipeline; 90% of expected FY25 revenue already secured.

• Growth in FY25 expected to be organic, leveraging existing business segments and not reliant on acquisitions.

• Margin expansion anticipated due to normalization post-COVID, improved cost discipline, and higher activity levels.

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