NRW Holdings (NWH) H2 2025 earnings summary

Executive summary

• Revenue increased by 12.2% year-over-year to $3.27 billion, driven by strong growth in MET and Civil divisions, despite challenges from OneSteel administration and extreme rainfall in Queensland impacting mining operations.

• Underlying EBITDA grew with margin expansion in MET and Civil, while mining margins were negatively affected by weather and early contract suspensions.

• Cash holdings remained robust at $265.7 million, with cash conversion at 82.9%, aligning with long-term averages.

• The order book stands at $6.1 billion, with a robust pipeline of $17.3 billion and $5.6 billion in active tenders; 88%-90% of FY 2026 revenue guidance already covered.

• A fully franked final dividend of 9.5 cps was declared, up 5.6% from the prior period.

Financial highlights

• EBIT margin for the year was 6.3%, slightly down from 6.6% last year, mainly due to mining underperformance and a higher contribution from lower-margin businesses.

• Statutory NPAT dropped 73.7% to $27.7 million due to significant non-underlying items, including a $110.5 million impairment of OneSteel receivables.

• Free cash flow after all capital was $103.5 million, up 120.1% year-over-year.

• Interest expense increased year-over-year due to equipment finance for the HSE acquisition, additional bank debt for working capital, and amortization of new bank facility costs.

• Net capital expenditure was notably down year-over-year, reflecting a focus on capital management.

Outlook and guidance

• FY 2026 revenue guidance is set at a minimum of $3.4 billion, with EBITDA/EBITA expected between $218 million and $228 million.

• 88%-90% of FY 2026 revenue guidance is already secured.

• Cash conversion is expected to remain at long-term averages.

• The secured order book for FY 2026 is at a record high, with strong tender pipelines across all divisions.

• MET margins are expected to be sustainable at 7%-8% barring abnormal events.