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, offsetting weaker Mining results due to adverse weather and contract changes.

• Underlying EBITDA rose 16.8% and underlying EBITA increased 6.6%, with margin expansion in MET and Civil, though overall group margin diluted due to segment mix.

• Statutory NPAT dropped 73.7% to $27.7 million, mainly due to a $110.5 million impairment of OneSteel receivables.

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

• Fully franked final dividend of 9.5 cents per share declared, up 5.6%, bringing the total for the year to 16.5 cents per share.

Financial highlights

• Revenue reached $3,267.7 million, up 12.2% year-over-year.

• Underlying EBITDA: $391.0 million, up 16.8%; underlying EBITA: $207.9 million, up 6.6%.

• Statutory EBIT: $58.3 million, down 63.8% year-over-year due to non-underlying items.

• Underlying earnings per share were 27.9 cents, up 2.2% year-over-year.

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

Outlook and guidance

• FY26 revenue guidance is set at a minimum of $3.4 billion, with EBITA expected between $218 million and $228 million.

• 88%-90% of FY26 revenue guidance already secured, supported by a record order book of $6.1 billion and a $17.3 billion pipeline.

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

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

• Mining business performance is expected to improve if weather normalizes, with full-year contributions from new contracts.