PWR (PWH) H1 2026 earnings summary

Executive summary

• Revenue grew 27.8% year-over-year to $80.4m, driven by strong volume growth in Motorsports and Aerospace & Defence, with NPAT up 38.6% to $5.7m and EBITDA up 47.6% to $16.2m, reflecting improved operating leverage and higher labor utilization.

• Completion and transition to the new Stapylton headquarters increased capacity and operational capability, supporting larger and more complex opportunities.

• Order book momentum supported by increased adoption of advanced cooling solutions, customer diversification, and new supplier relationships, including repeat US government orders.

• The business is now operating on a more consistent and scalable footing, with strong cash conversion supporting ongoing strategic investment.

• Interim fully franked dividend of 3.0 cents per share declared, up 50% from the prior year.

Financial highlights

• Revenue: $80.4m (+27.8% YoY); EBITDA: $16.2m (+47.6% YoY); NPAT: $5.7m (+38.6% YoY); NPAT margin at 7.1% (+0.6ppts YoY); EPS up 38.7% to 5.6 cents.

• Cash conversion ratio at 102.7% for the rolling 12 months, supporting strategic investments.

• Net debt stands at $13.4m, with cash of $10.6m and borrowings of $24.0m at period end.

• Interim dividend of 3.0 cents per share declared, representing a 53% payout ratio.

• Capex of $12.7m in H1, with full-year forecast at $22.5m, mainly for facility upgrades and technology investments.

Outlook and guidance

• Modest NPAT margin improvement expected in FY26, with margins trending back to FY24 levels over 3–5 years as operating leverage builds.

• Motorsports revenue growth to moderate in H2; FY27 revenue expected to match elevated FY26 levels.

• Aerospace & Defence momentum to continue, with even revenue split between halves and growth supported by new and follow-on US government orders.

• Aftermarket revenue growth to remain muted due to sales mix reshaping and revised discount structures.

• Ongoing investment in capacity, automation, technical expertise, and accreditations underpins medium-term growth.