PWR (PWH) H2 2024 earnings summary

Executive summary

• Revenue grew 17.8% year-over-year to $139.4 million, with NPAT up 14.0% to $24.8 million, driven by strong performance across all segments and a doubling of aerospace and defense revenue.

• Significant investments in R&D, headcount (67 new hires in FY2024, 21 roles added ahead of growth), and capex ($12.3 million in FY2024) to support future expansion.

• Declared a full-year dividend of AUD 0.14 (14.0 cps), up 12.0%, with TSR at the 88th percentile versus the ASX 300 (ex-energy).

• Recognized for innovation, sustainability, and HR initiatives, with 578 employees globally.

Financial highlights

• FY2024 revenue reached $139.4 million, up 17.8% year-over-year, with 12.9% organic growth and 4.9% FX impact.

• EBITDA rose 15.7% to $45.2 million (margin 32.4%, down 0.6 pts), and NPAT increased 14.0% to $24.8 million.

• Operating cash flow increased by 15.9% to $38.7 million; free cash flow rose by AUD 10.2 million (95%).

• EPS grew 13.9% to 24.7 cps; DPS increased 12.0% to 14.0 cps.

• Cash balance at year-end was $21.7 million, up 22.9% from prior year.

Outlook and guidance

• FY2025 expected to be a transition year with flat or temporarily impacted NPAT and margins due to upfront investments and transition costs; material step up anticipated in FY2026 as new programs and factory efficiencies ramp up.

• Ongoing investment in new Australian factory, increasing manufacturing capacity by over 100%, with full transition by November 2025.

• Continued focus on vertical integration, automation, and ERP system upgrade planned for FY2026.

• Targeting growth in North America and Europe, with new OEM and motorsport opportunities.