NRW Faces Integration and Credit Risks Despite Strong FY25 Results
NRW Holdings delivered a robust FY25 performance, posting a 12.2% revenue increase to $3.27 billion and securing a strong $6.1 billion order book. The company’s FY26 outlook remains positive with expected revenue growth and improved earnings.
- FY25 revenue up 12.2% to $3.27 billion
- Underlying EBITA rises 6.6% to $207.9 million
- Strong $6.1 billion order book and $17.3 billion pipeline
- Fully franked final dividend increased to 9.5 cents per share
- FY26 guidance anticipates revenue exceeding $3.4 billion and EBITA between $218M-$228M
Robust Financial Growth
NRW Holdings has reported a solid set of full-year results for FY25, underscoring its position as a key player in the mining services sector. Revenue climbed 12.2% year-on-year to $3.27 billion, driven by strong performances across its Civil, Mining, and Minerals, Energy & Technologies (MET) segments. Underlying EBITA increased by 6.6% to $207.9 million, reflecting operational efficiencies and margin improvements despite some headwinds.
The company’s cash holdings remain healthy at $265.7 million, supported by an 82.9% cash conversion rate, which signals effective cash flow management amid ongoing capital expenditures and acquisition-related costs.
Contract Wins and Order Book Strength
NRW’s order book stands at a formidable $6.1 billion, bolstered by repeat business and new contract awards. The pipeline of opportunities is even more impressive at $17.3 billion, with $5.6 billion in active tenders, positioning the company well for sustained growth. Notable contract wins include the $1.6 billion Stanmore South Walker Creek mining contract and the $360 million Evolution Mining Mungari Project, both of which will contribute significantly to future revenues.
The Civil segment saw a 25.7% revenue increase, benefiting from infrastructure projects in Western Australia and Queensland, including the Wilman Wadandi Highway and Rio Tinto’s haul road developments. Meanwhile, the MET segment grew revenue by 18%, driven by projects for Northern Star Resources and Pilbara Minerals, alongside innovative product launches from RCR.
Sustainability and Workforce Initiatives
NRW has advanced its sustainability agenda with ambitious targets, including a 60% reduction in greenhouse gas emissions intensity by 2030 and a commitment to zero negative life-changing events. Workforce diversity is also a focus, with female participation rising to 18.7% and ongoing partnerships to support Indigenous businesses. The company’s workforce expanded to approximately 9,000 employees, reflecting growth and the integration of the HSE acquisition.
Outlook and Guidance
Looking ahead, NRW expects FY26 revenue to exceed $3.4 billion, with EBITA guidance between $218 million and $228 million. The company’s balance sheet remains strong, providing flexibility for further corporate opportunities. With 88% of FY26 revenue guidance already secured, NRW is well-positioned to capitalize on a robust pipeline and maintain its growth trajectory.
Bottom Line?
NRW’s strong FY25 foundation and healthy order book set the stage for continued growth, but execution on large contracts and market conditions will be key to watch.
Questions in the middle?
- How will NRW manage risks related to the impairment of OneSteel receivables going forward?
- What impact will the HSE acquisition have on margins and integration costs in FY26?
- Can NRW sustain its margin improvements amid fluctuating commodity prices and weather disruptions?
