GWA Group Limited reported solid half-year growth in revenue and earnings, driven by volume gains and strategic initiatives including a new AI partnership. The company also lifted its interim dividend, signalling confidence despite mixed market conditions ahead.
- Revenue up 2.0% to $214.1 million
- Normalised NPAT increased 5.0% to $25.0 million
- Interim dividend raised 6.7% to 8.0 cents per share, fully franked
- Strong execution of 'Win the Plumber' strategy with 6% sales uplift
- New AI-enabled smart leak protection partnership with Phyn
Steady Growth in a Competitive Market
GWA Group Limited has delivered a steady financial performance for the half year ended 31 December 2025, with revenue climbing 2.0% to $214.1 million and normalised net profit after tax (NPAT) rising 5.0% to $25.0 million. This growth was underpinned by a 4.9% increase in volume across all its markets, reflecting the company’s ability to expand its footprint despite ongoing challenges in the construction sector.
The company’s normalised earnings before interest and tax (EBIT) also rose by 2.9% to $39.6 million, demonstrating disciplined cost management and operational leverage. Statutory NPAT showed an even stronger increase of 14.9%, boosted by lower project costs compared to the prior year.
Dividend Increase Signals Confidence
In a clear sign of confidence, GWA’s board declared a fully franked interim dividend of 8.0 cents per share, up 6.7% from the previous period. This increase reflects the company’s robust cash conversion rate of 92% and a strong balance sheet, with net debt maintained at $96 million and leverage at a conservative 1.2 times EBITDA.
The dividend boost will be welcomed by investors seeking reliable income streams, especially given the company’s ongoing share buyback program, which has already executed $10 million of its $30 million on-market buyback target.
Strategic Initiatives and Innovation Drive Momentum
GWA’s growth story is not just about numbers. The company’s “Win the Plumber” strategy continues to gain traction, with 11,000 technical interactions and a 6% uplift in plumber bundle and spares sales in Australia. This focus on deepening relationships with trade professionals is a key pillar of GWA’s customer-first approach.
On the innovation front, GWA has entered a strategic partnership with Phyn to develop AI-enabled smart leak protection products, marking a significant step in its digital transformation journey. The company plans to invest $1.5 to $2.0 million in these digital initiatives in the second half of FY26, signalling a commitment to future-proofing its product offerings.
Geographic Performance and Market Outlook
All key markets contributed to revenue growth, with Australia leading at $178.6 million (up 1.6%), New Zealand steady at $16.3 million, and the United Kingdom showing the strongest growth at 7.3% to $19.2 million. The UK’s performance was buoyed by new customer wins and recognition as a preferred supplier.
Looking ahead, GWA anticipates mixed conditions in the second half of FY26. While residential approvals are increasing, renovation demand faces headwinds from recent interest rate rises. Commercial activity is expected to remain flat overall, with strength in education and aged care offsetting softness in office construction.
Despite these challenges, GWA remains focused on expanding its engagement with plumbers and merchants, growing its presence with volume home builders, and targeting commercial segment opportunities. The company’s strong operational platform and strategic initiatives position it well to capitalise on any market improvements.
Bottom Line?
GWA’s solid half-year results and strategic investments set the stage for navigating a mixed market, with digital innovation a key watchpoint.
Questions in the middle?
- How will GWA’s AI-enabled smart leak protection partnership impact future revenue streams?
- What are the risks if renovation demand continues to weaken due to rising interest rates?
- Will the share buyback program accelerate or pause amid current market conditions?