PWR Holdings Limited has reported a robust half-year performance with revenues climbing 27.8% and net profit rising 38.6%, underpinned by strategic expansion in motorsports and aerospace sectors. The company also announced a higher fully franked interim dividend of 3 cents per share.
- Revenue increased 27.8% to $80.4 million
- Net profit after tax up 38.6% to $5.7 million
- EBITDA rose 47.6% to $16.2 million with improved margins
- Fully franked interim dividend increased to 3.00 cents per share
- Capital expenditure of $12.7 million on new facilities and equipment
Strong Half-Year Growth Driven by Strategic Diversification
PWR Holdings Limited has delivered a compelling half-year financial update for the six months ending 31 December 2025, showcasing significant growth across its core segments. The company’s revenue surged by 27.8% to $80.4 million, reflecting increased demand in its Motorsports and Aerospace & Defence divisions. This growth was supported by the successful relocation to new Australian manufacturing facilities, which boosted capacity and operational efficiency.
The strategic focus on diversifying into defence and aerospace markets continues to pay dividends, with repeat orders from the US government and expanded supplier relationships reinforcing PWR’s reputation for reliability and innovation. Investments in manufacturing automation, quality assurance, and technical expertise have underpinned this expansion, positioning the company well for sustained growth.
Profitability and Margins on the Rise
Profit after tax rose 38.6% to $5.7 million, while earnings per share increased to 5.63 cents, up from 4.06 cents in the prior corresponding period. EBITDA climbed 47.6% to $16.2 million, with margins improving to 20.2% from 17.5%. This margin expansion was driven by higher revenue absorption of fixed costs, a more favourable sales mix weighted towards higher-margin motorsports and aerospace programs, and disciplined overhead management.
Both operating segments performed well: PWR Performance Products saw revenue grow 25.1% to $60.3 million, while PWR C&R increased revenue by 11.9% to $26.3 million, turning around a prior loss to a positive EBIT contribution. The company’s ability to leverage prior investments in its new Stapylton facility was a key factor in these results.
Capital Investment and Balance Sheet Management
Capital expenditure for the half was $12.7 million, primarily directed towards new manufacturing equipment and the fit-out of the Stapylton headquarters. While net debt increased to $13.4 million to fund growth and working capital, management has commenced repayments following the completion of capital projects. Cash balances improved to $10.6 million, reflecting strong operating cash flow despite increased working capital requirements.
The company’s balance sheet remains robust, with compliance maintained on all borrowing covenants. The diversified revenue base across geographies including Australia, the USA, and the UK, and across currencies, helps mitigate foreign exchange risks.
Dividend and Outlook
Reflecting confidence in ongoing performance, PWR declared a fully franked interim dividend of 3.00 cents per share, up 50% from the prior period’s 2.00 cents. This dividend represents 53% of net profit after tax, signalling a balanced approach to rewarding shareholders while supporting reinvestment in growth initiatives.
Looking ahead, PWR’s continued focus on innovation, capacity expansion, and strategic market diversification, particularly in aerospace and defence, positions it well to navigate economic headwinds impacting the automotive aftermarket segment. The company also remains committed to advancing its sustainability and ESG priorities, which are expected to feature more prominently in future reporting.
Bottom Line?
PWR Holdings’ strong half-year momentum and strategic investments set the stage for continued growth, but investors will watch closely how broader economic factors and sustainability initiatives unfold.
Questions in the middle?
- How will PWR’s diversification into aerospace and defence impact long-term revenue stability?
- What is the outlook for the automotive aftermarket segment amid current economic challenges?
- How quickly will the company’s sustainability initiatives translate into measurable operational benefits?