Investments delivering outcomes that underpin future growth
| Stock | PWR Holdings Ltd (PWH.ASX) |
|---|---|
| Release Time | 20 Feb 2025, 6:55 p.m. |
| Price Sensitive | Yes |
PWR Holdings Ltd reports H1 FY25 results
- Net Profit After Tax of $4.1 million, above guidance
- Strong growth in Aerospace and Defence, up 79%
- Motorsports revenue grew 5% due to emerging technologies
- Significant investments to position for future growth
PWR Holdings Limited (ASX: PWH) has reported a Net Profit After Tax (NPAT) of $4.1 million for the period ended 31 December 2024. The company will pay a fully franked interim dividend of 2.00 cents per share to shareholders on 21 March 2025. PWR saw strong growth in Aerospace and Defence (A&D), with revenue growing by 79% driven by an increasing number and scale of programs. The company also continued to see momentum in Motorsports programs, with revenue growing by 5% due to increasing demand for emerging technologies including micro matrix and cold plates. However, the half saw several headwinds, including the completion of major Automotive OEM programs in FY24, three niche OEM EV programs not proceeding in FY25, and a global decline in aftermarket revenue due to broader economic pressures. PWR is making significant investments to position the company for future growth, including investing in headcount, expanding global factory space, and upgrading its new Australian factory in Stapylton. The new Stapylton factory will increase PWR's Australian factory space by 84% to 20,800m2, enabling more than 100% increase in domestic manufacturing capacity. PWR finished the half with a net cash position of $6 million, providing ample ability to fund future global expansion plans.
FY2025 revenue is expected to be 5-10% below FY2024 due to the significant investments being made to position the company for future growth.
PWR is making disciplined strategic investments in headcount, global factory space, and advanced equipment to ensure it is well-positioned for future growth opportunities, particularly in Aerospace and Defence and emerging technologies. These investments are expected to impact operating margins in the near term, but are an essential step in ensuring PWR remains at the forefront of innovation and industry leadership.