• Revenue growth of 27.8% driven by volume increases across Motorsports and Aerospace & Defence
• Statutory NPAT up 38.6% to $5.7m, reflecting operating leverage
• Strong cash conversion (>100%) supporting strategic investment

PWR Holdings Limited (ASX: PWH) reported strong financial results for the half year ended 31 December 2025, with revenue growing 27.8% to $80.4m and statutory net profit after tax (NPAT) increasing 38.6% to $5.7m. The revenue growth was driven by higher volumes across the Motorsports and Aerospace and Defence (A&D) market sectors. EBITDA grew 47.6%, reflecting improved operating leverage, despite one-off costs related to the factory relocation. The company completed the transition to its new Stapylton headquarters during the period, which has strengthened its global manufacturing platform and supports long-term growth. The Motorsports business saw a 40% revenue increase, driven by the new Formula 1 regulation cycle and increased adoption of PWR's proprietary technologies. The A&D division delivered 31% revenue growth, supported by defence, commercial aerospace, and the developing MRO market. The company also made progress on US accreditations and expanded production capability for A&D products. PWR's balance sheet remains strong, with net debt of $13.4m and over 100% cash conversion. The company declared an interim fully franked dividend of 3.0 cents per share, up 50% from the prior year. Looking ahead, the company expects modest NPAT margin improvement in FY26, with higher volumes supporting operating leverage, partly offset by investment in US cyber accreditation and one-off costs. Over the medium term, there is a pathway to NPAT margin recovery as strategic investments underpin growth.

The company expects modest NPAT margin improvement in FY26, with higher volumes supporting operating leverage, partly offset by investment in US cyber accreditation (estimated at $0.8m) and one-off costs (estimated at $1.2m).

Over the medium term, there is a pathway to NPAT margin recovery as strategic investments in capacity, capability and accreditations underpin growth, with margins expected to trend back toward FY24 levels over a three-to-five-year period, driven by improving operating leverage.