Highlights

  • PWR Holdings reported record FY26 Revenue of AUD 170.7 million, representing growth of 31.2%.
  • EBITDA increased 60% to AUD 40.7 million, while statutory NPAT rose 83% to AUD 17.9 million.
  • Motorsport revenue increased 45% to AUD 101.9 million, while Aerospace & Defence revenue advanced 31% to AUD 35.2 million.
  • The expanded Stapylton Facility provided additional production capacity, while management entered FY27 with a record order book.

PWR Holdings Limited (ASX:PWH) has developed a specialised position in advanced cooling technology, supplying high-performance thermal-management solutions to customers across motorsport, aerospace and defence, original equipment Manufacturing and automotive aftermarket markets.

The company designs and manufactures radiators, intercoolers, heat exchangers and other cooling systems where weight, performance and reliability are critical. Its engineering-led model has helped PWR establish relationships across elite motorsport and increasingly complex aerospace and defence applications.

PWR’s FY26 results, released on 20 August 2026, highlighted the benefit of recent Investment in production capacity. Revenue and Earnings reached record levels as the company increased output from its new Stapylton manufacturing facility and benefited from higher Demand across Motorsport and Aerospace & Defence.

FY26 Performance

PWR reported FY26 revenue of AUD 170.7 million, up 31.2% from AUD 130.1 million in FY25.

EBITDA increased 60% to AUD 40.7 million, compared with AUD 25.5 million in the previous year. EBITDA Margin improved significantly to 23.8% from 19.6%, demonstrating stronger Operating Leverage as higher production volumes were processed through the company’s expanded manufacturing platform.

Statutory net profit after tax increased 83% to AUD 17.9 million from AUD 9.8 million. NPAT margin improved to 10.5% from 7.5%, while Basic Earnings Per Share increased 83% to 17.79 cents.

Operating cash flow before interest and tax increased 23% to AUD 42.7 million.

The company also reduced net Debt to AUD 5.6 million at the end of FY26, compared with AUD 8.1 million at the end of FY25 and AUD 13.4 million at 31 December 2025.

PWR declared a fully franked final Dividend of 5.0 cents per share, taking the FY26 total dividend to 8.0 cents per share, double the 4.0 cents distributed for FY25.

Motorsport Leadership

Motorsport remains PWR’s largest customer market and delivered significant growth during FY26.

Revenue from Motorsport increased 45% to AUD 101.9 million from AUD 70.1 million in the previous year and accounted for approximately 60% of total group revenue.

PWR’s motorsport Business supplies advanced cooling products used in high-performance racing categories where thermal efficiency can directly affect vehicle reliability and performance.

Demand during FY26 benefited from increased activity across major motorsport programs and additional production capacity following the Stapylton relocation.

The company’s specialist engineering capability is an important competitive factor. Motorsport customers generally require low-volume, highly customised products capable of operating in demanding environments, creating a market where technical capability and long-term customer relationships can be more important than scale alone.

However, motorsport programs can also be cyclical, particularly when major rule changes or vehicle-development programs alter customer requirements.

This makes Diversification beyond motorsport strategically important for PWR’s longer-term earnings profile.

Defence Expansion

Aerospace & Defence continued to develop into a more meaningful component of group revenue during FY26.

Revenue from the segment increased 31% to AUD 35.2 million from AUD 26.9 million and represented approximately 21% of total group revenue.

Management highlighted a record order book, driven particularly by Aerospace & Defence programs. This provides greater visibility than some of PWR’s shorter-cycle customer markets.

The segment offers a potentially attractive growth pathway because aerospace and defence programs can extend over multiple years once suppliers complete qualification and certification requirements.

PWR’s engineering capability is relevant in these applications because thermal-management systems must meet demanding specifications around durability, weight, temperature control and reliability.

At the same time, defence and aerospace projects can involve long development cycles, shifting delivery schedules and customer concentration. Investors will therefore likely monitor the conversion of the order book into recognised revenue.

Capacity Investment

The move to PWR’s new Stapylton headquarters and manufacturing facility has been central to the company’s recent growth.

Management said FY26 marked a return to rapid growth and noted that the new facility was necessary to unlock additional production capacity.

The transition had created some disruption during FY25 as machinery was decommissioned and recommissioned across sites. By FY26, however, additional capacity was available and contributed to record Australian revenue.

This capacity gives PWR greater scope to support future demand across both Motorsport and Aerospace & Defence.

The company must now demonstrate that the expanded asset base can generate attractive returns through higher utilisation, improved productivity and continued revenue growth.

The FY26 increase in EBITDA margin provides early evidence of this operating leverage.

Other Markets

Performance was less pronounced across PWR’s other customer segments.

OEM revenue declined 7% to AUD 14.6 million from AUD 15.7 million, while Automotive Aftermarket revenue decreased 3% to AUD 15.8 million.

Management indicated that major OEM contracts are expected to commence during FY27, potentially supporting improvement in that segment over coming years.

Automotive Aftermarket demand remained affected by changes in discount structures and difficult external conditions.

For PWR, stronger growth across these smaller divisions could broaden the revenue mix further and reduce reliance on Motorsport.

Currency is another consideration. Foreign-exchange movements had an unfavourable impact on FY26 revenue, reflecting PWR’s international customer base and operations.

FY27 Focus

PWR enters FY27 with a larger manufacturing footprint, record revenue and a stronger order book.

The first key area for investors will be Aerospace & Defence execution. Converting committed orders into production and expanding the pipeline could gradually increase the segment’s contribution to group earnings.

Motorsport performance will remain equally important given its position as the largest revenue contributor.

Utilisation of Stapylton will also be closely watched. Continued revenue growth through the facility could provide further operating leverage, although the scale of margin improvement will depend on labour productivity, product mix and production efficiency.

OEM contract commencement represents another potential growth driver.

Finally, investors will likely monitor balance-sheet discipline as PWR balances dividends, manufacturing investment and additional growth opportunities.

Final Takeaway

PWR Holdings’ FY26 result demonstrated the benefit of combining specialised engineering capability with expanded manufacturing capacity.

Revenue increased 31.2% to AUD 170.7 million, EBITDA rose 60% to AUD 40.7 million and statutory NPAT increased 83% to AUD 17.9 million. Motorsport remained the major earnings engine, while Aerospace & Defence continued building scale and contributed to a record order book.

For PWR Holdings (ASX:PWH), FY27 will centre on converting capacity and order visibility into further earnings growth.

Aerospace and defence expansion, Motorsport demand, the commencement of OEM contracts and continued utilisation of the Stapylton facility are likely to remain the most important areas for investors assessing the company’s next phase.