Key Highlights

  • PWR Holdings (ASX: PWH) delivered record FY2026 Revenue of $170.7 million, up 31% from $130.1 million.
  • Statutory NPAT increased 83% to $17.9 million, while EBITDA rose 60% to $40.7 million.
  • Aerospace & Defence revenue climbed 31% to $35.2 million, supported by an approximately $40 million backlog.
  • The final fully Franked Dividend increased to 5.00 cents per share, taking the full-year dividend to 8.00 cents, up 100%.

PWR Holdings (ASX:PWH) entered its FY2026 results with its share price having moved higher in recent months. The latest historical closing data available shows the stock at $10.27 on August 13, compared with $7.97 on June 30, representing an increase of about 29% over that period. The stock had also reached $10.78 on August 6 before easing in subsequent sessions.

Revenue Growth Led by Motorsports and A&D

PWR Holdings reported FY2026 revenue of $170.7 million, an increase of 31% from $130.1 million a year earlier. Motorsports remained the largest contributor, generating record revenue of $101.9 million, up 45%. The company attributed the increase to the complexity associated with new Formula 1 regulations and wider adoption of its products across hybrid and electric motorsport platforms.

Aerospace & Defence also recorded a new revenue record of $35.2 million, representing growth of 31%. The company reported an A&D Backlog of approximately $40 million, providing visibility into Demand for FY2027. Revenue in the second half remained at a higher baseline despite major US government project shipments being weighted toward the first half.

Earnings Increase Faster Than Revenue

Profit growth exceeded revenue growth during FY2026. EBITDA increased 60% to $40.7 million from $25.5 million, while statutory NPAT rose 83% to $17.9 million from $9.8 million. Basic Earnings per share similarly increased 83%, reaching 17.79 cents.

The NPAT Margin improved to 10.5%, compared with 7.5% in FY2025, representing a three-percentage-point increase. The company also reported that the improvement reflected greater Operating Leverage as production capacity and volumes increased.

Not all operating measures moved higher. Cash conversion declined to 104.9% from 136.3%, a reduction of 31.3 percentage points. The company said this included a decision to increase raw-material holdings amid global supply-chain uncertainty.

OEM Revenue Declines as Project Timing Affects Results

The OEM segment recorded a 7% decline in revenue during FY2026, with project phasing affecting the result. The company said its order book and pipeline for OEM hypercar programs remained in place, with new projects expected to commence in early FY2027.

Within Automotive Aftermarket, PWR Holdings focused on margin improvement through changes to discount structures and a rationalisation of its product catalogue. The FY2026 results therefore included both areas of expansion and a decline in a specific market segment.

Balance Sheet and Capital Expenditure

PWR Holdings ended FY2026 with net Debt of $5.6 million, down from $13.4 million at December 31, 2025. External borrowings fell to $12.9 million from $24.0 million over the same period after $11.1 million of borrowings were repaid during the second half.

Capital expenditure totalled $22.7 million for the year. Spending included the completion of the Stapylton headquarters transition, expansion of US A&D capabilities and technology investments aimed at increasing production capacity.

The company also declared a final fully franked dividend of 5.00 cents per share, compared with 2.00 cents in FY2025. The full-year dividend reached 8.00 cents per share, double the prior year's 4.00 cents.

Poland Facility Adds to Expansion Plans

PWR Holdings plans to establish a new Manufacturing facility in Poland to support its expansion in European Aerospace & Defence markets. The company expects to invest approximately $4 million during FY2027, with total phased Investment of about $16 million over four years.

Production is expected to begin in FY2027, initially with approximately 15 employees by the end of that financial year. The company does not expect the facility to make a material contribution to earnings during its early operating period as manufacturing capability and customer relationships are developed.

FY2027 Outlook

For FY2027, PWR Holdings expects its Aerospace & Defence revenue growth trajectory to continue, supported by the existing order book. Motorsports revenue is expected to remain around the record FY2026 level, with stable Formula 1 regulations and continued manufacturer participation in global motorsport.

The company also expects a further two-percentage-point improvement in NPAT margin during FY2027 as it pursues operating efficiencies and higher volumes.

Conclusion

PWR Holdings' FY2026 results show a year of higher revenue, faster earnings growth, improved NPAT margins and increased Shareholder distributions, while the OEM segment recorded a 7% revenue decline due to project timing. Aerospace & Defence has become an increasingly important component of the company's growth profile, supported by its reported backlog and planned Polish manufacturing operation. At the same time, lower cash conversion and continued Capital Expenditure remain part of the financial picture. The FY2027 outlook centres on continued A&D growth, stable Motorsports revenue and further margin improvement.