Key Highlights

• For the year to 30 June 2026, NRW reported Revenue of $4.3 billion, up 31.4 per cent on FY25.

• Underlying EBITA, which is Earnings before interest, tax and Amortisation of acquired intangibles, was $288.6 million, up 38.8 per cent.

• Underlying net profit after tax was $182.7 million, up 43.6 per cent, and underlying Earnings Per Share were 39.8 cents.

• Statutory net profit after tax was $153.4 million, compared with $27.7 million a year earlier.

What did NRW Holdings (ASX:NWH) actually deliver in the 2026 financial year, and why does its Acquisition of Fredon matter? The Western Australian contractor reported record revenue of about $4.3 billion and higher underlying earnings on 20 August 2026, while adding a fourth operating segment through Fredon. The result shows a Business growing beyond its traditional civil and Mining base, though that growth has come with more Debt and more execution risk.

The central development: record results and a larger group

For the year to 30 June 2026, NRW reported revenue of $4.3 billion, up 31.4 per cent on FY25. Underlying EBITA, which is earnings before interest, tax and amortisation of acquired intangibles, was $288.6 million, up 38.8 per cent. Underlying net profit after tax was $182.7 million, up 43.6 per cent, and underlying earnings per share were 39.8 cents.

Statutory net profit after tax was $153.4 million, compared with $27.7 million a year earlier. The gap is a reminder to read the reconciliation.

The board declared a fully franked final Dividend of 14.5 cents per share, 53 per cent higher than the FY25 final dividend. All figures are in Australian dollars and come from the company's results materials.

What NRW does and where revenue comes from

NRW is a diversified contractor serving resources, infrastructure and, increasingly, building services. It now reports four segments.

Civil, with revenue of $862.5 million, builds earthworks, roads, rail and other infrastructure. Mining, at $1,539.5 million, provides contract mining services, mainly to producers in Western Australia and Queensland. Minerals, Energy and Technologies (MET), at $1,259.2 million, covers processing plant and related engineering and maintenance work. The newest segment, Electrical, Mechanical (HVAC), Infrastructure and Technology (EMIT), contributed $684.3 million.

NRW's work is largely tied to iron ore, gold, coal and other mineral projects, as well as infrastructure and, via EMIT, sectors such as health, defence and data centres. Revenue is therefore driven more by the Capital and operating budgets of its clients than by Commodity prices directly, although the two are linked.

Operating performance by segment

Mining delivered the most encouraging margin, at 9.1 per cent, with EBITA of $139.9 million, up 15.6 per cent on revenue that was broadly flat. Management pointed to good operating performance and an absence of the adverse Queensland weather that affected the prior year, partly offset by reduced scope at a South Australian operation.

MET grew fastest among the established segments. Revenue rose 35.1 per cent and EBITA rose 40.5 per cent to $96.0 million, helped by work for Primero at the KCGM gold operation, alongside DIAB and RCR.

Civil lifted revenue by 4.7 per cent and EBITA by 6.2 per cent to $46.9 million, but absorbed a one-off project loss in the first half. EMIT, consolidated for its first nine months, produced EBITA of $36.1 million at a 5.3 per cent margin.

Fredon, funding and the balance sheet

Fredon, acquired during the year, is the main reason revenue jumped. Business combination payments totalled $154.4 million, funded largely by debt. At 30 June 2026 NRW held cash of $319.7 million against financial debt of $499.6 million, giving net debt of $265.8 million, up from $145.4 million. Leverage was 0.55 times, or 0.37 times excluding Lease accounting.

Net Assets were $689.9 million, but net tangible assets were $256.3 million, with intangibles and Goodwill of $433.6 million.

Operating cash conversion was 93.8 per cent and free Cash Flow after capital spending was $181.3 million. On 31 July 2026, NRW increased its bank facilities by $300 million to $700 million on improved terms, with a $100 million uncommitted accordion available.

Order book, pipeline and guidance

Work in hand stood at $7.5 billion at the end of FY26, including repeat work: $4.4 billion in Mining, $1.4 billion in EMIT, $0.9 billion in Civil and $0.8 billion in MET. The wider pipeline, which includes work not yet contracted, was $29.1 billion, and active tenders were $11.1 billion.

For FY27, the company guided to revenue of $4.6 billion to $4.8 billion and underlying EBITA of $320 million to $330 million, with about 85 per cent of revenue already secured. Guidance is management's expectation, not a reported result.

Cash conversion is expected to be consistent with long-term averages. Fredon's upfront client payments have pushed Working Capital to negative $100.3 million, which helps cash flow but could reverse if project timing shifts.

Sector conditions and competitive position

Australian contractors are operating in a market where mine replacement, gold and critical minerals projects, and government and private infrastructure spending all create demand. Competition for skilled labour can raise costs and strain margins.

NRW's competitive pitch is breadth: it can offer earthworks, contract mining, processing plant construction and, now, building services under one group, and it has long-running relationships with clients. Competitors include larger listed groups and private firms in each segment, so winning contracts on acceptable terms is a continuing test.

Risks and what to watch

Several risks stand out. Execution is the first: the Civil project loss shows that fixed-price or lump-sum work can erode earnings. Integration is the second, since Fredon's contribution is new, and a full twelve months in FY27 will be a better test than nine months in FY26.

Gearing is the third. Net debt rose with the acquisition, and tax payments increased as normal instalments resumed. Weather, scope changes at client sites and commodity-price swings affecting client spending are further uncertainties.

Watch progress against the FY27 guidance range, order book conversion, new tender wins in EMIT and MET, and any change in net debt.