PWR (PWH) Guidance summary

Opening remarks and agenda

• Market update presentation included Q&A session to address recent announcement and trading update.

• FY25 identified as a transition year, focusing on positioning for future growth and the move to new headquarters at Stapylton.

• Investor briefing scheduled for 20 November 2024 to address questions on the trading update.

Guidance on key objectives

• Full-year revenue and NPAT for FY25 will be lower than previously anticipated due to a weaker first half and transition costs; H1 FY25 NPAT expected between $3.2m and $3.7m, down from $9.8m in H1 FY24.

• Medium- to long-term outlook remains positive, especially for aerospace, defense, and motorsports sectors.

• NPAT margin recovery to targeted 18%-20% is expected by 2027-2028, with efficiency gains from the new factory.

• Investments in Aerospace & Defence, factory space, equipment, and systems are aimed at supporting medium and long-term growth.

Market trends and strategic opportunities

• Noted global pushback in the EV market over the past 3-6 months, impacting OEM revenue; three niche EV OEM programs (AUD 5.6m canceled, AUD 1m paused) removed from pipeline.

• Aerospace & Defence revenue forecast to grow by 67% over the prior period, with a strong pipeline of opportunities and growth driven by electric cold plates and eVTOL.

• Motorsport revenue expected to grow, especially with new F1 regulations and potential new teams in 2026; revenue remains stable in the near term.

• Aftermarket revenue slightly down, but underlying impact improved due to strategic account adjustments.