PWR (PWH) H1 2026 earnings summary

Executive summary

• Revenue increased 27.8% year-over-year to $80.4 million, driven by strong growth in Motorsports and Aerospace & Defence segments, with NPAT up 38.6% to $5.7 million and EBITDA up 47.6% to $16.2 million, reflecting improved operating leverage and higher labor utilization.

• Completion and transition to the new Stapylton headquarters increased capacity and operational capability, supporting larger and more complex opportunities and future growth.

• Order book momentum supported by increased adoption of advanced cooling solutions, customer diversification, and new supplier relationships, including repeat US government orders.

• The business is now operating on a more consistent and scalable footing, with strong cash conversion supporting ongoing strategic investment.

• Strategic diversification into defence and aerospace continued, with recertification to AS9100 and Nadcap post-relocation.

Financial highlights

• Revenue for H1 2026 was $80.4 million, up 27.8% year-over-year, with EBITDA up 47.6% to $16.2 million and NPAT up 38.6% to $5.7 million.

• EBITDA margin improved to 20.2% from 17.5%, and NPAT margin reached 7.1% (+0.6ppts YoY).

• Cash conversion ratio at 102.7% for the rolling 12 months, with operating cash flow (excluding interest and tax) at $12.1 million.

• Net debt at period end was $13.4 million, with cash of $10.6 million and borrowings of $24.0 million.

• Interim dividend of 3.00 cents per share declared, fully franked, with a 53% payout ratio.

Outlook and guidance

• Modest statutory NPAT margin improvement expected in FY 2026, with pathway to margin recovery over 3–5 years as operating leverage builds.

• Motorsports H2 growth to moderate; FY 2027 revenue expected to match elevated FY 2026 levels.

• Aerospace & Defence revenue to remain strong, supported by follow-on US government orders and even revenue split between halves.

• Aftermarket revenue growth to remain muted due to sales mix reshaping and economic conditions.

• Ongoing investment in capacity, automation, and technical expertise underpins medium-term growth.