NRW Holdings Limited (NWH) AI Stock Analysis

• Market Cap: AU$3.00B
• Dividend Yield: 3.2%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.37
• Revenue Growth: 12.18%
• EPS Growth: -73.81%
• Country: AU
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.18
• Shares Outstanding: 459,466,950
• 10 Day Avg. Volume: 1,891,111
• 30 Day Avg. Volume: 1,752,514
• PEG Ratio: -0.67
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 14.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$6.63
• Price Target Upside: 5.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): AU$4.19B

• Rating: 64 Neutral
• Price Target: AU$6.50 ▲(3.17% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by mixed financial performance—strong revenue and gross margin improvement offset by thin profitability, weaker cash generation, and higher leverage. Technicals are supportive with an established uptrend, but overbought readings add near-term risk. Valuation is the main drag due to the high P/E despite a modest dividend yield.

Positive Factors

Gross margin improvement

A materially higher gross margin (55%) reflects improved cost management and contract pricing discipline. This durable uplift increases project-level resilience, gives buffer against input cost volatility, and improves competitiveness on future tenders by enabling sustainable margins across contracts.

Sustained revenue growth

Double-digit revenue growth indicates expanding scale and stronger utilization of plant, labour and project delivery capability. Persistently growing top line improves fixed-cost absorption, supports bid competitiveness, and underpins longer-term contract pipeline and client relationships in resources and infrastructure.

Diversified service offering

A broad set of capabilities across civil, mining, drill & blast and engineering creates multiple revenue streams and cross-sell opportunities. This diversification reduces exposure to a single project type or commodity and strengthens repeat business potential across the resource and infrastructure cycles.

Negative Factors

Thin net profitability

Very low net margin leaves little cushion for cost overruns, contract disputes or cyclical revenue declines. Despite higher gross margins, weak conversion to net income suggests elevated SG&A, financing or exceptional costs that constrain retained earnings and limit reinvestment capacity over the medium term.

Elevated leverage

Higher debt reliance raises interest and refinancing pressure in a cyclical contracting business. Elevated leverage reduces financial flexibility to fund working capital swings on large projects, increases vulnerability to margin shocks, and requires consistent cash generation to meet obligations.

Weaker cash generation

A 25% drop in free cash flow and low OCF-to-net-income ratio indicate weaker cash conversion. This constrains the firm's ability to invest in plant, repay debt, or absorb project delays. Persistent weak cash generation undermines long-term funding reliability and resilience through industry cycles.

NRW Holdings Limited Business Overview & Revenue Model

Company Description

NRW Holdings Limited, through its subsidiaries, provides diversified contract services to the resources and infrastructure sectors in Australia. The company operates through three segments: Civil; Mining; and Minerals, Energy & Technologies. The Civil segment delivers private and public civil infrastructure, mine development, bulk earthworks, and commercial and residential subdivision projects. Its civil construction projects include roads, bridges, tailings storage facilities, rail formations, ports, renewable energy projects, water infrastructure, and concrete installations. The Mining segment engages in the mine management, contract mining, load and haul, dragline, drill and blast, and coal handling preparation plant operations; maintenance activities; and fabrication of water and service vehicles. The Minerals, Energy & Technologies segment provides materials handling, onsite maintenance, and shutdown services; industrial engineering and fabrication services; and engineering, procurement, and construction services. It also provides heat treatment services, as well as mining equipment solutions. The company was founded in 1994 and is headquartered in Belmont, Australia.

How the Company Makes Money

NRW Holdings generates revenue through multiple key streams, primarily from contracting services in the mining and civil construction sectors. The company earns money by undertaking large-scale mining projects, offering services such as excavation, haulage, and infrastructure development. Additionally, NRW has established significant partnerships with major resource companies, which provide a steady flow of contracts and projects. The company also benefits from ongoing maintenance and service agreements, which contribute to its recurring revenue. Furthermore, the diversification of its service offerings into urban infrastructure projects allows NRW to tap into new markets, further enhancing its earning potential.

NRW Holdings Limited Financial Statement Overview

Summary

Solid revenue growth and a materially improved gross margin (55%) support the score, but weak net margin (0.85%), declining EBIT/EBITDA margins, reduced ROE (4.54%), higher leverage (debt-to-equity 0.67), and a 25.06% drop in free cash flow limit it.

Income Statement

NRW Holdings Limited has shown consistent revenue growth over the years, with a 4.02% increase in the latest period. The gross profit margin improved significantly to 55% in 2025, indicating better cost management. However, the net profit margin has decreased to 0.85%, reflecting challenges in converting revenue into net income. The EBIT and EBITDA margins have also declined, suggesting pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio increased to 0.67, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. Return on equity has decreased to 4.54%, showing reduced profitability for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has decreased by 25.06%, which could impact future investments and debt repayments. The operating cash flow to net income ratio is 0.33, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.39, showing some level of cash flow efficiency despite the decline.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.59B	3.27B	2.91B	2.67B	2.37B	2.22B
Gross Profit	636.48M	1.80B	1.40B	431.98M	349.22M	391.81M
EBITDA	274.87M	250.87M	306.73M	267.57M	262.98M	254.43M
Net Income	48.77M	27.67M	105.10M	85.64M	97.41M	54.30M
Balance Sheet
Total Assets	2.05B	1.70B	1.61B	1.61B	1.50B	1.41B
Cash, Cash Equivalents and Short-Term Investments	342.44M	265.74M	246.65M	227.58M	219.34M	146.55M
Total Debt	578.64M	411.12M	325.46M	311.92M	285.92M	317.83M
Total Liabilities	1.41B	1.09B	959.70M	995.37M	906.05M	869.46M
Stockholders Equity	641.47M	610.01M	652.56M	610.12M	591.09M	545.12M
Cash Flow
Free Cash Flow	167.68M	97.05M	38.70M	59.70M	81.65M	68.84M
Operating Cash Flow	276.83M	251.47M	233.53M	246.99M	288.00M	147.44M
Investing Cash Flow	-215.26M	-226.30M	-152.28M	-180.57M	-124.75M	-121.68M
Financing Cash Flow	-3.16M	-6.34M	-62.12M	-58.26M	-90.52M	-49.44M

NRW Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NWH, the sentiment is Positive. The current price of 6.3 is above the 20-day moving average (MA) of 5.89, above the 50-day MA of 5.53, and above the 200-day MA of 4.36, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NWH.

NRW Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSM	70 Outperform	AU$1.24B	12.85	12.08%	2.43%	1.65%	84.19%
LYL	67 Neutral	AU$554.30M	7.39	29.67%	2.51%	-3.08%	-16.35%
SRG	66 Neutral	AU$1.74B	17.28	13.62%	1.85%	23.76%	21.18%
MND	65 Neutral	AU$3.23B	10.17	17.57%	2.65%	7.20%	32.60%
NWH	64 Neutral	AU$3.00B	8.10	4.71%	3.20%	12.18%	-73.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGH	59 Neutral	AU$1.74B	12.97	9.26%	1.30%	15.14%	-7.23%

NRW Holdings Limited Corporate Events

NRW’s Golding Secures $750m Mining Services Deal at Meandu Mine

NRW Holdings’ wholly owned subsidiary Golding Contractors has secured a Mining Services Agreement with TEC Coal at the Stanwell Meandu Mine in Queensland’s Burnett Region, a contract worth about $750 million over 5.5 years starting January 2026. The deal covers whole-of-mine management, including operation and maintenance of principal-supplied mining fleets, a dragline and processing plant, as well as statutory responsibilities and mine planning, and is expected to employ around 400 local workers. Structured as a capital-light contract in which TEC Coal supplies the major mining fleet, the agreement supports NRW’s strategy to reduce capital intensity in its mining operations, reinforcing Golding’s reputation for safe, efficient contract mining and bolstering NRW’s long-term revenue visibility and positioning in the Australian mining services market.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$6.20 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Holdings’ Fredon Secures $150M in Data Centre Contracts

NRW Holdings Limited announced that its subsidiary, Fredon, has secured several data centre contracts valued at approximately $150 million. These contracts, which include electrical and mechanical works in Victoria, Brisbane, and New South Wales, reinforce Fredon’s strong position in the Australian data centre market. The contracts are expected to extend Fredon’s involvement in these projects for up to 18 months, highlighting the subsidiary’s capabilities and contributing to NRW’s diversification strategy. Fredon’s CEO, Scott Olsen, and NRW’s CEO, Jules Pemberton, emphasized the significance of these contracts in strengthening Fredon’s market reputation and expanding NRW’s service offerings and market exposure.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$5.95 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

Dimensional Entities Ceases Substantial Holding in NRW Holdings

NRW Holdings Limited has announced that Dimensional Entities has ceased to be a substantial holder in the company as of November 27, 2025. This change in substantial holding reflects a shift in the voting securities and relevant interests previously held by Dimensional Entities, potentially impacting the company’s shareholder dynamics and market perception.

The most recent analyst rating on (AU:NWH) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

Mixed Outcomes at NRW Holdings’ Annual General Meeting

NRW Holdings Limited, during its Annual General Meeting, announced the outcomes of several key resolutions. Notably, the remuneration report and the grant of performance rights for FY26 to Mr. Julian Pemberton were not carried, indicating shareholder dissatisfaction. However, the re-election of directors Mr. Michael Arnett and Mr. Jeffrey Dowling was approved, along with the approval of financial assistance, suggesting a mixed response from stakeholders regarding the company’s governance and strategic decisions.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Holdings Limited Annual General Meeting Highlights

NRW Holdings Limited held its Annual General Meeting on November 27, 2025, providing a presentation that offers a summary of the company’s activities and performance. The presentation emphasized that past performance is not indicative of future results and included disclaimers about the reliability and completeness of the information provided. Stakeholders are advised to consider the inherent risks and uncertainties associated with forward-looking statements and to seek independent advice before making investment decisions.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Holdings Reports Strong FY25 Growth and Strategic Expansion

NRW Holdings Limited reported significant financial growth in FY25, overcoming challenges such as extreme weather in Queensland and issues with OneSteel in South Australia. The acquisition of Fredon Industries has expanded NRW’s capabilities, particularly in the EMIT sector, and positioned the company for future growth in areas like energy transition and infrastructure investments. The company’s market capitalization increased by 63% since June 2024, reflecting its strong performance and strategic acquisitions, which have led to record dividends and a top 10 ranking among ASX 200 stocks over the past decade.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Holdings Reports Strong FY25 Results Amid Challenges

NRW Holdings Limited reported strong financial results for FY25, with revenue and earnings growth despite challenges such as legislative changes in South Australia and adverse weather in Queensland. The company faced a significant financial setback due to the South Australian government’s legislative intervention, resulting in a $110.5 million impairment related to OneSteel Manufacturing debt. Despite this, NRW maintained its dividend and cash flow stability, showcasing the resilience of its diversified business model. The company also emphasized its commitment to safety, ESG initiatives, and stakeholder engagement, while announcing board changes and welcoming new team members.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.