NRW Holdings Limited (NWH) AI Stock Analysis

• Market Cap: AU$2.68B
• Dividend Yield: 3.2%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.44
• 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$6.64
• Price Target Upside: 13.65% 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$6.00 ▲(2.74% 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

Diversified contracting model

NRW’s mix of engineering, construction, civil and mining services creates multiple revenue channels and repeat-client opportunities. That breadth reduces reliance on a single commodity or contract type, supporting resilience and steadier revenue across mining and infrastructure cycles.

Improved gross margin

A materially higher gross margin signals better cost control or stronger contract pricing. Structurally, this provides a cushion against project overruns, supports healthier gross cash generation, and improves the company’s ability to fund operations and bid competitively over the medium term.

Stable equity ratio

A stable equity ratio indicates a balanced mix of assets and financing, which supports operational continuity and capacity to fund multi-month projects. It reduces dilution risk and, alongside available debt capacity, helps the firm mobilise capital for contract delivery without excessive structural imbalance.

Negative Factors

Thin net profitability

Net margin near 1% shows limited ability to convert revenue into retained earnings. Persistently thin profitability constrains internal reinvestment, reduces resilience to cost shocks or contract disputes, and leaves little buffer if project timings slip or pricing weakens over coming quarters.

Weakened free cash flow

A ~25% drop in free cash flow reduces internal funding for working capital, capex and debt servicing. Structurally weaker FCF heightens dependence on external financing, limits flexibility in allocating capital to growth contracts, and raises refinancing or liquidity risk over the medium term.

Rising leverage

Higher debt-to-equity increases interest and covenant exposure and narrows financial flexibility. With low net margins and reduced ROE, greater leverage magnifies downside risk if project cash flows soften or client capital spending slows, making funding and bidding more constrained.

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: Neutral
• Last Price: 5.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 5.84 is below the 20-day moving average (MA) of 6.05, above the 50-day MA of 5.61, and above the 200-day MA of 4.44, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 24.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.19B	12.85	12.08%	2.43%	1.65%	84.19%
LYL	67 Neutral	AU$562.19M	7.39	29.67%	2.51%	-3.08%	-16.35%
SRG	66 Neutral	AU$1.68B	17.28	13.62%	1.85%	23.76%	21.18%
MND	65 Neutral	AU$2.76B	10.17	20.27%	2.65%	7.20%	32.60%
NWH	64 Neutral	AU$2.68B	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$1.82B	12.97	9.26%	1.30%	15.14%	-7.23%

NRW Holdings Limited Corporate Events

Mitsubishi UFJ Exits Substantial Holder Position in NRW Holdings

Mitsubishi UFJ Financial Group, Inc. has filed a notice stating it has ceased to be a substantial shareholder in NRW Holdings Limited, following a series of transactions in NRW’s fully paid ordinary shares. The changes in relevant interests, dated primarily 15 December 2025 and involving entities controlled by First Sentier Group Limited and Morgan Stanley, reflect a reallocation of holdings that reduces Mitsubishi UFJ’s influence over NRW’s voting stock.

While the detailed annexure lists numerous relatively small share purchases by associated entities, the cumulative effect is that Mitsubishi UFJ’s position has fallen below the substantial holding threshold under Australian law. For NRW investors, the shift signals a change in the company’s institutional shareholder mix, though the notice does not indicate any direct impact on operations or strategic direction beyond this ownership realignment.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$6.85 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Director Michael Arnett Sells Half of Indirect Shareholding

NRW Holdings has disclosed a change in the relevant interests of director Michael Norman Arnett, lodged under ASX listing rule requirements. The notice records that Arnett, through his indirect interest via the Carmich Super Fund, has reduced his holding in NRW Holdings by selling part of his stake in an on-market transaction.

The director disposed of 300,000 fully paid ordinary shares for proceeds of about $1.94 million, cutting his indirect holding from 600,000 to 300,000 shares. This transaction updates the market on board-level share ownership and may be monitored by investors as an indicator of insider sentiment and governance transparency, although no change in contracts or board roles was reported.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$6.85 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

Mitsubishi UFJ Group Ceases to Be Substantial Holder in NRW Holdings

Mitsubishi UFJ Financial Group, through its related investment entities under the First Sentier Investors umbrella, has lodged a notice that it has ceased to be a substantial shareholder of NRW Holdings Limited as of 25 February 2026. The change indicates that this major institutional investor has reduced its holding below the substantial shareholding threshold, potentially altering NRW Holdings’ institutional investor base and slightly shifting the company’s ownership profile, though no transaction details were disclosed.

The notice lists a wide network of associated entities across multiple jurisdictions, reflecting the complex global structure behind the former substantial holding. While the filing is largely administrative, it signals a reallocation of capital by a significant global financial group, which may marginally affect market perceptions of NRW Holdings’ stock without immediately changing its operational outlook.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$6.85 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

NRW Holdings Director Fiona Murdoch Cuts Indirect Shareholding

NRW Holdings has disclosed a change in director Fiona Jane Murdoch’s indirect interest in the company’s fully paid ordinary shares. The notice to the ASX details that Murdoch, through Verrierdale Investments Pty Ltd as trustee for the Brush Box Super Fund account, has significantly reduced her holding via an on-market trade.

According to the filing, Murdoch disposed of 37,400 shares on 20 February 2026 for total consideration of $229,012.24, leaving her with a remaining interest of 2,000 shares. The transaction, which occurred outside a closed trading period, signals a sizeable sell-down by the director but does not alter any contractual interests with the company.

The most recent analyst rating on (AU:NWH) stock is a Buy with a A$6.85 price target. To see the full list of analyst forecasts on NRW Holdings Limited stock, see the AU:NWH Stock Forecast page.

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.