PWR Holdings Ltd. (AU:PWH)
ASX:PWH
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PWR Holdings
(Sydney:PWH)
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Rating:51Neutral
Price Target:
AU$9.00
▲(10.43% Upside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by the weaker FY2025 financial profile (sharp margin compression, higher leverage trend, and negative free cash flow) and a relatively expensive valuation (high P/E with low yield). These are partially offset by constructive earnings-call signals around renewed growth and a longer-dated margin recovery path, while technicals are mixed-to-soft near term.
Positive Factors
High gross margins (~80%)
Maintaining gross margins near 80% signals structural product differentiation and pricing power from specialized cooling solutions. Such high gross margins provide a durable buffer against cyclical demand swings, enabling reinvestment in R&D and capacity while supporting long-term margin recovery as volumes scale.
Negative Factors
Sharp FY2025 margin compression
A large, rapid fall in net margin cuts return on capital and signals near-term margin pressure from higher fixed costs and mix shifts. Even if temporary, such a reset reduces headroom for investment and increases sensitivity to demand shocks, making multi-year margin recovery necessary to restore prior profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins (~80%)
Maintaining gross margins near 80% signals structural product differentiation and pricing power from specialized cooling solutions. Such high gross margins provide a durable buffer against cyclical demand swings, enabling reinvestment in R&D and capacity while supporting long-term margin recovery as volumes scale.
Read all positive factors
PWR Holdings (PWH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$877.01M
Dividend Yield0.53%
Average Volume (3M)150.17K
Price to Earnings (P/E)34.9
Beta (1Y)1.19
Revenue Growth-6.67%
EPS Growth-60.67%
CountryAU
Employees578
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.06
Shares Outstanding100,574,120
10 Day Avg. Volume174,568
30 Day Avg. Volume150,166
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)6.90
Price to Sales (P/S)5.36
P/FCF Ratio-45.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.11Price Target Upside24.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.16
Revenue Forecast (FY)AU$166.60M
PWR Holdings Business Overview & Revenue Model
Company Description
PWR Holdings (PWH) is a diversified company focused on providing innovative solutions across various sectors, including energy, infrastructure, and technology. The company specializes in delivering high-quality products and services that enhance o...
PWR Holdings Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call highlights strong top-line momentum and program wins—notably ~28% group revenue growth, ~38% NPAT growth, 40% motorsports expansion and >30% A&D growth—supported by successful completion of the Stapylton facility and key accreditations. These operational and commercial strengths are balanced against transitional costs, a step-up in fixed costs tied to the new facility, negative free cash flow in the half, working capital build, wage inflation and some near-term margin compression. Management expects these are temporary impacts and outlines a clear pathway to improved operating leverage and margin recovery as volumes scale.Positive Updates
Strong Group Revenue Growth
Group revenue increased almost 28% year-on-year, driven by stronger Q2 execution after the factory transition removed operational disruption.
Negative Updates
Transition-Related One-Off and Operating Costs
One-off relocation costs of $0.8 million and additional temporary energy costs from running on generators in Q1; CEO transition and other one-offs also recognized in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Group Revenue Growth
Group revenue increased almost 28% year-on-year, driven by stronger Q2 execution after the factory transition removed operational disruption.
Read all positive updates
Company Guidance
The company guided to a modest statutory NPAT margin improvement in FY26 (low single‑digit on an FY25 underlying base of ~9.5%) with a pathway to recover to FY24 margin levels over 3–5 years; sector guidance was motorsports “strong but moderating” in H2 with FY27 expected in line with elevated FY26, A&D expected to be broadly even H1/H2 (FY27 to be supported by a follow‑on US government order of USD 9.1m delivering across Q4 FY26 into FY27), OEM activity rebuilding (37 programs tracked FY26–28; current FY programs ~+54% vs PCP), and muted aftermarket growth as the mix is reshaped. Key H1 metrics underpinning that outlook included group revenue ~+28% (motorsports +40%, A&D +31%), NPAT +38–39% to $5.7m, rolling 12‑month cash conversion >100%, working capital up $2.5m since June 2025, negative free cash flow in the period, net debt $13.4m (cash $10.6m; undrawn facilities $18.5m), H1 CapEx $12.7m with FY26 CapEx guidance ~$22.5m (including a $2.0m substation), incremental factory‑related costs of ~$5.5m, one‑off relocation costs $0.8m, AASB16 lease front‑loading adding ~$2.2m p.a., additional depreciation ~$1.2m p.a. and occupancy ~$1.1m p.a., average headcount ~+5% vs PCP with wage inflation ~5.5–7% (AU/US) and ~2% (UK), CMMC costs largely H2 (~75%), and a fully franked interim dividend of $0.03 per share (53% payout) payable March 2026.PWR Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 147.58M | 130.10M | 139.39M | 118.33M | 101.07M | 79.21M |
| Gross Profit | 31.75M | 102.51M | 111.51M | 38.91M | 34.10M | 24.52M |
| EBITDA | 28.21M | 26.13M | 45.56M | 39.25M | 35.92M | 28.63M |
| Net Income | 11.34M | 9.77M | 24.80M | 21.75M | 20.84M | 16.80M |
Balance Sheet | ||||||
| Total Assets | 212.67M | 189.05M | 139.42M | 123.16M | 98.53M | 90.77M |
| Cash, Cash Equivalents and Short-Term Investments | 10.64M | 4.45M | 21.66M | 17.63M | 21.50M | 19.86M |
| Total Debt | 120.01M | 61.10M | 15.87M | 18.29M | 6.74M | 8.46M |
| Total Liabilities | 106.77M | 88.11M | 39.13M | 34.69M | 22.13M | 26.81M |
| Stockholders Equity | 105.90M | 100.94M | 100.29M | 88.47M | 76.40M | 63.96M |
Cash Flow | ||||||
| Free Cash Flow | -12.57M | -15.34M | 20.56M | 12.80M | 12.04M | 16.07M |
| Operating Cash Flow | 26.56M | 25.23M | 32.85M | 27.85M | 17.06M | 26.43M |
| Investing Cash Flow | -39.13M | -40.26M | -11.80M | -17.05M | -3.87M | -10.31M |
| Financing Cash Flow | 11.65M | -2.18M | -17.02M | -14.64M | -11.54M | -17.22M |
PWR Holdings Technical Analysis
Negative
8.15
Price Trends
9.37
Negative
8.75
Positive
8.25
Positive
Market Momentum
-0.08
Positive
42.58
Neutral
69.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PWH, the sentiment is Negative. The current price of 8.15 is below the 20-day moving average (MA) of 9.43, below the 50-day MA of 9.37, and below the 200-day MA of 8.25, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 69.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PWH.
PWR Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | AU$1.71B | 15.53 | 13.51% | 2.10% | 5.31% | -5.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | AU$240.74M | -101.48 | -4.58% | ― | 13.54% | 66.33% | |
57 Neutral | AU$47.76M | 19.91 | 17.94% | ― | 25.15% | 2.22% | |
51 Neutral | AU$877.01M | 34.87 | 10.97% | 0.53% | -6.67% | -60.67% | |
42 Neutral | AU$48.45M | -8.74 | 126.86% | ― | -27.79% | 32.50% | |
42 Neutral | AU$27.67M | -1.00 | -13.84% | ― | 0.89% | -2641.38% |
* Consumer Cyclical Sector Average
AU:PWH
PWR Holdings
8.72
1.93
28.39%
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PWR Holdings Corporate Events
State Street Entities Exit Substantial Holder Position in PWR Holdings
Mar 17, 2026
State Street Global Advisors, Australia, Limited and related State Street Corporation subsidiaries have lodged a notice that they have ceased to be substantial holders in PWR Holdings Limited as of 13 March 2026. The change reflects a reduction in...
State Street Group Ceases to Be Substantial Holder in PWR Holdings
Mar 13, 2026
State Street Corporation, through several asset management and trustee subsidiaries, has filed a notice that it has ceased to be a substantial shareholder in PWR Holdings. The change reduces a major institutional investor’s voting influence ...
PWR Holdings Revamps Governance Team With New Company Secretary
Mar 8, 2026
PWR Holdings has announced a change in its company secretariat, appointing senior corporate lawyer Carla Alviano as General Counsel and Company Secretary effective 15 June 2026. The move brings more than two decades of legal and governance experie...
PWR Holdings Records Cessation and Final Interests of Director Kristen Podagiel
Mar 3, 2026
PWR Holdings has disclosed that director Kristen Lee Podagiel ceased to be a director of the company on 2 March 2026, with the notice lodged under ASX listing rule 3.19A.3. The filing records that Podagiel holds 20,341 fully paid ordinary shares i...
PWR Holdings Reshapes Board Following Lead Independent Director’s Resignation
Mar 2, 2026
PWR Holdings has announced the resignation of Kristen Podagiel as Lead Independent and Non-Executive Director, effective 2 March 2026, ending a tenure that included roles as Acting Non-Executive Chairman and Chair of the Nomination and Remuneratio...
PWR Holdings Adjusts Capital Structure as 5,901 Performance Rights Cease
Feb 26, 2026
PWR Holdings Limited has notified the market of the cessation of 5,901 performance rights, classified under the ASX security code PWHAA, effective 9 December 2025. The change, disclosed in an Appendix 3H filing, reflects an adjustment to the compa...
PWR Holdings Names Seasoned Finance Executive Robert Shore as New CFO
Feb 5, 2026
PWR Holdings has appointed experienced finance executive Robert Shore as its new Chief Financial Officer, effective 21 April 2026, aligning the leadership transition with the incoming Managing Director and CEO, Sharyn Williams. Shore, a chartered ...
PWR Holdings Sets Date for Release of H1 FY2026 Results
Feb 3, 2026
PWR Holdings has announced it will release its half-year results for the 2026 financial year after the market close on Thursday, 19 February 2026. The company will follow the release with an analyst briefing on 20 February, to be hosted via webcas...
JPMorgan Chase Ceases to Be Substantial Shareholder in PWR Holdings
Jan 14, 2026
JPMorgan Chase Co. and its affiliates have notified PWR Holdings that they have ceased to be a substantial shareholder in the company, following changes in their relevant interests in PWR’s ordinary shares through securities lending and pro...
PWR Wins US$9.1m Follow-On US Defence Cooling Contract
Jan 11, 2026
PWR Holdings has secured a US$9.1 million follow-on contract to supply advanced cooling solutions for a US government aerospace and defence project, building on an initial US$5.5 million order awarded in January 2025. The new deal, with deliveries...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.