WestStar Industrial Ltd. (WSI) AI Stock Analysis

• Market Cap: AU$10.69M
• Dividend Yield: N/A
• Average Volume (3M): 767.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -36.40%
• EPS Growth: -192.91%
• Country: AU
• Employees: 650
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 128,765,240
• 10 Day Avg. Volume: 288,855
• 30 Day Avg. Volume: 767,174
• PEG Ratio: 0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.79
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.08 ▼(-8.89% Downside)

WestStar Industrial Ltd. faces significant financial challenges, with declining revenues and negative profitability metrics being the most impactful factors. Technical analysis shows a neutral to slightly bearish trend, while valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Manageable leverage

A low debt-to-equity ratio of ~0.23 gives the company durable financial flexibility, lowering interest burden and refinancing risk. This helps absorb operational shocks, preserve liquidity for restructuring or investment, and supports longer-term recovery efforts despite weak earnings.

Stable gross profit margin

A stable gross margin around 14.5% indicates the company retains underlying product/service margin resilience. If management can control operating expenses, stable COGS supports sustainable recovery of operating profits and makes incremental revenue improvements more accretive to long-term profitability.

Operational scale and workforce

A workforce of ~650 implies meaningful operational capacity and project delivery capability in engineering & construction. This durable resource base supports bidding for larger contracts, preserves institutional know-how, and provides a foundation to scale revenue if market demand recovers over several months.

Negative Factors

Sustained revenue decline

Material revenue contraction (-24.4% in 2025) is structurally harmful: it reduces fixed cost absorption, weakens competitive positioning, and erodes economies of scale. Persisting declines make restoring margins and funding capital needs harder without strategic revenue stabilization measures.

Negative operating cash flow

Negative operating cash flow and reliance on non-operational receipts indicate cash generation from core operations is insufficient. This is a durable liquidity strain that constrains capex, working capital and debt service, increasing the likelihood of asset sales, financing needs, or covenant pressure.

Negative returns and equity erosion

Negative ROE and declining shareholders' equity signal the business is not generating returns above its cost of capital and is eroding capital base. Over months this weakens solvency metrics, limits access to capital markets, and can force restructuring or dilution to restore financial stability.

WestStar Industrial Ltd. Business Overview & Revenue Model

Company Description

WestStar Industrial Limited, an industrial services company, provides engineering, construction, and mining services to resource, energy, and infrastructure sectors in Australia. The company operates through SIMPEC and Alltype segments. Its services include structural mechanical piping, and electrical and instrumentation; precast concrete and structural steel supply and installation; and asset management services. The company also provides construction contracting, fabrication, and mineral exploration services. WestStar Industrial Limited was incorporated in 2006 and is based in Naval Base, Australia.

How the Company Makes Money

WestStar Industrial Ltd. generates revenue through multiple streams including service contracts in project management and engineering, fabrication services for various industrial components, and ongoing maintenance contracts with key clients in the oil and gas, mining, and infrastructure sectors. The company often engages in long-term partnerships with major industry players, which provides a steady flow of income. Additionally, WSI benefits from cost-plus contracts and fixed-price agreements that ensure profitability while managing risks associated with project execution.

WestStar Industrial Ltd. Financial Statement Overview

Summary

WestStar Industrial Ltd. is facing significant financial challenges, with declining revenues and negative profitability metrics. The balance sheet shows moderate leverage, but the negative return on equity is a concern. Cash flow issues persist, with negative operating cash flow and reliance on non-operational cash flows. The company needs to address these issues to improve its financial health and stability.

Income Statement

WestStar Industrial Ltd. has experienced a significant decline in revenue over the past year, with a revenue growth rate of -24.4% in 2025. The company also reported negative EBIT and EBITDA margins, indicating operational challenges. The gross profit margin remains relatively stable at 14.5%, but the net profit margin is negative, reflecting overall profitability issues.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.23, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the overall balance sheet shows a decrease in stockholders' equity, which could be a concern for financial stability.

Cash Flow

WestStar Industrial Ltd. has a negative operating cash flow, which is concerning for liquidity. The free cash flow growth rate is positive, but the free cash flow to net income ratio is above 1, indicating reliance on non-operational cash flows. The operating cash flow to net income ratio is negative, further highlighting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	130.76M	130.76M	205.60M	304.28M	181.80M	71.76M
Gross Profit	18.94M	18.94M	24.63M	16.82M	18.19M	8.84M
EBITDA	-3.14M	-3.14M	7.72M	5.85M	8.58M	2.68M
Net Income	-3.41M	-3.41M	3.29M	1.76M	4.31M	837.48K
Balance Sheet
Total Assets	55.15M	55.15M	73.27M	79.06M	63.06M	46.90M
Cash, Cash Equivalents and Short-Term Investments	7.16M	7.16M	13.68M	16.95M	22.42M	15.35M
Total Debt	6.29M	6.29M	3.65M	1.93M	2.63M	3.86M
Total Liabilities	27.33M	27.33M	43.28M	53.47M	39.41M	32.06M
Stockholders Equity	27.83M	27.83M	29.98M	25.59M	23.65M	14.83M
Cash Flow
Free Cash Flow	-9.53M	-9.53M	-327.96K	-6.26M	5.36M	9.88M
Operating Cash Flow	-8.85M	-8.85M	510.53K	-5.23M	6.99M	10.14M
Investing Cash Flow	1.82M	1.82M	-2.04M	1.04M	-3.41M	-3.07M
Financing Cash Flow	515.00K	515.00K	-911.90K	0.00	3.58M	-562.66K

WestStar Industrial Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WSI, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of -22.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WSI.

WestStar Industrial Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSA	70 Outperform	AU$12.05M	3.18	87.22%	―	12.34%	-66.13%
EVZ	67 Neutral	AU$31.59M	25.49	3.66%	―	-9.21%	-42.37%
VBC	65 Neutral	AU$63.89M	17.05	17.38%	0.49%	-8.28%	89.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PKD	54 Neutral	AU$5.25M	-52.86	-599.49%	―	254.91%	75.86%
WSI	48 Neutral	AU$10.69M	-3.02	-11.81%	―	-36.40%	-192.91%
SOP	44 Neutral	AU$12.46M	-1.63	-90.66%	―	-6.10%	12.50%

WestStar Industrial Ltd. Corporate Events

WestStar’s SIMPEC Wins $20m McArthur River Mine Filtration Plant Contract

WestStar Industrial’s wholly owned subsidiary SIMPEC has secured a new construction contract worth approximately $20 million to deliver structural, mechanical, piping, electrical and instrumentation works for a new Filtration Plant at Glencore’s McArthur River Mine in the Northern Territory. The project, which starts immediately and is scheduled for completion in the fourth quarter of 2026, includes modifications to existing infrastructure and installation of the new plant and associated services, reinforcing SIMPEC’s capability in executing complex SMPE&I projects and advancing WestStar’s strategy to expand its national footprint and deepen its presence in Australia’s resources sector.

The most recent analyst rating on (AU:WSI) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on WestStar Industrial Ltd. stock, see the AU:WSI Stock Forecast page.

WestStar’s SIMPEC Wins $11m Lithium Plant Contract at Kwinana

WestStar Industrial’s wholly owned subsidiary SIMPEC has secured an approximately $11 million contract to deliver structural, mechanical and piping works for Tianqi Lithium Energy Australia’s lithium hydroxide processing plant at Kwinana, Western Australia. The project, which starts immediately and is due for completion in the second quarter of 2026, involves integrating new mechanical equipment into the existing facility and reinforces SIMPEC’s strategy of supporting Australia’s energy transition while deepening WestStar’s foothold in the rapidly expanding lithium processing and battery materials supply chain.

The most recent analyst rating on (AU:WSI) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on WestStar Industrial Ltd. stock, see the AU:WSI Stock Forecast page.

WestStar Industrial’s 2025 AGM Resolutions Passed Successfully

WestStar Industrial Limited announced the successful passing of resolutions at its 2025 Annual General Meeting, including the adoption of the Remuneration Report and the re-election of Director Mr. Philip Re. The resolutions were passed by a significant majority, indicating strong shareholder support and potentially reinforcing the company’s governance and strategic direction.

WestStar’s Alltype Engineering Secures $40M in New Contracts

Alltype Engineering, a subsidiary of WestStar Industrial Limited, has secured contracts worth approximately $40 million across multiple industries and locations, including a major gas compression and processing facility in the Beetaloo Basin. These contracts ensure a steady workflow and cashflow for Alltype Engineering, enhancing its reputation as a reliable contractor for complex projects in remote areas, and aligning with its strategy to maintain diverse industry exposure.