This article first appeared on GuruFocus .
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Revenue:Record revenue of $171 million, up 31% year-over-year.
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Statutory NPAT:Increased 83% to $17.9 million.
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NPAT Margin:Improved to 10.5%, up 3 percentage points.
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EBITDA:$40.7 million, with margin up 4.2 percentage points to 23.8%.
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Dividend:Full-year fully franked dividend of $0.08 per share, double the prior year.
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Motorsports Revenue:Record revenue of $102 million, up 45% year-over-year.
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A&D Revenue:Record revenue of $35 million, up 31% year-over-year.
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OEM Revenue:$14.6 million for FY26.
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Aftermarket Revenue:Broadly stable at $16 million.
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Operating Cash Conversion:Strong at 104.9% of EBITDA.
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Free Cash Flow:Positive $10.6 million, a $25.6 million turnaround from FY25.
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Net Debt:Minimal at $5.6 million, with gearing at 4.7%.
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CapEx:Net $22.7 million, down from a peak of $40.6 million in the prior year.
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Order Book:Record order book of more than $82 million entering FY27, with A&D order book at $40 million.
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Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record revenue of $171 million, up 31%, driven by strong growth in Motorsports and A&D segments.
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Statutory NPAT increased 83% to $17.9 million, with NPAT margin improving by 3 percentage points to 10.5%.
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Record order book of over $82 million entering FY27, with half from A&D, providing strong revenue visibility.
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Successful completion of the Stapylton facility transition, enabling record Australian revenue and operational efficiency.
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Expansion into high-temperature materials (Inconel, stainless steel, nickel) opens new market opportunities in aerospace and defense.
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Strong cash conversion (104.9% of EBITDA) and positive free cash flow of $10.6 million, enabling rapid deleveraging.
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Full year dividend doubled to $0.08 per share, reflecting confidence in earnings and shareholder returns.
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A&D order book grew to $40 million with a book-to-bill ratio of 144%, indicating strong future demand.
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New Poland facility investment positions PWR to capture European A&D opportunities with a phased, low-risk approach.
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Motorsports revenue reset to a higher structural baseline, supported by F1 regulation changes and increased content per car.
Negative Points
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Currency headwinds, particularly USD, negatively impacted revenue by $3.4 million in FY26 and are expected to continue in FY27.
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One-off factory relocation costs of $800,000 and higher occupancy expenses weighed on profitability.
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Labor market tightness and wage inflation (approximately 4% globally) continue to pressure costs.
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Aftermarket revenue remained flat at $16 million due to deliberate SKU rationalization, trading growth for margin quality.
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OEM revenue declined in the second half due to program timing, with growth dependent on new program launches.
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The new Poland facility will incur start-up costs, reducing FY27 statutory NPAT by less than $1 million.
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A&D revenue growth is expected to moderate to around 30% in FY27, with timing of orders subject to customer schedules.
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The company faces ongoing supply chain uncertainties, leading to higher inventory levels and raw material costs.
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NPAT margin recovery to FY24 levels (17.8%) is expected to take until FY28-FY30, indicating a gradual improvement path.
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The A&D pipeline conversion is lengthy (18 months to 3 years), with risks of program delays or budget changes.
Q & A Highlights
Q: Can you provide comparable order book numbers for A&D from 12 months ago, and how should we interpret the current $40 million order book? A: Sharyn Williams (CEO and Managing Director): The A&D order book 12 months ago was in the "20s" (i.e., approximately $20-25 million). The current order book of approximately $40 million for delivery in FY27 is a "really solid result" and an "outstanding result for the team," especially considering the FX headwinds. This provides strong opening revenue visibility for FY27.
Q: Regarding the new Poland facility, is it mainly targeted at European aerospace and defense, and does it mean you will target more European A&D opportunities in FY27? A: Sharyn Williams (CEO and Managing Director): Yes, the facility is mainly targeted at the European aerospace and defense opportunity. PWR began initial discussions in FY26 but found that "you really need a ticket to play to be in that space." The UK facility did not have the floor space to service this opportunity, and Poland was the standout choice due to its location, access to skilled trades, and supportive industrial environment. The investment is phased, with approximately $4 million committed in FY27 and a total of approximately $16 million over four years.
Q: On the A&D order book, are there any tenders or projects within the $40 million that won't be delivered in full in FY27? A: Robert Shore (CFO): No, the $40 million order book is for delivery in FY27, subject to customer shipment timing. Sharyn Williams (CEO and Managing Director) added that these are all purchase orders already in hand.
Q: Can you give a breakdown of the $40 million A&D order book across defense, MRO, or eVTOL, and what is the current mix between US and Europe in the defense pipeline? A: Sharyn Williams (CEO and Managing Director): The five opportunities outlined in the presentation are all defense opportunities. The "huge majority" of current A&D revenue is from the US, with "very minimal" European revenue. Robert Shore (CFO) added that the bulk of the $40 million order book sits in defense, but it includes programs across the whole range of A&D segment services.
Q: Regarding the three US government contracts at best and final offer stage, have you ever reached that stage and not won the contract? A: Sharyn Williams (CEO and Managing Director): PWR has a "fairly solid conversion rate" once reaching the best and final offer stage, although outcomes are always subject to factors like budget releases. There have been instances where customers pivoted or had budget calls, so while the conversion rate is good, it is not guaranteed.
Q: On the initial US defense contract, the follow-on order has been upsized to USD11.9 million. How much extra scope is there for further upside? A: Sharyn Williams (CEO and Managing Director): The upside reflects the customer bringing forward volume from the following year. While these are multiyear contracts, there are opportunities for customers to redesign, so PWR focuses on delivering on what is within its control. Once a purchase order is in hand, it is considered locked in.
Q: On Slide 27, the indicative recovery of NPAT margin shows the upper bound scenario getting back to 18% in FY28. What revenue is assumed in that scenario? A: Robert Shore (CFO): The chart on the right is an illustrative pathway back to the 17.8% margin guided previously over the medium term (FY28 to FY30). No further specific revenue guidance for FY28 has been provided at this stage.
Q: For the three best and final offer opportunities, when are the expected results? A: Sharyn Williams (CEO and Managing Director): These are lengthy processes, typically taking anywhere from 6 to 12 months. PWR is efficient in responding, but the customer side can have more lengthy approval processes.
Q: Last year, the A&D order book was $25 million and you did $35 million of revenue. This year, the order book is $40 million. Should we expect $50 million plus revenue in A&D in FY27? A: Sharyn Williams (CEO and Managing Director): PWR has guided to 30% growth for FY27, which takes into account FX headwinds and customer delivery schedules. The 30% growth rate delivered over the last few years is considered a reasonable level to guide the market to, combining the order book in hand with the pipeline.
Q: Will Poland replicate the product offering across the group, or will it specialize in niche products? A: Sharyn Williams (CEO and Managing Director): Over the four-year rollout, Poland will replicate a number of capabilities to support the aerospace and defense product line. It will start with niche products and in-sourcing items used across global locations, leveraging logistics, before expanding and replicating capabilities.
Q: Is the $16 million CapEx investment in Poland likely to be spread evenly over the next four years, keeping total CapEx around $15 million per annum? A: Robert Shore (CFO): Yes, that is a fair assumption, with approximately $4 million per annum. However, it will depend on the timing of demand and where capacity and capability are needed. The only data points provided are $16 million for the overall project and $4 million in FY27.
Q: You talked to a recovery of margin to 18%. Is there not scope to get back to 19% or 20% plus given the significant investment in factory facilities and scale? A: Sharyn Williams (CEO and Managing Director): While 20% NPAT margin is an aspirational number, the scale of the business, support structures, accreditations, compliance, and quality systems needed mean PWR would be "very happy" getting back to the FY24 levels of 17.8% as indicated.
Q: Do you continue to think A&D revenue can exceed Motorsports revenue over the medium term? A: Sharyn Williams (CEO and Managing Director): Yes, PWR continues to believe A&D can exceed Motorsports revenue. The global A&D opportunity is large, and PWR's market share is small,
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
