Forum Topics PWH PWH ASX Announcements

Pinned straw:

Added a month ago

PWR just announced a follow-on contract in the "Aerospace and Defence" sector, relating to a US government project.

The market clearly likes it, up 8% today. Seems a reasonable response given that PWR had $130m AU total FY25 revenue, of which their mature automotive sector contributed $70m vs A&D $26 million (but rapidly growing).

This announcement is evidence that their strategy of leveraging their expertise in motorsport to expand into Aerospace and Defense is working.

AI summary follows:


Key Financial & Operational Details

  • Contract Value: The order is valued at US$9.1 million (approximately A$13.5 million).


  • Revenue Recognition: Deliveries under this contract are expected to occur predominantly in FY 2027.


  • Strategic Growth: This is a follow-on order from an initial US$5.5 million contract announced in January 2025. It signals the project's progression toward full-rate production.


  • Long-term Outlook: The underlying US government project is scheduled to span multiple years, providing a potential pipeline of future demand subject to US fiscal funding and PWR’s performance.


​Management Commentary

​Acting CEO Matthew Bryson noted that this second phase demonstrates PWR’s ability to execute reliably on complex projects and adapt to evolving program requirements, further cementing their reputation in the Aerospace and Defence markets. 

Goldfish
Added a month ago

I ended up doing a thesis review, following this announcement.

Really fascinating company, worth following IMO even if you decide against investing.

Very brief summary, for anyone not familiar:

PWH have a core business making high end, bespoke cooling products for the automotive sector. They must be doing something right, because somehow they have managed to gain a monopoly in Formula One. So they supply cutting edge cooling systems to EVERY F1 Team. And are apparently deeply embedded in the design process, so very hard to displace. Super impressive that a small Australian company was able to achieve that.

Over the last several years, they have pivoted into Aerospace and Defense. There have been some speed bumps, including cancellation of some OEM contracts (they also provide cooling solutions to some high-end consumer car companies), delays in completing their new, expanded factory, and the drawn out process of getting approvals and contracts in the A&D sector.

But there are signs (eg today's announcement) that it is all coming together.

PWH doesn't screen as cheap by any means. But it perhaps fits the "quality at a reasonable price" category.

I own a moderate-sized (around 5%) position IRL and am happily holding

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Karmast
Added a month ago

Yes this was good news @Goldfish

There is an emerging risk for PWR Holdings I am following, re short interest, that I have posted about in the forum under PWH Risks here - https://strawman.com/forums/topic/11762

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