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.