PWR invests in the future, reaps a profit dip

Automotive, aerospace and defence manufacturer PWR Holdings expects H1 FY25 net profit after tax to be between $3.2 million and $3.7 million, below the NPAT of $9.8 million achieved in the first half of FY24.

The profit figure includes expenses incurred with PWR’s new $22 million headquarters at Stapylton on the Gold Coast which opened in October 2023.

The company now expects lower revenue in two of its markets.

The OEM business manufacturing for the electric vehicle market is experiencing unpredictability, with three niche EV programmes not proceeding in FY25, despite PWR receiving purchase orders for the work programmes, and the aftermarket has been impacted by global economic pressures.

The company’s core motorsports market expects Formula 1 regulation changes to drive revenue growth in H2 FY25.

The company’s aerospace and defence sector is expected to grow revenue by 67 percent compared to the previous corresponding half year.

PWR Managing Director Kees Weel said: “We are reducing our cost base to be more aligned to the current trading environment while balancing the opportunities we are pursuing in our aerospace and defence business, which continues to give us confidence in this market.

“FY25 will be a transition year for PWR which we believe in crucial to successfully positioning the business for future growth as we move to our new headquarters at Stapylton.

“The investments in aerospace and defence capability, factory space, equipment and systems are necessary to prepare PWR to deliver on our medium and long term growth objectives, and is consistent with our approach to invest now and collect later.”

Further reading:
PWR to invest $22 million in expansion, open new factory

Picture: PWR Holdings/PWR 3D prints heat exchangers with complex geometries to fit into tight spaces aboard F1 cars and defence drones