NRW Holdings (ASX: NRW) posted a 31.4% year-over-year increase in revenue to $4.3 billion for the 2026 fiscal year, as the company highlighted contributions from its $154.4 million acquisition of Fredon, completed in the first half of the year.
Underlying earnings before interest, tax, depreciation and amortisation (EBITA) rose 38.8% to $288.6 million, while underlying net profit after tax climbed 43.6% to $182.7 million. Statutory net profit surged 454.3% to $153.4 million, reflecting a $142.1 million charge in FY25 that was absent this year. Earnings per share increased 42.9% to 39.8 cents.
The board approved a final dividend of 14.5 cents per share, fully franked, up 53% from FY25. Operating cash conversion reached 93.8%, with year-end cash holdings at $319.7 million. Proforma liquidity as of July 31 stood at $718 million, including $398.3 million in undrawn corporate debt facilities, after NRW expanded its refinancing package in July.
Net debt rose to $265.8 million from $145.4 million, primarily due to the Fredon acquisition. Leverage, excluding AASB 16 lease liabilities, stood at 0.37 times underlying EBITDA. Total committed bank facilities now total $700 million, comprising a $500 million three-year revolving facility, a $150 million four-year facility and a $50 million working capital line, with an additional $100 million uncommitted accordion facility.
Fredon contributed $684.3 million in revenue and $36.1 million in underlying EBITA in its first nine months under NRW ownership, delivering a 5.3% margin. The business secured four data center projects worth about $150 million and a $110 million electrical works package for a major Commonwealth infrastructure project in northern Australia.
Segment performance showed broad strength. The Mining segment reported flat revenue of $1.54 billion but saw underlying EBITA rise 15.6% to $139.9 million, with margins expanding to 9.1% from 7.9%. The Minerals, Energy & Technologies segment grew revenue 35.1% to $1.26 billion, with underlying EBITA up 40.5% to $96 million. The Electrical, Mechanical, Infrastructure and Technology segment, including Fredon, posted $684.3 million in revenue and $36.1 million in underlying EBITA.
NRW’s order book totalled $7.5 billion, with a $29.1 billion pipeline of opportunities, including $11.1 billion in active tenders. The company employs about 14,000 people and targets $4.6 billion to $4.8 billion in revenue for FY27, with roughly 85% already secured. Underlying EBITA is forecast at $320 million to $330 million, representing 11% to 14% growth at the midpoint.
Capital expenditure is projected at approximately $165 million, up from $146 million in FY26. Fredon is expected to reach around $1 billion in revenue by FY27, with margins approaching 6% by year-end.
NRW described itself as the most diversified Australian listed industrial service provider, while also reporting a 32% reduction in its Total Recordable Injury Frequency Rate to 4.12 and a 50% decline in Scope 1 and 2 emissions intensity since FY20.
