Leading national mining and civil contractor NRW Holdings (ASX: NWH) has released its financial results for the six-month period to 31 December 2024 and provided an update on the impact of the OneSteel administration.
NRW’s leadership team will be hosting an investor call to discuss the results on Monday, 3 March 2025, at 10.30am. To register for the call, click here.
NRW announced 15.8% revenue growth to $1.65 billion, compared to $1.43 billion in the prior comparative period. The growth in first-half revenue reflected the strong increase in activity across all three operational segments.
Most notably, revenue growth was underpinned by significant contributions from the resources sector across the Civil segment ($417.9 million, up 40.6%) and contributions from major projects in the MET segment ($454.0 million, up 15.6%). In the Mining segment, revenue from the new South Walker Creek contract helped grow the business during the period ($805.1 million, up 4.3%) despite the challenges faced by the early termination of the Mt Cattlin lithium contract and the descoping of two fleets at Curragh.
The solid revenue growth across the group, however, was offset by the margin impacts of contract changes in the mining business and the impacts of higher-than-average rainfall during the period. Despite this, the group’s Operating EBIT increased by 5.3% to $96.9 million, up from $92.1 million.
Highlights
- Revenue $1.65 billion, up 15.8%
- EBITDA $188.8 million, up 20.1%
- EBITA $96.9 million, up 5.3%
- NPATN $58.4 million
- Normalised EPS 12.8 cents per share
- Cash holdings of $284.4 million
- Strong order book of $6.8 billion, inclusive of repeat business and preferred tenders
- Pipeline remains robust at $15.1 billion, with $6.2 billion of active tenders
- Fully franked interim dividend declared of 7.0 cents per share, up 7.7%
Commenting on the first-half results and the OneSteel administration, NRW managing director Jules Pemberton said:
“Before I comment on the results, I will start by acknowledging the tragic passing of Barry Breslin in October 2024, who was a subcontractor on the HWA Freeway Project. We again extend our condolences to Barry’s family and friends and those colleagues who were on site when the incident occurred.
“As previously announced, on 19 February 2025 the South Australian Government appointed KordaMentha as Administrators over OneSteel Manufacturing Pty Ltd. We are owed approximately $113.3 million in trade receivables and contract assets. Our wholly owned subsidiary Golding previously obtained a guarantee and indemnity from both Liberty Primary Metals Australia Pty Ltd and Whyalla Ports Pty Ltd as well as first-ranking security over certain assets of, and the shares in, Whyalla Ports.
“We believe that the security has sufficient value to allow recovery of amounts outstanding. We have various options regarding the enforcement of this security and will make a decision on the path forward based on the best interest of our shareholders and other stakeholders. There has been no financial impact recognised during the period, with no specific allowance associated with amounts due, being recognised for the period.
“Financially, I am pleased to report a strong set of interim results despite some challenges during the half.
“Strong performances across the MET and Civil divisions underpinned the solid 15.8% growth in revenue on the prior period. Disappointingly, the margins were impacted by significantly higher than average rainfall in Queensland and the early termination of the Mt Cattlin lithium contract, predominantly impacting the Mining business margins during the half.
“Pleasingly, we successfully integrated the HSE South Walker Creek Contract acquisition during the period and transitioned the South Walker Creek operations into Golding’s mining business. In addition, during the period we were awarded a $1.6 billion five-year extension, commencing January 2026.
“Another noteworthy contract win by the mining team during the period was the award of Evolution’s Castle Hill gold project in Western Australia, valued at $360 million over six years. This award provides further commodity diversity for the Group and will mostly utilise the displaced assets from the Mt Cattlin mine, which is now in care and maintenance.
“The Civil and MET divisions continue to experience heightened levels of tendering activity, providing strong visibility over future pipeline. Civil has already secured eight new projects during the first half of FY25 across WA and Queensland, which will contribute to the second half of FY25 and FY26.
“With revenue expected to grow to $3.2 billion to $3.3 billion for the full year and an order book of $6.8 billion, we are well placed to continue strong organic growth into FY26. This is also supported by our record value of current active tenders at $6.2 billion and our tender pipeline of $15.1 billion.
“In addition, we ended the half with a solid cash position of $284.4 million and are further supported by available undrawn debt facilities of $330 million, which could be utilised for strategic corporate activities as and when the right opportunities present.
“Our continued success is driven by the hard work and commitment of our people, who are our greatest asset. Together with the leaders of each of our businesses, we continue to manage and mitigate industry risks by implementing critical controls at all levels across the entire group. I would like to once again thank and acknowledge the dedicated efforts of our 8000-strong workforce as they have been instrumental in delivering these results.”
