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A push into the aerospace sector almost five years ago is paying off for PWR Holdings (ASX: PWH), an automotive technology company that is better known for supplying cooling systems to some of the world’s leading car racing teams.
The Gold Coast-based PWR has announced that its North American subsidiary, C&R Racing Inc., has secured a US$5.5 million ($8.9 million) order to supply advanced cooling solutions for a US government project – the largest to date by the company's aerospace and defence division.
This order, which is scheduled for delivery this calendar year, is said to mark a key milestone for PWR’s growth strategy within the aerospace and defence sector.
PWR, which ventured into the sector in 2020, has experienced strong growth in its aerospace and defence division in the past year.
In November, PWR revealed that the aerospace division was targeting a 67 per cent increase in revenue to $12.96 million for the first half of FY25. This compares with $21 million in FY24, up from $10.5 million a year earlier.
Growth in the fledgling division is expected to help PWR deliver net profit after tax of between $3.2 million and $3.7 million in the December half.
PWR, which was founded by father-and-son team Kees and Paul Weel in 1998, has made its mark in motor sports globally as a designer, manufacturer and supplier of high-performance cooling solutions. Last year, the company supplied cooling solutions to every Formula One team in the world.
The nature of the US Government contract announced today has not been disclosed. However, the company says its vertically integrated and flexible manufacturing approach allows the order to be manufactured at both its Australian and North American sites.
“This is PWR’s largest single order for Aerospace and Defence since we decided to build our own aerospace and defence team in 2020,” says PWR Holdings managing director Kees Weel.
“Our decision to leverage our market-leading advanced cooling technology and expertise from motorsport into aerospace and defence is now delivering tangible results.
“This order validates both our strategy and the investment we have made in building capability in this attractive sector.”
PWR says the order supports low-rate initial production and, if successfully delivered, has the potential to “unlock long-term opportunities for the same platform”.
“I would like to acknowledge the Aerospace and Defence team of engineers and our highly skilled manufacturing technicians for their ongoing focus and commitment to establishing PWR as a trusted name in aerospace and defence,” says Weel.
“This order represents an exciting step forward for PWR and reinforces the company’s position as a leader in advanced cooling technology.”
PWR Holdings posted a net profit after tax of $24.8 million in FY24, up 14 per cent from a year earlier, as revenue surged 17.8 per cent to $139.4 million.
Last year, the company was awarded a Moon to Mars grant totalling $985,000 from the Australian Government through the Australian Space Agency to develop and manufacture PWR’s proprietary Micro Matrix Heat Exchanger technology for space applications. The Moon to Mars grants program is part of a broader $150 million initiative that seeks to grow Australia’s sovereign space industry.
Apart from its manufacturing facility at Ormeau on the Gold Coast, PWR has operations at Minneapolis in the US and Rugby in the UK.
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