The PWR (ASX:PWH) share price is on fire today, up 6%. Here's why

The PWR (ASX: PWH) share price is racing higher today after the company reported a massive surge in profits.

| More on:
A graph ablaze with fire going up, indicating a fired up and surged share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PWR Holdings Ltd (ASX: PWH) share price is fired up today as the market reacts to the automotive cooling solutions' half-year results. By the looks of it, the company has been firing on all cylinders during the period.

At the time of writing, the PWR share price is trading up 6.43% at $4.80.

It's hard to stay cool with these firey results

PWR smashed last year's revenue and profit figures during the period. Management noted this was due to deferred activities from FY20 and growth in emerging technologies and OEM products.

Revenue for the company increased by 25% to $37.2 million for the half. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also increased by 60%. PWR improved EBITDA through efficiency improvements, economies of scale recognised by increased volumes, and JobKeeper payments.

Subsequently, the combination of increased revenue and improved margins delivered a 90% increase in net profit. This significant surge in profit equated to $6.58 million net profit after tax for the company.

Management has elected to increase the interim dividend to 2.8 cents per share, up 47% from 1.9 cents the prior year.

Commentary and outlook

Addressing the results, PWR managing director Kees Weel said:

We are now very well placed for our expected growth which has only just started and a 90% increase in NPAT illustrates our capability and potential. We remain focused on our strategy to grow and diversify the business into new channels, and the progress made to date in this regard is very encouraging.

PWR's revenue remains heavily geared towards sales in the motorsport category, at 49% of total sales. However, the company noted a trend towards expansion in the emerging technologies and OEM sale streams. This marks a key driver in improving margins for the business.

Emerging technologies in focus for PWR include defence and aerospace applications, battery and hybrid system cooling, additive manufacturing applications, computational fluid dynamics (CFD) modelling services, and super alloy brazing capabilities.

PWR share price in the rearview mirror

The PWR share price has experienced a rough 12 months. Shares tumbled during the March 2020 crash from $4.88 down to a low of $2.50. However, the company kept its cool and continued to deliver for its customers. As a result, the share price has steadily climbed back to its current price tag. 

Over the past year, the PWR share price has appreciated by 0.2%. This still reflects an outperformance of the S&P/ASX 200 Index's (ASX: XJO) 5% loss.

Should you invest $1,000 in Appen Limited right now?

Before you buy Appen Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Appen Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has recommended PWR HLDING FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ASX Shares

A smiling man take a big bite out of a burrito
Share Market News

Hungry for returns? Are Dominos or Guzman y Gomez ASX shares a better buy in 2025?

Pizza or burritos? Why not both?

Read more »

a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.
Technology Shares

Here's why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.

Read more »

Worker in hard hat looks puzzled with one hand on chin
Resources Shares

Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

We look at what happened to this ASX 200 mining giant's shares last year

Read more »

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.
Share Gainers

Here's why the Rumble Resources (ASX:RTR) share price is climbing 5%

The mineral explorer's share price is on the rise amid promising drill results.

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
ASX Shares

Here are the top 10 ASX 200 shares on Wednesday

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

comical investor reading documents and surrounded by calculators
ASX Shares

The ASX reporting wrap-up: WiseTech, Bravura, Seven Group

Just what the investor ordered. Here’s a recap of the companies that reported on Wednesday...

Read more »

Doctor performing an ultrasound on pregnant woman
ASX Shares

The ASX reporting wrap-up: Ansell, Kogan, Nanosonics

Just what the investor ordered. Here’s a recap of the companies that reported on Tuesday...

Read more »

blue arrows representing a rising share price ASX 200
ASX Shares

Here are the top 10 ASX 200 shares on Tuesday

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »