NRW Holdings Limited (ASX: NWH) saw its share price jump 45% to 58 cents, after reporting strong 2016 financial results.

The mining services company appears to have survived a shocker few years in the dark and has come out the other side stronger and better.

Today, NRW reported a net profit after tax of $21.5 million and earnings per share (EPS) of 7.7 cents on revenues of $288 million for the 2016 financial year (FY16).

Here are a few other positives from today’s release:

  • Debt reduced by $59.3 million to $107.6 million, and further $37.4 million due to repaid in FY17
  • Cash holdings increased to $37.2 million
  • Overhead costs slashed by 40% compared to last financial year
  • earnings before interest, tax, depreciation and amortisation (EBITDA) of $47.4 million and EBITDA margin of 16.4%
  • $577 million of new work secured during the year, taking order book to ~$1 billion
  • Of that, $325 million is secured revenue for FY17 and $261 million secured for delivery in FY18
  • Signs of stability in resources and infrastructure say NRW, with increasing tender opportunities

Additionally, management says debt reduction and clearing all debt balances within the next 30 months are top priorities.

It seems the mining services sector is stabilising, which should be good news for the likes of the major players including Monadelphous Group Limited (ASX: MND), MACA Ltd (ASX: MLD) and Ausdrill Limited (ASX: ASL).

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.