Shares in NRW Holdings Limited (ASX: NWH) climbed 8% higher to $1.58 on Tuesday, after the civil and mining contractor released a positive operational update with an optimistic outlook for next year.
The company has recently been awarded a number of new contracts, such as a $420 million deal with the Baralaba Coal Company, and has extended existing ones, including mining services contracts with Coronado and Stanmore Coal, worth $230 million and $93 million respectively.
NRW’s order book is now at a record high of over $2 billion, including around $875 million of work secured for the next financial year. For FY18, the company expects revenue to grow 40% over the $370 million reported last year. This trend will continue in FY19, with revenue poised to exceed $1.1 billion.
NRW’s CEO Jules Pemberton said the company is well placed to capitalise on the significant strength in the Australian resources and Infrastructure sectors. NRW can benefit from the upcoming replacement projects in the iron ore industry in Western Australia, where the company is based.
The stock is up 163% in the past year and currently trades at 18x trailing earnings.
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Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. 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 Scott Phillips.