ASX 300 stock NRW Holdings Ltd (ASX: NWH) is driving forward on Thursday and is now up 8.8% at $3.47 apiece at the time of writing.
Investors are responding positively to the company's FY24 results released before the market open.
For context, the S&P/ASX 300 index (ASX: XKO) is up 0.33%.
Let's see what the diversified contract services provider posted.
ASX 300 stock rallies on sales, profit growth
Here are the ASX 300 stock's key takeouts:
- Revenue was up 9.2% year over year to $2.9 billion
- Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 15.9% to $334.8 million.
- Net profit after tax (NPAT) lifted 18.6% to $123.8 million.
- Earnings per share (EPS) growth of 17.7% to 27.3 cents per share (cps).
- Declared a final dividend of 9 cents per share.
- FY24 dividend total dividend came to 15.5 cents per share, fully franked.
What else happened in FY24?
NRW Holdings expanded its operations across multiple sectors, both in Australia and North America. As a result, profits were up double-digits.
Whilst sales were more than 9% higher compared to last year, group EBITDA expanded 16% to approximately $335 million, a company record.
The acquisition of HSE's South Walker Creek project added nearly 600 new staff, bringing the workforce to around 8,000 employees.
Meanwhile, the company's order book was valued at $5.5 billion, with a pipeline of near-term prospects valued at $16.4 billion.
Its mining segment secured over 90% of its expected revenue for FY25 and has around $1.3 billion work in hand with a further $1 billion in "current active tenders".
The ASX 300 stock also declared a dividend of 9 cents per share, bringing the total payment to 15.5 cents. Investors can expect the dividend in their accounts in October.
What did management say?
NRW's managing director and CEO, Jules Pemberton, expressed his satisfaction with the company's performance:
I'm very pleased to be able to deliver another set of record results to NRW's shareholders. These financial results reflect the strength of the different markets and sectors in which we operate across Australia and North America.
Our diversified business model and continuing commitment to financial discipline has resulted in the Group delivering revenue in FY24 of $2.9 billion, a 9.2% increase over FY23.
Our record performance in FY24, which is the third year of consecutive earnings growth post the COVID-impacted FY21 year. Together with an order book of $5.5 billion, of which circa $2.9 billion will be delivered in FY25, and active tenders of $5.5 billion, I have great confidence in the Group's future performance and growth potential.
What's next?
The company expects to continue on a similar growth route in FY25. It projects full-year revenue to reach approximately $3.1 billion, with pre-tax income forecasted between $205 million and $215 million.
It has several billion in active tenders on its books, and the entire pipeline is more than 3 times that amount, according to management:
The total Group pipeline is $16.4 billion. Of this amount, $5.5 billion is active tenders. With a strong order book of $5.5 billion, which is either in the order book or is expected as repeat business, the outlook remains very positive.
ASX 300 stock price snapshot
The ASX 300 stock is heavily bought today following its FY24 performance.
The NRW Holdings share price has increased more than 29% in the past year and is trading 16.6% higher year to date, having surged more than 9% in the past month.
