NRW delivers profit in ‘challenging’ market

Jules Pemberton-steered NRW Holdings brought in $104.4 million in profit after tax amid significant cost inflation and skilled labour pressures on its construction projects.

The mining services contractor recorded net profit after tax of $104.4 million, up 11.4 per cent from $93.7 million in FY22.

It brought in revenue of $2.7 billion for financial year 2022, up 11 per cent from the prior period, meeting its target for the period.

The group identified that it had overstated revenue and margin by $10.3 million for its subsidiary Primero relating to two projects completed in FY22.

NRW’s earnings before interest, taxes, and amortization came in at $166.3 million, up 13.3 per cent from FY21, meeting its guidance targets for both revenue and EBITA for the fiscal year.

Looking ahead, the contractor anticipates an uplift in revenue after setting a target of $2.8 billion for FY28 and an EBITA guidance range of between $175 million to $185 million.

Mr Pemberton said the group had “contended with very challenging conditions” in the financial year.

He said those included significant disruptions caused by weather in Queensland, approval-driven factors delaying the award of a number of key projects, significant cost inflation and skilled labour pressures on construction projects and continued price competition for new work.

“Unfortunately, as a result of these challenges our margins have been under pressure and in some businesses, notably Primero, the impact of cost escalation and labour availability on fixed price project has been significant,” Mr Pemberton said.

“We have acted swiftly to address these issues and worked with our clients to reach equitable outcomes.”