PWR Holdings Gets New Leadership: What It Means for Investors After a Tough FY25

PWR Holdings backs internal leader for next phase

PWR Holdings (ASX: PWH) announced yesterday that Chief Financial Officer Sharyn Williams will become its next CEO and Managing Director, marking a significant leadership transition for the high-tech cooling solutions company. Williams, who joined as CFO in January 2025, will take over once a replacement is found, with Acting CEO Matthew Bryson continuing in the meantime. For investors, the appointment comes at a key moment; FY25 saw earnings drop 60% as major automotive OEM contracts wrapped up, but the aerospace and defence segment grew 28%, signalling where the company’s future may lie.

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Why PWR Holdings Chose an Internal Candidate

The decision to promote from within tells us something important about the board’s thinking. Rather than bringing in an outsider to shake things up, PWR has chosen stability during a challenging period.
Williams earned praise from investors for her financial discipline during a difficult year, helping the company navigate earnings pressure while keeping operations on track. Her promotion suggests the board believes the current strategy is working; it just needs time to play out.

Matthew Bryson, a 25-year company veteran who holds roughly A$15 million worth of PWR shares, will return to his Chief Technology Officer and Chief Commercial Officer roles. This keeps deep company knowledge at the top table while freeing Williams to focus on running the business.

The move also reduces key person risk. With founder Kees Weel on medical leave, having a clear succession plan in place removes uncertainty that might otherwise weigh on investor sentiment. Internal promotions during transitions typically signal confidence in the existing direction rather than a need for dramatic change.

The Investment Case- Aerospace and Defence Drives Recovery

What makes PWR interesting right now is the shift happening beneath the surface. While motorsports remains the company’s heritage business, aerospace and defence revenue grew 28% in FY25. This includes a major US government contract and a partnership with BAE Systems to supply cooling systems for their STRIX drone program.

This matters because defence contracts tend to be longer-term and more predictable than automotive work. For a company that just saw major OEM programs wrap up, building a more stable revenue base makes strategic sense. The number of approved defence supplier relationships has grown from 11 in FY21 to 46 in FY25, showing real momentum in this segment.

On the motorsports side, Formula 1 regulation changes for 2026 will make cars more reliant on electric power, creating complex new cooling challenges where PWR is a key partner. The addition of Cadillac as an 11th F1 team also expands the potential customer base. The company’s new Stapylton factory, coming online by the end of 2025, should improve manufacturing efficiency as production scales up.

The Investor’s Takeaway

At A$8.12, PWR Holdings trades roughly in line with analyst consensus targets of A$8.11, suggesting the stock is fairly valued at current levels. The company sits 37% below its all-time high of A$12.98, reflecting the earnings hit from FY25.
The bull case rests on forecast earnings growth driven by aerospace and defence momentum and new factory efficiency gains. For growth-oriented investors, the turnaround story remains intact.

However, with the stock already at analyst targets, much of the near-term recovery appears priced in. The CEO transition, while orderly, creates some short-term execution uncertainty until Williams fully assumes the role.

In our view, PWR Holdings appears fairly priced today. The leadership appointment removes a key uncertainty, and aerospace and defence growth is encouraging. That said, we would wait for a pullback towards A$7.00-7.50 before adding new positions. For current holders, the turnaround case remains on track—holding makes sense while the strategy plays out.