Research notes

FY26 PBT of A$14.5m was in line with guidance (A$12-15m) and -35.0% yoy. The result comprised flat revenue (+0.3% yoy; 2H -3.8%), minor gross margin expansion (+20bps) and weaker underlying overhead control (opex/sales +70bps). PWR clearly has strong asset backing (NTA A$1.48ps) and is pursuing growth in an evolving industry backdrop. However, our confidence in the earnings outlook is low given the depressed margins (2H ROS ~0.2%), industry and consumer headwinds and ongoing underperformance versus listed peers. Hold maintained.

While EQT’s takeover proposal is live, we expect CWY’s share price will be driven by probability of the transaction proceeding, likelihood of a counter-bidder emerging, and time to completion. EQT has commenced up to nine weeks of exclusive due diligence and negotiation of a scheme implementation deed to agree a binding transaction. There is a chance FY26 could be the last result CWY delivers as an ASX-listed company. Target price set at $2.95/sh based on the offer price less 17.5 cps forecast cash dividends prior to completion. Potential TSR at current prices is c.20%. If the offer does not complete, our target would revert to our DCF of $2.69/sh.

PWH delivered a strong FY26 result that was above expectations. The outlook remains positive with continued momentum expected in Aerospace & Defence (A&D) and a return to growth in the OEM segment. Reflecting management’s confidence in the A&D outlook, PWH has announced plans to establish a new manufacturing facility in Poland to capitalise on opportunities in Europe. The new facility is due to commence production in FY27. We make minimal changes to FY27 earnings forecasts. Our target price increases to $12.40 (from $11.15), reflecting strong operational performance from the new Australian manufacturing facility and an expanding pipeline of growth opportunities. However, with a 12-month forecast TSR of 3%, we move our rating to HOLD (from ACCUMULATE). While we continue to view PWH as a high-quality business that is well positioned for its next phase of growth, the stock is now trading on 52.8x FY27F PE. As a result, we would prefer to wait for a more attractive entry point before adopting a more positive stance.

RIC’s FY26 result was stronger than expected with IPF materially exceeding expectations, however its other business units fell slightly short. Strong cashflow was the other highlight. RIC is targeting growth from each business unit in FY27. RIC’s FY26-28 Growth Plan is on track and should underpin solid earnings growth over the forecast period. Higher D&A and net interest has seen us revise our forecasts. We remain positive on the group’s future prospects and maintain an ACCUMULATE rating with a new A$3.12 price target.

IPH’s FY26 result was broadly in line with market expectations, reporting like-for-like (LFL) revenue and NPATA growth at the group level. Whilst Canada and Asia showed topline growth, ANZ remains impacted by lower US PCT filings. IPH’s valuation remains undemanding in our view (i.e. <8x FY27F PE), however we note investor patience is still required given the delivery of organic growth (and the return of key US PCTs) looks to be the catalyst for a sustained re-rating. We maintain our BUY recommendation.

Operating earnings growth driven by inflation, new assets and cost-out. Long-term capital management means earnings growth does not convert into DPS growth. Forecast EBITDA upgrades from cost-outperformance. Target price $8.66/sh. TRIM retained, with potential TSR of -8%. APA has an attractive cash yield of 5.9% at current prices on FY27 DPS guidance, but share price downside risk is material.

IDP’s recovery trajectory has pushed further to the right, guiding to another year of 20-30% SP volume declines and FY27 EBIT ~9% below prior market expectations. The macro backdrop remains challenging across key jurisdictions with elevated late-stage visa rejections (AUS), prolonged visa approval processes (UK) and sustained deep demand contractions in former prominent markets (CAD). Amidst this backdrop, the focus remains on cost out initiatives (~A$15m identified in FY27), while investing for future growth (~A$40m transformation costs in FY27). We had previously assumed a slower rate of volume decline in FY27 (-10%) and had anticipated cyclical earnings recovery in FY29. IDP’s continuation of a meaningfully softer volume outlook into FY27 has softened this view. Whilst we remain intrigued by the group’s China testing expansion and broader efficiency program, we have lower confidence in the earnings trajectory and are wary cyclical pressures will continue to overhang the stock. Downgrade to HOLD.

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). Our maths is explained in detail overleaf. Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

BGA’s FY26 result came in at the higher end of guidance, despite the cost pressures associated with the conflict in the Middle East. The mid-point of FY27 guidance was slightly above consensus. BGA’s FY28 and FY31 growth targets were reiterated and underpin a solid earnings growth profile and strong balance sheet. We have made only minor changes to our forecasts. BGA remains well placed given its portfolio of iconic household brands, its focus on developing higher margin products with functional health benefits, its expansion into growth channels both domestically and overseas and network optimisation plans. After strong share price performance, we move to a Hold recommendation.

MGH delivered an FY26 result in line with updated guidance provided in early Aug-26. The FY27 outlook commentary was qualitative, with management expecting strong revenue and profit growth from continuing operations in FY27 on the back of record external work in hand of c.$1.2bn. Underlying EBITDA from continuing operations (but excluding Firmus revaluation) was $143m in FY26. We have this increasing to $223m in FY27 (+56%), with the two Firmus contracts representing the bulk of the growth, whilst transmission and distribution work should also book solid growth, offsetting a moderation in our commercial real estate revaluations expectations. For the past six months, MGH has been a story of transitioning to be predominantly an electrical contractor. This transition is largely complete, and for that reason we remove the peer multiple discount, seeing us retain our Buy recommendation with a $7.75/sh price target.