What about Wagners Holdings Co Ltd (WGN)
Hi guys, I grew up in Toowoomba. What is your opinion on my hometown infrastructure company Wagners (ASX:WGN)? Thanks, Roger
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Answer
Hi Roger,
For subscribers not familiar with WGN it’s a $480mn diversified construction materials provider offering core services like concrete and cement supply, alongside advanced, eco-conscious solutions such as composite fibre products and Earth Friendly Concrete, backed by a vertically integrated, innovation-driven operation both in Australia and internationally.
In September the company recently raised $30mn at $2.60 with proceeds ear-marked for future growth. The raise came after WGN reported a 10% fall in group revenue for FY25. It attributed the fall to the completion of a large precast tunnel project while it reported strong demand for its core construction materials business as well as for composite fibre technology products.
The stock has surged almost 3-fold as it delivers operationally and resumed its dividend:
- In FY24, WGN generated $481mn in revenue which dropped down to a $10mn NPAT.
- In FY25, WGN generated $431.3mn in revenue which dropped down to a $22.7mn NPAT.
This a solid business but after its strong rally we are inclined to adopt a neutral stance with the low margin stock trading on 21.9x, but it looks good into weakness due to its cutting-edge innovations like Earth Friendly Concrete and composite fibre solutions, positioning it as a leader in sustainable, advanced infrastructure materials, not just a commodity supplier.
