Thoughts on HUB24 Ltd (HUB) and NRW Holdings (NWH)
Hi MM team, Please can you share your current thoughts on HUB and NWH? Thanks, JanP
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Answer
Hi Jan,
HUB24 (HUB) is a wealth platform provider that offers technology and administration services to financial advisers, enabling them to manage client investments and portfolios efficiently.
HUB24 is set to retain its #1 platform ranking (including Managed Accounts), driving above-peer growth in advisers, accounts and market share gains, outperforming Netwealth (NWL). Flows are increasingly coming from existing advisers as consolidation continues, reinforcing HUB’s scale advantages and operating leverage potential.
We continue to prefer HUB over NWL given stronger share gains, which partly justifies its valuation premium, though questions remain around long-term multiples amid AI disruption. We hear there are now several companies trying to build out investment platforms to compete with the incumbents – a tough ask in our opinion, but competition in the space will likely intensify, hopefully, driving better (& cheaper) alternatives!
- HUB is a quality business but its priced accordingly, we are cautiously bullish around $80 but a test of $70 would not surprise.
NRW Holdings (NWH) is a mining services and civil contractor that provides contract mining, infrastructure and maintenance services to the resources and commercial sectors, earning revenue from project work rather than commodity prices.
NRW delivered a strong 1H26 result, with EBIT up +36% to $132m (~10% beat), driven by standout performance in the higher-margin METS segment, where revenue and margins exceeded expectations. Cash generation was solid, and momentum remains strong with a robust order book and pipeline i.e. the business has very strong momentum, which aligns with what we hear from our contacts operating in the space.
The company upgraded FY26 EBIT guidance to $275–285m, marking its third upgrade, highlighting continued strength in resources and infrastructure capex markets.
- Weakness towards the miners is weighing on sentiment and we feel the current pullback will provide excellent risk/reward buying in the $4.50-5.00 area.
