Fund Manager Summary
The fund managers believe that GWA Group Ltd presents a compelling long-term growth opportunity despite recent challenges in the Australian market. In their opinion, the 2.8% decline in share price following the Annual General Meeting reflects temporary pressures, as Australian trading showed weaker volume outcomes without substantial price contributions. However, the 8% and 14.6% volume increases in New Zealand and the UK, respectively, indicate robust international performance, particularly with the UK growth exceeding expectations. The fund managers maintain an overweight position due to GWA's diversified geographic footprint and operational resilience through disciplined cost management and strong cash generation. They view the company's ability to navigate domestic headwinds while investing in higher-growth regions as vital for its business longevity.
Source: Trading View
Commentary From The Managers
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Perpetual Asset Management
31 Oct 2025
$2.47
Summary
- GWA Group detracted from performance in October, declining 2.8% post-Annual General Meeting.
- Management presented first quarter FY26 results showing Australian trading slightly softer than consensus.
- Volume outcomes weakened in Australia without meaningful price contribution; however, sales rose 1.2% on pcp.
- Stronger performances noted in New Zealand and the UK, with volumes lifting 8% and 14.6% respectively.
- UK growth exceeded expectations, coming in at double the anticipated level.
- Despite Australian challenges, GWA demonstrated operational resilience through disciplined cost management.
- The company showed strong cash generation in a soft macro environment.
- Perpetual Asset Management continues to hold an overweight position due to GWA's diversified geographic footprint.
- The growing presence in the UK positions GWA well for long-term growth.
- GWA is navigating near-term domestic headwinds while capitalising on stronger international momentum.
- The company's ability to maintain pricing discipline and generate cash supports the longevity of its business model.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perpetual Asset Management
31 Oct 2025
$2.47
- GWA Group detracted from performance in October, declining 2.8% post-Annual General Meeting.
- Management presented first quarter FY26 results showing Australian trading slightly softer than consensus.
- Volume outcomes weakened in Australia without meaningful price contribution; however, sales rose 1.2% on pcp.
- Stronger performances noted in New Zealand and the UK, with volumes lifting 8% and 14.6% respectively.
- UK growth exceeded expectations, coming in at double the anticipated level.
- Despite Australian challenges, GWA demonstrated operational resilience through disciplined cost management.
- The company showed strong cash generation in a soft macro environment.
- Perpetual Asset Management continues to hold an overweight position due to GWA's diversified geographic footprint.
- The growing presence in the UK positions GWA well for long-term growth.
- GWA is navigating near-term domestic headwinds while capitalising on stronger international momentum.
- The company's ability to maintain pricing discipline and generate cash supports the longevity of its business model.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Navigating through a challenging Australian market, GWA Group appears poised for long-term growth, bolstered by resilient cash generation and a booming UK presence. The strategic focus on disciplined cost management may just be the key to weathering near-term headwinds while capitalizing on international momentum."
Last Updated: 31 Oct 2025
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Frequently Asked Questions
Who is investing in GWA Group Ltd (ASX:GWA)?
Fund managers including Perpetual Asset Management have invested in GWA Group Ltd (ASX:GWA).
Why do fund managers invest in GWA Group Ltd?
Fund managers invest in GWA Group Ltd due to its operational resilience and strong cash generation despite challenging domestic conditions. The company's diversified geographic footprint, particularly its growth in the UK and New Zealand, positions it well for long-term growth. GWA's disciplined cost management and ability to maintain pricing discipline further enhance its attractiveness, allowing it to navigate near-term headwinds while capitalizing on stronger international momentum.
What happened to GWA Group Ltd (ASX:GWA)?
Fund managers, including Perpetual Asset Management, maintain an overweight position in GWA Group Ltd due to its operational resilience and strong cash generation despite a challenging Australian market. The company reported a 1.2% sales increase year-on-year, bolstered by significant growth in New Zealand (8%) and the UK (14.6%), surpassing expectations. GWA's diversified geographic presence and disciplined cost management position it well for long-term growth, enabling it to navigate domestic challenges while capitalizing on international opportunities.