PWR Holdings' Strong Position in Motorsports Underpins Its Narrow Economic Moat

PWR Holdings is poised for continued growth in advanced cooling. We expect PWR's strong earnings growth to persist, principally driven by its competitively privileged position in high-performance automotive cooling. PWR's narrow economic moat is underpinned by the significant brand equity, intellectual property, and entrenched customer relationships it enjoys in this niche market. The company has a presence across practically all major motorsport competitions—notably Formula One, where PWR supplies every car on the grid. These competitive advantages also allow PWR to command top-tier aftermarket pricing and position itself as a trusted supplier for high-performance, low volume production of supercars and hypercars with vehicle manufacturers.