PPK banks $18.3M gain on ballistics sale, plans A$2.5M buyback

What's the deal? PPK GroupDealroom has a profile for this one. Try Dealroom → has sold its 39.85% stake in defence supplier Craig International BallisticsDealroom has a profile for this one. Try Dealroom → for $27.2 million in cash plus contingent consideration. The transaction delivered an $18.3 million pre-tax gain and left the ASX-listed group with more than $27 million in cash.

The numbers: The sale lifted net tangible assets per share by 73% to 70.3 cents for the year to June 30, 2026. That headline gain masks an underlying pre-tax loss of $3.95 million from continuing operations.

What's the endgame? PPK is an investment and technology group with holdings in advanced materials and energy storage. The Craig sale sharpens its focus on battery and nanomaterials businesses, including majority-owned PowerPlus EnergyDealroom has a profile for this one. Try Dealroom → and stakes in Li-S EnergyDealroom has a profile for this one. Try Dealroom → and White Graphene/BNNT TechnologyDealroom has a profile for this one. Try Dealroom →.

Why now? With a strengthened balance sheet, PPK plans an on-market share buyback of up to A$2.5 million in FY27. Management says the move signals its view that the stock trades at a discount to underlying value while returning capital to shareholders.

Operational progress: PowerPlus Energy improved its performance and secured a $2.3 million grant from the Australian Renewable Energy AgencyDealroom has a profile for this one. Try Dealroom →. Li-S Energy delivered its first lithium-sulfur battery cells to a US Army research centre.

The signal: PPK is trading a stake in a legacy defence asset for cash to double down on advanced energy storage — a bet that its battery and nanomaterials portfolio will outweigh near-term operating losses. With a market cap of A$35.24 million, the buyback is a modest but pointed statement that management sees value the market has yet to price.

Image credit: Generated with Gemini