Stockhead: 6 March 2026
Formula One has always rewarded engineering as much as driving.
This season’s rule changes push that balance even further. With cars moving closer to a 50/50 mix of combustion and electrical power, managing heat and energy across each lap is becoming just as critical as outright speed. The latest regulations significantly increase the role of battery power, meaning teams must carefully balance energy recovery, deployment and cooling throughout a race.
As hybrid systems grow more complex, thermal management is moving to the centre of the challenge. Batteries, power electronics and associated systems generate significant heat, and maintaining optimal operating temperatures is essential for both performance and reliability.
Alvia Portfolio Manager Chris Scarpato recently spoke with Stockhead about PWR Holdings (ASX:PWH), an Australian company that supplies advanced cooling systems to every Formula One team on the grid. PWR has built a strong reputation in high-performance motorsport through its specialised aluminium radiators, heat exchangers and oil coolers, designed to operate in some of the most demanding environments in engineering.
Importantly, the capabilities developed in motorsport are now beginning to translate into opportunities beyond the track. PWR has been expanding into aerospace and defence, where similar thermal management challenges exist in increasingly complex systems. These adjacent markets are significantly larger than global motorsport and offer meaningful long-term growth potential.
The article explores how the evolving technical demands of Formula One are creating new opportunities for companies with specialised engineering expertise.