MAAS Group (MGH) H1 2025 earnings summary

Executive summary

• 1H25 underlying EBITDA was $95.0m, in line with guidance, driven by strong Construction Materials performance and successful integration of three major acquisitions (Capital Asphalt, Cleary Bros, Aerolite) ahead of schedule.

• Revenue for the half was $458.5m, down 0.6% year-over-year, with Construction Materials growth offsetting declines in Civil Construction, Commercial Construction, and Home Construction.

• Capital recycling proceeds totaled $90.7m, exceeding targets and realized above book value, supporting further strategic investments.

• Net debt reduced to $439.4m from $505.3m at June 2024, aided by capital initiatives and a $120m capital raise.

• Safety performance improved, with LTIFR reduced to 3.1, reflecting effective integration and safety initiatives.

Financial highlights

• Construction Materials EBITDA grew 24% year-over-year to $45.0m, now the largest earnings contributor.

• Group EBITDA margin was 21%, flat year-over-year; underlying EBITDA was $95.0m, down 2% year-over-year.

• Net profit after tax (NPAT) was $32.1m, a 17% decrease year-over-year; underlying basic EPS at 9.7 cents.

• Operating cash flow conversion was 81% of EBITDA, reflecting disciplined working capital management.

• Interim dividend declared at 3.5 cents per share, fully franked.

Outlook and guidance

• FY25 underlying EBITDA guidance is $215m–$245m, inclusive of acquisitions, with $10m–$12m expected from acquisitions in 2H25.

• Construction Materials growth to be underpinned by volume increases and integration benefits; delayed renewable projects expected to improve momentum late in 2H25 and into FY26.

• Residential settlements expected in the range of 150–180, with stable pricing and improved home construction margins.

• Capital recycling initiatives target over $100m in FY25 proceeds.

• Demand expected to remain strong in 2H25; focus on managing project delays and proactive risk management.