MAAS Group (MGH) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with underlying EBITDA up 27% to AUD 207.3 million, at the upper end of guidance, and 88% of EBITDA growth from existing businesses, despite headwinds from weather, project delays, and high interest rates.

• Strong organic growth and high cash conversion, with five-year EBITDA CAGR of 34% since FY20.

• Strategic acquisitions in Construction Materials expanded the Greater Melbourne footprint, positioning for future growth.

• Capital recycling initiatives delivered proceeds above book value, with AUD 72 million realized in FY24 and further sales contracted for FY25.

• Successful debt syndication refinance increased liquidity and flexibility, supporting ongoing investment and extending facilities to AUD 730 million.

Financial highlights

• Revenue grew 11% year-over-year to AUD 881.9 million, mainly from Construction Materials and recent acquisitions.

• Underlying EBITDA rose 27% to AUD 207.3 million; underlying EBIT up 28% to AUD 154.1 million; statutory NPAT up 12% to AUD 73.0 million.

• Underlying EPS increased 18% to AUD 0.257 per share; operating cash flow conversion maintained at 88%, with free cash flow just under AUD 150 million.

• Final fully franked dividend of 3.5 cents per share, annual total 6.5 cents, up 8.3%.

• Asset-backed business model with tangible assets at AUD 1.4 billion and a residential land bank of 8,000 lots.

Outlook and guidance

• Expect continued solid revenue and profit growth in FY25, supported by a strong external project pipeline, infrastructure and renewable energy projects, and full-year contributions from recent acquisitions.

• Delayed electrical transmission projects expected to ramp up in FY25 and beyond.

• Commercial property development sales of AUD 65 million contracted for FY25.

• Residential land settlements expected to be flat to modestly improved; medium- to long-term fundamentals remain strong.

• Risks include project delays, competition, sustained high interest rates, and adverse weather.