MAAS Group (MGH) H2 2025 earnings summary

Executive summary

• Underlying EBITDA for FY25 reached $219.4 million, up 6% year-over-year and in line with guidance, driven by strong performance and 38% growth in Construction Materials, with 9% organic growth and significant contributions from acquisitions.

• Construction Materials contributed nearly half of group EBITDA, with margin improvement from cost efficiencies and acquisitions.

• Cash flow conversion improved to 97%, reflecting disciplined working capital management and the highest rate in five years.

• Capital recycling initiatives generated $107.6 million in proceeds, exceeding guidance, with further asset sales planned for FY26.

• Full year dividend increased by 8% to 7.0 cents per share, fully franked.

Financial highlights

• Revenue increased 13% year-over-year to $991.8 million, mainly from Construction Materials (up 37%).

• EBITDA margin was 22% (down from 24% prior year) due to CC&H performance.

• Net profit after tax (NPAT) was $78.5 million, down 7% year-over-year; underlying basic EPS was 22.7 cents.

• Tangible assets grew 20% to $1.7 billion.

• Net debt (excluding leases) at year-end was $646.6 million; leverage ratio at 2.7x, within target range.

Outlook and guidance

• FY26 expected to see solid revenue and profit growth, with full-year contributions from FY25 acquisitions.

• Construction Materials and CC&H segments forecast to drive EBITDA growth; residential land sales momentum to accelerate, with settlements expected to grow at least 20% to around 250 lots.

• Capital recycling proceeds expected to exceed $100 million, with $71 million already contracted and $41 million in post-year-end sales.

• Fair value gains in commercial real estate expected to be similar to prior years, around $30 million.

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