Macmahon (MAH) Euroz Hartleys Industry Forum Presentation summary

Business overview

• ASX-listed mining services provider with operations in Australia and Southeast Asia, offering integrated services in surface, underground, and civil infrastructure mining.

• FY24 secured revenue of $1.8bn, with revenue guidance of $1.8bn–$1.9bn and underlying EBIT(A) guidance of $130m–$140m.

• Workforce of 9,200, with 58% in Australia and 42% in Indonesia.

• Order book stands at $4.4bn and a tender pipeline of $11.6bn as of December 2023.

• ROACE at 15.5%, reflecting strong capital efficiency.

Financial performance and growth

• Consistent delivery on earnings guidance for eight consecutive years, with revenue and EBIT(A) growth.

• FY24 revenue and EBIT(A) guidance on track, continuing a trend of meeting or exceeding targets.

• Underlying operating cash flow and ROACE have improved, with a new ROACE target of 20%.

• Capital allocation policy prioritizes financial strength, growth investment, and increased shareholder returns.

• Dividend payout ratio increased to a 20–35% range of underlying EPS.

Operational and strategic updates

• Achieved steady state at Greenbushes and consistent performance at Byerwen; negotiating new contract at Dawson South.

• Lowering capital intensity in surface projects through strategic equipment sales and rental agreements.

• Underground segment targets 50% revenue growth in 2–3 years, with recent contract wins and successful integration of PnP.

• Civil infrastructure expansion via Decmil acquisition, adding scale and a $10bn combined tender pipeline.

• Workforce expanded to over 9,200, with ongoing focus on talent acquisition and operational improvements.