Macmahon (MAH) H1 2025 earnings summary

Executive summary

• Revenue grew 22% year-over-year to $1.2 billion (AUD 1.2 billion), driven by the Decmil acquisition and organic project growth.

• Underlying EBITDA rose 3% to $181.3 million, and underlying EBIT(A) increased 14.7% to $78.1 million.

• Underlying NPAT(A) up 18.7% to $47 million, while reported NPAT fell 17.8% to $30 million due to acquisition-related costs.

• Interim dividend increased to 0.55cps fully franked, up from 0.45cps unfranked.

• Decmil acquisition completed and integrated, driving civil segment growth and diversification.

Financial highlights

• Underlying EBITDA reached $181.3 million (15.4% margin), with underlying EBIT(A) at $78.1 million and free cash flow of $49 million.

• Net debt increased to $236.9 million (gearing 26.2%) due to Decmil acquisition, with cash and available banking facilities at $274 million.

• ROACE improved to 17.5%, trending toward a 20%+ target.

• Reported NPAT was $30 million, impacted by $17.1 million in adjusting items related to Decmil acquisition and other non-recurring costs.

• Dividend payout ratio at 24.8% of underlying EPS.

Outlook and guidance

• FY25 guidance reaffirmed: revenue of $2.4–$2.5 billion and underlying EBIT(A) of $160–$175 million.

• $2.2 billion of FY25 revenue already secured; order book at $4.3 billion and tender pipeline at $24.8 billion.

• Second half performance expected to be stronger, with robust order book and tender pipeline.

• Focus on reducing net debt, operational improvements, and capital-light growth in underground and civil infrastructure.

• Positive outlook for mining, civil infrastructure, and renewables in Australia and Southeast Asia.