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 3.0% to $181.3 million, and underlying EBIT(A) increased 14.7% to $78.1 million; underlying NPAT(A) up 18.7% to $47 million.

• Reported NPAT declined 17.8% to $30 million, mainly due to $17.1 million in acquisition-related costs.

• Interim dividend increased to 0.55cps, fully franked, up 22.2% year-over-year.

• Decmil acquisition completed and integrated, contributing to growth, diversification, and cost synergies.

Financial highlights

• Underlying EBITDA at $181.3 million (15.4% margin), underlying EBIT(A) at $78.1 million, and statutory profit at $30 million.

• Free cash flow was $49 million; operating cash flow up 18% to $163.4 million with 90% cash conversion.

• Net debt increased to $236.9 million (gearing 26.2%) due to Decmil acquisition, expected to reduce by year-end.

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

• Dividend payout ratio at 24.8% of underlying EPS.

Outlook and guidance

• FY25 revenue guidance reaffirmed at $2.4–$2.5 billion, with underlying EBIT(A) guidance 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.

• Targeted FY25 capital expenditure remains at approximately $233 million.

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