Macmahon (MAH) H1 2025 earnings summary

Executive summary

• Revenue increased 22% year-over-year to AUD 1.2 billion for 1H FY25, driven by the Decmil acquisition and organic growth.

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

• Reported NPAT declined 17.8% to AUD 30 million, mainly due to AUD 17.1 million in Decmil acquisition and other non-recurring costs.

• Interim dividend increased to AUD 0.0055 per share, fully franked, up 22.2% from the prior period.

• Decmil acquisition completed and integrated, boosting civil infrastructure segment and diversifying revenue.

Financial highlights

• Group revenue: AUD 1.2 billion (up from AUD 966.3 million year-over-year); underlying EBITDA: AUD 181.3 million (up from AUD 176 million year-over-year).

• Underlying EBIT(A): AUD 78.1 million (up from AUD 68.1 million year-over-year); statutory profit at AUD 30 million, impacted by acquisition costs.

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

• Net debt increased to AUD 237 million due to Decmil acquisition, expected to normalize by year-end.

• Cash and available banking facilities at AUD 274 million at period end.

Outlook and guidance

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

• Strong order book of AUD 4.3 billion and tender pipeline of nearly AUD 25 billion, with AUD 2.2 billion of work secured for FY25.

• 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.