Macmahon (MAH) H1 2026 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2025 increased 11% year-over-year to AUD 1.3 billion, driven by new contracts and organic growth in mining, civil, and underground operations.

• Underlying EBITDA rose 10% to AUD 200.1 million, with underlying EBIT(A) up 17% to AUD 91 million, reflecting operational efficiencies and higher returns from lower capital-intensive segments.

• Reported NPAT surged 60.7% to AUD 48.2 million, with underlying NPAT(A) at AUD 54.9 million, excluding adjusting items.

• Interim fully franked dividend increased 73% to AUD 0.0095 per share, with a payout ratio of 37% of underlying EPS.

• Civil infrastructure contributed 23% of group revenue, reflecting successful diversification and the impact of the Decmil acquisition.

Financial highlights

• Underlying operating cash flow reached AUD 190.5 million, with a 95.2% EBITDA cash conversion rate.

• Free cash flow after tax, interest, and capex was AUD 39.3 million.

• Net debt reduced to AUD 144.1 million, with gearing at 16.8%–17% and net debt/EBITDA at 0.36x.

• Net tangible assets per share increased to 30.7 cents.

• Effective tax rate at 30.8%, with all tax losses now fully recognized.

Outlook and guidance

• FY 2026 guidance reaffirmed: revenue of AUD 2.6–2.8 billion and underlying EBITDA/EBIT(A) of AUD 180–195 million, with AUD 2.5 billion already secured.

• Order book stands at AUD 5.1 billion and tender pipeline at AUD 25.6 billion, with about 50% expected to be awarded in the next 12 months.

• Strategic targets include growing underground revenue to over AUD 750 million and civil infrastructure to AUD 1 billion by FY 2028.

• ROACE target increased to over 25%, with a focus on sustainable free cash flow and reducing gearing.