Macmahon (MAH) H1 2026 earnings summary

Executive summary

• Revenue for the first half rose 11% year-over-year to $1.3bn, with underlying EBITDA up 10% to $200.1m, driven by growth in civil infrastructure and underground mining, including expansion in Indonesia and operational efficiencies.

• Reported NPAT increased 61% to $48.2m, while underlying EBIT(A) grew 17% to $91.0m, reflecting higher returns from lower capital-intensive segments.

• Civil infrastructure contributed 23% of group revenue, with revenue up 61% to $306.7m, supported by the Decmil acquisition and new contract wins.

• Order book stands at $5.1bn, with $2.5bn secured for FY26 and a $25.6bn tender pipeline, about half expected to be awarded in the next 12 months.

• Interim fully franked dividend increased 73% to 0.95cps, reflecting a payout ratio of 37.1% and confidence in ongoing performance.

Financial highlights

• Underlying EBITDA up 10% to $200.1m; underlying EBIT(A) up 17% to $91.0m; reported NPAT up 61% to $48.2m; underlying NPAT(A) up 17% to $54.9m.

• Free cash flow after tax, interest, and capex was $39.3m, impacted by a $20m tax payment as the group became a taxpayer for the first time.

• Net debt reduced to $144.1m, with gearing at 16.8% and net debt/EBITDA at 0.36x.

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

• Net tangible assets per share increased to 30.7cps.

Outlook and guidance

• FY26 revenue guidance reaffirmed at $2.6bn–$2.8bn, with underlying EBITDA of $180m–$195m and $2.5bn already secured.

• Second half performance expected to be stronger, supported by a $5.1bn order book and $25.6bn tender pipeline.

• Strategic targets include growing underground revenue to over $750m and civil infrastructure to $1bn by FY28.

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

• Targeted FY26 capital expenditure remains at approximately $245m.