Macmahon (MAH) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of AUD 2 billion, with underlying EBITDA of AUD 351.7 million (14% increase) and EBITA of AUD 140.3 million (20% increase), despite labor shortages and commodity price volatility.

• Underlying NPATA rose 36% to AUD 91.9 million; statutory NPAT was AUD 53.2 million, impacted by a one-off Calidus receivable impairment of AUD 31.8 million.

• Successfully executed strategic priorities, including the acquisition of Decmil for AUD 104 million, accelerating civil infrastructure growth and diversifying revenue streams.

• Maintained a robust order book of AUD 4.6 billion and a tender pipeline exceeding AUD 21 billion, with AUD 2 billion of FY25 revenue already secured.

• Workforce expanded to nearly 10,000, with continued focus on safety, diversity, and training.

Financial highlights

• Revenue increased 7% to AUD 2 billion; underlying EBITDA margin at 17.3% and EBITA margin at 6.9%.

• Free cash flow rose 115% to AUD 74.5 million; operating cash flow steady at AUD 301 million after AUD 207 million in capex.

• Net debt reduced by 27% to AUD 146.6 million; net debt/EBITDA at 0.42x, gearing at 18.8%.

• Total dividend increased 40% to AUD 0.0105 per share, payout ratio of 24% on underlying EPS.

• Net tangible assets per share increased to 28.9cps.

Outlook and guidance

• FY25 revenue guidance: AUD 2.4–2.5 billion; underlying EBITDA: AUD 160–175 million, with AUD 2 billion already secured.

• Focus on operational improvements, margin expansion, capital-light strategy, and Decmil integration.

• Capex for FY25 targeted at AUD 233 million, with incremental spend for Greenbushes.

• Positive outlook supported by a AUD 4.6 billion order book and AUD 21.4 billion tender pipeline.