Macmahon (MAH) H2 2025 earnings summary

Executive summary

• Achieved record revenue of $2.4 billion for FY 2025, up 20% year-over-year, with EBITDA of $171 million and EBITDA margin rising to 7.1% from 6.9% year-over-year.

• Free cash flow increased 89% to $141 million, and underlying operating cash flow rose 35% to $407 million.

• Order book grew to $5.4 billion at June 30, 2025, with a $24.2 billion tender pipeline and $2.1 billion secured for FY 2026.

• Total dividends increased 43% to $0.015 per share, with a payout ratio of 31% on underlying EPS.

• Maintained a nine-year track record of meeting or exceeding market guidance, with a CAGR of 27% in revenue and 22% in EBITDA.

Financial highlights

• Net debt at $162.5 million, up 11% year-over-year due to acquisition, but down over 30% from the first half; gearing at 19%.

• ROACE reached 20.5%, meeting the long-term target and up from 17.5% at the half.

• Underlying NPATA excluded $28.4 million in adjusting items, including M&A and share-based payments.

• Effective tax rate was 32.2%, with future rates expected in the 28%-30% range.

• Cash conversion for the year was 105%, with CapEx of $221 million and free cash flow of $140.7 million.

Outlook and guidance

• FY 2026 revenue guidance: $2.6–$2.8 billion; underlying EBITDA/EBIT(A): $180–$195 million, with $2.1 billion already secured.

• Priorities include operational improvements, growth in underground and civil infrastructure, and achieving a new ROIC target of 25%.

• Strong order book and robust tender pipeline of $24.2 billion, with $8.2 billion in tenders expected to be awarded in the next 12 months.