Macmahon (MAH) H2 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of $2.4bn, up 20% year-over-year, with EBITDA of $387.4m and EBIT(A) of $171.4m, driven by Decmil integration, acquisitions, and organic growth.

• Free cash flow increased 89% to $140.7m, and underlying operating cash flow rose 35% to $407.4m.

• Order book reached $5.4bn at June 30, 2025, with a $24.2bn tender pipeline and $2.1bn secured for FY26.

• Total dividends increased 43% to 1.50cps, payout ratio 31.2% of underlying EPS, with policy range raised to 30–45% from FY26.

• 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 $162.5m, reduced from $236.9m at 1H25, with gearing at 19.0% and Net Debt/EBITDA at 0.42x.

• ROACE reached 20.5%, exceeding the FY25 target and up from 17.2% in FY24.

• Underlying NPATA excluded $28.4m 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.

• Net tangible assets per share increased to 29.3cps.

Outlook and guidance

• FY26 revenue guidance: $2.6bn–$2.8bn; underlying EBIT(A): $180m–$195m, with $2.1bn 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 $24.2bn, with $8.2bn in tenders expected to be awarded in the next 12 months.

• FY26 capital expenditure expected at $245m, with focus on reducing capital intensity and improving margins.