Macmahon (MAH) H2 2026 earnings summary

Executive summary

• Achieved record FY26 revenue of AUD 2.6 billion (up 8% year-over-year), with underlying EBITDA of AUD 393.8 million (up 2%) and EBIT(A) of AUD 190.1 million (up 11%).

• ROACE improved to 22%, surpassing the long-term target of 20%, driven by productivity and disciplined capital management.

• Net profit after tax (NPAT) rose 12% to AUD 115 million (underlying), with reported NPAT at AUD 101 million; underlying EPS increased 11% to 5.36cps.

• Net debt reduced by 32% to AUD 111.1 million, with gearing at 13%, and total dividends up 47% to AUD 0.022 per share (41% payout ratio).

• Order book grew to AUD 5.9 billion, supported by a robust AUD 25 billion tender pipeline, with AUD 13.8 billion expected to be awarded in the next 12 months.

Financial highlights

• Underlying EBITDA margin was 15.0%, EBIT(A) margin improved to 7.3%, and NPAT margin was 4.4%.

• Free cash flow was AUD 103.1 million, down 27% year-over-year due to timing of tax payments.

• Cash conversion rate was 98.4%; CapEx for FY26 was AUD 200.5 million, with growth CapEx of AUD 20 million.

• Cash and available committed banking facilities totaled AUD 566 million at year-end, including AUD 310 million cash on hand.

• Effective tax rate was 30.6% for FY26, with AUD 104 million in franking credits.

Outlook and guidance

• FY27 revenue guidance: AUD 2.85–3.05 billion; underlying EBIT(A): AUD 205–225 million, with AUD 2.2 billion already secured.

• Priorities include operational improvements, growth in underground and civil infrastructure, and achieving ROACE above 25%.

• Indonesian operations expected to grow to 15–20% of group revenue, contributing higher margins and lower capital intensity.

• Robust order book and tender pipeline position the business for continued revenue and earnings growth.

• Exposure to gold, copper, lithium, iron ore, and coal supports positive outlook.