Mader Group (MAD) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of $411.5 million, up 10% year-over-year, with NPAT of $26.0 million, up 7%, and EBITDA of $51.5 million, up 6% year-over-year.

• Net headcount grew by approximately 300 globally, with global workforce surpassing 3,500 and North America returning to growth.

• Net debt reduced by 26% to $23.2 million, supported by strong cash flow conversion and a clear path to a net cash position within 12 months.

• Strategic plan focuses on geographical and service line diversification, with expansion into energy, transport logistics, and infrastructure maintenance verticals.

• Interim fully franked dividend of 4.0 cents per share declared, up 5% year-over-year, totaling $8.1 million.

Financial highlights

• Revenue for 1H FY25 was $411.5 million, up 10% year-over-year; EBITDA rose to $51.5 million, up 6%; EBIT increased to $39.3 million.

• EPS increased to 12.93 cents per share, up 7% year-over-year; dividends per share up 5% to 4.0 cents.

• Net debt reduced to $23.2 million from $31.2 million at June 2024.

• Net cash flow from operations was $37.1 million; operating cash flow to EBITDA conversion at 109%.

• Gross margin for 1H FY25 was 18.7%, down from 22.4% in 1H FY24; EBITDA margin held steady at 13%.

Outlook and guidance

• FY25 guidance reaffirmed: at least $870 million in revenue and at least $57 million NPAT.

• Long-term target of $1 billion annual revenue and $65 million EBITDA in FY26.

• Positive outlook for all segments in 2H FY25 and FY26, with stabilizing labour markets and increasing customer demand.

• Targeting net cash position within 12 months while maintaining growth and dividend payout.