Matrix Composites & Engineering (MCE) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 47% year-over-year to $39.4m, driven by strong subsea buoyancy and SURF product demand, with advanced materials and corrosion technologies contributing to diversification and growth.

• Underlying EBITDA reached $3.2m, up from $0.6m, and NPAT was $1.0m, reversing a $3.8m loss in the prior year.

• Cash on hand was $15.7m at period end, increasing to $19.2m post-period, with net cash at $8.3m.

• Subsea buoyancy remained the dominant revenue contributor, accounting for 88% of 1H FY25 revenue, with significant growth in Brazil, West Africa, and the Gulf of Mexico.

• Board changes included Steven Cole's retirement after 11 years, replaced by Stephan Kirsch, bringing mining sector experience.

Financial highlights

• Revenue for 1H FY25 was $39.4m, up from $26.7m in 1H FY24.

• Underlying EBITDA: $3.2m (8.1% margin), up from $0.6m (2.2% margin) year-over-year.

• NPAT: $1.0m, reversing a $3.8m loss in the prior period.

• Operating cash outflow was $4.7m, impacted by contract timing and working capital for large projects.

• Cash and cash equivalents at period end: $15.7m, improving to $19.2m by late February 2025.

Outlook and guidance

• FY25 revenue secured at ~$60m, with a record year expected and further subsea opportunities being pursued.

• Second half FY25 revenue expected to be similar to the first half, with some variability due to project timing and customer award delays.

• Robust SURF opportunity pipeline with $300m in quotations submitted; over half expected to be awarded this year.

• Targeting ~$10m per annum in recurring revenue from corrosion technologies and advanced materials.

• Strategy focuses on growing global market share in buoyancy products and diversifying into advanced materials and renewables.