Matrix Composites & Engineering (MCE) H2 2024 earnings summary

Executive summary

• Revenue reached $85.0m in FY24, up 80% year-over-year, driven by strong subsea contract awards, SURF and Riser Buoyancy projects, and robust offshore oil & gas market activity.

• Underlying EBITDA rose to $11.0m from $0.2m, with significant margin improvement to 12.9% in FY24 and 18% in 2H FY24.

• NPAT was $3.6m, compared to $8.7m in FY23, which included a $15.8m impairment reversal.

• Cash on hand increased to $23.3m, supporting a growing opportunity pipeline and strong orderbook backlog of $33m at June 30, 2024.

• Operating cash inflow reached $10.9m, reversing a $9.1m outflow in FY23.

Financial highlights

• Revenue: $85.0m (FY24) vs $47.2m (FY23), an 80% increase.

• Underlying EBITDA: $11.0m (FY24) vs $0.2m (FY23); margin improved to 12.9%, with 2H FY24 margin at 18% on $58.2m revenue.

• Operating cash flow: $10.9m (FY24) vs $(9.1)m (FY23).

• Net cash position: $14.4m (FY24) vs $11.2m (FY23), including Convertible Note.

• Employees increased to 198 from 133, reflecting business growth.

Outlook and guidance

• Secured ~$33m in revenue for FY25 from Subsea business, with additional subsea awards under negotiation.

• Recurring revenue from Corrosion Technologies and Advanced Materials projected at least $10m p.a.

• Active pipeline includes $300m in SURF quotations, with $100m in awards expected in the next 8 months.

• Floating wind and defence opportunities expected to contribute from 2026 onward.

• Drilling market capital deployment improving, with $130m in outstanding quotations.