Matrix Composites & Engineering (MCE) H2 2025 earnings summary

Executive summary

• FY25 revenue was AUD 74.8 million (or $74.8m), driven by record subsea (SURF) product demand and strong Subsea Buoyancy market share, though overall revenue declined 12% year-over-year due to project timing and a muted drilling market.

• Subsea products accounted for nearly 90% of revenue, with SURF as the main contributor; Advanced Materials and Corrosion Technologies are positioned for growth.

• The business operated profitably at the EBITDA level (AUD 5 million, margin 6.7%), but reported a net loss after tax of AUD 2.2 million.

• Cash on hand at year-end was AUD 18.3 million, with net cash position of AUD 10.7 million.

• Strong start to FY26 with ~$45m in new SURF awards and ~$57m in secured subsea revenue.

Financial highlights

• FY25 revenue was AUD 74.8 million, down 12% from FY24 but up 60% from FY23.

• Underlying EBITDA was AUD 5 million (6.7% margin); net loss after tax was AUD 2.2 million.

• Cash on hand at year-end was AUD 18.3 million; net working capital in use was AUD 17.3 million.

• Deferred revenue and profit of AUD 3 million and AUD 1 million, respectively, shifted into FY26 due to customer delivery delays.

• Net cash position (including Convertible Note) was AUD 10.7 million at June 30, 2025; no long-term debt.

Outlook and guidance

• FY26 starts with AUD 57 million secured revenue from Subsea, up from AUD 33 million at FY25 start, and recent SURF awards of AUD 45 million provide momentum.

• Advanced Materials expected to grow considerably in FY26, with steady OpEx and maintenance revenue from Corrosion Technologies.

• Revenue for FY26 is expected to be weighted toward the second half, with subdued activity in the first half and ramp-up in the second.

• Defence and floating wind opportunities are building, with floating wind revenue likely from 2026.

• Bread-and-butter contracts and recurring revenue from Advanced Materials and Corrosion Technologies targeted to fill gaps in project-based revenue.