MLG Oz (MLG) H1 2025 earnings summary

Executive summary

• Revenue for HY2025 reached up to $272.9m, up 20.5% year-over-year, driven by strong gold sector demand and new contract wins.

• EBITDA for HY2025 was $29.3m, with a margin of 10.9%, reflecting steady profitability despite higher depreciation from fleet investments.

• Net profit after tax (NPAT) for HY2025 was $4.1m, with slight growth half-on-half but down 42.7% year-over-year due to lower crushing revenue and higher depreciation.

• Significant capital expenditure included $29.2m for new equipment and $3.5m for an accommodation facility in Kalgoorlie.

• No interim dividend declared for the period ended 31 December 2024.

Financial highlights

• Revenue increased up to 20.5% year-over-year, reaching as high as $272.9m, driven by strong demand in the gold sector.

• Net tangible assets (NTA) per share rose to $1.02, up from $0.94 at 31 December 2023.

• Net assets reached $135.8m at 31 December 2024, up from $130.8m at 30 June 2024.

• CapEx for the half was up to $32.7m, with $13.1m in sustaining CapEx.

• Operating cash conversion dropped to 50.3% due to timing of debtor receipts, with $12m collected in January.

Outlook and guidance

• Second half expected to be materially stronger, with revenue and margin improvement as delayed projects commence and fleet is deployed.

• Haulage and site services margins are improving, and crushing revenues are expected to rebound.

• NPAT for FY24/FY25 is expected to be flat year-over-year, with EBITDA and other metrics slightly higher.

• Margin improvements anticipated to continue into FY26, supported by long-dated contracts and new project wins.

• Significant inbound demand, especially in gold, is expected to drive further growth.