MLG Oz (MLG) H1 2025 earnings summary

Executive summary

• Revenue for HY2025 rose 20.5% year-over-year to $272.9 million, driven by strong demand in the gold sector and organic growth in mine site services and bulk haulage.

• Net profit after tax declined 42.7% year-over-year to $4.1 million, impacted by lower crushing and screening revenue and higher depreciation from recent capital investments.

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

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

• Operational focus remained on expanding service scope, deploying new fleet, and supporting client volume growth, with expectations for improved margins in the second half.

Financial highlights

• Revenue: $272.9 million for HY2025, up from $226.4 million in HY2024.

• Net tangible assets per share rose 8.3% to 102c.

• Net assets reached $135.8 million at 31 December 2024.

• Net debt stood at $77.5 million, with a gearing ratio of 1.4x.

• Operating cash flow was $14.7 million, down from $24.6 million in the prior year, with cash conversion impacted by timing of debtor receipts.

Outlook and guidance

• Strong gold prices and recent contract wins are expected to drive further revenue and margin growth in the second half of FY2025.

• Second half expected to see revenue and margin improvement as delayed projects commence and fleet is deployed.

• Crushing and screening revenue anticipated to increase in H2 as new projects commence.

• Capital expenditure is expected to slow in the second half as new fleet is deployed.

• Focus remains on long-term sustainability and optimizing the portfolio for margin improvement.