Half Year 2026 Macmahon Holdings Ltd Earnings Call Transcript
Key Points
- Macmahon Holdings Ltd (MCHHF) reported a strong first half with an 11% increase in group revenue to $1.3 billion.
- The company achieved a 17% increase in underlying EBIT(A) to $91 million, indicating improved operational efficiency.
- Free cash flow after tax, interest, and capital expenditure was robust at $39.3 million, allowing for a reduction in debt levels.
- The interim dividend was increased to a fully franked $0.95 per share, reflecting confidence in sustained earnings improvement.
- Macmahon Holdings Ltd (MCHHF) has a strong order book of $5.1 billion and a tender pipeline of $25.6 billion, providing a solid foundation for future growth.
- The company's TRIFR has continued to reduce, but a tragic incident occurred with the passing of an employee at the Fosterville Gold Mine, highlighting ongoing safety challenges.
- Despite strong financial performance, the company is not yet achieving its target margin of 8% in mining operations.
- The civil infrastructure sector remains competitive, with expected margins between 5% and 7%, which may limit profitability.
- Working capital management remains a challenge, with cash conversion typically lower in the first half of the year.
- The company faces the ongoing task of increasing the contribution from Indonesian operations to 15% to 20% of group revenue, which may take longer than anticipated.
Good day, and welcome to the Macmahon first-half '26 results conference call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded.
Thank you. I would now like to hand over to the conference call hosts, Macmahon CEO at MD, Mr. Michael Finnegan; and the company's CFO, Ms. Ursula Lummis. Please go ahead.
Thanks, operator. Welcome to the Macmahon 2026 first-half results presentation. I'm Mick Finnegan, and with me is our CFO, Ursula Lummis. Thanks for joining us today. We appreciate your interest in Macmahon and the opportunity to present our half-year results during this busy period.
We'll run through the presentation lodged on the ASX this morning, and then we'll be happy to take your questions at the conclusion of the presentation.
Beginning with the financial highlights on slide 2. I'm really pleased to say Macmahon has delivered a strong first half with healthy growth in
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