Macmahon Holdings Ltd (FRA:MA2)

Full Year 2026 Macmahon Holdings Limited Earnings Call Transcript

Aug 17, 2026 / 01:00 AM GMT

Release Date Price: €0.54 (-8.47%)

Transcript

Key Points

Positve

Record revenue and EBITDA of $2.6 billion and $190.1 million, respectively, with EBITDA margin improving to 7.3%.
Return on average capital employed (ROACE) increased to 22%, exceeding the previous long-term target of 20% and tracking towards the new target of above 25%.
Net debt reduced by 32% to $111.1 million, with gearing down to 13%, below pre-Decmil acquisition levels.
Total dividends increased by 47% to 2.02 cents per share fully franked, with a payout ratio of 41%.
Order book grew to $5.9 billion, supported by a robust tender pipeline of $25 billion, including $13.8 billion expected to be awarded in the next 12 months.
Safety performance improved significantly, with total reportable injury frequency rate decreasing to 1.98 from 2.99 in FY25.
Strong cash flow generation with underlying operating cash flow of $387.4 million and free cash flow of $103.1 million.
Diversification strategy is working, with underground and civil businesses now contributing 50% of group revenue, reducing capital intensity.
FY27 guidance indicates continued growth, with revenue forecast between $2.85 billion and $3.05 billion and underlying EBITDA between $205 million and $225 million.
Extended track record of meeting or exceeding guidance to 10 consecutive years, with a 25% revenue CAGR and 21% EBITDA CAGR over that period.

Negative

Free cash flow declined year-on-year due to higher tax payments, including the final FY25 tax and FY26 provisional tax.
Effective borrowing costs increased to 6.72% from 6.0% in FY25, reflecting RBA interest rate hikes.
EBITDA margin growth was modest, with underlying EBITDA growth of only 2% compared to 11% in EBITDA, due to lower-margin civil and underground work.
CapEx for FY27 is expected to increase to $266 million, including growth capital of $66 million, which may pressure cash flow.
Global geopolitical instability and rising energy costs continue to present challenges, particularly for diesel supply and pricing.
The company faces potential contract losses with Regis (now Genesis) as announced, which could impact future revenue.
The order book for FY27 includes only $2.2 billion of secured work, leaving a significant portion of the revenue guidance dependent on new wins.
The effective tax rate is high at 30.6%, and the company has transitioned to monthly tax payments, impacting cash flow.
The civil business has lower margins compared to mining, which could dilute overall profitability as it grows.
The company's exposure to gold is high at 52% of revenue, which may be a risk if gold prices decline.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

MAH.AX - Macmahon Holdings Limited
Full Year 2026 Macmahon Holdings Limited Earnings Call
Aug 18, 2026 / 01:00AM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by and welcome to the McMahon FY26 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.

If you would like to ask a question during Q&A time, simply press star followed by the number one on your telephone keypad. And to withdraw your question, press the star one again.

For operator assistance throughout the call, please press star zero. And finally, I would like to advise all participants, this call is being recorded.

I'd now like to welcome Mick Minigan, Managing Director and Chief Executive Officer to begin the conference. Mick.

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