Decmil secures $111m contract

Mining services company Macmahon Holdings has added to its 2025 financial year order book, thanks to its recently acquired subsidiary Decmil Group.

Michael Finnegan-led Macmahon told the market that Decmil had won a contract worth $111 million with Queensland Hydro - a public-owned entity created by the Queensland state government - for design and construction work at its Borumba Dam temporary worker accommodation camps in Imbil, located 160km north of Brisbane.

This contract means Macmahon has now secured guaranteed revenue in excess of $2.1 billion, with its revenue guidance for the 2025 financial year remaining unchanged between $2.4 and 2.5 billion.

“Decmil recently joined the Macmahon team and are off to a great start having secured this new, strategically aligned work that continues Decmil’s successful history of delivering worker accommodation camp design and construction projects across Australia,” Mr Finnegan said.

“Accelerating growth in civil infrastructure is a priority for Macmahon and a key component in creating a more scalable and diversified business.”

In April, Macmahon announced plans to acquire Decmil for 30 cents per share, which represented more than an 80 per cent premium to its 30-day volume weighted average price.

The implied enterprise value of the transaction was $127 million, with Decmil’s shareholders overwhelmingly supportive of the acquisition in late-July.

Macmahon told the market on August 15 that the acquisition had been finalised – and despite operating at a wholly owned subsidiary, Decmil would maintain its existing branding and remain led by chief executive officer Rod Heale.

Over the past two days, Macmahon has also announced a series of board changes, with both Greg Evans and Maree Arnason joining the board of directors from November 1. In addition, Denise McCormish announced her retirement from the board, effective from October 29, due to a desire to rebalance her board portfolio. 

As of 2.01pm WST, Macmahon’s shares were down 1 per cent to 33.5 cents.