Macmahon Holdings posted a reduced net profit of $30 million during the first half of the 2025 financial year, which was down 17.8 per cent from $36.5 million.
Macmahon Holdings posted a reduced net profit of $30 million during the first half of the 2025 financial year, which was down 17.8 per cent from $36.5 million.
The mining services contractor told the market this was primarily due to its acquisition of fellow contractor Decmil Group in August last year for $104 million.
Macmahon’s underlying net profit rose 18.7 per cent to $47.1 million in relation to the prior corresponding period, while its revenue – enhanced by the Decmil acquisition – jumped 22 per cent to $1.2 billion.
Aside from declaring an increased interim dividend of 55 cents per share, the company confirmed its revenue guidance for the 2025 financial year would remain between $2.4-$2.5 billion, with $2.2 billion of this already secured.
As of 9.57am AWST, Macmahon shares were down 10 per cent to 29.8 cents.
“The financial results reflect that, with revenue and underlying earnings significantly higher than the prior corresponding period,” Macmahon managing director and chief executive Michael Finnegan said.
“So was free cash flow excluding the one-off Decmil cash acquisition payment, and we also added over $800 million in new work to Macmahon’s secured order book.
“This highlights the fundamental strength of the business and positions us well to meet our FY25 guidance, generate strong free cash flow, and reduce gearing and net debt back to around FY24 levels following the recent spike on acquisition of Decmil.
“Macmahon is well placed for a strong second half performance and will continue to effectively manage our capital position, our people requirements, and our costs.
Most importantly, we will work with our clients to deliver their projects safely and efficiently.”
As of December 31 2024, the Perth Airport-based contractor had $221.8 million in cash and cash equivalents, while its total equity grew from $633.5 million to $668.8 million between June 30 and December 31.
Macmahon hit the ground earlier this year, securing a $463 million contract with Awak Mas gold project in Indonesia, while Decmil inked a $50 million deal with Major Road Projects Australia, where it will work on delivering a freeway link between Melbourne and Geelong in Victoria.
