MAAS Group (MGH) H1 2025 earnings summary

Executive summary

• Underlying EBITDA for 1H25 was AUD 95 million, in line with guidance, driven by strong Construction Materials performance and successful integration of recent acquisitions ahead of schedule.

• Revenue for the half was AUD 454.9 million, down 1% year-over-year, with declines in Civil Construction, Commercial Construction, and Home Construction offset by growth in Concrete, Asphalt, and Quarry sales.

• Capital recycling proceeds totaled AUD 90.7 million, exceeding targets and realized above book value, supporting further strategic investments.

• Net debt reduced to AUD 439.4 million from AUD 505.3 million at June 2024, aided by capital initiatives and a capital raise of approximately AUD 120 million.

• Three major acquisitions (Cleary Bros, Capital Asphalt, Aerolite) completed ahead of schedule, expanding geographic reach and integration synergies.

Financial highlights

• Construction Materials EBITDA grew 24% year-over-year to AUD 45 million, now the largest earnings contributor.

• Group EBITDA margin was 21%, flat year-over-year; excluding fair value gains, margin was 16% (down from 19%).

• Net profit after tax (NPAT) was AUD 32.1 million, a 17% decrease year-over-year; underlying basic EPS at 9.7 cents.

• Operating cash flow was approximately AUD 60 million, with an 81% cash conversion rate.

• Interim dividend declared at AUD 0.035 per share, fully franked.

Outlook and guidance

• FY25 underlying EBITDA guidance is AUD 215–245 million, inclusive of new acquisitions, with Construction Materials expected to further increase its earnings contribution.

• Acquisitions expected to contribute AUD 10–12 million to 2H25 EBITDA.

• Construction Materials growth to be underpinned by volume increases and integration benefits; delayed renewable projects expected to improve momentum late in 2H25 and into FY26.

• Residential settlements expected in the range of 150–180, with stable pricing and improved home construction margins.

• Capital recycling initiatives target over AUD 100 million in FY25 proceeds.