MAAS Group (MGH) H2 2024 earnings summary

Executive summary

• Record FY 2024 results with underlying EBITDA of AUD 207.3 million, up 27% year-over-year, at the upper end of guidance, despite headwinds from weather, project delays, and high interest rates.

• Strong organic growth, with 88% of EBITDA growth from existing businesses; construction materials and civil construction and hire contributed around 70% of group EBITDA.

• Strategic acquisitions in Construction Materials expanded the Greater Melbourne footprint, positioning for future growth.

• Capital recycling initiatives delivered proceeds above book value, with AUD 72 million realized in FY 2024 and AUD 65 million contracted for FY 2025.

• Successful debt syndication refinance increased liquidity and flexibility, supporting ongoing investment.

Financial highlights

• Revenue grew 11% year-over-year to AUD 881.9 million, mainly from construction materials and recent acquisitions; group EBITDA margin increased to 24%.

• Underlying EBIT up 28% to AUD 154.1 million; statutory NPAT up 12% to AUD 73.0 million.

• EPS rose 18% to AUD 0.257 per share; operating cash flow increased 32% to AUD 154.3 million.

• Cash flow conversion was 88%, with free cash flow just under AUD 150 million.

• Final fully franked dividend of 3.5 cents per share, annual total 6.5 cents, up 8.3%.

Outlook and guidance

• Expect continued solid revenue and profit growth in FY 2025, supported by a strong external project pipeline, infrastructure and renewable energy projects, and full-year contributions from recent acquisitions.

• Delayed electrical transmission projects expected to ramp up in FY 2025 and beyond.

• Commercial property development sales of AUD 65 million contracted for FY 2025.

• Residential land settlements expected to be flat to modestly improved; medium- to long-term fundamentals remain strong.

• Risks include project delays, competition, sustained high interest rates, and adverse weather.