Mader Group (MAD) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of AUD 774.5 million, up 27% year-over-year, surpassing guidance and reflecting strong global expansion and diversification across markets and industries.

• NPAT reached AUD 50.4 million, a 31% increase from FY23, also exceeding targets, with EPS up 31% to 25.2 cents.

• Workforce grew to over 3,200 skilled technicians operating in seven countries, supporting more than 430 customers at over 570 locations and over 1,400 service vehicles globally.

• Continued strong organic growth, with a 10-year CAGR of 30% and expansion across multiple industry verticals and geographies.

• Enhanced safety performance, including an 11% year-over-year improvement in injury frequency rate and major vehicle safety upgrades.

Financial highlights

• EBITDA increased 32% to AUD 99.2 million; EBITDA margin improved to 12.8% from 12.3%.

• Net debt reduced by 27% to AUD 31.2 million; net leverage at 0.3x, with net assets rising to AUD 160.3 million.

• Declared fully franked dividend of 7.8 cents per share, up 34% year-over-year, with a payout ratio of 31% of NPAT.

• Net cash flow from operations was AUD 68.7 million, with strong cash conversion at 88%.

• Gross profit increased to AUD 162.0 million, though gross margin declined to 20.9% from 22.3%.

Outlook and guidance

• Reaffirmed FY25 guidance: at least AUD 870 million revenue and NPAT of at least AUD 57 million, representing ~12% and ~13% growth, respectively.

• Targeting AUD 1 billion revenue and AUD 65 million NPAT by FY26, with continued organic growth and margin improvement.

• Forecast CapEx for FY25 between AUD 40-45 million, primarily for growth.

• Strategic focus on leveraging diverse services and global reach to maximize shareholder returns.