Macmahon Holdings Limited (ASX:MAH) Reports Record Financial Results
Record Financial Results
Macmahon Holdings Limited (ASX:MAH) has reported record financial results for FY24, marking the eighth consecutive year of achieving guidance. The company has projected underlying EBIT(A) for FY25 between $160 million and $175 million, with secured revenue estimated at $2.3 billion.
Growth and Operational Highlights
The robust growth trajectory includes a revenue guidance range of $2.4 billion to $2.5 billion. The company has an order book valued at $5.0 billion and a tender pipeline projected at $21.2 billion. Significant contracts won in FY25 include an $80 million Poboya gold project in Indonesia and various civil projects totaling approximately $240 million post-Decmil acquisition.
Strategic Comments
“Merging with Decmil strengthens our capacity in civil infrastructure and supports our growth strategy,” said Mick Finnegan, CEO & Managing Director of Macmahon. He emphasised the importance of maintaining a resilient balance sheet while pursuing organic growth opportunities.
Future Outlook
The company aims to achieve a Revenue growth target of over 50% in the next 2-3 years, with a focus on lower capital intensity services. The management anticipates maintaining a dividend payout ratio between 20% and 35% of underlying EPS, reflecting its commitment to increasing shareholder returns.
Market Confidence
Macmahon’s strategic partnerships and established client relationships underpin its projected growth. The company remains focused on the expanding market opportunities within Australia and Southeast Asia, leveraging its comprehensive range of mining services.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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