Macmahon Holdings Ltd (MCHHF) (H1 2026) Earnings Call Highlights: Strong Revenue Growth and …

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Tue, February 17, 2026 at 4:00 PM GMT+9 3 min read

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**Revenue:** Increased by 11% to $1.3 billion.

**Underlying EBITDA:** Up 10% to $200 million.

**EBIT(A):** Increased by 17% to $91 million.

**Operating Cash Flow:** Up 17% to $190.5 million.

**Free Cash Flow:** $39.3 million after tax, interest, and capital expenditure.

**Gearing:** Reduced to 17%.

**Return on Average Capital Employed (ROACE):** Improved to 21.2%.

**Order Book:** Strong at $5.1 billion.

**Tender Pipeline:** $25.6 billion, with 50% expected to be awarded within 12 months.

**Interim Dividend:** Increased to $0.95 per share, fully franked.

**Net Profit After Tax:** Underlying net profit grew 17% to $55 million.

**Net Debt:** Reduced to $144.1 million.

**Net Debt-to-EBITDA:** Dropped to 0.36 times.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Macmahon Holdings Ltd (MCHHF) reported a strong first half with an 11% increase in group revenue to $1.3 billion.

The company achieved a 17% increase in underlying EBIT(A) to $91 million, indicating improved operational efficiency.

Free cash flow after tax, interest, and capital expenditure was robust at $39.3 million, allowing for a reduction in debt levels.

The interim dividend was increased to a fully franked $0.95 per share, reflecting confidence in sustained earnings improvement.

Macmahon Holdings Ltd (MCHHF) has a strong order book of $5.1 billion and a tender pipeline of $25.6 billion, providing a solid foundation for future growth.

Negative Points

The company's TRIFR has continued to reduce, but a tragic incident occurred with the passing of an employee at the Fosterville Gold Mine, highlighting ongoing safety challenges.

Despite strong financial performance, the company is not yet achieving its target margin of 8% in mining operations.

The civil infrastructure sector remains competitive, with expected margins between 5% and 7%, which may limit profitability.

Working capital management remains a challenge, with cash conversion typically lower in the first half of the year.

The company faces the ongoing task of increasing the contribution from Indonesian operations to 15% to 20% of group revenue, which may take longer than anticipated.

Q & A Highlights

Q: Can you provide more details on what’s driving the margin improvement across segments, particularly in mining and civil? A: Michael Finnegan, CEO: The margin improvement in mining was better than expected due to the new OpCo model, which has improved efficiencies. The underground segment’s performance has held strong, translating into better results for surface mining. Civil margins are expected to be around 6%, with potential to push towards 7% as we gain scale.

Story Continues  

Q: What are your expectations for net working capital going forward? A: Ursula Lummis, CFO: Historically, our cash conversion dips in the first half but improves to 100% by year-end. The new OpCo model helps each MD focus on optimizing working capital, aiming for 90% to 100% on average.

Q: With $14.4 billion in opportunities over the next 12 months, what are your win rate expectations? A: Michael Finnegan, CEO: In surface mining, we expect a 1 in 3 win rate, with some projects already in negotiation. For underground, it’s 1 in 2 or 1 in 3, and for civil, it’s between 1 in 3 and 1 in 4, with larger packages becoming more common.

Q: Can you expand on the CapEx indications for the second half and where the funds will be allocated? A: Ursula Lummis, CFO: We plan to maintain a $245 million CapEx, with $145 million in the second half. About $20 million will go into underground projects, with the rest for sustaining capital.

Q: Do you have spare equipment available for the tender pipeline due to contract conclusions? A: Michael Finnegan, CEO: Yes, particularly in underground. We have retained equipment and personnel from concluded contracts, which will be redirected to new work, optimizing new CapEx as needed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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