Macmahon Holdings Limited (MAH) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: 2.24%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.91
• Revenue Growth: 19.50%
• EPS Growth: 37.55%
• Country: AU
• Employees: 9,676
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.02
• Shares Outstanding: 2,154,985,800
• 10 Day Avg. Volume: 3,443,422
• 30 Day Avg. Volume: 3,800,098
• PEG Ratio: 0.24
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 4.18
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $0.66
• Price Target Upside: -8.57% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: AU$0.80 ▲(10.69% Upside)

Macmahon Holdings Limited's overall stock score is driven by strong technical analysis and solid financial performance. The stock's bullish momentum is a significant positive, although overbought indicators suggest caution. Financial health is robust, but valuation concerns due to a high P/E ratio slightly dampen the outlook.

Positive Factors

Strong free cash flow generation

Sustained FCF growth and solid cash conversion improve financial flexibility for capital expenditure, equipment leasing, and working capital. Reliable cash generation supports contract fulfilment, reduces reliance on external financing and strengthens the firm's ability to weather multi‑quarter industry slowdowns.

High gross profit margin and revenue growth

A very high gross margin and consistent top‑line growth indicate structural pricing power and efficient project-level execution in contract work. This margin buffer supports sustainability of operations across projects and underpins the ability to invest in capabilities and bid competitively on longer-term contracts.

Long-term contract-based business model

Dependence on long‑duration contracts and integrated services creates revenue visibility and stronger client relationships. Integrated offerings and strategic partnerships with major miners raise switching costs, enabling recurring revenue and smoother backlog conversion over multiple quarters and years.

Negative Factors

Low net profit margin

A low net margin signals thin bottom‑line resilience after overhead, financing and SG&A. It limits retained earnings and reduces cushion against cost inflation or project overruns, increasing sensitivity to any sustained uptick in operating costs or weaker contract pricing over several quarters.

Leverage requires monitoring

A moderate leverage profile increases interest and refinancing exposure, particularly in a capital‑intensive services business. Elevated debt can constrain bidding flexibility on large projects, limit investment cadence and amplify earnings volatility during sector downturns if cash flow weakens.

Exposure to mining sector cyclicality

Heavy reliance on the resources sector ties revenue and contract renewal timing to commodity cycles and miner capex. Even with long contracts, prolonged industry downturns can delay new awards and compress utilization, producing multi‑quarter volatility in revenue and profit conversion.

Macmahon Holdings Limited Business Overview & Revenue Model

Company Description

Macmahon Holdings Limited provides mining and civil construction services to mining companies in Australia, Indinesia, Malaysia, and South Africa. The company operates in three segments: Surface Mining, Underground Mining, and International Mining. Its surface mining services include mine planning and analysis, drill and blast, bulk and selective mining, crushing and screening, fixed plant maintenance, water management, and equipment operation and maintenance. The company also provides underground mining services, including mine development and production, raise and production drilling, cable bolting, shotcreting, remote shaft lining, and shaft sinking. In addition, it offers topsoil and overburden stripping, bulk earthworks, road design and construction, and train loading facilities; water infrastructure, including dams, creek diversions, flood levies, and drainage structures; revegetation; non-process infrastructure, as well as rehabilitation monitoring and maintenance; and engineering services comprising shaft lining and maintenance, emergency egress system, pump stations and rising mains, and sire workshops and infrastructure, as well as conveying, crushing, materials handling. Further, the company provides equipment maintenance and management support services; and advisory operational improvement services, which include operator coaching and training, and cultural change programs for employees, as well as advisory and assistance services with mine planning, maintenance, and employee engagement. Macmahon Holdings Limited was incorporated in 1963 and is headquartered in Perth, Australia.

How the Company Makes Money

Macmahon generates revenue primarily through its mining services contracts, which include mine development, operation, and maintenance for various clients in the resources sector. The company typically enters into long-term contracts with mining companies, ensuring a steady stream of income. Key revenue streams include fixed-price contracts, cost-plus contracts, and performance-based agreements. Additionally, Macmahon may earn revenue from ancillary services such as equipment leasing and maintenance. Strategic partnerships with major mining companies enhance its market position and contribute to consistent earnings. Market demand for mining services and the availability of resources are significant factors that influence its revenue.

Macmahon Holdings Limited Financial Statement Overview

Summary

Macmahon Holdings Limited exhibits solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins and leverage are areas for potential improvement, the company maintains a stable financial position. Continued focus on enhancing margins and managing debt will be crucial for sustaining growth and profitability in the competitive industrial materials sector.

Income Statement

Macmahon Holdings Limited has demonstrated consistent revenue growth with an 8.19% increase in the latest year, supported by a strong gross profit margin of 74.31%. However, the net profit margin remains modest at 3.05%, indicating room for improvement in cost management or pricing strategies. The EBIT and EBITDA margins are stable, reflecting operational efficiency, but could be enhanced to boost profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.62 indicates a balanced approach to leveraging, though slightly higher than previous years. Return on equity stands at 10.68%, showing effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure, but monitoring debt levels is advisable to maintain financial stability.

Cash Flow

Macmahon Holdings has shown a strong free cash flow growth rate of 15.02%, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 0.46, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.47 further supports the company's ability to generate cash relative to its net income, enhancing financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.43B	2.43B	2.03B	1.91B	1.70B	1.35B
Gross Profit	1.14B	1.80B	1.55B	1.31B	1.18B	864.25M
EBITDA	372.85M	359.34M	306.18M	292.21M	251.56M	243.33M
Net Income	73.94M	73.94M	53.23M	57.67M	27.40M	77.23M
Balance Sheet
Total Assets	1.76B	1.76B	1.45B	1.46B	1.34B	1.14B
Cash, Cash Equivalents and Short-Term Investments	263.89M	263.89M	194.58M	218.16M	197.96M	182.08M
Total Debt	426.35M	426.35M	341.17M	420.11M	413.47M	312.43M
Total Liabilities	1.07B	1.07B	817.84M	855.87M	778.78M	607.62M
Stockholders Equity	692.34M	692.34M	633.51M	608.85M	559.50M	535.86M
Cash Flow
Free Cash Flow	155.47M	155.47M	120.78M	73.60M	65.00M	32.40M
Operating Cash Flow	334.00M	334.00M	270.82M	266.85M	227.91M	238.99M
Investing Cash Flow	-228.99M	-228.99M	-142.41M	-193.14M	-170.52M	-201.83M
Financing Cash Flow	-37.16M	-37.16M	-151.07M	-55.20M	-45.47M	5.91M

Macmahon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MAH, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.59, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 73.57 is Negative, neither overbought nor oversold. The STOCH value of 81.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MAH.

Macmahon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAH	73 Outperform	$1.50B	21.04	10.88%	2.24%	19.50%	37.55%
AIS	69 Neutral	AU$748.23M	12.96	15.33%	―	6.70%	―
OMH	67 Neutral	AU$259.87M	-12.45	-3.24%	1.54%	14.64%	-213.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MMI	51 Neutral	AU$421.64M	3.12	145.87%	―	45.56%	―
SVM	46 Neutral	AU$388.16M	-8.76	-90.12%	―	―	-98.20%
CAY	44 Neutral	AU$484.60M	-16.20	-45.39%	―	―	-91.89%

Macmahon Holdings Limited Corporate Events

Macmahon Announces Lapse of 2.8 Million Performance Rights

Macmahon Holdings Limited has notified the ASX that a total of 2,827,097 performance rights have lapsed after the vesting conditions were not met or became incapable of being satisfied in December 2025. The cessation of these securities reflects an adjustment to Macmahon’s issued capital and implies that certain performance targets tied to these rights were not achieved, which may affect incentive outcomes for eligible participants but does not alter the company’s ordinary share capital structure.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.72 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Subsidiary Wins $81m Rio Tinto Workshop Contract at Brockman 4

Macmahon’s subsidiary Decmil has secured an $81 million contract from Rio Tinto to deliver the Mobile Equipment Maintenance Workshop Expansion project at the Brockman 4 iron ore mine in Western Australia’s Pilbara region. The scope includes construction of a new workshop, office facilities, bulk lube storage and an oily water system, with works scheduled to start in early 2026 and finish by April 2027. While the company’s FY26 guidance remains unchanged, management says the award strengthens its earnings momentum for that year, advances its strategy of growing into larger civil projects, and underpins its civil work pipeline into FY27, reinforcing its strategic relationship with Rio Tinto.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon’s Decmil Secures $51 Million Windfarm Contract in Western Australia

Macmahon Holdings Limited announced that its subsidiary, Decmil, has been awarded a $51 million contract as part of a joint venture with RJE Global for the Waddi Windfarm project in Western Australia. This contract, part of a larger $91 million project with Tilt Renewables, involves the design and construction of essential infrastructure for the wind farm, highlighting Decmil’s capabilities in the renewables sector and aligning with Macmahon’s strategy to expand its civil infrastructure business in Australia.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Secures $792 Million Contract at Byerwen Mine

Macmahon Holdings Limited has secured a new three-year contract valued at $792 million to continue providing open cut mining services at the Byerwen coking coal mine in Queensland’s Bowen Basin. This contract, which may extend to five years and $1.32 billion, underscores the importance of the QCoal relationship and Byerwen project to Macmahon’s growth. With existing personnel and equipment already in place, no additional capital expenditure is needed, maintaining the company’s FY26 guidance.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon to Release Shares from Escrow Following Decmil Acquisition

Macmahon Holdings Limited announced the release of 3,228,080 fully paid ordinary shares from voluntary escrow on January 2, 2026. This release is related to the company’s acquisition of Decmil in 2024, which may impact Macmahon’s operational flexibility and market positioning by potentially increasing its share liquidity and investor confidence.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Confirms Tragic Incident at Fosterville Gold Mine

Macmahon Holdings Limited has confirmed a tragic incident at the Fosterville Gold Mine in Victoria, resulting in the death of an employee. The company is prioritizing support for the employee’s family, friends, and colleagues, and is collaborating with authorities to investigate the event. CEO Michael Finnegan expressed condolences and urged privacy for the family during this challenging time.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Secures Major Contract for Kucing Liar Mine

Macmahon Holdings Limited has been awarded a contract by PT Freeport Indonesia to provide underground mining services at the Kucing Liar mine in Central Papua, Indonesia, one of the world’s largest copper-gold deposits. The contract, valued at AU$36 million for the first year, spans 34 months and involves developing underground fixed facilities. This award underscores Macmahon’s commitment to fostering long-term partnerships and supporting regional development, with no changes to its FY26 guidance and capital expenditure budget.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Appoints New Director Suzane Jayne Pervan

Macmahon Holdings Limited has announced the appointment of Suzane Jayne Pervan as a new director, effective from November 1, 2025. The initial director’s interest notice reveals that Pervan currently holds no securities or interests in the company. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder relationships.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Announces Director Departure

Macmahon Holdings Limited announced the cessation of Hamish Tyrwhitt as a director, effective October 24, 2025. Tyrwhitt held 1,199,605 fully paid ordinary shares through the company’s Employee Share Ownership Plans Trust, which are subject to trading restrictions. This change in the board may impact the company’s strategic direction and stakeholder relations.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Limited Announces Successful AGM Results for 2025

Macmahon Holdings Limited announced the successful results of its 2025 Annual General Meeting, where all resolutions were passed by the required majorities through a poll. This outcome reflects positively on the company’s governance and may reinforce its position in the industry, potentially impacting stakeholders by ensuring continued strategic direction and leadership stability.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Reports Strong FY25 Performance and Leadership Transition

Macmahon Holdings Limited reported a strong financial performance for FY25, achieving record revenue and earnings, driven by strategic execution and the integration of Decmil. The company emphasized its commitment to sustainability, employee wellbeing, and shareholder returns, with a significant increase in dividends and a strategic reset in sustainability reporting. The transition of leadership with Greg Evans as the new Chair marks a new phase of growth for Macmahon, supported by a skilled board and management team.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.