Macmahon Holdings Limited (MAH) AI Stock Analysis

• Market Cap: AU$1.51B
• Dividend Yield: 2.24%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.03
• Revenue Growth: 19.50%
• EPS Growth: 37.55%
• Country: AU
• Employees: 9,676
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.03
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.82
• Price Target Upside: 13.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): AU$2.69B

• Rating: 72 Outperform
• Price Target: AU$0.83 ▲(14.86% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is driven primarily by solid financial performance (growth and cash generation) and a strong, guidance-supportive earnings update with good revenue visibility via the order book and pipeline. These positives are moderated by weaker near-term technical momentum and a valuation that looks fair rather than clearly discounted.

Positive Factors

Large order book and tender pipeline

A $5.1bn order book and ~ $25.6bn tender pipeline provide durable multi-year revenue visibility and allow selective bidding. This supports steady utilization, contract continuity and a pipeline of replaceable work that underpins medium-term revenue and strategic growth plans.

Strong cash generation and improved leverage

Consistent operating cash flow, falling net debt and substantial liquidity improve financial flexibility to fund capex, bid competitively and return capital. Low net leverage (0.36x) enhances resilience over commodity cycles and supports investment without immediate refinancing pressure.

Diversification: Civil and international mining growth

A sizable and fast-growing civil franchise plus expanding surface and underground pipelines reduce reliance on single-commodity cycles and concentrate risk. Diversification into civil and international contracts increases addressable markets and supports structural margin and ROACE improvement over time.

Negative Factors

Workplace safety incident and investigation

A fatality and ensuing investigation create persistent operational, legal and reputational risk: potential regulatory action, project delays, higher insurance and compliance costs, and tender competitiveness impacts. These outcomes can depress returns and increase contract scrutiny for months to years.

High and H2-weighted capital expenditure

Elevated capex requirements reduce near-term free cash flow and raise execution risk on projects and fleet expansion. Sustained high capex can constrain distributions or force incremental financing, making cash generation and capex execution key to maintaining financial flexibility long term.

Competitive civil tendering and modest civil margins

High competition and modest civil margins limit the earnings uplift from the civil pipeline. Low conversion rates mean tender backlog may not translate into secured profitable work, exposing expected growth to margin pressure and requiring disciplined bidding to protect long-term profitability.

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

Solid overall fundamentals: revenue growth of 8.19% and strong gross margin (74.31%) support the outlook, while free cash flow growth (15.02%) indicates good cash generation. Offsetting this, net margin is modest (3.05%) and leverage is moderate (debt-to-equity 0.62), leaving profitability and debt management as key improvement areas.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.56B	2.43B	2.03B	1.91B	1.70B	1.35B
Gross Profit	544.59M	1.80B	1.55B	1.31B	1.18B	864.25M
EBITDA	396.04M	359.34M	306.18M	292.21M	251.56M	243.33M
Net Income	92.13M	73.94M	53.23M	57.67M	27.40M	77.23M
Balance Sheet
Total Assets	1.71B	1.76B	1.45B	1.46B	1.34B	1.14B
Cash, Cash Equivalents and Short-Term Investments	282.12M	263.89M	194.58M	218.16M	197.96M	182.08M
Total Debt	473.61M	426.35M	341.17M	420.11M	413.47M	312.43M
Total Liabilities	992.39M	1.07B	817.84M	855.87M	778.78M	607.62M
Stockholders Equity	719.65M	692.34M	633.51M	608.85M	559.50M	535.86M
Cash Flow
Free Cash Flow	168.58M	155.47M	120.78M	73.60M	65.00M	32.40M
Operating Cash Flow	336.82M	334.00M	270.82M	266.85M	227.91M	238.99M
Investing Cash Flow	-165.13M	-228.99M	-142.41M	-193.14M	-170.52M	-201.83M
Financing Cash Flow	-108.49M	-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: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.71, above the 50-day MA of 0.70, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.03 is Neutral, 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
MMI	73 Outperform	AU$421.64M	3.25	145.87%	―	45.56%	―
MAH	72 Outperform	AU$1.51B	7.36	10.88%	2.24%	19.50%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AIS	61 Neutral	AU$628.51M	3.21	15.33%	―	6.70%	―
SVM	52 Neutral	AU$546.66M	-10.11	-90.12%	―	―	-98.20%
CAY	44 Neutral	AU$360.87M	-17.29	-45.39%	―	―	-91.89%
OMH	41 Neutral	AU$202.55M	55.21	-3.24%	1.54%	14.64%	-213.25%

Macmahon Holdings Limited Corporate Events

Macmahon strengthens board with appointment of independent director Tom Quinn

Macmahon Holdings Limited has appointed Tom Quinn as an Independent Non-Executive Director, effective 16 March 2026, adding a seasoned leader with experience across mining, engineering, construction, manufacturing, oil and gas, food and chemicals to its board. Quinn, who has led multi-billion-dollar businesses in Australia, Asia and North America and holds engineering and MBA qualifications from Monash University, is expected to strengthen governance, risk management and project leadership as Macmahon pursues strategic growth in mining and civil infrastructure services.

Chair Greg Evans said Quinn’s background in sustainable growth, risk mitigation and large project portfolios will enhance the capabilities of the Macmahon board and its committees. The appointment underscores Macmahon’s focus on reinforcing its leadership bench as it seeks to consolidate its position as a preferred contractor across resources, infrastructure and renewables markets in Australia and Southeast Asia.

The most recent analyst rating on (AU:MAH) stock is a Hold with a A$0.85 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 Wins $120m Rio Tinto Pilbara Earthworks Deal

Macmahon’s wholly owned subsidiary Decmil has secured a $120 million Western Hill bulk earthworks contract from Rio Tinto for the West Angelas Sustaining Project in Western Australia’s Pilbara region, covering construction of heavy haulage and light vehicle access roads and drainage, with work scheduled to run from January 2026 to 2027. The award, made under a new earthworks framework agreement with Rio Tinto, lifts Decmil’s total recent civil contract wins with the miner to $201 million, bolsters earnings momentum into the second half of FY26 and FY27, strengthens Macmahon’s strategic relationship with a key tier-one client, and supports the company’s push into larger-scale civil infrastructure projects without altering its FY26 guidance.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.80 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

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.