Macmahon Holdings Limited (MAH) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 2.65%
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.86
• 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: 3,062,469
• 30 Day Avg. Volume: 3,393,846
• 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: 0.68
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $0.66
• Price Target Upside: 18.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $2.66B

• Rating: 74 Outperform
• Price Target: AU$0.65 ▲(16.07% Upside)

Macmahon Holdings Limited demonstrates strong financial performance and positive technical indicators, driving the overall score. The stock's valuation is reasonable, though not particularly compelling. The absence of earnings call data and corporate events means these factors do not influence the score. The company's ability to maintain its financial health while capitalizing on positive market momentum is a key strength.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term stability and expansion.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management, supporting long-term success.

Operational Efficiency

Stable operational efficiency suggests effective cost management and resource utilization, crucial for maintaining competitive advantage and profitability.

Negative Factors

Profitability Margins

Low net profit margins suggest challenges in cost management or pricing strategy, potentially impacting long-term profitability and competitiveness.

Leverage

Increased leverage can strain financial flexibility and increase risk, necessitating careful debt management to maintain financial stability.

Earnings Conversion

While conversion is efficient, a low ratio may indicate challenges in translating earnings into cash, affecting liquidity and investment capacity.

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: 0.56
• 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 0.56 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.51, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 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
MAH	74 Outperform	$1.21B	16.57	10.88%	2.65%	19.50%	37.55%
AIS	69 Neutral	AU$451.71M	9.96	15.33%	―	6.70%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OMH	56 Neutral	AU$206.37M	-10.19	-3.24%	1.54%	14.64%	-213.25%
MMI	51 Neutral	AU$464.42M	3.44	145.87%	―	45.56%	―
SVM	42 Neutral	AU$391.40M	-9.14	-90.12%	―	―	-98.20%
CAY	26 Underperform	AU$345.91M	-12.68	-45.39%	―	―	-91.89%

Macmahon Holdings Limited Corporate Events

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.

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.

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.

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.

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.

Macmahon Holdings Appoints Suzan Pervan as Non-Executive Director

Macmahon Holdings Limited has appointed Ms. Suzan Pervan as an Independent Non-Executive Director to its Board, effective November 1, 2025. Ms. Pervan, with over 25 years of experience in accounting and finance, is expected to enhance the Board’s capabilities, particularly in the Audit and Risk Committee, supporting Macmahon’s strategic growth ambitions.

Macmahon Secures $86 Million Contract for Yan Yean Road Project

Macmahon Holdings Limited’s subsidiary, Decmil, has secured an $86 million civil contract with Major Road Projects Victoria for the Yan Yean Road project. This project involves significant road infrastructure upgrades and marks the fifth project awarded to Decmil under MRPV’s collaborative procurement approach. The contract is expected to enhance Macmahon’s order book for FY26 and FY27, reinforcing its strong market position in civil infrastructure projects.

Macmahon Holdings Updates Director’s Interest with New Performance Rights

Macmahon Holdings Limited announced a change in the director’s interest, with Michael John Finnegan acquiring 3,791,667 performance rights under the Senior Manager Long Term Incentive Plan for FY26. This change reflects the company’s ongoing commitment to aligning management incentives with long-term company performance, potentially impacting stakeholder confidence and reinforcing its strategic positioning in the mining services industry.

Macmahon Holdings Announces Hybrid 2025 AGM for Shareholders

Macmahon Holdings Limited has announced details for its 2025 Annual General Meeting (AGM), scheduled for October 24, 2025. The meeting will be conducted in a hybrid format, allowing shareholders to participate either in person or online. Shareholders are encouraged to attend and vote, with all relevant documents and instructions available on the company’s website. This approach reflects Macmahon’s commitment to engaging with its shareholders and ensuring their active participation in company decisions.