Macmahon Holdings Limited (AU:MAH)
ASX:MAH
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Macmahon Holdings Limited
(Sydney:MAH)
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Rating:72Outperform
Price Target:
AU$0.82
▲(15.63% Upside)
Action:ReiteratedDate: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 & tender pipeline
A $5.1bn order book and a $25.6bn tender pipeline provide multi‑period revenue visibility and selective bidding optionality. Contracted FY‑26 revenue reduces near‑term execution risk, enabling planning, fleet utilisation and staged investment decisions that support durable revenue streams.
Negative Factors
Modest net profit margin
A low net margin (3.05%) despite strong gross margins limits the company's buffer against cost shocks and bid pricing pressure. Sustained low absolute profitability constrains internal funding for growth, reduces free cash conversion sensitivity and weakens returns if margin recovery stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Large order book & tender pipeline
A $5.1bn order book and a $25.6bn tender pipeline provide multi‑period revenue visibility and selective bidding optionality. Contracted FY‑26 revenue reduces near‑term execution risk, enabling planning, fleet utilisation and staged investment decisions that support durable revenue streams.
Read all positive factors
Macmahon Holdings Limited (MAH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.49B
Dividend Yield2.24%
Average Volume (3M)3.80M
Price to Earnings (P/E)7.4
Beta (1Y)1.36
Revenue Growth19.50%
EPS Growth37.55%
CountryAU
Employees9,676
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.03
Shares Outstanding2,154,985,800
10 Day Avg. Volume3,443,422
30 Day Avg. Volume3,800,098
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.94
Price to Sales (P/S)0.27
P/FCF Ratio4.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.81Price Target Upside13.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$2.71B
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...
How the Company Makes Money
Macmahon makes money primarily by contracting with mine owners and resource companies to deliver mining services on a project basis. Its core revenue streams are generated from (1) surface mining contracts, where it supplies equipment, workforce, ...
Macmahon Holdings Limited Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operating and financial results: double-digit revenue and earnings growth, robust cash generation, improved capital efficiency (ROACE), a healthy order book and a large tender pipeline, and a notable surge in Civil Infrastructure. Negative points were limited but material: a workplace fatality under investigation, a one-off tax payment that dampened free cash flow in the half, elevated full-year capex guidance, and competitive conversion risks in civil tenders. On balance the positives—significant growth, improved margins, stronger balance sheet and higher shareholder returns—substantially outweigh the lowlights.Positive Updates
Revenue and Earnings Growth
Group revenue increased 11% to $1.3 billion; underlying EBITDA rose 10% to $200 million; underlying EBITA grew 17% to $91 million, reflecting broad-based operational improvement and successful diversification.
Negative Updates
Workplace Fatality
A tragic employee fatality occurred at the Fosterville Gold Mine in December 2025 and is subject to an ongoing investigation; safety remains the highest priority despite improvements in TRIFR.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Earnings Growth
Group revenue increased 11% to $1.3 billion; underlying EBITDA rose 10% to $200 million; underlying EBITA grew 17% to $91 million, reflecting broad-based operational improvement and successful diversification.
Read all positive updates
Company Guidance
Macmahon reaffirmed FY‑26 guidance of revenue $2.6–$2.8bn and underlying EBITA $180–$195m, supported by a $5.1bn order book (contracted FY‑26 revenue $2.5bn; FY‑27 work in hand $1.7bn; FY‑28 $1.1bn) and a $25.6bn tender pipeline (≈$14bn expected to be awarded in the next 12 months). H1 momentum underpins the outlook: H1 revenue $1.3bn (+11%), underlying EBITDA $200m, underlying EBITA $91m, operating cash flow $190.5m (95.2% cash conversion), free cash flow $39.3m, net debt down to $144.1m (gearing 17%, net debt/EBITDA 0.36x), cash + facilities $539m, and ROACE 21.2% (target >25%). Management also reiterated full‑year capex guidance of $245m (H2 weighted), interim dividend $0.095 fully franked (~37% payout), effective borrowing cost ~6%, and medium‑term targets to grow Underground to >$750m, Civil Infrastructure to $1bn by FY‑28, and lift Indonesia to 15–20% of group revenue.Macmahon Holdings Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| 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
Positive
0.71
Price Trends
0.68
Positive
0.63
Positive
0.50
Positive
Market Momentum
<0.01
Negative
56.20
Neutral
85.29
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 0.71 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.68, and above the 200-day MA of 0.50, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$424.00M | 3.25 | 81.38% | ― | 45.56% | ― | |
72 Outperform | AU$1.49B | 7.36 | 13.05% | 2.24% | 19.50% | 37.55% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | AU$472.88M | 3.21 | 15.33% | ― | 6.70% | ― | |
52 Neutral | AU$433.45M | -10.44 | -63.51% | ― | ― | -98.20% | |
43 Neutral | AU$268.07M | -15.09 | -26.32% | ― | ― | -91.89% | |
41 Neutral | AU$191.08M | 55.21 | 0.70% | 1.54% | 14.64% | -213.25% |
* Basic Materials Sector Average
AU:MAH
Macmahon Holdings Limited
0.71
0.45
168.94%
AU:AIS
Aeris Resources Limited
0.40
0.20
97.50%
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Sovereign Metals Limited
0.67
-0.07
-10.07%
AU:MMI
Metro Mining Limited
0.07
0.01
21.05%
AU:OMH
OM Holdings Ltd.
0.25
-0.11
-30.56%
AU:CAY
Canyon Resources Limited
0.13
-0.10
-43.48%
Macmahon Holdings Limited Corporate Events
Macmahon Wins $190m Wonawinta Mining Deal With Manuka Resources
Mar 24, 2026
Macmahon Holdings has entered a Letter of Intent with Manuka Resources to restart mining at the Wonawinta silver project in New South Wales’ Cobar Basin. The agreement covers open pit services including drill-and-blast and load-and-haul, ref...
Macmahon Moves to Restart $250m Mount Carlton Mine Under New Wolfram Deal
Mar 22, 2026
Macmahon Holdings Limited has signed a Letter of Intent with Wolfram Limited, a subsidiary of Bumi Resources, to restart mining operations at the Mount Carlton Gold Mine in North Queensland. The scope covers surface and underground mining and civi...
Macmahon underscores limits of guidance and non‑IFRS metrics in investor presentation
Mar 17, 2026
Macmahon Holdings has released a presentation to investors outlining its use of non‑IFRS financial metrics, such as EBITDA and EBIT, to assess group and operational performance. The company emphasises that these measures are unaudited and ar...
Macmahon Appoints Thomas Quinn to Board With No Initial Shareholding
Mar 16, 2026
Macmahon Holdings Limited has announced the appointment of Thomas Joseph Quinn as a director, effective 16 March 2026, in line with ASX listing rule disclosure requirements. The initial director’s interest notice confirms that Quinn holds no...
Macmahon strengthens board with appointment of independent director Tom Quinn
Feb 25, 2026
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 ...
Macmahon’s Decmil Wins $120m Rio Tinto Pilbara Earthworks Deal
Jan 18, 2026
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 hau...
Macmahon Announces Lapse of 2.8 Million Performance Rights
Jan 6, 2026
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 a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.