Mining and civil contractor Macmahon Holdings has delivered record revenue of $2.45 billion in FY25, up 20 per cent on the previous year.
The result follows the company’s integration of civil construction business Decmil and growth in surface and underground mining work.
A $900 million contract extension at QCoal’s Byerwen mine in Central Queensland was among about $2 billion-worth of mining contract awards and extensions secured during the period across Australia and Indonesia.
The mining side of the business reported FY25 revenue of $1.97 billion and underlying EBIT(A) of $148.3 million at a margin of 7.5 per cent, Macmahon said.
The acquisition of Decmil underpinned FY25 civil infrastructure revenue of $437.0 million, underlying EBIT(A) of $25.4 million and an underlying margin of 5.8 per cent.
The pipeline of civil works awarded in FY25 included a $70 million contract to deliver the Eva copper mine village in North-West Queensland and $111 million Borumba Dam project work.
Also in the resources sector, it picked up a $10 million contract to design and construct Arrow Energy’s Girrawheen satellite warehouse and operations facility in the Surat Basin and a $12 million contract to perform earthworks and civil works at the Rolleston open-cut mine, 120km south-east of Emerald.
“Macmahon delivered another year of improved financial performance in FY25 achieving record revenue and underlying earnings, as well as increased free cash flow generation, reducing debt levels and growing returns to shareholders,” Macmahon chief executive officer and managing director Michael Finnegan said.
“The FY25 financial result marks the ninth consecutive year we have met or exceeded market guidance and we have again delivered on our objective of improving return on average capital employed and exceeding our longer-term target of 20 per cent.
“The group target will now increase to 25 per cent, underpinned by our growth strategy focused on diversifying the business mix towards civil infrastructure and underground mining and increasing cash backed earnings.”
Macmahon noted it had significant exposure to gold and copper, which were benefiting from positive investor sentiment and commodity prices, and bulk materials including iron ore and coal with robust ongoing production profiles.