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Macmahon Holdings Limited
(Sydney:MAH)
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Rating:70Outperform
Price Target:
AU$1.00
â–Ľ(-3.85% Downside)
Action:Upgraded
Date:08/20/26
The score is driven primarily by improving fundamentals (revenue/earnings trajectory and a steadily more conservative leverage profile) and a supportive, bullish technical backdrop (price above key moving averages with positive MACD). The latest earnings call adds confidence via upbeat guidance, strengthening balance sheet metrics, and a large order book/pipeline, while the rating is held back by thin/variable margins, cash-flow variability noted in the statements analysis, and only average valuation support (P/E ~21.9; ~1.8% yield).
Positive Factors
Revenue Growth and Visibility
Strong revenue growth, a larger order book, and FY27 guidance indicate durable demand for Macmahon’s outsourced mining services. This visibility supports workforce and fleet planning, improves contract continuity, and provides a platform for continued expansion over the next several quarters.
Negative Factors
Thin and Variable Margins
Thin net margins leave limited protection if operating costs, contract mix, or activity levels worsen. The wide variation in gross margins also points to inconsistent earnings quality across projects, making sustained profit improvement more dependent on execution and favorable contract economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Visibility
Strong revenue growth, a larger order book, and FY27 guidance indicate durable demand for Macmahon’s outsourced mining services. This visibility supports workforce and fleet planning, improves contract continuity, and provides a platform for continued expansion over the next several quarters.
Read all positive factors
Macmahon Holdings Limited (MAH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.05B
Dividend Yield1.92%
Average Volume (3M)4.54M
Price to Earnings (P/E)20.6
Beta (1Y)1.72
Revenue Growth7.90%
EPS Growth35.92%
CountryAU
Employees8,796
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,154,985,800
10 Day Avg. Volume4,246,375
30 Day Avg. Volume4,543,552
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.76
Price to Sales (P/S)0.78
P/FCF Ratio13.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$2.96B
Macmahon Holdings Limited Business Overview & Revenue Model
Company Description
Macmahon Holdings Limited, founded in Perth, Australia, in 1963, delivers comprehensive mining and civil construction services to companies within the mining sector. Its operations span Australia, Indonesia, Malaysia, and South Africa, structured ...
How the Company Makes Money
Macmahon makes money by providing contract mining and related mining services to mine owners under commercial contracts, earning revenue primarily from (1) surface mining contracts and (2) underground mining and mine development contracts. Under t...
Macmahon Holdings Limited Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance: record revenue and EBITA, improved ROACE (22%), substantial cash generation, a 32% reduction in net debt, higher dividends (up 47%), and clear segment diversification progress (Underground and Civil growing to meaningful shares of revenue). Key risks highlighted include tax timing reducing free cash flow, higher borrowing costs, concentration to gold (52% of revenue), commodity/energy cost pressure, and the normal uncertainty around tender conversion and timing. Overall the positives (record results, improved returns, balance sheet strength, robust pipeline and clear growth targets) materially outweigh the identified lowlights.Positive Updates
Record Revenue and Underlying EBITA Growth
Revenue reached $2.6 billion (up ~8% YoY) and underlying EBITA was $190.1 million (up ~11% YoY). EBITA margin improved to 7.3% from 7.1% (increase of 0.2 percentage points).
Negative Updates
Free Cash Flow Impacted by Tax Timing
Free cash flow declined year-on-year primarily due to payment of final FY '25 tax in FY '26 and FY '26 provisional tax payments, despite strong operating cash generation.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Underlying EBITA Growth
Revenue reached $2.6 billion (up ~8% YoY) and underlying EBITA was $190.1 million (up ~11% YoY). EBITA margin improved to 7.3% from 7.1% (increase of 0.2 percentage points).
Read all positive updates
Company Guidance
Macmahon guided FY‑27 revenue of A$2.85–3.05bn and underlying EBITA of A$205–225m (mid‑point roughly consistent with the FY‑26 ~7.3% EBITA margin), noting $2.2bn of work in hand, a $5.9bn order book and a A$25bn tender pipeline (A$13.8bn expected to be awarded in the next 12 months; the A$240m Ravensthorpe preferred contractor position is excluded), CapEx guidance of ~A$200m sustaining and ~A$66m growth (~A$266m total), net debt of A$111.1m and gearing of 13% with cash + committed facilities of A$566m, FY‑26 free cash flow A$103.1m and 98.4% cash conversion; longer‑term targets remain ROACE >25% (FY‑26 was 22%), underground and civil run‑rates of A$750m and A$1bn by end FY‑28, Indonesian revenue 15–20% of group long‑term, a dividend payout policy of 35–45% (FY‑26 payout 41%), an effective tax rate ~30% and borrowing cost ~6.7% (net interest expected to be flat into FY‑27).Macmahon Holdings Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.62B | 2.43B | 2.03B | 1.91B | 1.70B |
| Gross Profit | 567.37M | 1.80B | 1.55B | 1.31B | 1.18B |
| EBITDA | 392.35M | 359.34M | 306.18M | 292.21M | 251.56M |
| Net Income | 101.14M | 73.94M | 53.23M | 57.67M | 27.40M |
Balance Sheet | |||||
| Total Assets | 1.76B | 1.76B | 1.45B | 1.46B | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 309.65M | 263.89M | 194.58M | 218.16M | 197.96M |
| Total Debt | 420.74M | 426.35M | 341.17M | 420.11M | 413.47M |
| Total Liabilities | 1.02B | 1.07B | 817.84M | 855.87M | 778.78M |
| Stockholders Equity | 740.11M | 692.34M | 633.51M | 608.85M | 559.50M |
Cash Flow | |||||
| Free Cash Flow | 155.59M | 155.47M | 120.78M | 73.60M | 65.00M |
| Operating Cash Flow | 300.76M | 334.00M | 270.82M | 266.85M | 227.91M |
| Investing Cash Flow | -141.35M | -228.99M | -142.41M | -193.14M | -170.52M |
| Financing Cash Flow | -103.01M | -37.16M | -151.07M | -55.20M | -45.47M |
Macmahon Holdings Limited Technical Analysis
Positive
1.04
Price Trends
0.96
Positive
0.92
Positive
0.79
Positive
Market Momentum
<0.01
Positive
48.22
Neutral
25.02
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 1.04 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.96, and above the 200-day MA of 0.79, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 25.02 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$107.29M | 7.04 | 22.10% | 11.88% | 5.48% | 2772.00% | |
70 Outperform | AU$2.05B | 20.61 | 13.86% | 1.92% | 7.90% | 35.92% | |
67 Neutral | AU$2.13B | 25.73 | 4.58% | 3.22% | -4.34% | -31.42% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
AU:MAH
Macmahon Holdings Limited
0.96
0.54
127.92%
AU:PRN
Perenti Global
2.29
-0.05
-2.22%
AU:MSV
Mitchell Services Limited
0.51
0.25
95.74%
Macmahon Holdings Limited Corporate Events
Macmahon MD’s Performance Rights Vest into Employee Share Trust
Sep 4, 2026
Macmahon Holdings has disclosed a change in the equity interests of managing director Michael John Finnegan, following the vesting of performance rights granted under the company’s Senior Manager Long Term Incentive Plan. A total of 6,962,96...
Macmahon Discloses Director David Gibbs’ Final Interest Notice After Board Exit
Sep 2, 2026
Macmahon Holdings Limited has announced that director David Gibbs ceased to be a board member on 1 September 2026, with the company lodging a final director’s interest notice with the ASX. The filing confirms that Gibbs’ relevant inter...
Macmahon Issues Over 16.8 Million New Shares on Conversion of Unquoted Securities
Sep 1, 2026
Macmahon Holdings Limited has issued 16,863,667 new ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The new shares, which were issued on 31 August 2026, increase the company’s listed equity ...
Macmahon Board Reshuffle as Amman Reduces Nominee Presence
Sep 1, 2026
Macmahon Holdings has announced the resignation of David Gibbs as a non-independent, non-executive director, effective 1 September 2026, ending his tenure as a nominee of major shareholder PT Amman Mineral Internasional Tbk. The move follows Amman...
Macmahon Secures $38m Groundrush Underground Contract in Central Tanami
Aug 31, 2026
Macmahon Holdings Limited has signed a contract via its subsidiary Macmahon Underground Pty Ltd with CTP JV Pty Ltd, manager of the Central Tanami Project Joint Venture, to develop an exploration decline at the Groundrush gold deposit in the Tanam...
Macmahon Wins $38m Groundrush Decline Contract at Central Tanami Gold Project
Aug 30, 2026
Macmahon Underground Pty Ltd has secured a $38 million contract from the Central Tanami Project Joint Venture for construction of the Groundrush underground decline at the gold project in the Northern Territory. The scope includes portal and venti...
Macmahon Wins $38m Groundrush Decline Contract for Central Tanami JV
Aug 30, 2026
Macmahon Holdings Limited, via its underground mining services subsidiary, is an established contractor in Australia’s resources industry, providing decline construction, portal establishment and drilling platform development for major minin...
Macmahon Sets 2026 AGM Date and Deadline for Director Nominations
Aug 25, 2026
Macmahon Holdings Limited has scheduled its 2026 Annual General Meeting for 23 October 2026 at 9:30am AWST in Perth, with shareholders to receive the formal notice of meeting and proxy materials in line with statutory timeframes. The company has s...
Macmahon Wins $485m Telfer Contract Extension, Expands WA Gold Operations
Aug 23, 2026
Macmahon Holdings has secured a 42‑month, $485 million extension to its mining services contract at the Telfer Gold Mine in Western Australia, owned by Greatland Resources. The company has been working at Telfer since 2015, and the new term ...
Macmahon Director Evans Increases Shareholding Via Salary Sacrifice Plan Vesting
Aug 19, 2026
Macmahon Holdings has reported a change in the interests of non-executive director Gregory Richard Evans following the vesting of share rights under the company’s Non-Executive Director Salary Sacrifice Plan. Evans received 64,100 fully paid...
Macmahon Director Increases Equity Holding Through Vesting of Share Rights
Aug 19, 2026
Macmahon Holdings Limited has disclosed a change in director Dharmendra Chandran’s relevant interest in securities following the vesting of share rights under the Non-Executive Director Salary Sacrifice Plan. The company’s arrangements...
Macmahon Issues New Shares on Conversion of Unquoted Securities
Aug 19, 2026
Macmahon Holdings Limited has disclosed the issue of 192,250 ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The new shares were issued on August 19, 2026, and relate to unquoted options or...
Macmahon Declares Interim Dividend for Half-Year to June 2026
Aug 17, 2026
Macmahon Holdings Limited has announced a new interim dividend for holders of its ordinary fully paid shares, reflecting its performance for the six-month period ended 30 June 2026. The distribution has been set at AUD 0.0125 per share, reinforcin...
Macmahon files 2026 corporate governance statement with ASX
Aug 17, 2026
Macmahon Holdings Limited has lodged its Corporate Governance Statement for the year ended 30 June 2026, confirming board approval and compliance with ASX Listing Rules. The statement, available on the company’s website, outlines how Macmaho...
Macmahon Tightens Governance and Launches First AASB S2 Climate Disclosures
Aug 17, 2026
Macmahon Holdings Limited has released its 2026 Corporate Governance Statement, outlining a governance framework designed to support sustainable long-term performance and value creation for stakeholders. The board reports that its practices remain...
Macmahon posts record FY26 revenue, trims debt and lifts guidance
Aug 17, 2026
Macmahon Holdings delivered record FY26 revenue of $2.6 billion and solid earnings growth, underpinned by strong performances in its Underground Mining, Surface Mining and Civil Infrastructure divisions. The company improved margins, lifted statut...
Macmahon Reaffirms Commitment to Traditional Custodians and Cultural Respect
Aug 17, 2026
Macmahon Holdings Limited has reiterated its commitment to acknowledging and respecting the Traditional Custodians of the lands where it operates, highlighting its activities at sites such as the Tropicana Gold Mine in Western Australia. The state...
Macmahon Strikes Strategic Homeground Deal Tied to $20bn Gladstone Project
Aug 16, 2026
Macmahon Holdings has entered a strategic partnership with Allcap Securities involving the partial sale of up to 50% of its Homeground workforce accommodation village in Gladstone, based on a $52 million book value. The initial transaction covers ...
Macmahon Wins $50m Early Works Road Contract in Western Sydney
Aug 13, 2026
Macmahon Holdings’ subsidiary Decmil has secured an early works package worth about $50 million to support upgrades of Mamre Road and Elizabeth Drive and the extension of Archbold Road in Western Sydney. The works, commissioned by Transport ...
Macmahon Wins $240m Ravensthorpe Gold Mining Contract
Aug 11, 2026
Macmahon Holdings Limited has been chosen by Medallion Metals as the preferred underground mining contractor for the Ravensthorpe Gold Project in Western Australia, appointing its subsidiary Macmahon Underground Pty Ltd to lead the work. The manda...
Macmahon Wins $406m Underground Mining Deal at New Zealand’s Snowy River Gold Mine
Aug 10, 2026
Macmahon Holdings has secured a five-year, $406.2 million underground mining services contract at Endura Mining’s Snowy River gold project near Reefton on New Zealand’s South Island, starting in October 2026. The mandate covers mine de...
Macmahon director reshapes shareholding with on-market sale
Aug 10, 2026
Macmahon Holdings director David Gibbs has sold 60,000 fully paid ordinary shares in the company via an on-market trade, realising approximately $62,400 in proceeds. Following the transaction, he no longer holds shares in his own name but retains ...
Macmahon Wins $355 Million Mt Marion Lithium Underground Mining Contract
Jul 14, 2026
Macmahon Holdings Limited has secured a three-year, $355 million underground mining services contract at the Mt Marion lithium operation in Western Australia, with an option for a further year. The scope covers all underground development and prod...
Macmahon Issues 310,745 Unquoted Share Rights Under Employee Incentive Plan
Jul 13, 2026
Macmahon Holdings Limited has notified the market of the issue of 310,745 unquoted share rights under its employee incentive scheme, effective 13 July 2026. The new securities, which will not be quoted on the ASX, indicate the continued use of equ...
Macmahon Cautions Investors in New Presentation on Guidance and Non‑IFRS Metrics
Jun 17, 2026
Macmahon Holdings has released an investor presentation that outlines the basis on which it communicates financial and operational information to the market, while emphasising extensive disclaimers around forward-looking statements and financial g...
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.