Macmahon FY26 slides: record results, diversification drives growth

Macmahon Holdings (ASX: MAH) released its FY26 financial results on August 18, 2026, revealing record revenue and earnings growth due to strategic diversification. Despite the strong performance, the stock price dropped 9.34% to $0.898, as investors were concerned about lower free cash flow and higher capital expenditure for FY27.

The company's report highlighted a decade-long history of meeting or exceeding expectations, with FY26 revenue reaching $2.6 billion and underlying EBIT(A) growing 11% to $190.1 million. Macmahon's transformation from a surface mining specialist to a diversified mining services provider improved its capital efficiency, with ROACE reaching 22.0%.

The company delivered its best financial performance on record, with revenue increasing 8% year-over-year and underlying EBIT(A) growing faster than revenue at 11%. Key financial metrics showed significant improvements, such as a 98.4% cash conversion rate and a 32% reduction in net debt to $111.1 million, bringing gearing down to 13.1%.

The company's diversified revenue streams came from surface mining (50%), underground mining (24%), and civil infrastructure (26%), with gold accounting for 52% of revenue. Geographically, Australia generated 90% of the revenue, with the rest coming from Southeast Asia. The mining segment secured significant contracts, including a $792 million extension at Byerwen and a $355 million contract at Mt Marion.

The civil infrastructure segment showed exceptional growth with revenue surging 54% to $672 million, driven by new projects like the Western Angeles Bulk Earthworks framework agreement with Rio Tinto. The company also improved its safety record, with the Group TRIFR decreasing from 2.99 in FY25 to 1.98 in FY26.