Full Year 2024 Macmahon Holdings Ltd Earnings Call Transcript
Key Points
- Record revenue and EBIT(A) of $2 billion and $140 million, respectively.
- Improved return on average capital employed (ROACE) to 17.2%, progressing towards a 20% target.
- Strong cash flow generation with operating cash flow steady at $301 million and free cash flow increased to $74.5 million.
- Significant reduction in net debt and gearing, enhancing financial stability.
- Successful acquisition of Decmil, expected to accelerate growth in the civil infrastructure business.
- Impact of Callidus receivership led to a full receivable impairment of $31.8 million.
- Statutory net profit after tax (NPAT) was lower at $53.2 million compared to underlying NPAT of $91.9 million.
- Skilled labor shortages and volatility in commodity prices continue to pose challenges.
- EBITDA cash conversion decreased to 85.9%, down from 99% in the prior year.
- Increased borrowing costs due to higher interest rates, with effective borrowing cost rates rising to 6.4%.
Macmahon results presentation for financial year 2024. I'm Mick Finnegan, and with me is our Chief Financial Officer, Ursula Lummis. Thanks for joining us today during the busy [I-6] reporting period, as always, we appreciate your time and interest in Macmahon and the opportunity to run through today's presentation. I'll provide an overview of our results and Ursula will then run through the financials in more detail.
I'll then conclude with some comments around our strategic priorities and outlook, after which we will be happy to take questions.
Let's begin with the financial highlights on slide 2, I'm pleased to say we had a strong finish to the financial year, delivering record revenue, underlying EBITDA and EBIT(A) Importantly, a highlight is that we've improved our return on average capital employed, which was delivered by both increasing returns and reducing both gearing and net debt.
All whilst we still increased cash dividends to shareholders, reducing capital
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