Actuals vs. estimates
No consensus comparison available for this event.
Verdict
- Mader closed its first five-year plan with record FY26 revenue of AUD 1,001.1m, up 15%, and EPS of AUD 0.322, up 14%.
- Growth came without margin give: the group's NPAT margin has moved less than 0.6 points across five reported years, and return on invested capital was 25%.
- The balance sheet flipped to AUD 35.7m net cash from AUD 8.3m net debt, on AUD 85m of operating cash flow and AUD 57.5m of free cash flow.
- No dividend was declared for FY26, with the board holding capital against organic and inorganic growth options.
Guidance & KPIs
| Item | New guidance | Prior guidance |
|---|---|---|
| FY2027 revenue | at least AUD 1.13 billion | — |
| FY2027 NPAT | at least AUD 72.5 million | — |
| FY2027 capital expenditure | between AUD 30 million and AUD 35 million | — |
| Dividend for FY2026 | no dividend declared | — |
| Next five-year plan EPS growth | circa 15% per annum | — |
Management commentary
- CFO Paul Hegarty confirmed the transition to net cash flagged 18 months ago is complete, at AUD 35.7m at 30 June.
- Hegarty put the currency drag on revenue at about AUD 8.2m, without which revenue would have been closer to AUD 1,010m.
- CEO Justin Nuich framed the next five years as "circa 15% EPS growth per annum, continued strong margins" alongside new market expansion and market-leading return on capital.
- FY27 is described as a year of heavy strategic investment and front-end loading of high-growth opportunities.
- Acquisitions are framed as complementary tuck-ins rather than transformational deals, targeting capabilities such as defence licences and accreditations.
Quality of earnings
- Revenue carried an AUD 8.2m currency headwind; without it the group would have been closer to AUD 1,010m.
- North America grew 12% as reported against 17% in constant currency, so the AUD 186.6m segment headline understates underlying momentum.
Gotchas & watch items
- No dividend for FY26 despite AUD 57.5m of free cash flow and a net cash balance sheet.
- FY27 revenue guidance of at least AUD 1.13bn implies roughly 13% growth, below the 15% per annum rate the group just delivered and targets for the next five years.
- North American EBITDA margins improved only about 1 point in the second half and remain short of the 20% level management targets.