MLG Oz Limited – 2025 Half Year Results Summary
Website: MLG Oz
Overall Tone
MLG Oz Limited reported strong revenue growth for the half-year, driven by increased activity in the gold industry and haulage services. However, profitability declined significantly due to lower crushing and screening revenue, higher depreciation from recent capital investments, and delays in new projects. The company remains optimistic about the second half, with new projects expected to improve margins.
Financial Results Summary
| Metric | Dec-24 | Dec-23 | YoY Change |
|---|---|---|---|
| Revenue | $272.9M | $226.4M | +20.5% |
| Net Profit After Tax | $4.08M | $7.12M | -42.7% |
| EBITDA | $29.3M | $28.5M | +2.8% |
| Operating Cash Flow | $14.7M | $24.6M | -40.2% |
| Net Tangible Assets Per Share | $1.02 | $0.94 | +8.5% |
Positive Surprises & Potential Concerns
- Positive: Revenue increased 20.5%, supported by high demand in the gold sector and haulage services.
- Positive: Pricing adjustments aligned with inflation, ensuring revenue resilience.
- Concern: Net profit dropped 42.7% due to lower crushing and screening revenue and higher depreciation costs.
- Concern: Delays in new projects led to underutilization of fleet and operational inefficiencies.
Outlook Commentary
- New projects in H2 FY25 are expected to boost revenue and improve profit margins.
- Continued demand in mining services, with expanded scope in haulage and road construction.
- Operational efficiencies to be optimized, focusing on deploying the fleet effectively and increasing contract coverage for fixed costs.
Guidance Statements
- Revenue Growth: Expected to remain strong, driven by ongoing contract expansions and new project commencements.
- Profitability: Margins expected to improve in 2H FY25, supported by fleet deployment and cost controls.
- Cash Flow Management: Focus on optimizing working capital to sustain healthy cash flow levels.
Result vs. Market Expectations
- Revenue growth exceeded expectations, reflecting continued strength in haulage and mining services.
- Net profit below expectations, due to higher costs and project delays.
- No interim dividend declared, consistent with expectations as MLG prioritizes reinvestment in growth initiatives.
Market Positioning
- Share price performance leading into results was mixed, reflecting strong revenue growth but margin pressures.
- Trading within mid-range of its 52-week high, as investors assess profitability concerns against long-term growth potential.
- Well-positioned for long-term growth, supported by strong industry demand, strategic capital investments, and expanding project pipeline.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:MLG