This article first appeared on GuruFocus .
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Revenue:$237.7 million, up 13% year-over-year, exceeding the upper end of guidance.
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Underlying EBITDA:$20.3 million, up 47% from FY25, also above guidance.
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Underlying Net Profit Before Tax:$15.7 million, up 148% year-over-year.
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EBITDA Margin:Expanded from 6.6% to 8.5%.
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Net Operating Cash Flow:$20.3 million, up 20% year-over-year.
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Net Cash:$46.5 million at June 30, up 60% from $29.1 million in the prior year.
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Cash Balance:$47.2 million at end of June, up $16.8 million during the year.
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Capital Expenditure:Approximately 2% of revenue.
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Total Assets:$124.5 million.
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Net Assets:$76.7 million.
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Net Tangible Assets:Approximately $0.21 per share.
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Order Book:$432 million at year-end, up 38%.
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Pipeline:$1.5 billion, up 67%.
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Revenue Diversification:Top 3 customers accounted for 79% of total revenue, with three customers each contributing more than 20%.
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Strata Consolidation Revenue Mix:Increased contribution to group revenue from 26% to 30%.
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Workforce:Grew from 640 to 689 employees by end of June.
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Dividend:Nil final dividend declared for FY26.
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Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue increased 13% to $237.7 million, exceeding the upper end of guidance, with underlying EBITDA up 47% to $20.3 million.
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Net profit before tax surged 148% to $15.7 million, and operating cash flow rose 20% to $20.3 million, strengthening the balance sheet with net cash up 60% to $46.5 million.
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Order book grew 38% to $432 million, with a 67% increase in pipeline to $1.5 billion, providing strong revenue visibility for FY27.
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Post-year-end award of the Dendrobium contract (valued up to $255 million over six years) adds momentum and supports workforce growth towards 1,000 employees.
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Strategic diversification improved, with top 3 customers accounting for 79% of revenue (vs. 80% from two customers in FY25), and higher-margin strata consolidation increased to 30% of revenue, expanding EBITDA margin to 8.5%.
Negative Points
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Statutory profit was impacted by $8.8 million in non-underlying items, including provisions for legacy legal matters.
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The Board declared a nil final dividend for FY26 to preserve capital for growth, which may disappoint income-focused investors.
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Working capital outflows are expected in the first half of FY27 due to the Dendrobium mobilization, potentially impacting cash flow.
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Contract renewals with Anglo American (expiring April next year) and Whitehaven at Narrabri are still under negotiation, creating uncertainty.
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The Middle East conflict caused supply chain disruptions for strata-consolidation products, though mitigated by rerouting and JENNMAR partnership.
Q & A Highlights
Q: You flagged significant opportunities expected to convert in the first half of '27. Can you elaborate further? Is this within existing or new customers and strata versus mining services? A: Jeff Whiteman (CEO): The near-term pipeline is around $750 million, weighted towards the first half of FY27. These opportunities are primarily with existing clients, but involve new contracts or new capabilities. We see strong opportunities across both strata consolidation and mining services, as well as in our products business.
Q: With Dendrobium mobilizing in FY27 and new projects, should we expect a material working-capital outflow in the first half of '27? And is that expected to largely normalize by year end? A: Matt Ruhl (CFO): Yes, there will be organic working-capital impacts from the Dendrobium project coming online. We expect this to normalize over the 12 months, but we will definitely see the impact in the first six months. We are well positioned to offset this through our ScotPac facility if needed, and I expect it to flatline by the end of the year.
Q: What shareholders expect to happen with the former Anglo American mine contracts expiring next year, post JENNMAR acquisition? A: Jeff Whiteman (CEO): We have been with Anglo since 2002 and are the largest contractor on site at both Aquila and Moranbah North mines. We are currently contracted out until April next year and are in discussions with them around continuing that relationship. While there is a risk of other players trying to get in, we rely on our points of differentiation and remain confident given our long history and performance.
Q: Is Tahmoor in play, given your existing relationships? A: Jeff Whiteman (CEO): Tahmoor would have been on our radar regardless of who bought it, given it was a good producing mine before its ownership ran into trouble. With M Group involved in the purchase, it provides us with a warm entrance, but it is a joint venture, so we still need to be competitive. I can confirm Tahmoor is in our pipeline, and we are working hard on a solution to help M Group with a successful restart of production.
Q: Does the Middle East conflict impact supply chain for the strata-consolidation products? A: Jeff Whiteman (CEO): Earlier this year, it did cause some disruption, particularly with air freighting products through Dubai, which we had to reroute. We managed through it and still delivered record volumes in the second half of FY26. Going forward, we have worked closely with JENNMAR to implement actions that will ensure security of supply, so we don't have those concerns looking ahead.
Q: Are you providing FY27 guidance? Alternatively, are you able to share the FY27 strong revenue visibility you have? A: Jeff Whiteman (CEO): We have about $200 million of revenue locked in for FY27 from the order book, including the recent Dendrobium award. In terms of opportunities, we have the Tahmoor restart, other GM3 mine opportunities, renewal discussions with Anglo and Whitehaven at Narrabri, and a number of other opportunities, mostly with existing clients.
Q: When do you expect the payment of dividends to begin? And why haven't you paid a dividend this year? A: Jeff Whiteman (CEO): The Board has taken a strategic decision to maintain and build our capital position to support our growth agenda, both organic and acquisition growth. We will continue to revisit our capital-management policy in future periods. We have a significant balance of franking credits, so if and when we return to dividends, they will benefit from that. At this point, we are on a strong growth trend and believe retaining cash better serves shareholders.
Q: The short-term opportunities, are they more coking or thermal coal? A: Jeff Whiteman (CEO): The bigger opportunities are predominantly coking or metallurgical coal. There are some thermal opportunities, but they are high-quality thermal mines delivering export-quality thermal coal. We really do try to focus on met coal and that high-quality thermal segment.
Q: With Mastermyne currently servicing Ashton underground owned by Yancoal, is there potential for Yancoal to also look for underground contractors for Kestrel? A: Jeff Whiteman (CEO): Ownership changes do provide an opportunity to talk to Yancoal, and we have a good relationship through our Ashton contract. We are already talking to Kestrel on a different proposal that is separate scope to current contractors, prior to Yancoal taking the reins. Kestrel is a large mine where Mastermyne has done extensive work previously, so it remains on our target list.
Q: What's required to hit your prior EBITDA margin target of 10%? A: Matt Ruhl (CFO): We are really pleased with the progress from 6.6% to 8.5% over the year, with the second half at 9.3% reflecting improved activity levels in our higher-margin strata business. We will continue to diversify our client activities and deliver on our cross-sell strategies, which supports margin growth. Our goal is to achieve previous margin levels as we look to deploy that strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
