Full Year 2026 Macmahon Holdings Ltd Earnings Call

August 18, 2026

Speaker #2: Thank you for standing by, and welcome to the Macmahon FY26 Results Conference Call. All lines have been placed on mute to prevent any background noise.

Operator 2: Thank you for standing by, and welcome to the Macmahon FY26 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during Q&A time, simply press star, followed by the number one on your telephone keypad. To withdraw your question, press the star one again. For operator assistance throughout the call, please press star zero. Finally, I would like to advise all participants this call is being recorded. I'd now like to welcome Michael Finnegan, Managing Director and Chief Executive Officer, to begin the conference. Mick?

Operator: Thank you for standing by, and welcome to the Macmahon FY26 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during Q&A time, simply press star, followed by the number one on your telephone keypad. To withdraw your question, press the star one again. For operator assistance throughout the call, please press star zero. Finally, I would like to advise all participants this call is being recorded. I'd now like to welcome Michael Finnegan, Managing Director and Chief Executive Officer, to begin the conference. Mick?

Speaker #2: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during the Q&A time, simply press star, followed by the number one on your telephone keypad.

Speaker #2: And to withdraw your question, press the star, one, again. For operator assistance throughout the call, please press star, zero. And finally, I would like to advise all participants that this call is being recorded.

Speaker #2: I'd now like to welcome Mick Finnegan, Managing Director and Chief Executive Officer, to begin the conference. Mick?

Speaker #3: Hi, everyone. Welcome to the Macmahon Results Presentation for the financial year 2026, and thank you for joining us today during the busy ASX reporting period.

Michael Finnegan: Hi, everyone. Welcome to the Macmahon results presentation for financial year 2026, and thank you for joining us today during the busy ASX reporting period. We always appreciate your time and interest in Macmahon, and the opportunity to run through the results presentation. After the presentation, Ursula and I will be happy to take your questions. Starting with the financial highlights on Slide 2. Macmahon has had another strong year with the business delivering record revenue and underlying earnings growth. We continued to improve the return on average capital employed towards the 25% target only recently set. The increase to 22% was due to our clear focus on improving productivity and discipline across the business and strategic new awards building scale in the target areas, which has increased the delivery of free cash flow.

Mick Finnegan: Hi, everyone. Welcome to the Macmahon results presentation for financial year 2026, and thank you for joining us today during the busy ASX reporting period. We always appreciate your time and interest in Macmahon, and the opportunity to run through the results presentation. After the presentation, Ursula and I will be happy to take your questions. Starting with the financial highlights on Slide 2. Macmahon has had another strong year with the business delivering record revenue and underlying earnings growth. We continued to improve the return on average capital employed towards the 25% target only recently set. The increase to 22% was due to our clear focus on improving productivity and discipline across the business and strategic new awards building scale in the target areas, which has increased the delivery of free cash flow.

Speaker #3: We always appreciate your time and interest in Macmahon, and the opportunity to run through the results presentation. After the presentation, Ursula and I will be happy to take your questions.

Speaker #3: Starting with the financial highlights on slide two, Macmahon has had another strong year, with the business delivering record revenue and underlying earnings growth. We continued to improve the return on average capital employed towards the 25% target only recently set.

Speaker #3: The increase to 22% was due to our clear focus on improving productivity and discipline across the business, and strategic new awards, building scale in the target areas, which has increased the delivery of free cash flow.

Speaker #3: As you know, managing capital intensity in the business has been an ongoing focus for us, and the improved returns have allowed us to again increase our dividend payout to shareholders.

Michael Finnegan: As you know, managing capital intensity in the business has been an ongoing focus for us, and the improved returns have allowed us to again increase our dividend payout to shareholders. Global geopolitical instability and its impact on commodity prices, trade, and the cost of doing business continue to present challenges, particularly with regards to energy costs. Macmahon has been navigating these well, underpinned by our diverse order book and client base. We have been closely monitoring and managing costs and risks, and will continue to do so as we execute on our strategy to deliver value for our clients and our shareholders. Some highlights I'd like to call out include new records for revenue and EBITDA, and further strengthening of our balance sheet as we again reduce net debt.

Mick Finnegan: As you know, managing capital intensity in the business has been an ongoing focus for us, and the improved returns have allowed us to again increase our dividend payout to shareholders. Global geopolitical instability and its impact on commodity prices, trade, and the cost of doing business continue to present challenges, particularly with regards to energy costs. Macmahon has been navigating these well, underpinned by our diverse order book and client base. We have been closely monitoring and managing costs and risks, and will continue to do so as we execute on our strategy to deliver value for our clients and our shareholders. Some highlights I'd like to call out include new records for revenue and EBITDA, and further strengthening of our balance sheet as we again reduce net debt.

Speaker #3: Global geopolitical instability and its impact on commodity prices, trade, and the cost of doing business continue to present challenges, particularly with regards to energy costs.

Speaker #3: Macmahon has been navigating these well, underpinned by our diverse order book and client base. We have been closely monitoring and managing costs and risks, and will continue to do so as we execute on our strategy to deliver value for our clients and our shareholders.

Speaker #3: Some highlights I'd like to call out include new records for revenue and EBITDA, and further strengthening of our balance sheet as we have reduced net debt.

Speaker #3: Revenue and EBITDA were $2.6 billion and $190.1 million, respectively, and we saw improvement in our EBITDA margin to 7.3% from 7.1% in the prior year.

Michael Finnegan: Revenue and EBITDA were AUD 2.6 billion and AUD 190.1 million respectively, and we saw improvement in our EBITDA margin to 7.3% from 7.1% in the prior year. Cash flow generation remains a highlight of the result, with underlying operating cash flow of AUD 387 million remaining strong and free cash flow of AUD 103.1 million. Free cash flow is down on the previous year, primarily due to Macmahon paying the final FY25 tax in FY26, together with the FY26 provisional tax payment. Net debt of AUD 111.1 million reduced 32% on FY25. Importantly, gearing has dropped to 13%, which is in line with our expectations for the year. Both debt and gearing are now below pre-Decmil acquisition levels, which reflects our rigorous and disciplined approach to capital management. Total dividends for the year increased by 47% to AUD 0.022 per share, fully franked, representing a payout ratio of 41% on underlying earnings per share.

Mick Finnegan: Revenue and EBITDA were AUD 2.6 billion and AUD 190.1 million respectively, and we saw improvement in our EBITDA margin to 7.3% from 7.1% in the prior year. Cash flow generation remains a highlight of the result, with underlying operating cash flow of AUD 387 million remaining strong and free cash flow of AUD 103.1 million. Free cash flow is down on the previous year, primarily due to Macmahon paying the final FY25 tax in FY26, together with the FY26 provisional tax payment.

Speaker #3: Cash flow generation remains a highlight of the result, with underlying operating cash flow of $387 million remaining strong and free cash flow of $103.1 million.

Speaker #3: Free cash flow is down on the previous year primarily due to Macmahon paying the final FY25 tax in FY26, together with the FY26 provisional tax payment.

Speaker #3: Net debt of $111.1 million reduced 32% on FY25. Importantly, gearing has dropped to 13%, which is in line with our expectations for the year.

Mick Finnegan: Net debt of AUD 111.1 million reduced 32% on FY25. Importantly, gearing has dropped to 13%, which is in line with our expectations for the year. Both debt and gearing are now below pre-Decmil acquisition levels, which reflects our rigorous and disciplined approach to capital management. Total dividends for the year increased by 47% to AUD 0.022 per share, fully franked, representing a payout ratio of 41% on underlying earnings per share.

Speaker #3: Both debt and gearing are now below pre-DECIMAL acquisition levels, which reflects our rigorous and disciplined approach to capital management. Total dividends for the year increased by 47% to 2.2 cents per share, fully franked, representing a payout ratio of 41% on underlying earnings per share.

Speaker #3: FY26 ratio was 22%, which exceeded our previous long-term target of 20% and was up from 21.2% at the half. We believe we can continue to increase the ratio through our strategy and are tracking well towards our current long-term ratio target of above 25%.

Michael Finnegan: FY26 ROACE was 22%, which exceeded our previous long-term target of 20%, and up from the 21.2% at the half. We believe we can continue to increase ROACE through our strategy and are tracking well towards our current long-term ROACE target of above 25%. The order book is currently AUD 5.9 billion, up from AUD 5.1 billion at the half, and strongly supported by a robust tender pipeline of AUD 25 billion, of which AUD 13.8 billion is expected to be awarded within the coming 12 months. The order book includes major contract awards announced post 30 June, including the AUD 355 million three-year Mount Marion contract with Mineral Resources, the AUD 406 million five-year Snowy River project in New Zealand with Endura Mining, and the AUD 50 million Mamre Road Project with Transport for NSW in Sydney.

Mick Finnegan: FY26 ROACE was 22%, which exceeded our previous long-term target of 20%, and up from the 21.2% at the half. We believe we can continue to increase ROACE through our strategy and are tracking well towards our current long-term ROACE target of above 25%. The order book is currently AUD 5.9 billion, up from AUD 5.1 billion at the half, and strongly supported by a robust tender pipeline of AUD 25 billion, of which AUD 13.8 billion is expected to be awarded within the coming 12 months. The order book includes major contract awards announced post 30 June, including the AUD 355 million three-year Mount Marion contract with Mineral Resources, the AUD 406 million five-year Snowy River project in New Zealand with Endura Mining, and the AUD 50 million Mamre Road Project with Transport for NSW in Sydney.

Speaker #3: The order book is currently $5.9 billion, up from $5.1 billion at the half, and strongly supported by a robust tender pipeline of $25 billion, of which $13.8 billion is expected to be awarded within the coming 12 months.

Speaker #3: The order book includes major contract awards announced post 30 June, including the $355 million three-year Mount Marian contract with Mineral Resources, the $406 million five-year Snowy River project in New Zealand with Endura Mining, and the $50 million Mamray Road project with Transport for New South Wales in Sydney.

Speaker #3: Work in hand already locked in for FY27 is $2.2 billion, but this does not include the $240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensdorf gold project.

Michael Finnegan: Work in hand already locked in for FY27 is AUD 2.2 billion, but this does not include the AUD 240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe Gold Project. It also excludes short-term civil and underground churn work and future contract cost escalation recoveries, as per our usual reporting practice. Slide 3 shows our historical performance relative to our guidance, but also the long-term track record and consistency in delivering growth. I am very pleased we have extended our track record of meeting or exceeding our guidance, our market guidance, to 10 consecutive years. Our CAGR over this period has been 25% in revenue and 21% in EBITDA. I can again assure you that we are very motivated to maintain this track record of consistent success into the future.

Mick Finnegan: Work in hand already locked in for FY27 is AUD 2.2 billion, but this does not include the AUD 240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe Gold Project. It also excludes short-term civil and underground churn work and future contract cost escalation recoveries, as per our usual reporting practice. Slide 3 shows our historical performance relative to our guidance, but also the long-term track record and consistency in delivering growth. I am very pleased we have extended our track record of meeting or exceeding our guidance, our market guidance, to 10 consecutive years. Our CAGR over this period has been 25% in revenue and 21% in EBITDA. I can again assure you that we are very motivated to maintain this track record of consistent success into the future.

Speaker #3: It also excludes short-term civil and underground churn work, and future contract cost escalation recoveries, as per our usual reporting practice. Slide three shows our historical performance relative to our guidance, and also the long-term track record and consistency in delivering growth.

Speaker #3: I'm very pleased that we have extended our track record of meeting or exceeding our market guidance to 10 consecutive years. Our CAGR over this period has been 25% in revenue and 21% in EBITDA.

Speaker #3: I can again assure you that we are very motivated to maintain this track record of consistent success into the future. I appreciate that many of you are familiar with our business, so I will only briefly touch on slide four to recap how our business is structured.

Michael Finnegan: I appreciate many of you are familiar with our business, so I will only briefly touch on slide 4 to recap how our business is structured. We have three operating business groups, being surface and underground mining businesses and our civil infrastructure business. Each of these operating teams brings its own specialized skills and expertise to the group and allows Macmahon to deliver a wide range of services to our clients in Australia, Indonesia, and across our region. Our corporate team is focused on strategic growth, leveraging Homeground to secure strategic partnerships and pursuing M&A growth opportunities to establish a whole of mine service offering. FY26 highlights in our mining business are shown on slide 5. Surface and underground mining combined generated almost AUD 2 billion in revenue for the group.

Mick Finnegan: I appreciate many of you are familiar with our business, so I will only briefly touch on slide 4 to recap how our business is structured. We have three operating business groups, being surface and underground mining businesses and our civil infrastructure business. Each of these operating teams brings its own specialized skills and expertise to the group and allows Macmahon to deliver a wide range of services to our clients in Australia, Indonesia, and across our region. Our corporate team is focused on strategic growth, leveraging Homeground to secure strategic partnerships and pursuing M&A growth opportunities to establish a whole of mine service offering. FY26 highlights in our mining business are shown on slide 5. Surface and underground mining combined generated almost AUD 2 billion in revenue for the group.

Speaker #3: We have three operating business groups: our surface and underground mining businesses, and our civil infrastructure business. Each of these operating teams brings its own specialised skills and expertise to the group and allows Macmahon to deliver a wide range of services to our clients in Australia, Indonesia, and across our regions.

Speaker #3: Our corporate team is focused on strategic growth, leveraging our home ground to secure strategic partnerships and pursuing M&A growth opportunities to establish a whole-of-mine service offering.

Speaker #3: FY26 highlights in our mining business are shown on slide five. Surface and underground mining combined generated almost $2 billion in revenue for the group.

Speaker #3: Underlying EBITDA was up 6% on FY25 to $157 million, and the EBITDA margin increased to our long-held target of 8%, again an improvement on our FY25 result.

Michael Finnegan: Underlying EBITDA was up 6% on FY25 to AUD 157 million, and the EBITDA margin increased to our long-held target of 8%. Again, an improvement on our FY25 results. Our surface mining team secured over AUD 1.1 billion of new work, including a AUD 792 million extension at Byerwen, AUD 190 million five-year letter of intent for open pit mining at Wonawinta, and AUD 150 million contract for the restart of open pit mining at Mount Carlton. Our surface tender pipeline of AUD 10 billion, of which AUD 5.6 billion is expected to be awarded in the next 12 months, is a very selective pipeline, including key strategic partnerships.

Mick Finnegan: Underlying EBITDA was up 6% on FY25 to AUD 157 million, and the EBITDA margin increased to our long-held target of 8%. Again, an improvement on our FY25 results. Our surface mining team secured over AUD 1.1 billion of new work, including a AUD 792 million extension at Byerwen, AUD 190 million five-year letter of intent for open pit mining at Wonawinta, and AUD 150 million contract for the restart of open pit mining at Mount Carlton. Our surface tender pipeline of AUD 10 billion, of which AUD 5.6 billion is expected to be awarded in the next 12 months, is a very selective pipeline, including key strategic partnerships.

Speaker #3: Our surface mining team secured over $1.1 billion in new work, including a $792 million extension at Bylin, a $190 million five-year letter of intent for open pit mining at Wanawinter, and $150 million in contracts for the restart of open pit mining at Mount Carlton.

Speaker #3: Our surface tender pipeline is $10 billion, of which $5.6 billion is expected to be awarded in the next 12 months. It is a very selective pipeline including key strategic partnerships.

Speaker #3: Our underground business had another successful year, winning new work, including an initial $55 million, 12-month award at Majestic, which was then followed by a 12-month extension; a $36 million contract at Kuching Leah in Indonesia; and commencing early works at Mount Carlton, where we received a letter of intent in March.

Michael Finnegan: Our underground business had another successful year, winning new work, including an initial AUD 55 million, 12-month award at Majestic, which was then followed by a 12-month extension, a AUD 36 million contract at Kuching Leah in Indonesia, and commencing early works at Mount Carlton, where we received a letter of intent in March. Since 30 June, our underground team has won a AUD 355 million contract at Mount Marion and a AUD 406 million contract at the Snowy River project in New Zealand. The underground business is growing in line with our expectations and now contributes 24% of group revenue. We continue to target revenue growth from our underground business to achieve the AUD 750 million run rate by the end of FY28. This expectation is underpinned by an underground pipeline of AUD 6.2 billion, of which AUD 3.1 billion is expected to be awarded in the next 12 months.

Mick Finnegan: Our underground business had another successful year, winning new work, including an initial AUD 55 million, 12-month award at Majestic, which was then followed by a 12-month extension, a AUD 36 million contract at Kuching Leah in Indonesia, and commencing early works at Mount Carlton, where we received a letter of intent in March. Since 30 June, our underground team has won a AUD 355 million contract at Mount Marion and a AUD 406 million contract at the Snowy River project in New Zealand.

Speaker #3: Since June 30, our Underground team has won a $355 million contract at Mount Marion and a $406 million contract at the Snowy River project in New Zealand.

Speaker #3: The underground business is growing in line with our expectations and now contributes 24% of group revenue. We continue to target revenue growth from our underground business to achieve the $750 million run rate by the end of FY28.

Mick Finnegan: The underground business is growing in line with our expectations and now contributes 24% of group revenue. We continue to target revenue growth from our underground business to achieve the AUD 750 million run rate by the end of FY28. This expectation is underpinned by an underground pipeline of AUD 6.2 billion, of which AUD 3.1 billion is expected to be awarded in the next 12 months.

Speaker #3: This expectation is underpinned by an underground pipeline of $6.2 billion, of which $3.1 billion is expected to be awarded in the next 12 months.

Speaker #3: Included in this pipeline is the Ravensdorf Gold Project, which Medallion Metals recently announced us as preferred contractor on. Some highlights from our civil business over the year are outlined on slide six.

Michael Finnegan: Included in this pipeline is the Ravensthorpe Gold Project, which Medallion Metals recently announced us as preferred contractor on. Some highlights from our civil business over the year are outlined on slide seven. The Decmil civil infrastructure business continues to grow, and its contribution to the group has increased to 26% of group revenue. Decmil continued to perform well and has cemented its place in the group alongside our mining operating companies, generating opportunities to promote our unique combination of services. Decmil secured inclusion into the highly strategic Rio Tinto Pilbara Bulk Earthworks panel, which we anticipate will be a source of future work for the team in Western Australia. Order book growth remained a key focus for Decmil. The business again won over AUD 500 million in new work during the year.

Mick Finnegan: Included in this pipeline is the Ravensthorpe Gold Project, which Medallion Metals recently announced us as preferred contractor on. Some highlights from our civil business over the year are outlined on slide seven. The Decmil civil infrastructure business continues to grow, and its contribution to the group has increased to 26% of group revenue. Decmil continued to perform well and has cemented its place in the group alongside our mining operating companies, generating opportunities to promote our unique combination of services. Decmil secured inclusion into the highly strategic Rio Tinto Pilbara Bulk Earthworks panel, which we anticipate will be a source of future work for the team in Western Australia. Order book growth remained a key focus for Decmil. The business again won over AUD 500 million in new work during the year.

Speaker #3: The Decmil Civil Infrastructure business continues to grow, and its contribution to the group has increased to 26% of group revenue. Decmil continues to perform well and has cemented its place in the group alongside our mining operating companies, generating opportunities to promote our unique combination of services.

Speaker #3: Decimal secured inclusion into the highly strategic Rio Tinto Pilbara Bulk Earthworks panel, which we anticipate will be a source of future work for the team in Western Australia.

Speaker #3: Order book growth remained a key focus for Decmil. The business again won over $500 million in new work during the year. The work won includes civil works across roads, accommodation villages, infrastructure, and wind farms, and a significant number of resource projects, which creates strategically important opportunities to partner and build operational synergies with our mining businesses.

Michael Finnegan: The work won includes civil works across roads, accommodation villages, infrastructure, and wind farms, and a significant number of resource projects, which creates strategically important opportunities to partner and build operational synergies with our mining businesses. Since 30 June, we announced a AUD 50 million early works contract win with Transport for NSW on stage 2 of the Mamre Road project in Western Sydney. We are targeting robust growth from Decmil with an AUD 8.8 billion tender pipeline, of which AUD 5.1 billion is currently expected to be awarded in the next 12 months. This short-term pipeline includes a key number of larger projects in both the east and west. Slide seven shows our key surface mining projects. Like in underground, we have sought to diversify our portfolio across clients and commodities, typically with long mine life.

Mick Finnegan: The work won includes civil works across roads, accommodation villages, infrastructure, and wind farms, and a significant number of resource projects, which creates strategically important opportunities to partner and build operational synergies with our mining businesses. Since 30 June, we announced a AUD 50 million early works contract win with Transport for NSW on stage 2 of the Mamre Road project in Western Sydney. We are targeting robust growth from Decmil with an AUD 8.8 billion tender pipeline, of which AUD 5.1 billion is currently expected to be awarded in the next 12 months. This short-term pipeline includes a key number of larger projects in both the east and west. Slide seven shows our key surface mining projects. Like in underground, we have sought to diversify our portfolio across clients and commodities, typically with long mine life.

Speaker #3: Since 30 June, we announced a $50 million early works contract win with Transport for New South Wales on stage two of the Mamre Road project in Western Sydney.

Speaker #3: We are targeting robust growth from Decmil, with an $8.8 billion tender pipeline, of which $5.1 billion is currently expected to be awarded in the next 12 months.

Speaker #3: This short-term pipeline includes a key number of larger projects in both the East and West. Slide seven shows our key surface mining projects. Like in underground, we have sought to diversify our portfolio across clients and commodities, typically with long mine lives.

Speaker #3: We also monitor their position on the cost curve and factor this into our risk assessments. Another point to highlight is the increasing prevalence of clients where we do both surface and underground mining, such as AngloGold Ashanti, Wolfram, and Pabuyo in Indonesia.

Michael Finnegan: We also monitor their position on the cost curve and factor this into our risk assessments. Another point to highlight is the increasing prevalence of clients where we do both the surface and underground mining, such as AngloGold Ashanti, Wolfram, and Poboja in Indonesia. This highlights a competitive advantage of having an integrated service offering. Slide 8 shows our underground mining projects, including projects and extensions awarded since 30 June 2026. Our underground team have been awarded several major new contracts that advance our aspiration to become a tier 1 regional underground mining operator. Slide 9 shows our growing list of key civil projects.

Mick Finnegan: We also monitor their position on the cost curve and factor this into our risk assessments. Another point to highlight is the increasing prevalence of clients where we do both the surface and underground mining, such as AngloGold Ashanti, Wolfram, and Poboja in Indonesia. This highlights a competitive advantage of having an integrated service offering. Slide 8 shows our underground mining projects, including projects and extensions awarded since 30 June 2026. Our underground team have been awarded several major new contracts that advance our aspiration to become a tier 1 regional underground mining operator. Slide 9 shows our growing list of key civil projects.

Speaker #3: This highlights a competitive advantage of having an integrated service offering. Slide eight shows our underground mining projects, including projects and extensions awarded since 30 June 2026.

Speaker #3: Our underground team has been awarded several major new contracts that advance our aspiration to become a tier-one regional underground mining operator. Slide nine shows our growing list of key civil projects, so I don't intend to go through each project separately, but some of the key points to call out include the inclusion of Decmil as one of the three civil infrastructure contractors on the Rio Tinto Pilbara Bulk Earthworks panel, which creates a strong pipeline of future work.

Michael Finnegan: I don't intend to go through each project separately, but some of the key points to call out include the inclusion of Decmil as one of the three civil infrastructure contractors on the Rio Tinto Pilbara Bulk Earthworks panel, which creates a strong pipeline of future work. A growing list of civil infrastructure projects that are moving from the AUD 20 to AUD 50 million range to the AUD 100 to AUD 200 million range, and the diversity of infrastructure projects across government, resources, and renewables. Diversification has been a key part of our strategy, both in terms of risk management, but also a part of our efforts to reduce capital intensity in the business. Slide 10 summarizes our revenue diversification across service offering, commodity, region, and client. At a group level, this slide clearly shows the changing contributions of our operating companies and the diversity of our revenue sources.

Mick Finnegan: I don't intend to go through each project separately, but some of the key points to call out include the inclusion of Decmil as one of the three civil infrastructure contractors on the Rio Tinto Pilbara Bulk Earthworks panel, which creates a strong pipeline of future work. A growing list of civil infrastructure projects that are moving from the AUD 20 to AUD 50 million range to the AUD 100 to AUD 200 million range, and the diversity of infrastructure projects across government, resources, and renewables. Diversification has been a key part of our strategy, both in terms of risk management, but also a part of our efforts to reduce capital intensity in the business. Slide 10 summarizes our revenue diversification across service offering, commodity, region, and client. At a group level, this slide clearly shows the changing contributions of our operating companies and the diversity of our revenue sources.

Speaker #3: Our growing list of civil infrastructure projects is moving from the $20 to $50 million range to the $100 to $200 million range.

Speaker #3: And the diversity of infrastructure projects across government, resources, and renewables. Diversification has been a key part of our strategy, both in terms of risk management but also as part of our efforts to reduce capital intensity in the business.

Speaker #3: Slide ten summarizes our revenue diversification across service offering, commodity, region, and clients. At a group level, this slide clearly shows the changing contributions of our operating companies and the diversity of our revenue sources.

Speaker #3: Our surface mining business now contributes half of our group revenue, whereas last year it was nearly 60%. This rebalance has been achieved through the growth in our underground and civil infrastructure businesses, and their increasing contributions to the overall growth of the company.

Michael Finnegan: Our surface mining business now contributes half of our group revenue, whereas last year it was nearly 60%. This rebalance has been achieved through the growth in our underground and civil infrastructure businesses and their increasing contributions to the overall growth of the company. You may have noticed that gold is the predominant commodity of our key mining projects. This has been a longer-term feature of our order book and the markets we operate in, and we continue to have a relatively large exposure to gold at 52% of revenue. We anticipate a growing contribution from lithium over the coming years, driven by increased global demand. Our Indonesian business includes surface and underground mining and civil infrastructure services. Our expectation is that this will continue to grow its contribution to group revenue with a long-term target of between 15% to 20% of group revenue.

Mick Finnegan: Our surface mining business now contributes half of our group revenue, whereas last year it was nearly 60%. This rebalance has been achieved through the growth in our underground and civil infrastructure businesses and their increasing contributions to the overall growth of the company. You may have noticed that gold is the predominant commodity of our key mining projects. This has been a longer-term feature of our order book and the markets we operate in, and we continue to have a relatively large exposure to gold at 52% of revenue. We anticipate a growing contribution from lithium over the coming years, driven by increased global demand. Our Indonesian business includes surface and underground mining and civil infrastructure services. Our expectation is that this will continue to grow its contribution to group revenue with a long-term target of between 15% to 20% of group revenue.

Speaker #3: You may have noticed that gold is the predominant commodity for our key mining projects. This has been a long-term feature of our order book and the markets we operate in, and we continue to have a relatively large exposure to gold at 52% of revenue.

Speaker #3: And we anticipate a growing contribution from lithium over the coming years, driven by increased global demand. Our Indonesian business includes surface and underground mining, as well as civil infrastructure services.

Speaker #3: Our expectation is that this will continue to grow its contribution to group revenue, with a long-term target of between 15% to 20% of group revenue.

Speaker #3: We've been diversifying our business mix to achieve optimal capital intensity to increase ROIC, but also retain some of the barriers to entry we've seen in some areas.

Michael Finnegan: We've been diversifying our business mix to achieve optimal capital intensity to increase ROACE, but also retain some of the barriers to entry we see in some areas. This is visible in the very deliberate growth in the underground and civil infrastructure in recent years. These businesses now account for 50% of group revenue. They have strong pipeline opportunities, and we expect these businesses to continue growing strongly and increase overall share of revenue. Moving on to slide 11 on people and safety. This is a fundamental business priority, and we continue to invest in this area, both in the development of our people and in continued safety improvements. Our safety performance improved in FY26, with total recordable injury frequency rate decreasing to 1.98 from 2.99 in FY25. This was a pleasing result when you consider we have a workforce of more than 10,000 people across our business.

Mick Finnegan: We've been diversifying our business mix to achieve optimal capital intensity to increase ROACE, but also retain some of the barriers to entry we see in some areas. This is visible in the very deliberate growth in the underground and civil infrastructure in recent years. These businesses now account for 50% of group revenue. They have strong pipeline opportunities, and we expect these businesses to continue growing strongly and increase overall share of revenue. Moving on to slide 11 on people and safety. This is a fundamental business priority, and we continue to invest in this area, both in the development of our people and in continued safety improvements. Our safety performance improved in FY26, with total recordable injury frequency rate decreasing to 1.98 from 2.99 in FY25. This was a pleasing result when you consider we have a workforce of more than 10,000 people across our business.

Speaker #3: This is visible in the very deliberate growth in the underground and civil infrastructure in recent years. These businesses now account for 50% of group revenue, though they have strong pipeline opportunities, and we expect these businesses to continue growing strongly and increase overall share of revenue.

Speaker #3: Moving on to slide 11, on people and safety. This is a fundamental business priority, and we continue to invest in this area—both in the development of our people and in continued safety improvement.

Speaker #3: Our safety performance improved in FY26, with the total recordable injury frequency rate decreasing to 1.98 from 2.99 in FY25. This was a pleasing result when you consider we have a workforce of more than 10,000 people across our business.

Speaker #3: However, we remain focused on driving that number as low as possible. Through FY26, aiding graduates, fixing turns, 79 apprentices, and 176 leaders participated in structured learning and training programs. Talent development continues to be a priority for our business.

Michael Finnegan: However, we remain focused on driving that number as low as possible. Through FY26, 18 graduates, 6 interns, 79 apprentices, 176 trainees, and 201 emerging leaders participated in structured learning and training programs at Macmahon. Training and development continue to be a priority for our business. 105 identified emerging leaders completed the Macmahon Winning Way Leadership Program in FY26, which is intended to accelerate development of new leaders within our business. This is in addition to the rollout of the new training programs, including the Critical Risk Management and Psychosocial Safety Leadership training. We remain committed to maintaining a safe, respectful, and inclusive workplace and monitor our employee representation. In FY26, female representation in the Australian-based workforce was 20.6% across all occupations, and First Nations people represent 4.5% of the Australian workforce.

Mick Finnegan: However, we remain focused on driving that number as low as possible. Through FY26, 18 graduates, 6 interns, 79 apprentices, 176 trainees, and 201 emerging leaders participated in structured learning and training programs at Macmahon. Training and development continue to be a priority for our business. 105 identified emerging leaders completed the Macmahon Winning Way Leadership Program in FY26, which is intended to accelerate development of new leaders within our business. This is in addition to the rollout of the new training programs, including the Critical Risk Management and Psychosocial Safety Leadership training. We remain committed to maintaining a safe, respectful, and inclusive workplace and monitor our employee representation. In FY26, female representation in the Australian-based workforce was 20.6% across all occupations, and First Nations people represent 4.5% of the Australian workforce.

Speaker #3: 105 identified emerging leaders completed the Macmahon Winning Way leadership program in FY26, which is intended to accelerate development of new leaders within our business.

Speaker #3: This is in addition to the rollout of the new training programs, including the critical risk management and psychosocial safety leadership training. We remain committed to maintaining a safe, respectful, and inclusive workplace and monitoring our employee representation.

Speaker #3: In FY26, female representation in the Australian-based workforce was 20.6% across all occupations, and First Nations people represented 4.5% of the Australian workforce. Slide 12 outlines some of the initiatives in the business designed to develop and promote Macmahon's culture and values, ensuring they remain at the core of our people development programs.

Michael Finnegan: Slide 12 outlines some of the initiatives in the business designed to develop and promote Macmahon's culture and values, ensuring they remain at the core of our people development programs. Positive workplace culture is a key element of working at Macmahon and making us an employer of choice. Culture and fit are important elements in our recruitment process. They are defined during onboarding and reinforced and embedded throughout the employment lifecycle. Some of these programs I have previously mentioned and you are familiar with, including Respect@Macmahon, the Macmahon Winning Way, Emerging Leaders programs. Our Together.Works. employee value proposition was launched and rolled out across our businesses this year.

Mick Finnegan: Slide 12 outlines some of the initiatives in the business designed to develop and promote Macmahon's culture and values, ensuring they remain at the core of our people development programs. Positive workplace culture is a key element of working at Macmahon and making us an employer of choice. Culture and fit are important elements in our recruitment process. They are defined during onboarding and reinforced and embedded throughout the employment lifecycle. Some of these programs I have previously mentioned and you are familiar with, including Respect@Macmahon, the Macmahon Winning Way, Emerging Leaders programs. Our Together.Works. employee value proposition was launched and rolled out across our businesses this year.

Speaker #3: Positive workplace culture is a key element of working at Macmahon, and makes us an employer of choice. Culture and faith are important elements in our recruitment process.

Speaker #3: They are defined during onboarding and reinforced and embedded throughout the employment life cycle. Some of these programs I've previously mentioned, and you are familiar with, including Respect at Macmahon, the Macmahon Winning Way, and Emerging Leaders programs.

Speaker #3: The Together Works employee value proposition was launched and rolled out across our businesses this year. Our EVP brings together our values and our people to ensure the experience of being a Macmahon employee is rewarding for both the employee and the company, and is reinforced through our training programs and our communications across the Macmahon Group.

Michael Finnegan: Our EVP brings together our values and our people to ensure the experience of being a Macmahon employee is rewarding for both the employee and the company and is reinforced through our training programs and our communications across the Macmahon Group. Slide 13 outlines some of our sustainability-related activities and metrics for FY26. We continued to take important steps during the year to enhance our environmental and sustainability reporting. This included complying with new mandatory reporting obligations and maintaining strong governance. Macmahon's 2026 sustainability report is contained within our annual report and will be available on our website. It is compliant with our AASB S2 disclosure obligations and represents a substantial advancement in our governance and reporting on sustainability matters. I am conscious of time, so I will not go through the rest of the details on this slide now. I will now hand over to Ursula to talk through the financials.

Mick Finnegan: Our EVP brings together our values and our people to ensure the experience of being a Macmahon employee is rewarding for both the employee and the company and is reinforced through our training programs and our communications across the Macmahon Group. Slide 13 outlines some of our sustainability-related activities and metrics for FY26. We continued to take important steps during the year to enhance our environmental and sustainability reporting.

Speaker #3: Slide 13 outlines some of our sustainability-related activities and metrics for FY26. We continue to take important steps during the year to enhance our environmental and sustainability reporting.

Speaker #3: This included complying with new mandatory reporting obligations and maintaining strong governance. Macmahon's 2026 Sustainability Report is contained within our Annual Report, and will be available on our website.

Mick Finnegan: This included complying with new mandatory reporting obligations and maintaining strong governance. Macmahon's 2026 sustainability report is contained within our annual report and will be available on our website. It is compliant with our AASB S2 disclosure obligations and represents a substantial advancement in our governance and reporting on sustainability matters. I am conscious of time, so I will not go through the rest of the details on this slide now. I will now hand over to Ursula to talk through the financials.

Speaker #3: It is compliant with our AASB S2 disclosure obligations and represents a substantial advancement in our governance and reporting on sustainability matters. But I'm conscious of time, so I won't go through the rest of the details on this slide now.

Speaker #3: I'll now hand over to Ursula to talk through the financials.

Speaker #2: Thanks, Mick. Good morning, everyone, and thank you for joining us today. I want to start on Slide 15 to recap our consistent group financial performance over the past decade.

Ursula Lummis: Thanks, Mick. Good morning, everyone, and thank you for joining us today. I want to start on slide 15 to recheck our consistent group financial performance over the past decade. Mick touched on this when he discussed our guidance track record, but I want to expand on this just a little. The slide shows steady and predictable annual improvement in revenue, underlying EBITA, underlying EBITDA, and the return on average capital employed, all of which are now at record levels since FY17. Margins have shown growth across time, but also relatively low variability. EBITA margins have progressively increased in recent years from 5.9% in FY22 to 7.3% in FY26. I am pleased to say that our efforts around cost management efficiency and delivery of integrated lower capital services have been important drivers of margin growth.

Speaker #2: Mick touched on this when he discussed our guidance track record, but I want to expand on it just a little. The slide shows steady and predictable annual improvement in revenue, underlying EBITDA, and the return on average capital employed, all of which are now at record levels since FY17.

Speaker #2: Margins have shown growth across time, but also relatively low variability. EBITDA margins have progressively increased in recent years, from 5.9% in FY22 to 7.3% in FY26.

Speaker #2: I'm pleased to say that our efforts around cost management, efficiency, and delivery of integrated, lower-capital services have been important drivers of margin growth.

Speaker #2: You can also see the tangible results of our strategic focus on reducing capital intensity and driving improved returns, with strong and sustained improvements in the return on average capital employed over the last five years.

Ursula Lummis: You can also see the tangible results of our strategic focus on reducing the capital intensity and driving improved returns with strong and sustained improvements in return on average capital employed over the last five years. Slide 16 shows a summary of our profit and loss statement. I won't go through all the numbers on the slide, but I will provide some additional context to a few of the high-level numbers. The 8% growth in revenue and 11% growth in underlying EBITA were mainly attributed to the contract execution plus new work during the year from underground and civil. Earnings were driven by continuing the margin improvements, disciplined capital management, and cost optimization across the group. Growth in underlying EBITDA of 2% was lower than the 11% achieved in the EBITA, primarily due to securing the new work in civil and underground businesses, which have a lower capital intensity.

Speaker #2: Slide 16 shows a summary of our profit and loss statement. I won't go through all the numbers on the slide, but I will provide some additional context to a few of the high-level numbers.

Speaker #2: The 8% growth in revenue and 11% growth in underlying EBITDA were mainly attributed to contract execution, plus new work during the year from underground and civil.

Speaker #2: Earnings were driven by continued margin improvement, disciplined capital management, and cost optimization across the group. Growth in underlying EBITDA of 2% was lower than the 11% achieved in EBITDA, primarily due to securing new work in the civil and underground businesses.

Speaker #2: These have a lower capital intensity. Our operating costs increased in line with revenue, albeit we started a number of new projects in this last quarter, including civil projects, which have a higher return on capital; however, slightly lower margins than what we see from our mining services.

Ursula Lummis: Our operating costs increased in line with revenue, albeit we started a number of new projects in this last quarter, including civil projects, which have a higher return on capital, however, slightly lower margins than received from our mining services. Our EBITA margin was 7.3% for the year, driven by lower depreciation with the completion of two historical surface projects. The commencement of lower capital work in underground and civil, together with the operational improvements across the business in the second half. Effective borrowing cost was 6.72% at June 2026, compared to 6% for June 2025, reflecting the impact of the Reserve Bank of Australia interest rate increases that we've experienced in FY26. Our effective tax rate for the year was 30.6%, and the group retains approximately AUD 104 million in franking credits as of 30 June 2026.

Speaker #2: Our EBITDA margin was 7.3% for the year, driven by lower depreciation with the completion of two historical surface projects, the commencement of lower capital work in underground and civil, together with operational improvements across the business in the second half.

Speaker #2: Effective borrowing costs of 6.72% as of June 2026, compared to 6% for June 2025, reflecting the impact of the RBA interest rate increases that we've experienced in FY26.

Speaker #2: Our effective tax rate for the year was 30.6%, and the group retains approximately $104 million in franking credits as at 30 June 2026.

Speaker #2: Finally, as Mick mentioned earlier, the total four-year dividend was increased by 47% to 2.2 cents per share, fully franked, with a payout ratio of 41%.

Ursula Lummis: Finally, as Mick mentioned earlier, the total full-year dividend was increased by 47% to AUD 0.022 per share, fully franked with a payout ratio of 41%, in line with our FY26 policy range of 30% to 45% of earnings per share. Slide 17 sets out the major cash flow movements between the closing net debt last year and this year. The chart shows year-on-year net debt decreasing through strong cash flow generation. Net debt of AUD 111.1 million brings our debt levels lower than the levels pre the acquisition of Decmil. This is a significant achievement and in line with the targeted net debt levels previously set, while substantially increasing returns to shareholders at the same time. Strong underlying operating cash flow before interest and tax of AUD 387.4 million was the main driver to enable us to reduce the debt while increasing the shareholder return.

Speaker #2: In line with our FY26 policy range of 30% to 45% of earnings per share, slide 17 steps out the major cash flow movements between the closing net debt last year and this year.

Speaker #2: The chart shows year-on-year net debt decreasing through strong cash flow generation. Net debt of $111.1 million brings our debt levels lower than the levels pre the acquisition of DECMO.

Speaker #2: This is a significant achievement and in line with the targeted net debt levels previously set, while substantially increasing returns to shareholders at the same time.

Speaker #2: Strong underlying operating cash flow before interest and tax of $387.4 million was the main driver, enabling us to reduce debt while increasing shareholder returns.

Speaker #2: With strong working capital management, the cash conversion for the year was 98.4%, generating free cash flow of $103.1 million. Tax-related cash payments were higher than the statutory rate for the Group, which transitioned at the end of FY25 to a monthly taxpayer and paid the final FY25 tax installment in December 2025, together with the provisional tax payments for FY26.

Ursula Lummis: With strong working capital management, the cash conversion for the year was 98.4%, generating free cash flow of AUD 103.1 million. Tax-related cash payments were higher than the statutory rate for the group, which transitioned at the end of FY25 to a monthly taxpayer and paid the final FY25 tax installment in December 2025, together with the provisional tax payments for FY26. CapEx of AUD 200.5 million included growth CapEx of approximately AUD 20 million. This was lower than expected, with the new work wins moving towards the last quarter of FY26, resulting in new work CapEx being moved into FY27. Our CapEx target for FY27 is sustaining capital circa AUD 200 million and growth capital of approximately AUD 66 million. I'll finish with a snapshot of our year-end balance sheet on slide 18.

Speaker #2: CAPEX of $200.5 million included gross CAPEX of approximately $20 million. This was lower than expected, with the new work wins moving towards the lower quarter of FY26, resulting in new work CAPEX being moved into FY27.

Speaker #2: Our CAPEX target for FY27 is sustaining capital of circa $200 million and gross capital of approximately $66 million. I'll finish with a snapshot of our year-end balance sheet on slide 18.

Speaker #2: I've already mentioned the reduction in our net debt, but you can see on this slide a breakdown of our borrowings as of 30 June 2026. I won't go through this in detail, other than to reiterate that the business is in a very strong position with regard to available liquidity.

Ursula Lummis: I have already mentioned the reduction in our net debt, but you can see on the slide a breakdown of our borrowings as of 30 June 2026. I will not go through this in detail other than to reiterate that the business is in a very strong position with regards to available liquidity. Cash and available committed banking facilities is AUD 566 million at the end of June 2026. Finally, Mick highlighted earlier that our FY26 return on average capital employed of 22% exceeds our previous long-term 20% target, and we are tracking well towards the new target of above 25%. Thank you for your attention. I will now hand back over to Mick before we open for questions.

Speaker #2: Cash and available committed banking facilities were $566 million at the end of June 2026. And finally, as Mick highlighted earlier, our FY26 return on average capital employed of 22% exceeds our previous long-term target of 20%, and we are tracking well towards the new target of above 25%.

Speaker #2: Thank you for your attention. I will now hand back over to Mick before we open for questions.

Speaker #1: Thanks, Asha. If we move to slide 20, the positive numbers we have delivered today demonstrate the success of our strategy to diversify our business and manage capital intensity.

Michael Finnegan: Thanks, Ursula. If we move to slide 20, the positive numbers we have delivered today demonstrate the success of our strategy to diversify our business and manage capital intensity. We will continue to focus on this going forward, together with expanding our end-to-end service across the value chain. The charts on the slide show the progress we have made in increasing the revenue contribution from our underground and civil infrastructure businesses. We anticipate achieving our goal of underground and civil infrastructure businesses at a run rate of AUD 750 million and AUD 1 billion respectively by the end of FY28. I should also mention that these figures consolidate both our Australian and Indonesian operations. We anticipate our Indonesian operations in surface, underground, and civil infrastructure will eventually increase from 10% of our current group revenues to contributing up to 15% to 20% of group revenues.

Mick Finnegan: Thanks, Ursula. If we move to slide 20, the positive numbers we have delivered today demonstrate the success of our strategy to diversify our business and manage capital intensity. We will continue to focus on this going forward, together with expanding our end-to-end service across the value chain. The charts on the slide show the progress we have made in increasing the revenue contribution from our underground and civil infrastructure businesses. We anticipate achieving our goal of underground and civil infrastructure businesses at a run rate of AUD 750 million and AUD 1 billion respectively by the end of FY28. I should also mention that these figures consolidate both our Australian and Indonesian operations. We anticipate our Indonesian operations in surface, underground, and civil infrastructure will eventually increase from 10% of our current group revenues to contributing up to 15% to 20% of group revenues.

Speaker #1: We will continue to focus on this going forward, together with expanding our end-to-end service across the value chain. The charts on the slide show the progress we've made in increasing the revenue contribution from our underground and civil infrastructure businesses.

Speaker #1: We anticipate achieving our goal of underground and civil infrastructure businesses that are at a run rate of $750 million and $1 billion respectively by the end of FY28.

Speaker #1: I should also mention that these figures consolidate both our Australian and Indonesian operations. We anticipate our Indonesian operations in surface, underground, and civil infrastructure will eventually increase from 10% of our current group revenues to contributing up to 15% to 20% of group revenues.

Speaker #1: We see meaningful upside and growth opportunities in the Indonesian market in the years ahead, and we are driving hard to consolidate our position as a leader in that fast-growing market.

Michael Finnegan: We see meaningful upside and growth opportunities in the Indonesian market in the years ahead, and we are driving hard to consolidate our position as a leader in that fast-growing market. The resulting business mix we have today has been a key driver of improving our ROACE to the 22% we see. You can see on the slide the opportunity to further grow underground and civil businesses, which make up more than half of our AUD 25 billion tender pipeline. Steadily increasing the Indonesian contribution will only further increase the ROACE key metrics. I would like to briefly comment on the order book outlined on slide 21. I mentioned in my opening remarks that it was good to see our order book stand at AUD 5.9 billion, compared to the AUD 5.4 billion at the end of FY25.

Mick Finnegan: We see meaningful upside and growth opportunities in the Indonesian market in the years ahead, and we are driving hard to consolidate our position as a leader in that fast-growing market. The resulting business mix we have today has been a key driver of improving our ROACE to the 22% we see. You can see on the slide the opportunity to further grow underground and civil businesses, which make up more than half of our AUD 25 billion tender pipeline. Steadily increasing the Indonesian contribution will only further increase the ROACE key metrics. I would like to briefly comment on the order book outlined on slide 21. I mentioned in my opening remarks that it was good to see our order book stand at AUD 5.9 billion, compared to the AUD 5.4 billion at the end of FY25.

Speaker #1: The resulting business mix we have today has been a key driver of improving our OASHI to the 22% we see. You can see on the slide the opportunity to further grow underground and civil businesses, which make up more than half of our $25 billion tender pipeline. Steadily increasing the Indonesian contribution will only further increase the OASHI key metrics.

Speaker #1: I would like to briefly comment on the order book outlined on slide 21. I mentioned in my opening remarks that it was good to see our order book stand at $5.9 billion, compared to $5.4 billion at the end of FY25.

Speaker #1: For FY26, we saw a good level of contractor awards across the business, with over $1.1 billion won in Surface, close to $350 million in Underground, and more than $500 million in Civil Infrastructure.

Michael Finnegan: For FY26, we saw a good level of contract awards across the business, with over AUD 1.1 billion won in the surface, close to AUD 350 million in underground, and more than AUD 500 million in civil infrastructure. Since the end of FY26, we have already announced significant new wins with a combined AUD 811 million, which includes Mount Marion, Snowy River, and Mamre Road, generating significant momentum into FY27. The order books includes AUD 2.2 billion of work in hand for FY27. It does not include the AUD 240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe project, and also excludes short-term civil and underground churn work and future contract cost escalation recoveries as per our usual reporting practice. The tender pipeline remains robust at AUD 25 billion. It is a bit higher than this time last year, with opportunities for growth across all strategic areas of our business.

Mick Finnegan: For FY26, we saw a good level of contract awards across the business, with over AUD 1.1 billion won in the surface, close to AUD 350 million in underground, and more than AUD 500 million in civil infrastructure. Since the end of FY26, we have already announced significant new wins with a combined AUD 811 million, which includes Mount Marion, Snowy River, and Mamre Road, generating significant momentum into FY27. The order books includes AUD 2.2 billion of work in hand for FY27. It does not include the AUD 240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe project, and also excludes short-term civil and underground churn work and future contract cost escalation recoveries as per our usual reporting practice. The tender pipeline remains robust at AUD 25 billion. It is a bit higher than this time last year, with opportunities for growth across all strategic areas of our business.

Speaker #1: Since the end of FY26, we've already announced significant new wins with a combined $811 million, which includes Mount Marian, Snowy River, and Mamray Road, generating significant momentum into FY27.

Speaker #1: The order book includes $2.2 billion of work in hand for FY27. It does not include the $240 million preferred contractor announcement made last week in relation to Medallion Metals' Ravensthorpe project, and also excludes short-term civil and underground term work and future contract cost escalation recoveries, as per our usual reporting practice.

Speaker #1: The tender pipeline remains robust at $25 billion. It is a bit higher than this time last year, with opportunities for growth across all strategic areas of our business.

Michael Finnegan: There are AUD 13.8 billion of outstanding tenders submitted that we expect to be awarded in the next 12 months. Macmahon's capital allocation policy is summarized on slide 22. It is important to recap this and outline our structured approach as the business continued to deliver strong returns. Our policy continues to reflect the importance of balancing dividend payments to our shareholders, staying within our debt guide rails, and retaining financial flexibility to enable the continued execution of our growth strategy. The charts on the slide show our track record, and you can see that we've managed our debt within our guide rails while growing earnings per share and dividend returns to shareholders. We're well-positioned to continue this policy and continue delivering these results.

Mick Finnegan: There are AUD 13.8 billion of outstanding tenders submitted that we expect to be awarded in the next 12 months. Macmahon's capital allocation policy is summarized on slide 22. It is important to recap this and outline our structured approach as the business continued to deliver strong returns. Our policy continues to reflect the importance of balancing dividend payments to our shareholders, staying within our debt guide rails, and retaining financial flexibility to enable the continued execution of our growth strategy. The charts on the slide show our track record, and you can see that we've managed our debt within our guide rails while growing earnings per share and dividend returns to shareholders. We're well-positioned to continue this policy and continue delivering these results.

Speaker #1: There are $13.8 billion of outstanding tenders submitted that we expect to be awarded in the next 12 months. Macmahon's capital allocation policy is summarized on slide 22.

Speaker #1: It is important to recap this and outline our structured approach as the business continues to deliver strong returns. Our policy continues to reflect the importance of balancing dividend payments for our shareholders, staying within our debt guardrails, and retaining financial flexibility to enable the continued execution of our growth strategy.

Speaker #1: The charts on the slide show our track record, and you can see that we've managed our debt within our guardrails while growing earnings per share and dividend returns to shareholders.

Speaker #1: We are well positioned to continue this policy and continue delivering these results. We feel we have met the market's expectations by achieving a 41% dividend payout ratio for FY26, well within the target range of 30% to 45% of underlying EPS.

Michael Finnegan: We feel we have met the market's expectations by achieving a 41% dividend payout ratio for FY26, well within the target range of 30% to 45% of underlying EPS. As a result, we've now changed the payout ratio target to 35% to 45%. This has been a result of our focus on strategic growth and achieving strong business performance, discipline cost and capital management, and delivering on our clients' expectations. I'll conclude with some comments on the outlook on slide 23. Consistency was a key theme in my introduction, and this will also be the case in my conclusion. Our priorities for FY27 are consistent with those in FY26 and the decade before. Operate safely, continue operational improvements, drive growth in underground and civil infrastructure, and work towards our increased ROACE target while generating strong free cash flow and increased return to shareholders.

Mick Finnegan: We feel we have met the market's expectations by achieving a 41% dividend payout ratio for FY26, well within the target range of 30% to 45% of underlying EPS. As a result, we've now changed the payout ratio target to 35% to 45%. This has been a result of our focus on strategic growth and achieving strong business performance, discipline cost and capital management, and delivering on our clients' expectations. I'll conclude with some comments on the outlook on slide 23. Consistency was a key theme in my introduction, and this will also be the case in my conclusion. Our priorities for FY27 are consistent with those in FY26 and the decade before. Operate safely, continue operational improvements, drive growth in underground and civil infrastructure, and work towards our increased ROACE target while generating strong free cash flow and increased return to shareholders.

Speaker #1: As a result, we've now changed the payout ratio target to 35% to 45%. This has been driven by our focus on strategic growth and achieving strong business performance, disciplined cost and capital management, and delivering on our clients' expectations.

Speaker #1: I'll conclude with some comments on the outlook on slide 23. Consistency was a key theme in my introduction, and this will also be the case in my conclusion.

Speaker #1: Our priorities for FY27 are consistent with those in FY26 and the decade before: operate safely, continue operational improvements, drive growth in underground and civil infrastructure, and work towards our increased OASHI target while generating strong free cash flow and increased returns to shareholders.

Speaker #1: We will also continue to invest in our people and in technology to build our capabilities and deliver for our customers. The outlook for FY27 remains positive.

Michael Finnegan: We will also continue to invest in our people and in technology to build our capabilities and deliver for our customers. The outlook for FY27 remains positive. While no doubt FY27 will present its own challenges, mining activity remains robust in Australia and Indonesia, and we've increased diversity in our commodity and customer exposure and our service offering. We are expanding the size and scale of our service offering and our addressable markets by seeking to capture more upside within the mining value chain. This will help build more embedded relationships with our clients, increase revenue-generating opportunities while further diversifying the business. Our expanded service offering will differentiate Macmahon from our competitors as Australasia's only true life of mine end-to-end service provider.

Mick Finnegan: We will also continue to invest in our people and in technology to build our capabilities and deliver for our customers. The outlook for FY27 remains positive. While no doubt FY27 will present its own challenges, mining activity remains robust in Australia and Indonesia, and we've increased diversity in our commodity and customer exposure and our service offering. We are expanding the size and scale of our service offering and our addressable markets by seeking to capture more upside within the mining value chain. This will help build more embedded relationships with our clients, increase revenue-generating opportunities while further diversifying the business. Our expanded service offering will differentiate Macmahon from our competitors as Australasia's only true life of mine end-to-end service provider.

Speaker #1: While no doubt FY27 will present its own challenges, mining activity remains robust in Australia and Indonesia, and we have increased diversity in our commodity and customer exposure, as well as our service offering.

Speaker #1: We are expanding the size and scale of our service offering and our addressable markets by seeking to capture more upside within the mining value chain.

Speaker #1: This will help build more embedded relationships with our clients and increase revenue-generating opportunities, while further diversifying the business. Our expanded service offering will differentiate Macmahon from our competitors as Australasia's only true life-of-mine, end-to-end service provider.

Speaker #1: While we have a strong order book at $5.9 billion, with $2.2 billion of work in hand already secured for FY27, and a robust tender pipeline that provides us with numerous growth opportunities, we are well placed to continue growing revenue and earnings, supported by healthy balance sheets.

Michael Finnegan: While we have a strong order book at AUD 5.9 billion with AUD 2.2 billion of work in hand already secured for FY27 and a robust tender pipeline that provides us with numerous growth opportunities, we are well-placed to continue growing revenue and earnings supported by a healthy balance sheet. Releasing our guidance today for FY27, we forecast continued growth in both revenue and earnings. Revenue is in the range of AUD 2.85 billion to AUD 3.05 billion, and underlying EBITA between AUD 205 million and AUD 225 million. I'm confident we are focused on executing our strategy, and we remain well-positioned to continue our trajectory of consistent growth. With that, I'd like to now hand back to the operator to open for questions.

Mick Finnegan: While we have a strong order book at AUD 5.9 billion with AUD 2.2 billion of work in hand already secured for FY27 and a robust tender pipeline that provides us with numerous growth opportunities, we are well-placed to continue growing revenue and earnings supported by a healthy balance sheet. Releasing our guidance today for FY27, we forecast continued growth in both revenue and earnings. Revenue is in the range of AUD 2.85 billion to AUD 3.05 billion, and underlying EBITA between AUD 205 million and AUD 225 million. I'm confident we are focused on executing our strategy, and we remain well-positioned to continue our trajectory of consistent growth. With that, I'd like to now hand back to the operator to open for questions.

Speaker #1: Releasing our guidance today for FY27, we forecast continued growth in both revenue and earnings. Revenue is in the range of $2.85 billion to $3.05 billion, and underlying EBITDA between $205 million and $225 million.

Speaker #1: I am confident we are focused on executing our strategy, and we remain well positioned to continue our trajectory of consistent growth. With that, I would now like to hand back to the operator to open for questions.

Speaker #2: Thank you, Mick. And as mentioned, we will now begin the Q&A session. For those listening by phone who would like to ask a question, please press star followed by 1 on your telephone keypad to raise your hand and join the queue.

Operator 2: Thank you, Mick. As mentioned, we will now begin the Q&A session. For those listening by phone and would like to ask a question, please press star, followed by one on your telephone keypad to raise your hand and join the queue. To withdraw your question, simply press star one again. When called upon, please use your handset, ensure your line is unmuted, and be ready to ask your question. Again, that is star one to ask a question. Your first question comes from the line of Sami Hossain of Barrenjoey. Please go ahead.

Operator: Thank you, Mick. As mentioned, we will now begin the Q&A session. For those listening by phone and would like to ask a question, please press star, followed by one on your telephone keypad to raise your hand and join the queue. To withdraw your question, simply press star one again. When called upon, please use your handset, ensure your line is unmuted, and be ready to ask your question. Again, that is star one to ask a question. Your first question comes from the line of Sami Hossain of Barrenjoey. Please go ahead.

Speaker #2: To withdraw your questions, simply press star 1 again. When called upon, please use your handset, ensure your line is unmuted, and be ready to ask your question.

Speaker #2: Again, that is star 1 to ask a question. And your first question comes from the line of Sami Hossain of Barrenjoey. Please go ahead.

Speaker #3: Thank you for the presentation, and thanks for taking questions. I had two on my mind. First of all, how should we be thinking about net interest and tax rates going forward?

Sami Hossain: Good presentation, guys, and thanks for taking questions. I had two in mind. First of all, how should we be thinking about net interest and tax rates going forward?

Speaker #4: Hi, Sam. I'll let Ursula take that one, if you like.

Michael Finnegan: Hi, Sam. I will let Ursula take that one if you like.

Mick Finnegan: Hi, Sam. I will let Ursula take that one if you like.

Ursula Lummis: Sure. Hi, Sam. You will see when you look at our net debt, the debt specs, our interest going forward will stay flat on what it is for 2026 to go forward into 2027. Then our tax, last year, we made our final tax payment into FY25. As a wholly taxpayer in Australia now, you would see our tax staying on that 30%, both for the P&L as well as for the cash flow.

Speaker #5: Sure. Hi, Sam. So you'll see, when you look at our net debt, the debt specs, our interest going forward will stay flat on what it is for 2026.

Speaker #5: It'll go forward into 2027. And then last year, we made our final tax payment into FY25. So as a wholly taxpayer in Australia now, you'd see our tax staying at that 30% both for the P&L as well as for the cash flow.

Sami Hossain: The second question I had was, can you talk about the levers we should be thinking about for FY27 margin around mix and work profile?

Speaker #3: And the second question I had was, can you talk about the levers we should be thinking about for FY27 margin around mix and work profile?

Sami Hossain: The second question I had was, can you talk about the levers we should be thinking about for FY27 margin around mix and work profile?

Speaker #4: Yeah, look, Sam, we expect to continue growing in Civil and Underground, so we're assuming that the two net each other off. Obviously, Underground's our high margin business.

Michael Finnegan: Well, Sami, what we expect to continue growing in civil and underground. So we are assuming that the two net each other off. Obviously, underground is a high-margin business out of the three sectors that we have got, and civil is the lower margin business, but a lot less CapEx, higher ROIC. So given that, and if you look at the midpoints of the guidance that we have given, we expect all in, it will probably be something similar to what we have seen this year. We are clearly always aspiring to continue improving, and we would love to, throughout the year, be able to move that up. But at this point, we are holding to 7.3% if you look at the two midpoints, which is similar to what we achieved in 2026.

Mick Finnegan: Well, Sami, what we expect to continue growing in civil and underground. So we are assuming that the two net each other off. Obviously, underground is a high-margin business out of the three sectors that we have got, and civil is the lower margin business, but a lot less CapEx, higher ROIC. So given that, and if you look at the midpoints of the guidance that we have given, we expect all in, it will probably be something similar to what we have seen this year. We are clearly always aspiring to continue improving, and we would love to, throughout the year, be able to move that up. But at this point, we are holding to 7.3% if you look at the two midpoints, which is similar to what we achieved in 2026.

Speaker #4: Out of the three sectors that we've got—and civil is the lower margin business, but a lot less capex, higher OASHI—so given that, and if you look at the midpoints of the guidance that we've given, we expect all in, it will probably be something similar to what we've seen this year.

Speaker #4: We're clearly always aspiring to continue improving, and we'd love to, throughout the year, be able to move that up. But at this point, we're holding the 7.3.

Speaker #4: If you look at the two midpoints, which is similar to what we achieved in 2026...

Speaker #3: Sounds good. That's all from me.

Sami Hossain: Sounds good. That is all from me.

Speaker #2: Your next question comes from the line of Gavin Allen of Euroz Hartleys. Please go ahead.

Operator 2: Your next question comes from the line of Gavin Allen of Euroz Hartleys. Please go ahead.

Operator: Your next question comes from the line of Gavin Allen of Euroz Hartleys. Please go ahead.

Speaker #4: Good morning, team. Thanks for the presentation. Just a couple from me. So just exploring that range that you put out there for 2027—maybe we can just unpack a little bit some of the factors that might impact whether you're at the lower end, in the middle, or at the higher end.

Gavin Allen: Good morning, team. Thanks for the preso. Just a couple from me. Just exploring that range that you put out there for 2027. Maybe we can just unpack a little bit some of the factors that might impact whether you are lower end or in the middle or higher end. Is it just simply the timing of works that you might hope to win?

Speaker #4: Is it just simply the timing of works that you might hope to win? Yeah, for sure. So that $2.2 billion that we said is secured for this year—just to clarify, Gavin, I'm pretty sure you know that it doesn't include the $150 million a year of churn that we get in Underground and Civil.

Michael Finnegan: Yeah, for sure. That AUD 2.2 billion that we said is secured for this year, just to clarify, Gavin, I am pretty sure you know that it does not include the AUD 100 million to AUD 150 million a year of churn that we get in underground and civil. That is in addition to what that 2.2 is. We tried to call out that that recent Medallion Metals announcement, where we have been notified as being preferred, that is not included in that secured work for 2027 nor the order book. Added to that, we have got a pipeline that we see some near-term opportunities coming in. If that occurs, we feel there is an opportunity to build on that guidance range. If you look at the midpoint, I think it suggests a growth in even a 13.8%. We are desperately hoping for it to be higher.

Mick Finnegan: Yeah, for sure. That AUD 2.2 billion that we said is secured for this year, just to clarify, Gavin, I am pretty sure you know that it does not include the AUD 100 million to AUD 150 million a year of churn that we get in underground and civil. That is in addition to what that 2.2 is. We tried to call out that that recent Medallion Metals announcement, where we have been notified as being preferred, that is not included in that secured work for 2027 nor the order book. Added to that, we have got a pipeline that we see some near-term opportunities coming in. If that occurs, we feel there is an opportunity to build on that guidance range. If you look at the midpoint, I think it suggests a growth in even a 13.8%. We are desperately hoping for it to be higher.

Speaker #4: So that is in addition to what that $2.2 billion is. And we tried to call out that recent Medallion Metals announcement where we've been notified as being preferred—that's not included in the secured work for 2027, nor the order book.

Speaker #4: Added to that, we've got a pipeline where we see some near-term opportunities coming in. And if that occurs, we feel there's an opportunity to build on that guidance range.

Speaker #4: If you look at the midpoint, I think it suggests a growth in EBITDA of 13.8%. We're desperately hoping for it to be higher. And of course, I think it's pretty well known that in our strategy, we're talking about expanding our service offering.

Michael Finnegan: Of course, I think it is pretty well known that in our strategy, we are talking about expanding our service offering. If an opportunity presented to do that, similar to Decmil, but in an area that would enhance our service offering, we would look at that, which would have an impact as well. If I was just to go back to the pipeline very quickly, a number of the near-term opportunities were one of two. Or it is an extension of existing work, some of which is not in the pipeline. Or it is where we think there is a relationship or value that we can bring by having more services. I guess as an overarching comment, of the AUD 13.8 billion we expect to be awarded this year, there is probably, without getting ahead of ourselves, a slightly higher level of confidence with a number of those projects.

Mick Finnegan: Of course, I think it is pretty well known that in our strategy, we are talking about expanding our service offering. If an opportunity presented to do that, similar to Decmil, but in an area that would enhance our service offering, we would look at that, which would have an impact as well. If I was just to go back to the pipeline very quickly, a number of the near-term opportunities were one of two. Or it is an extension of existing work, some of which is not in the pipeline. Or it is where we think there is a relationship or value that we can bring by having more services. I guess as an overarching comment, of the AUD 13.8 billion we expect to be awarded this year, there is probably, without getting ahead of ourselves, a slightly higher level of confidence with a number of those projects.

Speaker #4: If an opportunity presented to do that, similar to Deckmill, but in an area that would enhance our service offering, we'd look at that, which would have an impact as well.

Speaker #4: But if I was just to go back to the pipeline very quickly, a number of the near-term opportunities we're one of two. Or it's an extension of existing work.

Speaker #4: Some of which isn’t in the pipeline, or it’s where we think there’s a relationship or value that we can bring by having more services.

Speaker #4: So, I guess, as an overarching comment, of the $13.8 billion we expect to be awarded this year, there's probably, without getting ahead of ourselves, a slightly higher level of confidence with a number of those projects.

Speaker #4: So yeah, that hopefully answers your question, Gav.

Michael Finnegan: Yeah, that hopefully answers your question, Gav.

Mick Finnegan: Yeah, that hopefully answers your question, Gav.

Speaker #3: Absolutely, mate. Yeah, appreciate it.

Gavin Allen: Absolutely, mate. Yeah, appreciate it.

Speaker #2: Your next question comes from the line of Cameron Bell of Canaccord Genuity. Your line is open.

Operator 2: Your next question comes from the line of Cameron Bell of Canaccord Genuity. Your line is open.

Operator: Your next question comes from the line of Cameron Bell of Canaccord Genuity. Your line is open.

Speaker #6: Thanks. Morning, guys. Just extending on Gav's question, then, a little bit. So that $13.8 billion of tenders, you think will be awarded this year?

Cameron Bell: Thanks. Morning, guys. Just extending on Gav's question then a little bit. That AUD 13.8 billion of tenders you think will be awarded this year, can you give us a sense of maybe what portion of that is extensions versus new contracts?

Speaker #6: Can you give us a sense of maybe what portion of that is extensions versus new contracts?

Michael Finnegan: Maybe. I think I know where you are heading there, Cam, and tell me if this gives you a better idea. We normally say we think there is one in three, one in four chance of winning the bids in that pipeline. I would suggest this year it is probably one in two to one in three, and that includes consideration of those projects where it is an extension or we are already preferred and we have not been able to announce under NDAs or we are one of two or there is a relationship there, or we think there is a competitive advantage. I know I did not directly answer it, but does that give you a feel, Cam?

Mick Finnegan: Maybe. I think I know where you are heading there, Cam, and tell me if this gives you a better idea. We normally say we think there is one in three, one in four chance of winning the bids in that pipeline. I would suggest this year it is probably one in two to one in three, and that includes consideration of those projects where it is an extension or we are already preferred and we have not been able to announce under NDAs or we are one of two or there is a relationship there, or we think there is a competitive advantage. I know I did not directly answer it, but does that give you a feel, Cam?

Speaker #4: Maybe I think I know where you're heading there, Cam, and tell me if this gives you a better idea. We normally say we think there's a 1-in-3, 1-in-4 chance of winning the bids in that pipeline.

Speaker #4: I would suggest this year it's probably one in two to one in three. And that includes consideration of those projects where it's an extension or we're already preferred, or we haven't been able to announce under NDAs, or we're one or two, or there's a relationship there, or we think there's a competitive advantage.

Speaker #4: I know I didn't directly answer it, but does that give you a feel, Cam?

Speaker #6: Yeah, it does. Similar sort of concept. And then, just the other question, while we've got you on your public call, could you maybe step through how you think about your M&A priorities at the moment?

Cameron Bell: Yeah, it does. It gives a similar sort of concept.

Michael Finnegan: Yeah.

Mick Finnegan: Yeah.

Cameron Bell: Just the other question, just while I've got you on your, I guess, your public call, could you maybe step through how you think about your M&A priorities at the moment?

Speaker #4: Yeah, for sure. Look, it's no secret—and we even spoke about it in the presentation—that if we can extend our end-to-end services in the jurisdictions we're in, we think it has a significant impact on the addressable market.

Michael Finnegan: Yeah, for sure. Look, it's no secret, and we even spoke about it in the presentation, that if we can extend our end-to-end services in the jurisdictions we're in, we think it has a significant impact on the addressable market, and there's some clients that would see value in having one contractor execute more works on one site and the synergies that would come with that. We've already seen that occur in places like Cyprium. We're seeing it in Mount Carlton. We're hoping to see it with some of the clients that are near to hopefully being awarded or some contracts that are hopefully near being awarded, and we think we'll be able to talk more about that moving forward.

Mick Finnegan: Yeah, for sure. Look, it's no secret, and we even spoke about it in the presentation, that if we can extend our end-to-end services in the jurisdictions we're in, we think it has a significant impact on the addressable market, and there's some clients that would see value in having one contractor execute more works on one site and the synergies that would come with that. We've already seen that occur in places like Cyprium. We're seeing it in Mount Carlton. We're hoping to see it with some of the clients that are near to hopefully being awarded or some contracts that are hopefully near being awarded, and we think we'll be able to talk more about that moving forward.

Speaker #4: And there are some clients that would see value in having one contractor execute more works on one site, and the synergies that would come with that.

Speaker #4: We've already seen that occur in places like Cyprium; we're seeing it in Mount Carlton. We're hoping to see it with some of the clients that are hopefully near to being awarded—or some contracts that are hopefully near being awarded.

Speaker #4: And we think we'll be able to talk more about that moving forward. So, if that's the theme, you would expect us to push—hopefully—into some engineering areas, and then there's some potential others on each end of what we already do, which everyone can probably work out.

Michael Finnegan: If that's the theme, you would expect us to push hopefully into some engineering areas and then there's some potential others on each end of what we already do, which everyone can probably work out. So that's where we're looking, Cam. We wouldn't be looking to something that costs a lot. It would all want to be debt-funded. If you use the Decmil philosophy, I guess, in terms of scale, what it would bring, a platform that we would then grow through our networks and vice versa, we'd hopefully grow off theirs. That's the areas that we're looking.

Mick Finnegan: If that's the theme, you would expect us to push hopefully into some engineering areas and then there's some potential others on each end of what we already do, which everyone can probably work out. So that's where we're looking, Cam. We wouldn't be looking to something that costs a lot. It would all want to be debt-funded. If you use the Decmil philosophy, I guess, in terms of scale, what it would bring, a platform that we would then grow through our networks and vice versa, we'd hopefully grow off theirs. That's the areas that we're looking.

Speaker #4: So that's where we're looking. Cam, we wouldn't be looking at something that costs a lot. It would all want to be debt-funded. And if you use the Deckmill philosophy, I guess, in terms of scale, it would bring a platform that we would then grow through our networks and vice versa—we'd hopefully grow off theirs.

Speaker #4: Those are the areas that we're looking at.

Cameron Bell: Great. Thanks, guys.

Speaker #6: Great. Thanks, guys.

Speaker #2: And before we move on to the next question, a reminder: if you would like to join the queue, please press star one. Your next question is from the line of Pierre Donovan of Argonaut.

Operator 2: Before we move on to the next question, a reminder, if you would like to join the queue, to press star one. Your next question is from the line of Pia Donovan of Argonaut. Please go ahead.

Operator: Before we move on to the next question, a reminder, if you would like to join the queue, to press star one. Your next question is from the line of Pia Donovan of Argonaut. Please go ahead.

Speaker #2: Please go ahead.

Speaker #5: Thanks. Hi, Mick and Ursula. Just one from me, pretty similar to Sam’s in terms of margins. Firstly, just around that mining segment—so as that underground segment of that business kind of becomes a bigger portion, do you expect margins to improve there?

Pia Donovan: Thanks. Hi, Mick and Ursula. Just one from me, pretty similar to Sam's in terms of margins. Firstly, just around that mining segment. As that underground segment of that business kind of becomes a bigger portion, do you expect margins to improve there? Also, in terms of as Indonesia becomes a stronger amount of revenue, do you have any impact on margins from that as well?

Speaker #5: And then also, in terms of as Indonesia becomes a stronger amount of revenue, do you have any impact on margins from that as well?

Speaker #4: Yeah, absolutely, Pierre. I mean, we've made no secret that if you look at the activities underground, it should be the higher-margin component of all three.

Michael Finnegan: Yeah, absolutely, Pia. We've made no secrets that if you look at the activities, underground should be the higher margin component of all three. As that increases in scale, that will absolutely bring with it an enhanced margin in that mining business. I guess the lower capital required for underground relative to surface is attractive as well in terms of the capital intensity, but also the ROACE, which as you know, is a priority for us and is pushing to 22% and ultimately 25%. In terms of Indonesia, that business, the reason we've called out we want to grow it from the 10% now, the 8% last year, to the 15% to 20%, is it typically brings with it higher margins. It typically brings lower risk T's and C's, and it almost always brings a lot lower CapEx.

Mick Finnegan: Yeah, absolutely, Pia. We've made no secrets that if you look at the activities, underground should be the higher margin component of all three. As that increases in scale, that will absolutely bring with it an enhanced margin in that mining business. I guess the lower capital required for underground relative to surface is attractive as well in terms of the capital intensity, but also the ROACE, which as you know, is a priority for us and is pushing to 22% and ultimately 25%. In terms of Indonesia, that business, the reason we've called out we want to grow it from the 10% now, the 8% last year, to the 15% to 20%, is it typically brings with it higher margins. It typically brings lower risk T's and C's, and it almost always brings a lot lower CapEx.

Speaker #4: So as that increases in scale, that will absolutely bring with it an enhanced margin in that mining business. And I guess the lower capital required for underground, relative to surface, is attractive as well in terms of the capital intensity, but also the ROIC, which as you know, is a priority for us and is pushing to 22% and ultimately 25%.

Speaker #4: In terms of Indonesia, that business—the reason we've called out we want to grow it from the 10% now, the 8% last year, to the 15% to 20%—is it typically brings with it higher margins.

Speaker #4: It typically brings lower-risk T's and C's, and it almost always brings a lot lower capex. So if I could bridge to another point that I've had a few calls on this morning about the capex: you'll notice that last year the capex was lower.

Michael Finnegan: So if I could bridge to another point that I have had a few calls on this morning about the CapEx, you will notice that last year the CapEx was lower. That was because a number of the jobs won during the year in Indonesia or civil, which did not require the capital. However, the work that has just been awarded this year that we did expect last year, but it always moves, it slid right. That is why the CapEx has shifted from FY26 into FY27 to enable that work to commence, and it is those awards that we have put out recently. So if you look at 2026 and 2027, we had broadly said to the market that you should expect AUD 240 million, AUD 245 million a year. But what we have done is probably, well not probably, we expended just over AUD 200 million last year. We are expecting the AUD 266 million this year.

Mick Finnegan: So if I could bridge to another point that I have had a few calls on this morning about the CapEx, you will notice that last year the CapEx was lower. That was because a number of the jobs won during the year in Indonesia or civil, which did not require the capital. However, the work that has just been awarded this year that we did expect last year, but it always moves, it slid right. That is why the CapEx has shifted from FY26 into FY27 to enable that work to commence, and it is those awards that we have put out recently.

Speaker #4: That was because a number of the jobs won during the year in Indonesia were civil, which didn't require the capital. However, the work that's just been awarded this year we did expect last year, but it always moves.

Speaker #4: It's slid right. That's why the CapEx has shifted from FY26 into FY27, to enable that work to commence. And it stays with awards that we've put out recently.

Speaker #4: So if you look at 26 and 27, we'd broadly said to the market that you should expect 240, 245 a year, but what we've done is probably—well, not probably—we expended just over 200 last year.

Mick Finnegan: So if you look at 2026 and 2027, we had broadly said to the market that you should expect AUD 240 million, AUD 245 million a year. But what we have done is probably, well not probably, we expended just over AUD 200 million last year. We are expecting the AUD 266 million this year.

Speaker #4: We're expecting the $266 million this year, so net-net, it's still a little bit less than what we guided to. But we just wanted to make it clear that the rigor, focus, and discipline around our gearing and free cash flow goals—which we've made clear for 10 years now—are unchanged.

Michael Finnegan: Net-net, it is still a little bit less than what we are guided to, but we just wanted to make it clear that the rigor, focus, and discipline around our gearing and free cash flow goals that we have made clear for 10 years now, they are unchanged. And the free cash flow generation of the business that a number of us have worked through bridges for in the coming years, they are all absolutely intact. And that is where we intend to bring the business. And hopefully that is a bit visible in where we have brought the net debt. But I know I did shift from the question, Pia, and I just wanted to attend to a few calls I have already had this morning so people do not think that we think the shackles are off. By no means do we think that is the case.

Mick Finnegan: Net-net, it is still a little bit less than what we are guided to, but we just wanted to make it clear that the rigor, focus, and discipline around our gearing and free cash flow goals that we have made clear for 10 years now, they are unchanged. And the free cash flow generation of the business that a number of us have worked through bridges for in the coming years, they are all absolutely intact. And that is where we intend to bring the business. And hopefully that is a bit visible in where we have brought the net debt. But I know I did shift from the question, Pia, and I just wanted to attend to a few calls I have already had this morning so people do not think that we think the shackles are off. By no means do we think that is the case.

Speaker #4: And the free cash flow generation of the business that a number of us have worked through bridges for in the coming years, they are all absolutely intact.

Speaker #4: And that's where we intend to bring the business. And hopefully that's a bit visible in where we've brought the net debt. But I know I did shift from the question, Pierre, and I just wanted to attend to a few calls I've already had this morning.

Speaker #4: So people don't think that we think the shackles are off—by no means do we think that's the case. But we were very lucky at the end of last year and early this year to see underground see some scale increase, and last year in Indonesia, see a number of awards in areas where it was higher margin and higher capex.

Michael Finnegan: But we were very lucky at the end of last year and early this year to see underground see some scale increase, and last year, Indonesia see a number of awards in areas where it was higher margin and higher CapEx. But your question is why we want to get underground to 750 run rate by the end of 2028. We think we will get there a bit sooner given last year was about close to 650 and Indonesia at a 15% to 20% of the larger business brings with it a much enhanced ROACE. And without going on, we have said in the past, if we can get broadly a third, a third, a third in Australia, that will achieve the 25% ROACE. Going from 25% to 30% would require the Indonesian business at that 15% to 20%, which is why it is a goal.

Mick Finnegan: But we were very lucky at the end of last year and early this year to see underground see some scale increase, and last year, Indonesia see a number of awards in areas where it was higher margin and higher CapEx. But your question is why we want to get underground to 750 run rate by the end of 2028. We think we will get there a bit sooner given last year was about close to 650 and Indonesia at a 15% to 20% of the larger business brings with it a much enhanced ROACE. And without going on, we have said in the past, if we can get broadly a third, a third, a third in Australia, that will achieve the 25% ROACE. Going from 25% to 30% would require the Indonesian business at that 15% to 20%, which is why it is a goal.

Speaker #4: But your question is, why? We want to get underground to a 750 run rate by the end of '28. We think we'll get there a bit sooner, given last year was about close to 650.

Speaker #4: And Indonesia, to 15% to 20% of the larger business, brings with it a much enhanced ROA. And without going on, we've said in the past, if we can get broadly a third, a third, a third in Australia, that will achieve the 25% ROA.

Speaker #4: Going from 25 to 30 would require the Indonesian business at that 15% to 20%, which is why it's a goal. But obviously, it's not one, then the other.

Michael Finnegan: But obviously it is not one then the other. They are all happening in parallel.

Mick Finnegan: But obviously it is not one then the other. They are all happening in parallel.

Speaker #4: They're all happening in parallel.

Speaker #5: Yeah, thanks, Mick.

Pia Donovan: Yeah. Thanks, Mick.

Speaker #4: Sorry, Pierre. I know I went off on a few tangents there, but I did want to attend to some calls we had this morning.

Michael Finnegan: Sorry, Pia. I know I went off on a few tangents there, but I did want to attend to some calls we had this morning. Maybe we could have explained the spread of the CapEx a little bit better, but that increasing is not a sign of what is to come. It is just if you accumulate the 2 years, it is still in line with what we had tried to put out to the market last year.

Mick Finnegan: Sorry, Pia. I know I went off on a few tangents there, but I did want to attend to some calls we had this morning. Maybe we could have explained the spread of the CapEx a little bit better, but that increasing is not a sign of what is to come. It is just if you accumulate the 2 years, it is still in line with what we had tried to put out to the market last year.

Speaker #4: Maybe we could have explained the spread of the capex a little bit better, but it's not that increasing is necessarily a sign of what's to come.

Speaker #4: It's just, if you accumulate the two years, it's still in line with what we tried to put out to the market last year.

Speaker #5: Yeah, no, that's great. Thanks.

Pia Donovan: Yeah. No, that is great. Thanks.

Speaker #2: Yeah, next question is from retail investor Tony Greco. Please go ahead.

Operator 2: Your next question is from retail investor, Tony Greco. Please go ahead.

Operator: Your next question is from retail investor, Tony Greco. Please go ahead.

Speaker #6: G'day, Mick and Ursula. Thanks a lot for your presentation, and again, a really good result. So congratulations to yourself and all the team there.

Tony Greco: G'day, Mick and Ursula. Thanks a lot for your presentation. Again, a really good result, so congratulations to yourself and all the team there at Macmahon. Diverging into the CapEx, you've asked one question, so thank you for that.

Speaker #6: At Macmahon, diverging into the capex, you've asked one question, so thank you for that. So, yeah, you explained the increase for next year, and you've also earlier explained that, yeah, you've secured the $2.2 million, but you're forecasting still $2.85 to $3 million.

Michael Finnegan: Yeah.

Mick Finnegan: Yeah.

Tony Greco: You explained the increase for next year. You've also earlier explained that you've secured the AUD 2.2 million, but you're forecasting still AUD 2.85 to 3 million. You've touched on that as well. Two other questions then. Just the Homeground that you announced the other day and the strategic partnership. Were you able to just elaborate a bit more on that?

Speaker #6: So, you've touched on that as well. Two other questions, then. Just the homeground that you announced the other day and the strategic partnership—did you?

Speaker #6: Were you able to just elaborate a bit more on that?

Speaker #4: Yeah, absolutely, Tony, and I appreciate the recognition of the team. We think we've got an amazing group there. But yes, Homeground—we saw that as an ability to leverage that asset that we acquired with Deckmill.

Michael Finnegan: Yeah, absolutely, Tony. I appreciate the recognition of the team. We think we've got an amazing group there. Yes, Homeground, we saw that as an ability to leverage that asset that we got, that we acquired with Decmil. We think it brings with it an ability to lock in the value on the balance sheet. We think it brings an ability to have someone that's active in the area and could have a constraint around accommodation motivated to fill the camp in the coming years as they expand on that port, which will be some significant works and significant heads. Then for us to be able to get ourselves on the panel and in somewhat of a priority position for some of that works, we think that also will create a leveraged synergistic benefit to the business.

Mick Finnegan: Yeah, absolutely, Tony. I appreciate the recognition of the team. We think we've got an amazing group there. Yes, Homeground, we saw that as an ability to leverage that asset that we got, that we acquired with Decmil. We think it brings with it an ability to lock in the value on the balance sheet. We think it brings an ability to have someone that's active in the area and could have a constraint around accommodation motivated to fill the camp in the coming years as they expand on that port, which will be some significant works and significant heads. Then for us to be able to get ourselves on the panel and in somewhat of a priority position for some of that works, we think that also will create a leveraged synergistic benefit to the business.

Speaker #4: We think that brings with it an ability to lock in the value on the balance sheet. We think it brings an ability to have someone that's active in the area and could have a constraint around accommodation, motivated to fill the camp in the coming years as they expand on that port.

Speaker #4: There will be some significant works and significant heads. And then, for us to be able to get ourselves on the panel and in somewhat of a priority position for some of those works, we think that also will create a leveraged, synergistic benefit to the business.

Speaker #4: Obviously, nothing has changed in terms of how we look at that asset. We see that as being non-core, but we see this as an opportunity to increase occupancy with a motivated partner, get some extra work, and then at some point in the future, it's still not in the strategy.

Michael Finnegan: Obviously, nothing has changed in terms of how we look at that asset. We see that as being non-core. We see this as an opportunity to increase occupancy with a motivated partner, get some extra work, and then at some point in the future, it's still not in the strategy, it's non-core and we'll divest of it. Hopefully, at that point it's full and it can attract a higher rate.

Mick Finnegan: Obviously, nothing has changed in terms of how we look at that asset. We see that as being non-core. We see this as an opportunity to increase occupancy with a motivated partner, get some extra work, and then at some point in the future, it's still not in the strategy, it's non-core and we'll divest of it. Hopefully, at that point it's full and it can attract a higher rate.

Speaker #4: It's non-core, and we'll divest of it. Hopefully, at that point, it's full and it can attract a higher rate.

Speaker #6: Yeah, yeah, no, thanks for that. Yeah, I thought the important thing there was the occupancy. If you can get that up, well, the value, of course, increases.

Tony Greco: Yeah. No, thanks for that. I thought the important thing there is the occupancy. If you can get that up, well, the value of course increases.

Michael Finnegan: Yeah.

Mick Finnegan: Yeah.

Speaker #6: And just the second question, just with the acquisition of Volt by—I think it's Regis—do you see anything there? Because I guess Regis is also part of the Boston Shaker client.

Tony Greco: And just the second question, just with the acquisition of Vault by, I think it is Regis. Do you see anything there? Because I guess Regis is also part of the Boston Shaker client. Well, it is a client. So do you see any changes there or the contract will still continue, et cetera?

Speaker #6: Well, it's a client. So do you see any changes there, or are you still with the contract will still continue, etc., etc.?

Speaker #4: Yeah, look, that Regis offer has now been superseded by a superior offer from Genesis, Tony. So, look, we're planning for those contracts to end as announced.

Michael Finnegan: Yeah, look, that Regis offer has now been superseded by a superior offer from Genesis, Tony.

Mick Finnegan: Yeah, look, that Regis offer has now been superseded by a superior offer from Genesis, Tony.

Tony Greco: Oh, yeah.

Michael Finnegan: So look, we are planning for those contracts to end as announced. If anyone wants us to look at something else, we would. But the reason the order book and the pipeline are where they sit is because we are planning for us not to have them. If anything changes, as always, we will look at it and we will do whatever makes sense. But at the moment, we are planning for those to finish on the dates that have been announced.

Mick Finnegan: So look, we are planning for those contracts to end as announced. If anyone wants us to look at something else, we would. But the reason the order book and the pipeline are where they sit is because we are planning for us not to have them. If anything changes, as always, we will look at it and we will do whatever makes sense. But at the moment, we are planning for those to finish on the dates that have been announced.

Speaker #4: If anyone wants us to look at something else, we would. But the reason the order book and the pipeline are where they sit is because we're planning for us not to have them. If anything changes, as always, we'll look at it and we'll do whatever makes sense.

Speaker #4: But, at the moment, we're planning for those to finish on the dates that have been announced.

Speaker #6: Okay, yeah, well, thanks for the update. Yeah, you're right. I mean, I wasn't looking at that closely, other than the fact that I realized that King of Hills and Data Milano are vault.

Tony Greco: Okay. Yeah. Well, thanks for the update. Yeah, you are right. I was not looking at that closely other than the fact I realized that King of the Hills and Data Milano are Vault on, so I did wonder. So I was sad to see if that finishes, but anyway, we will keep our fingers crossed that there will be a lot more work coming up. All right. Thank you for that.

Speaker #6: So I did wonder. I was sad to see if that finishes, but anyway, we'll keep our fingers crossed that there'll be a lot more work coming up.

Speaker #6: All right, thank you for that. Oh, and just one other question: with the diesel supply and the price increase and that, how do you see that working out?

Michael Finnegan: Yeah.

Mick Finnegan: Yeah.

Tony Greco: Oh, and the other question.

Michael Finnegan: No, that is it.

Mick Finnegan: No, that is it.

Tony Greco: just with the diesel supply and the price increase, how do you see that working out? Obviously, we all would like the war to be over as soon as possible, but it does not look like that is going to happen.

Speaker #6: Obviously, we'd all like the water to be over as soon as possible, but it doesn't look like that's going to happen.

Speaker #4: Yeah, look, so far the diversity in the portfolio has enabled us to navigate through that. It's not easy. We don't want to win at the expense of our clients.

Michael Finnegan: Yeah, look, so far the diversity in the portfolio has enabled us to navigate through that. It is not easy. We do not want to win at the expense of our clients and we want to support them. But so far, we have been able to work with our clients and navigate through that, Tony. The diversity of the portfolio helps. But yeah, it is not without its challenges for sure.

Mick Finnegan: Yeah, look, so far the diversity in the portfolio has enabled us to navigate through that. It is not easy. We do not want to win at the expense of our clients and we want to support them. But so far, we have been able to work with our clients and navigate through that, Tony. The diversity of the portfolio helps. But yeah, it is not without its challenges for sure.

Speaker #4: And we want to support them. But so far, we've been able to work with our clients and navigate through that. Tony, the diversity of the portfolio helps.

Speaker #4: But yeah, it's not without its challenges, for sure.

Tony Greco: Mm-hmm. Okay. Thank you for that and congratulations again, and thank you for the whole team there.

Speaker #6: Okay, thank you for that, and congratulations again. And thank you to the whole team there.

Speaker #4: Thanks, Tony.

Michael Finnegan: Thanks, Tony.

Mick Finnegan: Thanks, Tony.

Speaker #2: That concludes our Q&A session for today. I would now like to hand back over to Mick for his closing remarks.

Operator 2: That does conclude our Q&A session for today. I would like to hand back over to Paulie for closing remarks.

Operator: That does conclude our Q&A session for today. I would like to hand back over to Paulie for closing remarks.

Speaker #4: Yeah, thanks, Paulie. Thanks to everyone that joined the call. Over the next few days, we'll be seeing a number of you, but if there's anyone who would like to meet that's not on the list, please give myself, Ursula, or Tony a call, and we'll make sure we find time to catch up.

Michael Finnegan: Yeah, thanks, Paulie. Thanks to everyone that joined the call. Over the next few days, we will be seeing a number of you, but if there is anyone that would like to meet that is not on the list, please give myself, Ursula, or Tony a call and we will make sure we make the time to catch up. As always, we appreciate the support and yeah, we look forward to explaining our intention and the results more clearly over the coming week.

Mick Finnegan: Yeah, thanks, Paulie. Thanks to everyone that joined the call. Over the next few days, we will be seeing a number of you, but if there is anyone that would like to meet that is not on the list, please give myself, Ursula, or Tony a call and we will make sure we make the time to catch up. As always, we appreciate the support and yeah, we look forward to explaining our intention and the results more clearly over the coming week.

Speaker #4: As always, we appreciate the support, and, yeah, we look forward to explaining our intention and the results more clearly over the coming week.

Operator 2: This concludes today's conference call. Thank you all for joining us. You may now disconnect.

Operator: This concludes today's conference call. Thank you all for joining us. You may now disconnect.

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