Full Year 2026 MAAS Group Holdings Ltd Earnings Call

August 19, 2026

Speaker #2: Thank you for standing by, and welcome to the MAAS Group Holdings Limited Fiscal Year 2026 Results Briefing. All participants are in a listen-only mode.

Operator 2: Thank you for standing by, and welcome to the MAAS Group Holdings Limited Fiscal Year 2026 Results Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Wes Maas, TBC. Please go ahead.

Operator: Thank you for standing by, and welcome to the MAAS Group Holdings Limited Fiscal Year 2026 Results Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Wes Maas, TBC. Please go ahead.

Speaker #2: There will be a presentation followed by a question-and-answer session. If you would like to ask a question, you will need to press the star key, followed by the number 1 on your telephone keypad.

Speaker #2: I would now like to hand the conference over to Mr. Wes Mars, TBC. Please go ahead.

Speaker #3: Thank you. Good morning, everyone, and welcome to our financial year 2026 results presentation. Thank you all for joining us. FY26 has been a defining year for MAAS—another record result, and, importantly, a year where we've taken decisive strategic steps to reposition the Group for its next phase of growth.

Wes Maas: Thank you. Good morning, everyone, and welcome to our Financial Year 2026 results presentation. Thank you all for joining us. FY26 has been a defining year for MAAS, another record result, and importantly, a year where we have taken decisive strategic steps to reposition the group for its next phase of growth. I look forward to taking you through it now. In terms of the agenda, I will go through the first 2 sections, our business strategy, performance, and outlook, and our business unit reviews. Then I will hand over to our CFO, Craig Bellamy, who will go through the group-level consolidated financials, and I will follow up with a wrap.

Speaker #3: I look forward to taking you through it now. In terms of the agenda, I'll go through the first two sections: our business strategy, performance and outlook, and our business unit reviews.

Speaker #3: And then I'll hand over to our CFO, Craig Bellamy, who will go through the group-level consolidated financials, and I'll follow up with a wrap. Starting with our FY26 highlights, we delivered another record performance with underlying EBITDA of $300.3 million, up 37% on the prior year, and in line with our guidance range.

Wes Maas: Starting with our FY26 highlights, we delivered another record performance with underlying EBITDA of AUD 300.3 million, up 37% on the prior year and in line with our guidance range, driven by a strong continuing operations result and the investment uplift on our Firmus holding. Importantly, our continuing operations underlying EBITDA, excluding the investment uplift, was AUD 143.3 million, up 37% on the prior corresponding period and above our AUD 130 to AUD 135 continuing operations guidance range, demonstrating the strength of the ongoing business. Underlying EPS of AUD 0.342 was up 51% on the prior year, driven by a record underlying NPAT. On a statutory basis, NPAT attributable to owners of MGH was AUD 136.1 million, up 89% on the prior corresponding period, driven by continuing operations growth and a reversal of held-for-sale depreciation.

Speaker #3: Driven by a strong continuing operations result and the investment uplift on our Firmus Holding. Importantly, our continuing operations underlying EBITDA, excluding the investment uplift, was $143.3 million—up 37% on the prior corresponding period and above our $130 to $135 million continuing operations guidance range—demonstrating the strength of the ongoing business.

Speaker #3: Underlying EPS of 34.2 cents was up 51% on the prior year, driven by a record underlying NPAT. On a statutory basis, NPAT attributable to owners of MGH was $136.1 million, up 89% on the prior corresponding period.

Speaker #3: Driven by continuing operations growth and a reversal of held-for-sale depreciation, a disciplined focus on working capital delivered strong cash flow again, at 93%, in line with our targeted range.

Wes Maas: Our disciplined focus on working capital delivered strong cash flow again of 93%, in line with our targeted range. We recycled AUD 99.3 million of capital during the year, crystallizing around AUD 26.1 million of historical fair value gains, with a further AUD 158.3 million contracted to sell over the next 18 months. We have historical electrical work secured in hand of AUD 1.2 billion to be executed over the next 18 months, providing locked-in continuing business earnings growth for FY27 and beyond. Our leverage ratio of 2.6 sits within our targeted range of 2 to 3 times and will sit well below this range upon settlement of the sale of our construction materials business. Consistent with our new capital management framework, our focus on maximizing total shareholder return, the board has not declared a final dividend. Our share buyback program will remain active.

Speaker #3: We recycled $99.3 million of capital during the year, crystallizing around $26.1 million of historical fair value gains. We have a further $158.3 million contracted to sell over the next 18 months.

Speaker #3: We have historical electrical work secured in hand of $1.2 billion, to be executed over the next 18 months, providing locked-in, continuing business earnings growth for FY27 and beyond.

Speaker #3: Our leverage ratio of 2.6 sits within our targeted range of 2 to 3 times, and we will sit well below this range upon settlement of the sale of our construction materials business.

Speaker #3: Consistent with our new capital management framework, our focus on maximizing total shareholder return, the board has not declared a final dividend. Our share buyback program will remain active.

Speaker #3: And the headline for the year: the sale of our construction materials portfolio at Heidelberg for $1.7 billion has now been approved by the ACCC and is on track to settle in October 2026.

Wes Maas: The headline for the year, the sale of our construction materials portfolio to Heidelberg for AUD 1.7 billion, has now been approved by the ACCC and is on track to settle in October 2026. On the safety front, our LTIFR increased from FY25 to FY26 to 5.6. While we have made substantial progress in recent years, safety performance improvement remains a key priority for the group and a clear focus for management. Moving to slide 4. Our values-driven culture is the foundation of our success and remains a true differentiator for MAAS. As we continue to expand and evolve, it is critical that both the existing and new team members not only understand the values but embrace them. Our values being trust, commitment, candor, teamwork, leadership, and ownership.

Speaker #3: On the safety front, our LTIFR increased from FY25 to FY26 to 5.6, while we've made substantial progress in recent years. Safety performance improvement remains a key priority for the group and a clear focus for management.

Speaker #3: Moving to slide 4, our values-driven culture is the foundation of our success and remains a true differentiator for MAAS. As we continue to expand and evolve, it is critical that both existing and new team members not only understand the values, but also embrace them.

Speaker #3: Our values are trust, commitment, candor, teamwork, leadership, and ownership. Pleasingly, our culture and values remain the core strength and are very much embraced across the broader management team, including those who have recently joined the group.

Wes Maas: Pleasingly, our culture and values remain the core strength and are very much embraced across the broad management team, including those who have recently joined the group. Moving to slide 5. We remain strategically positioned for long-term growth with our investment framework underpinned by a disciplined focus on return on capital employed. What sets MAAS apart is a continued focus on supporting key infrastructure markets and aligned founder-led team focused on being a market leader and low-cost provider in each end market. A proven track record of maximizing investment returns through organic growth and accretive mergers and acquisitions, along with a strong, well-capitalized balance sheet to support continued growth. A sharp focus on return on capital has driven more than 20 years of growth. Our integrated operating model provides a genuine competitive advantage in a fragmented subscale market. Moving to slide 6, our investment highlights.

Speaker #3: Moving to slide 5, we remain strategically positioned for long-term growth, with our investment framework underpinned by a disciplined focus on return on capital employed.

Speaker #3: What sets MAAS apart is a continued focus on supporting key infrastructure markets and an aligned, founder-led team focused on being a market leader and low-cost provider in each end market.

Speaker #3: A proven track record of maximizing investment returns through organic growth and creative mergers and acquisitions, along with a strong, well-capitalized balance sheet that supports continued growth.

Speaker #3: A sharp focus on return on capital has driven more than 20 years of growth, and our integrated operating model provides a genuine competitive advantage in fragmented, sub-scale markets.

Speaker #3: Moving to slide 6, our investment highlights. Our FY26 underlying EBITDA of $300.3 million was in line with our guidance range. With cash flow conversion at 93%, in our targeted range, underlying NPAT and EPS were up 57% and 51%, respectively, on the prior year.

Wes Maas: Our FY26 underlying EBITDA of AUD 300.3 million was in line with our guidance range, with cash flow conversion at 93% in our targeted range. Underlying NPAT and EPS were up 57% and 51% respectively on the prior year. We have a AUD 1.2 billion electrical work order book secured, and we remain focused on disciplined capital deployment into sectors that will continue to deliver strong returns for shareholders over the long term. The construction materials sale to Heidelberg has now been approved by the ACCC and is on track to settle in October. Since listing, that business has delivered around 50% per annum return on capital employed, and the greater group has delivered 27% per annum return on capital employed, a clear demonstration of our disciplined focus on returns.

Speaker #3: We have a $1.2 billion electrical work order book secured, and we remain focused on disciplined capital deployment into sectors that will continue to deliver strong returns for shareholders over the long term.

Speaker #3: The construction materials sale to Heidelberg has now been approved by the ACCC and is on track to settle in October. Since listing, that business has delivered around 50% per annum return on capital employed, and the greater group has delivered 27% per annum return on capital employed—a clear demonstration of our disciplined focus on returns.

Speaker #3: Finally, we have introduced a new capital management framework that prioritizes share buybacks to drive total shareholder return, while continuing to support core business execution, our operational pipelines, and strategic growth opportunities.

Wes Maas: Finally, we have introduced a new capital management framework that prioritizes share buybacks to drive total shareholder return while continuing to support core business execution, our operational pipelines, and strategic growth opportunities. Moving now on to slide 7. This slide captures our disciplined evolution through the infrastructure cycles. From a Civil, Construction and Hire business to a scaled national plant hire platform, to a diversified into materials, property, and underground, through to our ASX listing and the scaling of construction materials. 2026 marks the transition into the next phase. Since listing, we have achieved 29% EBITDA compound annual growth and an overall 27% average return on capital, a track record we are very proud of. Moving now on to slide 8. We have been growing our business and capabilities through cycles for over 20 years. Throughout our history, the growth has been very strong but not linear.

Speaker #3: Moving now on to slide 7. This slide captures our disciplined evolution through the infrastructure cycles, from a civil construction and hire business to a scaled national plant hire platform, to a diversified intermaterials, property and underground, through to our ASX listing and the scaling of construction materials.

Speaker #3: 2026 marks the transition into the next phase. Since listing, we have achieved 29% EBITDA compound annual growth and an overall 27% average return on capital—a track record we are very proud of.

Speaker #3: Moving now to slide 8: we've been growing our business and capabilities through cycles for over 20 years. Throughout our history, the growth has been very strong, but not linear.

Speaker #3: We have invariably moved through periods of consolidation and then step changes in growth. Each chapter of this journey has been built by our people, and it is their work that has taken us from those regional beginnings to the diversified national platform we have today.

Wes Maas: We have invariably moved through periods of consolidation and then step changes in growth. Each chapter of this journey has been built by our people, and it is their work that has taken us from those regional beginnings to the diversified national platform we have today. Moving now on to slide 9, on capital allocation. We are announcing a new capital management framework focused on capital allocation initiatives that maximize long-term shareholder value. The model itself is straightforward. Capital is directed to whichever use delivers the best long-term return. Buying back stock where it is below intrinsic value, repaying debt to cap gearing and protect headroom, acquiring into industries with macro tailwinds, investing organic CapEx above our hurdle rate, and recycling assets once they have reached their full value.

Speaker #3: Moving now to slide 9, on capital allocation. We are announcing a new capital management framework focused on capital allocation initiatives that maximize long-term shareholder value.

Speaker #3: The model itself is straightforward. Capital is directed to whichever use delivers the best long-term return: buying back stock where it's below intrinsic value, repaying debt to cap gearing and protect headroom, acquiring into industries with macro tailwinds, investing organic capex above our hurdle rate, and recycling assets once they've reached their full value.

Speaker #3: Consistent with that framework, MGH will seek shareholder approval to expand the on-market buyback program to 20% of the issued capital over a 12-month period.

Wes Maas: Consistent with that framework, MGH will seek shareholder approval to expand the on-market buyback program to 20% of the issued capital over a 12-month period. Since February 2026, we have allocated AUD 55.1 million to share buybacks, acquired at a discount to the group's intrinsic value, and in line with the enhanced framework, no dividend has been declared for FY26. Moving now to slide 10 and sustainability. We are committed to operating in a sustainable way, recognizing the important role we play in reducing environmental and climate-related impacts. We continue to invest in lower carbon product lines and alternative fuels to build our environmental data collection and reporting, including our Scope 1 and Scope 2 greenhouse gas emissions. In FY27, following the construction materials sale, we will enhance our sustainable reporting practices and review our emissions profile to support future reporting requirements. Moving on to slide 11, health and safety.

Speaker #3: Since February 2026, we've allocated $55.1 million to share buybacks, acquired at a discount to the Group's intrinsic value. And, in line with the enhanced framework, no dividend has been declared for FY26.

Speaker #3: Moving now to slide 10 and sustainability. We're committed to operating in a sustainable way, recognizing the important role we play in reducing environmental and climate-related impacts.

Speaker #3: We continue to invest in lower-carbon product lines and alternative fuels to build our environmental data collection and reporting, including our Scope 1 and Scope 2 greenhouse gas emissions.

Speaker #3: In FY27, following the construction materials sale, we will enhance our sustainable reporting practices and review our emissions profile to support future reporting requirements. Moving on to slide 11, health and safety.

Speaker #3: Ensuring our people return home safely each night is our top priority. In FY26, the Group recorded an LTI of 5.6, compared with 4.7 in FY25, and a TRIFRA of 16.7, compared to 15.8 in FY25.

Wes Maas: Ensuring our people return home safely each night is our top priority. In FY26, the group recorded an LTIFR of 5.6 compared with 4.7 in FY25, and a TRIFR of 16.7 compared to 15.8 in FY25. Total recordable injuries increased to 94 from 89 in FY25. These results remain above our benchmark targets and a clear area of focus for management. We remain committed to reducing these frequency rates through visible leadership, strong critical control commitments and targeted risk reduction initiatives. Moving now onto slide 12, our people, culture and community. As a values-driven company, we are committed to the well-being of our people and communities in which we operate. We now have around 2,143 teammates and 33% female representation in our senior executive team. We build capability from within through external training, mentorship, hands-on experience initiatives, our Maas Edge leadership program.

Speaker #3: Total recordable injuries increased to 94 from 89 in FY25. These results remain above our benchmark targets and are a clear area of focus for management.

Speaker #3: We remain committed to reducing these frequency rates through visible leadership, strong critical control commitments, and targeted risk reduction initiatives. Moving now on to slide 12: our people, culture, and community.

Speaker #3: As a values-driven company, we're committed to the well-being of our people and the communities in which we operate. We now have around 2,143 teammates and 33% female representation in our senior executive team.

Speaker #3: We build capability from within through external training, mentorship, hands-on experience initiatives, and our MAAS Edge Leadership Program. In FY26, we supported 80 trade apprenticeships and traineeship positions, including 37 trainees in accredited programs.

Wes Maas: In FY26, we supported 80 trade apprenticeships and traineeship positions, including 37 trainees in accredited programs. We also continue to support initiatives that reflect who we are as an organization. Some of these include the children's hospital, the mental health charities, grassroots sporting and community organizations, and programs that create lasting impacts to the regions where we operate. Moving on to slide 13, the market overview and trading conditions. The outlook. We see strong digital infrastructure demand is driving growth in our electrical division, coupled with tailwind opportunities in our other businesses. Demand and pricing for the self-storage and industrial projects remain robust, supporting our capital recycling initiatives. We have strong pent-up demand, housing demand and low rental vacancy rates, which are positive in the markets we operate, such as Rockhampton, Dubbo, Tamworth and others. We expect strong revenue and profit growth to continue with our operations in FY27.

Speaker #3: We also continue to support initiatives that reflect who we are as an organization. Some of these include the Children's Hospital, mental health charities, grassroots sporting and community organizations, and programs that create lasting impacts in the regions where we operate.

Speaker #3: Moving on to slide 13, the market overview and trading conditions. The outlook: we see strong digital infrastructure demand is driving growth in our electrical division, coupled with tailwind opportunities in our other businesses.

Speaker #3: Demand and pricing for the self-storage and industrial projects remain robust, supporting our capital recycling initiatives. We have strong pent-up demand, housing demand, and low rental vacancy rates, which are positive in the markets we operate—such as Rockhampton, Dubbo, Tamworth, and others.

Speaker #3: We expect strong revenue and profit growth to continue with our operations in FY27. Key factors here include the electrical work in hand, which is becoming a very dominant force.

Wes Maas: Key factors include here is the electrical work in hand becoming a very dominant force, a substantial carry-in of more than 200 residential land lots and 158.3 sales in our commercial division. We have a very strong balance sheet following the construction materials sale, supporting an earnings accretive redeployment of capital in Q2 FY27. As usual, we expect to provide further update on trading conditions and outlook at the annual terminal meeting. Moving now into the business units and on slide 14. On a FY26 underlying EBITDA contribution basis, Construction Materials represents 41% of the segment EBITDA. Civil, Construction and Hire 23%, Commercial Real Estate 21%, Residential Real Estate 11%, and Manufacturing 2%. Together, our industrial operating segments and real estate operating segments provide a diversified platform across the infrastructure supply chain. Moving now on to Civil, Construction and Hire in slides 15 and 16.

Speaker #3: A substantial carry-in of more than 200 residential land lots and 158.3 sales in our commercial division. And we have a very strong balance sheet following the construction materials sale, supporting an earnings-accretive redeployment of capital in Q2 FY27.

Speaker #3: As usual, we expect to provide a further update on trading conditions and our outlook at the Annual General Meeting. Moving now into the business units and on slide 14.

Speaker #3: On an FY26 underlying EBITDA contribution basis, Construction Materials represents 41% of the segment EBITDA. Civil Construction and Hire, 23%. Commercial Real Estate, 21%. Residential Real Estate, 11%, and Manufacturing, 2%.

Speaker #3: Together, our Industrial operating segments and Real Estate operating segments provide a diversified platform across the infrastructure supply chain. Moving now on to Civil Construction and Hire, in slides 15 and 16.

Speaker #3: We had an outstanding year. Revenue increased significantly in FY25, driven by growth across all streams, with the segment benefiting from contract wins in the second half of '25 and the first half of '26.

Wes Maas: We had an outstanding year. Revenue increased significantly on FY25, driven by growth across all streams, with the segment benefiting from contract wins in H2 2025 and H1 2026 on data center, renewable and transmission projects. The segment EBITDA increased by 64% to AUD 65.1 million on segment revenue of AUD 424.9 million, up 47%, driven by a strong contribution from electrical and increased plant utilization with EBIT up 113% to AUD 47.6 million. Cash flow conversion of 86% is consistent with the long-term averages of this segment. Looking forward, the significant contract win on the Firmus electrical manufacturing order of AUD 855 million is expected to provide significant benefit to FY27 and beyond. Our initial electrical infrastructure project for Firmus, previously announced, was over 40% complete in FY26 and is expected to be delivered in H1 FY27.

Speaker #3: On data center renewable and transmission projects, the segment EBITDA increased by 64% to $65.1 million on segment revenue of $424.9 million, up 47%, driven by a strong contribution from electrical and increased plant utilization, with EBIT up 113% to $47.6 million.

Speaker #3: Cash flow conversion of 86% is consistent with the long-term averages of this segment. Looking forward, the significant contract win on the thermos electrical manufacturing order of $855 million is expected to provide significant benefit to FY27 and beyond.

Speaker #3: Our electrical infrastructure project for Thermos was over. Our initial electrical infrastructure project, previously announced, was over 40% complete in FY26 and is expected to be delivered in the first half of FY27.

Wes Maas: We are seeing improving momentum with increased utilization benefiting from plant hire as renewable and transmission projects scale up. A solid work in hand of AUD 1.2 billion on the electrical projects drive continued growth and additional opportunities for significant electrical infrastructure projects outside of service. Moving now on to Residential Real Estate. Revenue increased in FY25, driven by additional land settlements with 253 lots versus 151 in FY25. This is excluding the build-to-rent, coupled with increased housing revenue. EBITDA, excluding fair value gains, increased by 64% to AUD 28.8 million, driven by additional land settlements. The business has settled 264 lots in FY26, including the disposal of 11 build-to-rent properties versus 201 in FY25. Land gross profit per lot was around AUD 105,000 against AUD 112,000 in FY25, driven by real estate product mixes and overall, I must say, overall pricing remains stable. The outlook is strongly positive.

Speaker #3: We are seeing improving momentum, with increased utilization benefiting from planned hires as renewable and transmission projects scale up. A solid work in hand of $1.2 billion on the electrical projects drives continued growth and additional opportunities for significant electrical infrastructure projects outside of thermos.

Speaker #3: Moving now on to residential real estate. Revenue increased in FY25, driven by additional land settlements, with 253 lots versus 151 in FY24. This excludes the build-to-rent.

Speaker #3: Coupled with increased housing revenue, EBITDA excluding fair value gains increased by 64% to $28.8 million, driven by additional land settlements. The business has settled 264 lots in FY26, including the disposal of 11 build-to-rent properties.

Speaker #3: Versus 201 in FY25. Land gross profit per lot was around $105,000, against $112,000 in FY25, driven by real estate product mixes. Overall, I must say, pricing remains stable.

Speaker #3: The outlook is strongly positive. We have a strong FY27 carry-in of 200 lots already secured. Stage one of our Lightner Estate in Rockhampton has settled more than 60 lots in the second half of '26, with strong underlying demand already driving price increases, and we continue our focus on the master plan community strategy while developing opportunities to realize capital from some in global sales.

Wes Maas: We have a strong FY27 carry-in of 200 lots already secured. Stage 1 of our Ellida Estate in Rockhampton has settled more than 60 lots in H2 2026, with strong underlying demand already driving price increases. We continue our focus on the master plan community strategy while developing opportunities to realize capital from some englobo sales. Moving now on to commercial real estate. Segment revenue decreased on FY25, which included a large land inventory sale representing around 13% of that year's revenue. The external commercial construction revenue, also a little subdued, where we have delivered a higher proportion of internal developments in the period. EBITDA increased 20% to AUD 59.4 million, driven by fair value gains, with EBITDA excluding fair value gains lower given the FY25 land sale and the internal works mix.

Speaker #3: Moving now on to commercial real estate. Segment revenue decreased in FY25, which included a large land inventory sale representing around 13% of that year's revenue.

Speaker #3: With the external commercial construction revenue for sale a little subdued, we've delivered a higher proportion of internal developments in the period. EBITDA increased 20% to $59.4 million, driven by fair value gains, with EBITDA excluding fair value gains lower given the FY25 land sale and the internal works mix.

Speaker #3: The fair value gain on investment properties was $57.4 million, up from FY25's $38.3 million, with around 62% of the FY26 gain relating to properties under contract expected to settle over FY27 and the first half of FY28.

Wes Maas: The fair value gain on investment properties was AUD 57.4 million, up on FY25's AUD 38.3, with around 62% of the FY26 relating to properties under contract expected to settle over FY27 and H1 FY28. The segment recognized proceeds on the sale of developments of AUD 93.6 million in FY26 above book value as part of our capital recycling program, also crystallizing AUD 24.9 million of previously recognized fair value gains. Looking ahead, in addition to the AUD 93.6 million of proceeds received in FY26, the segment has also contracted a further AUD 142.6 million of sales expected to settle in FY27 and H1 2028. The Aerotropolis is expected to contribute materially in FY27 as key project milestones are achieved. Moving now on to Construction Materials. Segment revenue increased 24% on FY25 to AUD 629.6 million, driven by the full year contribution from businesses acquired in the prior year.

Speaker #3: The segment recognized proceeds on the sale of developments of $93.6 million in FY26, above book value as part of our capital recycling program, also crystallizing $24.9 million of previously recognized fair value gains.

Speaker #3: Looking ahead, in addition to the $93.6 million of proceeds received in FY26, the segment has also contracted a further $142.6 million of sales expected to settle in FY27 and the first half of FY28.

Speaker #3: And the Aerotropolis is expected to contribute materially in FY27 as key project milestones are achieved. Moving now to construction materials, segment revenue increased 24% on FY25 to $629.6 million, driven by the full-year contribution from businesses acquired in the prior year.

Speaker #3: EBITDA was largely in line with FY25 at $115.4 million, with a softer contribution from the quarries and concrete business relative to FY25. Margins were compressed by fuel cost inflation from February and softer demand across quarries and concrete.

Wes Maas: EBITDA was largely in line with FY25 at AUD 115.4 million, with a softer contribution from the quarries and concrete business relative to FY25. Margins were compressed by fuel cost inflation from February and softer demand across quarries and concrete, though management regards these pressures as short-term. Importantly, the return on capital achieved for Construction Materials, incorporating the gain on sale from the Heidelberg transaction, is around 50% per annum since listing, a standout outcome and validation of our discipline quarry-led strategy. On the outlook, the ACCC has approved the transaction and it is expected Heidelberg Materials Australia will settle in early October 2026. On slide 23, a little more on the sale to Heidelberg. Gross proceeds of AUD 1.7 billion, including a contingent consideration of AUD 120 million, which is primarily around three quarries yet to be approved. The transaction accounts for around 1,140 employees that move across in the transaction.

Speaker #3: Though management regards these pressures as short-term, importantly, the return on capital achieved for Construction Materials, incorporating the gain on sale from the Heidelberg transaction, is around 50% per annum since listing.

Speaker #3: A standout outcome and validation of our disciplined, quarry-led strategy. On the outlook, the ACCC has approved the transaction and it is expected that Heidelberg Materials Australia will settle in early October 2026.

Speaker #3: On slide 23, a little more on the sale to Heidelberg. Gross proceeds of $1.7 billion, including a contingent consideration of $120 million, which is primarily around some three quarries yet to be approved.

Speaker #3: The transaction accounts for around 1,140 employees that move across in the transaction, and net proceeds after tax, minority interest, and debt transfer are expected to be around $1.3 billion.

Wes Maas: Net proceeds after tax and minority interest and debt transfer is expected to be around AUD 1.3 billion. We are extremely proud of the Construction Materials business we have built over many years. The scale, the quality, and the performance of the business is a testament to the hard work and commitment of our people and is reflected in the premium value recognized through this transaction, which crystallizes value and positions for the group for the next phase. I will now pass over to our CFO, Craig Bellamy, to take you through the group financial performance.

Speaker #3: We're extremely proud of the construction materials business. We've built, over many years, the scale, the quality, and the performance of the business as a testament to the hard work and commitment of our people.

Speaker #3: And as reflected in the premium value recognized through this transaction, which crystallizes value and positions the group for the next phase. I will now pass over to our CFO, Craig Bellamy, to take you through the group financial performance.

Speaker #1: Thanks, Wes, and good morning, everyone. Starting on slide 25 in the group underlying profit and loss. And as Wes has already highlighted, MGH delivered a record underlying EBITDA for FY26 of $300.3 million.

Craig Bellamy: Thanks, Wes, and good morning, everyone. Starting on slide 25 in the group underlying profit and loss. As Wes has already highlighted, MAAS delivered a record underlying EBITDA for FY26 at AUD 300.3 million. This represented growth of 37% on the prior year and finished in line with our updated guidance range of AUD 300 to 310 million. Importantly, our continuing operations underlying EBITDA, excluding the fair value uplift on our financial assets, was AUD 143.3 million, an increase of 37% on the prior period of AUD 104.3 million, and also exceeding our guidance range of AUD 130 to 135 million for the continuing business, once again demonstrating its strength. Revenue for the year for the group increased by 27% to just shy of AUD 1.3 billion, with the key drivers being growth in the Civil, Construction and Hire, electrical, plant hire, and residential from the continuing businesses.

Speaker #1: This represented growth of 37% on the prior year and finished in line with our updated guidance range of $300 million to $310 million. Importantly, our continuing operations' underlying EBITDA, excluding the fair value uplift on our financial assets, was $143.3 million, an increase of 37% on the prior period of $104.3 million.

Speaker #1: And also exceeding our guidance range of $130 million to $135 million, for the continuing business once again demonstrating its strength. Revenue for the year for the group increased by 27% to just shy of $1.3 billion, with the key drivers being growth in the civil construction, electrical, plant hire, and residential sectors from the continuing businesses.

Speaker #1: EBITDA growth was underpinned by strong contributions from the Civil Construction and Hire and Residential Real Estate segments, together with the fair value uplift of the group's investment properties and investments.

Craig Bellamy: EBITDA growth was underpinned by strong contributions from Civil, Construction and Hire and residential real estate segments, together with the fair value uplift of the group's investment properties and investments. Our other income was AUD 108 million, with the two largest contributors being the AUD 41.7 million uplift on our financial assets and also the property fair values of AUD 60.4 million. Of note for the property fair value, as Wes has already mentioned, over 60% of the fair value achieved in FY26 is already contracted, with approximately another AUD 20 million of historical fair value gains also under contract. This has flowed through to a record underlying NPAT of AUD 123.4 million, up 57% on the prior year, and our underlying EPS of AUD 0.342, an increase of 51%, once again driven by the continuing operations. Turning to Slide 26 and the expenses.

Speaker #1: Our other income was $108 million, with the two largest contributors being the $41.7 million uplift on our financial assets, and also the property fair values of $60.4 million.

Speaker #1: Of note for the property fair value, as Wes has already mentioned, over 60% of the fair value achieved in FY26 has already been contracted, with approximately another $20 million of historical fair value gains also under contract.

Speaker #1: This has led to a record underlying NPAT of $123.4 million, up 57% on the prior year, and our underlying EPS of 34.2 cents, an increase of 51%, once again driven by the continuing operations.

Speaker #1: Turning to slide 26 in the expenses, our expenses increased by 30% for the year, with $76 million of the increase attributable to the businesses that we acquired during FY25 and '26, and a further $169 million increase attributable to the organic business, broadly in line with the revenue growth.

Craig Bellamy: Our expenses increased by 30% for the year, with AUD 76 million of the increase attributable to the businesses that we acquired during FY25 and 26, and a further AUD 169 million increase attributable to the organic business, broadly in line with the revenue growth. You will see on the slide there are adjustments there of AUD 51 million in relation to the expense line, with the majority of that being AUD 42 million relating to our minority interest in the asphalt entities. Of the depreciation, it increased by AUD 6.5 million to almost AUD 64 million, driven through acquisitions, and our amortization was up slightly to AUD 6.5 million. Of note in our underlying result, we have added an additional charge of depreciation and amortization of approximately AUD 20 million from the statutory numbers to reflect the depreciation charge that would have been made in the accounts should the construction materials business have been retained.

Speaker #1: You'll see on the slide there's adjustments there of $51 million in relation to the expense line, with the majority of that being $42 million relating to our minority interest in the asphalt entities.

Speaker #1: Depreciation increased by $6.5 million to almost $64 million, driven by acquisitions, and our amortization was up slightly to $6.5 million.

Speaker #1: Of note, in our underlying result, we have added an additional charge of depreciation and amortization of approximately $20 million from the statutory numbers to reflect the depreciation charge that would have been made in the accounts should the construction business materials business have been retained.

Speaker #1: Turning to slide 27 and looking at the underlying cash flow, the operating cash flow before inventory, interest, and tax was $183.5 million, representing a cash conversion of EBITDA ratio of 93%, which sits within our target range and reflects disciplined work and capital management across the group.

Craig Bellamy: Turning to Slide 27 and looking at the underlying cash flow. The operating cash flow before inventory, interest, and tax was AUD 183.5 million, representing a cash conversion of EBITDA ratio of 93%, which sits within our target range and reflects disciplined working capital management across the group. This was another strong result across the continuing business, with all key operating segments continuing to convert earnings to cash effectively. The group invested AUD 82 million into land inventory development during the period, up from AUD 44.5 million in the prior period, supporting the strong demand and pipeline across the residential portfolio. Our net maintenance CapEx was AUD 22 million for the year, as compared to AUD 9 million in the prior year, and this is really driven through an historically low net maintenance CapEx in FY25, as well as the increase in the construction materials business that occurred during FY26.

Speaker #1: This was another strong result across the continuing business, with all key operating segments continuing to convert earnings to cash effectively. The Group invested $82 million into land inventory development during the period, up from $44.5 million in the prior period, supporting the strong demand and pipeline across the residential portfolio.

Speaker #1: Our net maintenance capex was $22 million for the year, as compared to $9 million in the prior year, and this was really driven by a historically low net maintenance capex in FY25, as well as the increase in the construction materials business that occurred during FY26.

Speaker #1: Turning to page 28 and looking closer at the segment cash flows, pleasingly, the continuing business segments again delivered strong conversion, with Civil Construction and Hire at 86%, which is consistent with our long-term average for the segment, and our Residential Real Estate and Manufacturing achieving greater than 100% conversion.

Craig Bellamy: Turning to page 28 and looking closer at the segment cash flows. Pleasingly, the continuing business segments again delivered strong conversion, with Civil, Construction and Hire at 86%, which is consistent with our long-term average for the segment, and our residential real estate and manufacturing achieving greater than 100% conversion. The overall working capital outflow for the year was AUD 13.2 million, driven by movements in the businesses as they scaled. The net outflow was in part impacted by the customer prepayments in FY25 that unwound during FY26. The commercial real estate conversion of -50% reflect more so the timing of the development spend and the fact that the significant portion of the segment earnings were fair value gains on properties that are contracted but not yet settled and which will convert to cash on settlement.

Speaker #1: The overall work and capital outflow for the year was $13.2 million, driven by movements in the businesses as they scaled. The net outflow was in part impacted by the customer prepayments in FY25 that unwound during FY26.

Speaker #1: The commercial real estate conversion of negative 50% reflects more so the timing of the development spend, and the fact that a significant portion of the segment earnings were fair value gains on properties that are contracted but not yet settled, and which will converge to cash on settlement.

Speaker #1: And as we said, the fair value gains largely relate to the gains in the real estate segment and the unlisted investments, which are recognized in our Corporate segment.

Craig Bellamy: As we said, the fair value gains largely relate to the gains in the real estate segment and the unlisted investments which are recognized in our corporate segment. Turning to Slide 29 and the capital investments. Total capital investment for the year was AUD 140 million, reflecting a deliberate shift towards strategic investment whilst maintaining disciplined capital allocation across the continuing business. The most significant investment was AUD 121 million in unlisted companies, primarily driven by AUD 110 million investment into Firmus. We had acquisitions in the construction materials division relating to the joint venture of the Coltek Asphalt and the acquisition of the Colas Tomago asphalt plant and Paving business, which are both owned through our Asphalt joint venture. We undertook growth CapEx during the year, also focused on the expansion in our electrical business and also our asphalt delivery.

Speaker #1: Turning to slide 29 and the capital investments, total capital investment for the year was $140 million, reflecting a deliberate shift towards strategic investment whilst maintaining disciplined capital allocation across the continuing business.

Speaker #1: The most significant investment was $121 million in unlisted companies, primarily driven by a $110 million investment into Firmness. We had acquisitions in the Construction Materials division relating to the joint venture of the Coltec Asphalt and the acquisition of the Colas-Tomago Asphalt and Paving business, which are both owned through our asphalt joint venture.

Speaker #1: And we undertook growth capex during the year, also focused on the expansion in our electrical business and also our asphalt delivery. We also invested $45 million in our development pipeline in our commercial real estate business.

Craig Bellamy: We also invested AUD 45 million in our development pipeline in our commercial real estate business. Turning to Slide 30 and the capital recycling. The group realized proceeds of almost AUD 100 million during FY26, which has crystallized AUD 26 million of historical fair value gains, reinforcing the validity of the valuations we carry on our balance sheet. In addition to the proceeds realized in the year, a further AUD 158 million of property sales were under contract at year-end, comprising AUD 66 million expected to settle during FY27 and AUD 92 million in the H1 of 2028, supporting a strong capital recycling outlook. On a realized and secured basis, the program represents AUD 257 million of proceeds, which will monetize a cumulative AUD 83 million of total gains once all properties settle, demonstrating our continued focus on recycling capital at attractive returns.

Speaker #1: Turning to slide 30 in the capital recycling, the group realized proceeds of almost $100 million during FY26, which has crystallized $26 million of historical fair value gains, reinforcing the validity of the valuations we carry on our balance sheet.

Speaker #1: In addition to the proceeds realized in the year, a further $158 million of property sales were under contract at year end, comprising $66 million expected to settle during FY27 and $92 million in the first half of '28, supporting a strong capital recycling outlook.

Speaker #1: On a realized and secured basis, the program represents $257 million of proceeds, which will monetize a cumulative $83 million of total gains once all properties settle.

Speaker #1: Demonstrating our continued focus on recycling capital at attractive returns, this capital recycling program remains central to how we maximize return on capital employed within the continuing commercial real estate business.

Craig Bellamy: This capital recycling program remains central to how we maximize return on capital employed within the continuing commercial real estate business. Turning to slide 21 on our net debt liquidity. Our leverage ratio at 30 June was 2.6 times, sitting well within our target range of 2 to 3 times and well under our banking covenant, driven by strong FY26 financial performance. The group's total underlying net debt at 30 June was AUD 826 million, of which AUD 745 million relates to the continuing operations. Liquidity at year-end, approximately AUD 479 million, with AUD 400 million of undrawn facilities. The net proceeds from the Heidelberg Materials transaction of approximately AUD 1.3 billion, which Wes has already settled, is expected to settle in October, will provide significant additional balance strength following completion, supporting earnings and creative redeployment of capital in line with our strategy.

Speaker #1: Turning to slide 21 and our net debt liquidity, our leverage ratio at 30 June was 2.6 times, sitting well within our target range of 2 to 3 times.

Speaker #1: And well under our banking covenant, driven by a strong FY26 financial performance. The group's total underlying net debt at 30 June was $826 million, of which $745 million relates to the continuing operations.

Speaker #1: And liquidity at year end, approximately $479 million, with $400 million of undrawn facilities. The net proceeds from the Heidelberg transaction of approximately $1.3 billion, which was already settled—or is expected to settle in October—will provide significant additional balance sheet strength following completion, supporting earnings accretive redeployment of capital in line with our strategy.

Speaker #1: During the year, we also advanced the Aerotropolis line to full capital on a capital-efficient, back-to-back line with metrics, and completed an accordion refinance in May 26.

Craig Bellamy: During the year, we also advanced the Aerotropolis loan to Bull Capital on a capital efficient back-to-back line with Metrics and completed an accordion refinance in May 2026. We will be embarking on a refinance of our syndicated debt facilities during the H1 2027 to match the facilities in line with our business going forward, post the sale of the construction materials business. Turning to slide 32 on the capital employed. The group return on the capital employed improved to 14%, up from 11% in the prior year. More importantly, the continuing operations has delivered a return on capital of 19%, a significant improvement on the 10% of the prior year, reflecting the improved earnings profile of the ongoing business, particularly the strong recovery in Civil, Construction and Hire, which improved to 21%.

Speaker #1: And we will be embarking on a refinance of our syndicated debt facilities during the first half of '27 to match the facilities in line with our business going forward, post the sale of the construction materials business.

Speaker #1: Turning to slide 32, in capital employed, the group return on capital employed improved to 14%, up from 11% in the prior year.

Speaker #1: More importantly, the continuing operations delivered a return on capital of 19%, a significant improvement on the 10% of the prior year. This reflects the improved earnings profile of the ongoing business, particularly the strong recovery in civil construction and hire, which improved to 21%.

Speaker #1: The best illustration of our disciplined focus on return on capital remains construction materials, where our return, incorporating the gain on sale from the transaction of sale to Heidelberg, will achieve a 50% per annum return since listing.

Craig Bellamy: The best illustration of our discipline focus on return on capital remains construction materials, where our return, incorporating the gain on sale from the transaction of the sale to Heidelberg, will achieve a 50% per annum return since listing. The divestment of construction materials will provide a significant reduction in capital employed post-settlement, freeing up capital for redeployment, while our strategic investment into Firmus has provided significant upside during FY26. We have continued to maintain our capital discipline through prudent investment into residential land inventory in response to market demand and our ongoing capital recycling to maximize capital returns. Turning to page 33, and before I hand back to Wes, a brief word on how we will report from FY27, reflecting the transformation of the group following the divestment of the construction materials. From FY27, MGH will report across four operating segments led by electrical.

Speaker #1: The divestment of construction materials will provide a significant reduction in capital employed post-settlement, freeing up capital for redeployment. Meanwhile, our strategic investment into Firmness will also provide a significant upside during FY26.

Speaker #1: We've continued to maintain our capital discipline through proven investment into residential land inventory in response to market demand, and our ongoing capital recycling to maximize capital returns.

Speaker #1: And turning to page 33, and before I hand back to Wes, a brief word on how we will report from FY27, reflecting the transformation of the group following the divestment of the Construction Materials.

Speaker #1: From FY27, MGH will report across four operating segments led by Electrical. Our existing Civil Construction and Hire segment will be renamed Electrical, reflecting that it is now a business led by our electrical manufacturing.

Craig Bellamy: Our existing Civil, Construction and Hire segment will be renamed electrical, reflecting that is now a business led by our electrical manufacturing. Our residential real estate is unchanged and continues to comprise our residential real estate development activities. Our commercial real estate is also unchanged and continues to comprise our commercial real estate development, including the Aerotropolis asset. Finally, we are introducing a new segment, MGH Investments, which houses our investments that are aligned with our strategy. This realignment will give investors a clearer visibility of the earnings drivers of the continuing business and reflects the strategic positioning of the group as we move into the next phase of growth. That concludes my presentation, and I will now hand back to Wes for closing comments. Thank you.

Speaker #1: Our residential real estate is unchanged and continues to comprise our residential real estate development activities. Our commercial real estate is also unchanged and continues to comprise our commercial real estate development, including the Aerotropolis asset.

Speaker #1: Finally, we are introducing a new segment, MGH Investments, which houses our investments that are aligned with our strategy. This realignment will give investors clearer visibility of the earnings drivers of the continuing business and reflects the strategic positioning of the group as we move into the next phase of growth.

Speaker #1: That concludes my presentation, and I'll now hand back to Wes for closing comments. Thank you.

Speaker #2: Thanks, Craig. So, to summarize the key messages: FY26 has seen a record result, in line with guidance, including 93% cash flow conversion. We have $1.2 billion of secured electrical work in hand, which will drive FY27 and beyond.

Wes Maas: Thanks, Craig. To summarize the key messages, FY26 has seen a record result in line with guidance, including 93% cash flow conversion. We have AUD 1.2 billion of secured electrical work in hand, which will drive FY27 and beyond. We have got a proven operating model aligned to powerful structural tailwinds, and the sale of construction materials portfolio to Heidelberg crystallizes premium value to shareholders and demonstrates our disciplined return on capital employed focus. We have also announced our new capital management framework that prioritizes share buybacks to drive total shareholder return. To wrap up, FY27 has been a transformational year for MAAS. We delivered a record result. We crystallized significant value through the construction materials transaction, and we have positioned the group for its next strategic horizon. None of this happens without our people.

Speaker #2: We've got a proven operating model aligned to powerful structural tailwinds, and the sale of the construction materials portfolio to Heidelberg crystallizes premium value to shareholders and demonstrates our disciplined return on capital employed focus.

Speaker #2: We've also announced our new capital management framework that prioritizes share buybacks to drive total shareholder return. To wrap up, FY26 has been a transformational year for MAAS.

Speaker #2: We delivered a record result, we crystallized significant value through the construction materials transaction, and we've positioned the Group for its next strategic horizon. None of this happens without our people.

Speaker #2: I want to thank everyone on our team across the group, including those expected to transition with the construction materials business, for their commitment and care.

Wes Maas: I want to thank every one of our team across the group, including those expected to transition with the construction materials business, for their commitment, care. I remain very committed to the group and business and genuinely excited by the growth and the opportunities ahead. I appreciate your continued interest in our company, and that concludes our formal presentation. I will now open up for questions.

Speaker #2: I remain very committed to the group and business, and I am genuinely excited by the growth and the opportunities ahead. I appreciate your continued interest in our company, and that concludes our formal presentation.

Speaker #2: I will now open up for questions.

Speaker #3: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Mitch Sonogan with Macquarie. Please proceed with your question. Sorry about that. Your first question comes from Liam Schofield with Morgans. Please proceed with your question.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Mitch Sonogan with Macquarie. Please proceed with your question. Sorry about that. Your first question comes from Liam Schofield with Morgans. Please proceed with your question.

Speaker #3: If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Mitch Sonagan. Please proceed with your question.

Speaker #3: Sorry about that. Your first question comes from Liam. Please proceed with your question.

Speaker #4: Thanks for the presentation, Craig. And Wes, can you hear me there?

Liam Schofield: Thanks for the presentation, Craig and Wes. Can you hear me there?

Speaker #5: Yes, definitely. Yes.

Craig Bellamy: We can, Liam. Yes.

Wes Maas: We can, Liam. Yes.

Speaker #4: Perfect. Just on the $855 million contract, Wes, can you just sort of touch on your capacity to deliver? Where are you assembling the power cubes?

Liam Schofield: Perfect. Just on the AUD 855 million contract, Wes, can you just touch on your capacity to deliver? Where are you assembling the Power Cubes? What sort of production rate can you deliver? Then just dovetail that into the additional opportunities that you touched on in the announcement.

Speaker #4: What sort of production rate? Can you deliver? And then just sort of dovetail that into the additional opportunities that you touched on in the announcement?

Speaker #5: Sure. I think we've said that the $855 million would be delivered within an 18-month period. We've got large-scale manufacturing facilities in Australia, and through our locations at Newcastle, Orange, and Dubai.

Wes Maas: Sure. I think we've said that the AUD 855 million would be delivered within an 18-month period. We've got large-scale manufacturing facilities in Australia and through our locations at Newcastle or in Dubbo, also some components being built in Vietnam. What was the second part of the question? Sorry, Liam.

Speaker #5: And also some components being built in Vietnam. What was the second part of the question, sorry, Leah?

Speaker #4: Just the additional opportunities that you flagged?

Liam Schofield: Just the additional opportunities that you flagged.

Speaker #5: Yeah, I mean, the electrical business is quite diverse. So we cover distribution, transmission, manufacturing, and then our power service unit. We're seeing strong demand in the transmission space.

Wes Maas: Yeah. The electrical business is quite diverse. We cover distribution, transmission, manufacturing, then our power service unit. We're seeing strong demand in the transmission space. Obviously, there's significant tailwinds in the digital infrastructure space and many of those projects we're looking at working in the transmission space, so not just in that manufacturing space, but across the other parts of the offering.

Speaker #5: Obviously, there's significant tailwinds in the digital infrastructure space, and many of those projects where we're looking at working are in the transmission space—so not just in that manufacturing space.

Speaker #5: Across the other parts of the offering.

Speaker #4: And just on the Aerotropolis, will you start booking fair value gains? Are you thinking in '27 as you go and revalue those lots?

Liam Schofield: On the Aerotropolis, will you start booking fair value gains, are you thinking in 2027 as you go and revalue those lots?

Speaker #5: I mean, possibly. I would say it just depends on what we do there. But definitely, over the medium term, I can't definitively say if it's in the next period.

Craig Bellamy: Possibly. I would say it just depends on what we do there. But definitely over the medium-term. I cannot definitively say if it is in the next period. From an accounting standard, Liam, it is more than likely there will be some contribution during FY27. But once again, it will be effectively milestone-driven, which will effectively drive those valuations. But under the accounting standards, most likely there will be some contribution.

Wes Maas: Possibly. I would say it just depends on what we do there. But definitely over the medium-term. I cannot definitively say if it is in the next period.

Speaker #5: Yeah. From an accounting

Craig Bellamy: From an accounting standard, Liam, it is more than likely there will be some contribution during FY27. But once again, it will be effectively milestone-driven, which will effectively drive those valuations. But under the accounting standards, most likely there will be some contribution.

Speaker #1: Standard, Liam, it's more than likely there will be some contribution during FY27. But once again, it'll be sort of, like, effectively milestone-driven, which will effectively drive those valuations.

Speaker #1: But under the accounting standard, it's most likely there will be some contribution.

Speaker #4: So just think about it as interest income going through that commercial real estate line.

Liam Schofield: Just think about it as interest income going through that commercial real estate line.

Speaker #1: Yeah. At present, you can see in the, yep, in the accounts, it's in the stats—there's a fair value component which has been adjusted into the interest, in the net interest expense, in the underlying result.

Craig Bellamy: Yeah. At present, you can see-

Craig Bellamy: Yeah. At present, you can see.

Liam Schofield: Yeah

Liam Schofield: Yeah.

Craig Bellamy: Yep, in the accounts, in the stats, there is a fair value component, which has been adjusted into the interest, in the net interest expense in the underlying result. So yeah, just the interest play at this particular stage.

Speaker #1: So yeah, just an interest play at this particular stage.

Speaker #4: Thanks, guys.

Liam Schofield: Thanks, guys.

Speaker #3: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Our next question comes from James Ferrier.

Operator 2: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Our next question comes from James Ferrier with Canaccord Genuity. Please proceed with your question.

Operator: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Our next question comes from James Ferrier with Canaccord Genuity. Please proceed with your question.

Speaker #3: Please proceed with your question.

Speaker #4: Thanks. Morning, Wes. Craig, just checking if you can hear me okay?

James Ferrier: Thanks. Morning, Wes, Craig. Just check if you can hear me okay.

Speaker #5: Yes, sir.

Craig Bellamy: Yes, James. Go ahead.

Speaker #4: Just following on from Liam's question there around Aerotropolis opportunity, I haven't had a chance to check the accounts yet, but just based on what you're saying, Craig, there is some influence on the income statement with the net impact of interest expense and interest income.

James Ferrier: Just following on from Liam's question there around Aerotropolis opportunity. I haven't had a chance to check the accounts yet, but what you're saying, Craig, there is some influence on the income statement, with the net impact of interest expense and interest income. Is that right?

Speaker #1: Sorry, yeah. So, the way it's presented in the stats compared to the underlying, you'll see there's an adjustment in the statutory accounts. There's a fair value adjustment for the coupon, which has been adjusted in the net interest expense for the underlying.

Craig Bellamy: Yeah. The way it's presented in the stats compared to the underlying, you'll see there's an adjustment. The statutory accounts, there's a fair value adjustment for the coupon, which has been adjusted into net interest expense. For the underlying, you'll see there's a slight difference there of around AUD 6 to 7 million in terms of that. So it's been adjusted out of EBITDA from the underlying result. Because there's obviously an interest expense on the net effect at the NPAT level is effectively zero for this financial period.

Speaker #1: You'll see there's a slight difference there, around $6 to $7 million. In terms of that, it's been adjusted out of EBITDA from the underlying result.

Speaker #1: The net effect, because there's obviously an interest expense line there, the net effect at the NPAT level is effectively zero for this financial period.

Speaker #4: Yeah. Yeah. And what's the balance sheet impact? Are you recognizing that drawdown with metrics on the balance sheet as debt?

James Ferrier: Yep. What's the balance sheet impact? Are you recognizing that drawdown with Metrics on balance sheet as debt, and then-

James Ferrier: Yep. What's the balance sheet impact? Are you recognizing that drawdown with Metrics on balance sheet as debt, and then.

Speaker #1: Yes, yes, yes, we are. So, there's effectively a financial asset there for the amount that's been advanced out by us, and there's a financial liability for the drawdown from Metrics.

Craig Bellamy: Yes, we are. There is effectively a financial asset there for the amount that has been advanced out by us, and there is a financial liability for the drawdown from Metrics.

Speaker #4: Yeah, okay, great. And so just so I can get the numbers right, I think it was $775 million for the net debt number, excluding leases.

James Ferrier: Yeah. Okay, great. Just so I can get the numbers right, I think it was 775 was the net debt number, ex leases. I think-

James Ferrier: Yeah. Okay, great. Just so I can get the numbers right, I think it was 775 was the net debt number, ex leases. I think.

Speaker #4: And I think $320 million of that was advanced to Aerotropolis, right? So I can back it down and look at the...

Craig Bellamy: Yeah.

James Ferrier: 320 of that was advanced to Aerotropolis, right? So I can back that-

James Ferrier: 320 of that was advanced to Aerotropolis, right? So I can back that.

Craig Bellamy: Yeah.

James Ferrier: And look at the

James Ferrier: And look at the.

Speaker #1: So from a net debt—because it's a back-to-back sort of scenario, James—the growth, if you're looking at gross excluding the receivable, then obviously it would be a higher number. But effectively, from the net basis, it's been set off.

Craig Bellamy: From a net debt, because it's a back-to-back sort of scenario, James.

James Ferrier: Yeah

James Ferrier: Yeah.

Craig Bellamy: The gross, if you're looking at gross excluding the receivable, then obviously it would be a higher number. But effectively

Craig Bellamy: The gross, if you're looking at gross excluding the receivable, then obviously it would be a higher number. But effectively.

James Ferrier: Oh, okay.

Craig Bellamy: From a net basis, it has been set off. So there is really very negligible effect on the debt basis from the Aerotropolis, which given the fact that it was announced just prior to 30 June, is what you would expect.

Speaker #1: So there's really very negligible effect on the debt base from the Aerotropolis, which, given the fact it was announced just prior to the 30th of June, is what you'd expect.

Speaker #4: Yeah, okay. Understood. With the first Thermos contracts, the reference there to having over 40% completion—has that translated to an equivalent revenue recognition?

James Ferrier: Yep. Okay. Understood. With the first Firmus contracts, so the reference there to having over 40% completion, has that translated to an equivalent revenue recognition? What is the margin achievement that you have booked in these numbers?

Speaker #4: And what's the margin achievement that you've booked in these numbers?

Speaker #1: So yes, the answer is yes on the revenue. So the percentage is recognized on a straight effectively on a straight line basis in accordance with the accounting standard.

Craig Bellamy: Yes, the answer is yes on the revenue. So the percentage is recognized effectively on a straight line basis in accordance with the accounting standard.

Craig Bellamy: Yes, the answer is yes on the revenue. So the percentage is recognized effectively on a straight line basis in accordance with the accounting standard. So around that AUD 80 million mark there or thereabouts. In terms of the margin, our previously guided at 15% to 20% range is reflective of what's in the accounts at June.

Speaker #1: So yes, so around that $80 million mark, there or thereabouts. And in terms of the margin, our previously guided 15% to 20% range is reflective of what's in the accounts there, Joan.

Craig Bellamy: So around that AUD 80 million mark there or thereabouts. In terms of the margin, our previously guided at 15% to 20% range is reflective of what's in the accounts at June.

Speaker #4: Yeah, great. The plant sales—national plant sales business—that is part of the construction materials divestment, with the restatement out of the CCH segment.

James Ferrier: Yep. Great. The national plant sales business that is part of the construction materials divestment with the restatement out of the Civil, Construction and Hire segment. So we can see it did about AUD 9 million of EBITDA in FY25. What did it achieve in FY26?

Speaker #4: So, we can see it did about $9 million of EBITDA in FY25. What did it achieve in FY26?

Speaker #1: It was a similar amount.

Craig Bellamy: It was a similar amount. Similar.

Speaker #4: Yeah, okay. And then, last question—I saw some press coverage recently of an industrial site that MaaS Group reportedly acquired in Newcastle. Is that for commercial property development purposes, or is that part of your efforts to expand capacity within the electrical segment?

James Ferrier: Yeah. Okay. Last question. I saw some press coverage recently of an industrial site that MAAS Group reportedly acquired in Newcastle. Is that for commercial property development purposes, or is that part of your efforts to expand capacity within the electrical segment?

Speaker #1: No, it's commercial development.

Craig Bellamy: No, it is commercial development.

Wes Maas: No, it is commercial development.

Speaker #4: Yeah. Okay. Everyone, thanks. James, thanks for your time.

James Ferrier: Yeah. Okay. Good one. Thanks, gents. Thanks for your time.

Speaker #1: Thanks, Mike.

Wes Maas: Thanks, Mark.

Speaker #3: Thank you. Our next question comes from Mitch Sonigan. Please proceed with your question.

Operator 2: Thank you. Our next question comes from Mitch Sonogan with Macquarie. Please proceed with your question.

Operator: Thank you. Our next question comes from Mitch Sonogan with Macquarie. Please proceed with your question.

Speaker #4: Good morning, Wes and Craig. Can you hear me this time?

Mitch Sonogan: Good morning, Wes and Craig. Can you hear me this time?

Speaker #1: Yeah. We can, Mitch.

Wes Maas: We can, Mitch.

Craig Bellamy: We can, Mitch.

Wes Maas: Hey, Mitch.

Speaker #4: Good morning, guys. Congrats on a good result. Clearly, a lot going on in the business. Wes, just on the service contracts—and sorry if these have already been asked.

Mitch Sonogan: Good morning, guys. Congrats on a good result. Clearly a lot going on in the business. Wes, just on the Firmus contracts, and sorry if these have already been asked, I have just dropped off there. Just in terms of, I guess, the delivery, you are on track to deliver the first contract this year, and you have clearly got a much larger second contract. But just wondering, can you give us an update on how much capacity you have through the existing network of factories and production capacity? Does that second contract sort of absorb a lot of that, or is there still a lot of space over in Vietnam, et cetera? So yeah, just keen to understand where you are in terms of capacity on delivering those contracts and scope for more.

Speaker #4: I've just dropped off there. Just in terms of—I guess, the delivery, you're on track to deliver the first contract this year, and you've clearly got a much larger second contract.

Speaker #4: But just wondering, can you give us an update on how much capacity you have through the existing network of factories and production capacity? Does that second contract sort of absorb a lot of that, or is there still a lot of space over in Vietnam, etc.?

Speaker #4: So, yeah, just keen to understand where you are in terms of capacity on delivering those contracts, and the scope for more.

Speaker #1: Yeah, yeah. I think we said about 40 at the end of the period, 40% finished on the first order, and we're continuing to scale up.

Wes Maas: Yeah. I think we said there is 40 at the end of the period, 40-odd percent finished on the first order, and we are continuing to scale up. Yeah, we do have further capacity beyond that second order. I do not have an exact percentage, but we are definitely working towards scaling up beyond that.

Speaker #1: So, yeah, we do have further capacity beyond that second order. I don't have an exact percentage, but we're definitely working towards scaling up beyond that.

Speaker #4: Yeah. I guess I was just thinking back with that as you start doing delivering that second contract is, say, all of the other factory capacity for, is there still plenty of capacity to do that or, say, over in Vietnam, is there additional space around the existing factory that you can take on if you continue to see further growth?

Mitch Sonogan: Yeah, I guess I was just thinking back with that, as you start delivering that second contract, is all of the factory capacity full, or is there still plenty capacity to do that? Or say, over in Vietnam, is there additional space around the existing factory that you can take on if you continue to see further growth?

Speaker #1: No, there's additional capacity available to continue to scale and grow.

Wes Maas: No, there is additional capacity available to continue to scale and grow.

Speaker #4: Yeah, thanks. And then, just in terms of other parties outside of Furnace, have there been any conversations that you've had, or are you getting inbounds on the back of these initial contracts that you've won and are delivering to Furnace?

Mitch Sonogan: Yeah, thanks. Just in terms of other parties outside of Firmus, have there been any conversations that you have had or you are getting inbounds on the back of these initial contracts that you have won and are delivering to Firmus? I imagine, if you successfully deliver that first one, that is going to be a pretty big tick of approval and might generate a bit more inbound interest. Yeah, just keen to understand how you see the future growth potential of that business outside of Firmus. Thanks, guys.

Speaker #4: And I imagine if you successfully deliver that first one, that's going to be a pretty big tick of approval and might generate a bit more inbound interest.

Speaker #4: So yeah, just keen to understand how you see the future growth potential of that business outside of furnace. Thanks, guys.

Speaker #1: Approval, yeah. The business is very broad, and we're already working for many of the other data center providers today. That was probably prior to working for Furnace.

Wes Maas: Sure. The business is very broad, and we are already working for many of the other data center providers today. That was probably prior to working for Firmus. So we are continuing to do that. It is very widely reported, the various data centers that are coming online in various locations, and we are doing quite a bit of work in the transmission space to connect up these data centers, et cetera. So, we definitely can see the pipeline in the future as being quite exciting and working for many of the operators.

Speaker #1: So we're continuing to do that. And I mean, it's very widely reported—the various data centers that are coming online in various locations—and we're doing quite a bit of work in the transmission space to connect up these data centers, etc.

Speaker #1: So we definitely can see the pipeline in the future as being quite exciting and working for many of the operators.

Speaker #4: Thank you.

Mitch Sonogan: Thank you.

Speaker #1: Thanks, Mitch.

Wes Maas: Thanks, Mitch.

Speaker #3: Thank you. Our next question comes from James Ferrier with Concord Genuity. Please proceed with your question.

Operator 2: Thank you. Our next question comes from James Ferrier with Canaccord Genuity. Please proceed with your question.

Operator: Thank you. Our next question comes from James Ferrier with Canaccord Genuity. Please proceed with your question.

James Ferrier: James, just one last one from me. On the acquisition front, and maybe thinking about this through the lens of your updated capital allocation framework, can you give a bit more color, Wes, on what your focus is with respect to strategic acquisitions? You have given us that framework. You have talked about going forward with that 2 to 3 times target leverage ratio. So there is still plenty of capacity there. But over the last 6 to 12 months, how have you refined your thinking about where you are looking at for strategic acquisitions?

Speaker #4: I just have one last question for me. On the acquisition front, and maybe thinking about this through the lens of your updated capital allocation framework, can you give a bit more color, Wes, on what your focus is with respect to strategic acquisitions?

Speaker #4: You've given us that framework. You've talked about going forward with that 2 to 3 times target leverage ratio, so there's still plenty of capacity there. But over the last 6 to 12 months, how have you refined your thinking about where you're looking for strategic acquisitions?

Speaker #1: Look, I would say that we're unchanged. So we're looking to bolster our existing businesses, and by that, clearly, you can see that we're saying we've got a strong outlook in electrical.

Wes Maas: Look, I would say that we are unchanged. We are looking to bolster our existing businesses.

Wes Maas: Look, I would say that we are unchanged. We are looking to bolster our existing businesses. By that, clearly you can see that we are saying we have got a strong outlook in electrical. So we are looking at some potential acquisitions to bolster our capability and maybe spread a little bit further in that supply chain there. We do not have anything definitive right here right now today. But we understand where we are going and we have got a clear focus on a return on capital, and we have got a few rules. So we must be able to understand what we are doing. We must be able to add value, and it must be scalable.

Wes Maas: By that, clearly you can see that we are saying we have got a strong outlook in electrical. So we are looking at some potential acquisitions to bolster our capability and maybe spread a little bit further in that supply chain there. We do not have anything definitive right here right now today. But we understand where we are going and we have got a clear focus on a return on capital, and we have got a few rules. So we must be able to understand what we are doing. We must be able to add value, and it must be scalable. So that is our rules, and we have been successful in the past, and we believe with the opportunities that are in front of us, we can reasonably deploy that capital to get a sufficient return.

Speaker #1: So, we're looking at some potential acquisitions to bolster our capability and maybe spread a little bit further in that supply chain there. We don't have anything definitive right here and right now, today.

Speaker #1: So, but I mean, we understand where we're going and we're going to maintain a clear focus on return on capital, and we've got a few roles, so we must be able to understand what we're doing.

Speaker #1: We must be able to add value and it must be scalable. So that's our rule, and we've been successful in the past. We believe, with the opportunities that are in front of us, we can reasonably deploy that capital to get a sufficient return.

Wes Maas: So that is our rules, and we have been successful in the past, and we believe with the opportunities that are in front of us, we can reasonably deploy that capital to get a sufficient return.

Speaker #4: Have you missed out on anything recently, given that financial discipline you're talking about? And there's a lot of interest in the sector, in that electrical space.

James Ferrier: Have you missed out on anything recently, given that financial discipline you are talking about, and there is a lot of interest in the sector, in that electrical space? Have you missed out on anything?

Speaker #4: Have you missed out on anything?

Wes Maas: No, we haven't. No. We haven't been in a process where we've missed out, so the answer is no.

Speaker #1: No, we haven't. No, we haven't. We haven't done—we haven't been in a process where we've missed out. So, the answer is no.

Speaker #4: Yeah. Okay. Thanks, James. I appreciate your time.

James Ferrier: Yeah, okay. Thanks, James. Appreciate your time.

Speaker #1: Thanks, James. Thanks.

Wes Maas: Thanks, James.

Speaker #3: There are no further questions at this time. I'll now hand back to Mr. Mars for closing remarks.

Operator 2: There are no further questions at this time. I'll now hand back to Mr. Maas for closing remarks.

Operator: There are no further questions at this time. I'll now hand back to Mr. Maas for closing remarks.

Speaker #1: Thank you. Again, just to wrap up, I've got 26. I'll say again, it's been a transformational year—crystallization of the significant value we created in the construction materials business.

Wes Maas: Thank you. Again, just to wrap up FY26, I will say again, it has been a transformational year, crystallization of the significant value we have created in the construction materials business. We think we are very well-positioned to take advantage of the next phase. Thank you, everyone. Appreciate your interest and thank you.

Speaker #1: And we think we're very well positioned to take advantage of the next phase. So, thank you, everyone. We appreciate your interest, and thank you.

Speaker #4: Thank you.

James Ferrier: Thank you.

Craig Bellamy: Thank you.

Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker #3: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Wes Maas: Where do you-

Browse all earnings call transcripts

Full Year 2026 MAAS Group Holdings Ltd Earnings Call

Request TrialDemo

MAAS

Earnings