Mader’s Debt Plunge and Growth Surge: Can Momentum Last?
Mader Group has delivered record FY25 results with revenue climbing 13% to $872.2 million and net profit rising 13%, setting the stage for a $1 billion revenue target in FY26.
- Record FY25 revenue of $872.2 million, up 13%
- Net profit after tax increased 13% to $57.1 million
- Australian segment revenue grew 17%, North America returned to growth
- Net debt reduced by 73% to $8.3 million
- FY26 guidance targets at least $1 billion revenue and $65 million NPAT
Strong Financial Performance in FY25
Mader Group Limited (ASX, MAD) has reported a milestone year for FY25, posting record revenue of $872.2 million, a 13% increase over the prior year. The company’s net profit after tax (NPAT) also rose by 13% to $57.1 million, reflecting solid operational execution across its global segments. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 10% to $109.5 million, with margins holding steady, underscoring the resilience of Mader’s business model amid varied market conditions.
Segment Growth Drives Momentum
The Australian operations led the charge with a 17% revenue increase, fueled by expansion in core services and rapid growth in newer verticals such as Road Transport Maintenance, which surged 65%. Meanwhile, the North American segment, representing 19% of group revenue, returned to growth with an 8% increase in the second half of FY25, supported by a record headcount and strong market fundamentals in both the United States and Canada. The Rest of World segment posted an impressive 81% revenue jump, recovering to pre-pandemic activity levels and benefiting from demand in mining maintenance solutions across Asia, Africa, and Oceania.
Balance Sheet Strength and Dividend Increase
Mader’s balance sheet showed marked improvement, with net debt slashed by 73% to $8.3 million, reflecting disciplined cash flow management and a 101% cash flow conversion ratio. Free cash flow rose 52%, aided by a strategic shift towards less capital-intensive services. The company declared a fully franked final dividend of 4.8 cents per share, bringing total dividends for FY25 to 8.8 cents per share, a 13% increase consistent with earnings growth and a payout ratio of 31%.
Confident Outlook for FY26
Looking ahead, Mader Group projects continued growth momentum with FY26 revenue guidance set at a minimum of $1 billion, representing approximately 15% growth, and NPAT forecasted to reach at least $65 million. This outlook aligns with the company’s five-year strategic plan to become a global leader in specialist technical services, driven by geographic expansion, diversified service offerings, and a strong culture focused on safety and community engagement.
Leadership Perspective and Strategic Vision
CEO Justin Nuich highlighted FY25 as a pivotal year, emphasizing the company’s transformation and resilience. He pointed to the broadening customer base, deeper capabilities, and a robust global platform as key enablers for sustainable growth. The company’s commitment to safety was reinforced by initiatives such as the rollout of advanced driver monitoring systems across its fleet. Community engagement also remained a priority, with ongoing support for charities and local sporting teams worldwide.
Bottom Line?
Mader Group’s FY25 results set a strong foundation for ambitious growth in FY26, but sustaining momentum across diverse markets will be the next test.
Questions in the middle?
- How will Mader sustain margin stability amid rapid segment expansion?
- What risks could impact the ambitious $1 billion revenue target in FY26?
- How will the company leverage its Global Pathways Program to support North American growth?
