Mader books strong Q3 growth

Mader Group’s March-quarter revenue was the best in its 17-year history, the Australian heavy equipment maintenance provider said today. The company’s $A98.1 million of Q3 revenue was up 29% on the same period in fiscal 2021 and 4.3% higher than in Q2 FY22.

Mader’s core domestic business contributed $82.2m of Q3 revenue, up 20% on the previous corresponding period, with “continued strong customer demand and improved workforce mobility” said to be growth factors. Easing Western Australia border restrictions helped Mader draw workers from outside the state. Total staff numbers rose by more than 250 to plus-2000 at the end of March.

Mader’s North American business delivered a 146% year-on-year revenue increase to $13.2m.

“The North America market remains a key pillar in our long-term strategy and we are pleased with our ability to secure a widening network of customers within the mining and energy sectors,” chief executive officer Justin Nuich said. “Our organic start-ups in Mader Canada and Mader Energy are in the early stages of establishing a market position, however, we are already seeing strong signs that our unique business model will operate well in these new markets.”

Mader reaffirmed its full-year guidance for $24m NPAT on $370m of revenue.

“Mader continues to focus on its core strategic priorities; the delivery of strong compounding revenue growth through expanded service offerings and regional diversification,” the company said. “The significant momentum that has been built over five consecutive quarters of record revenue is expected to continue throughout Q4 FY22 and into FY23.”

Mader’s share price was up nearly 3% today to A$2.92, capitalising the company at circa-$584m.

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