Mader grows North America business

ASX-listed equipment maintenance company says ‘significant pillar’ taking shape

Australian heavy equipment maintenance provider Mader Group has reported a 66% year-on-year uplift in revenue in North America in the first half of FY22 while also posting a solid improvement in its domestic market.

The ASX-listed company said its Mader Canada and Mader Energy units in North America added A$19.3m of H1 revenue alongside the 26% higher yoy contribution of $160.2m in Australia.

Total Mader revenue for H1 was $185.2m, up 31% on FY21 H1. NPAT increased 39% yoy for the period to $21.1m.

CEO Justin Nuich said diversification of Mader’s revenues, with the launch of organic start-ups Mader Canada and Mader Energy, was “a significant pillar of the group’s long-term growth strategy”. The former delivered first revenue during the half year, securing work scopes in Fort McMurray, Alberta. The latter was launched in the period to target maintenance opportunities in the energy sector throughout North America. Multiple service agreements have been secured with first work scopes delivered in December 2021.

“These growth platforms include our Australian infrastructure maintenance division and multiple new service lines that are targeting heavy equipment maintenance services throughout North America’s mining and energy sectors,” he said. “These business units allow Mader to broaden its revenue base and provide new services utilising labour outside of our traditional talent pools. This ultimately leads to an enhanced value offering to our 240-plus customers around the world.”

Underpinned by confirmed forward orders for 28 machine rebuilds valued at circa-$20m, Mader is re-locating its workshop in Perth to a new “world-class, custom-built facility” due for completion this year.

Mader recently increased its FY22 guidance to $370m revenue and $24m NPAT.

Mader share price was up more than 2% today at A$2.26 today, capitalising the company at circa-$452m.

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