Mader maintains growth momentum

Heavy mining equipment maintenance company, Mader Group, has reported a 12th consecutive quarter of revenue growth and says market conditions in Australia and North America remain supportive of further expansion.

The Australian Securities Exchange-listed company, which has seen its share price more than double in the past 12 months, says its FY23 net profit of “at least” A$37 million has been achieved on a circa-50% year-on-year revenue increase to $608.8 million. It will post audited results on August 22.

Mader upgraded its revenue and profit forecasts several times since the start of 2023.

Its Q4 revenue to the end of June was up 46% yoy at $172.9m.

Mader said customer demand for core services in Australia ($130.5m Q4 revenue, up 31% yoy) remained strong and the company continued to “experience success in the market penetration of new vertical service offerings”.

The key North American offshore growth segment delivered $40.4m of revenue, 139% higher yoy. “Continued momentum” within North America was delivered through expansion into new regions and widening of the customer base, Mader said.

“The last quarter of FY23 delivered an exceptional result of $172.9m in revenue, and notably our 12th consecutive quarter of record revenue growth,” CEO Justin Nuich said.

“Across the globe our performance has exceeded expectations, characterised by strong growth in the Australia segment coupled with continued expansion throughout North America. We have achieved outstanding early growth in Canada, with business development and local recruitment efforts performing well above expectations.

“We are now operating in five provinces and territories in the region with about 160 skilled technicians catering to strong customer demand.

“Investing in our people, our two culture-led programs Global Pathways and Three Gears, continue to enhance the Mader employment experience for our global workforce.”

Mader reduced net debt in the past six months by $8.2m to $42.7m at the end of June.

The company’s share price is up more than 17% in the past month at A$5.81, capitalising Mader at $1.16 billion.

The price has climbed about 60% in 2023 and more than doubled in the past year.

 

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