Mader revenues up amid global expansion

Mader shares were boosted on the back of a half-yearly update that observed a $44 million uptick in revenues as the heavy equipment and services provider works to build its international presence.

Overall revenues for Mader’s first half of the 2022 financial year amounted to $185.2 million, a 31 per cent increase or $44 million more than it collected in the prior corresponding period.

Its Australian operations brought in the vast majority of these earnings at $160.2 million, while the launch of its Mader Canada and Mader Energy divisions brought in first revenue during the half.

It describes Mader Energy as a start-up supporting natural gas operations in the US.

As a result, revenue from Northern American operations reached $19.3 million compared to $11.6 million on the prior period.

Its ‘rest of the world operations’, which comprises Africa, Asia and Oceania, generated $5.7 million compared to $2.2 million.

Mader also upgraded revenue guidance from the $355 million to $365 million range to “at least $370 million” for FY22, citing “robust financial results and exception global demand in markets”

It will pay out a 2 cents per share interim fully-franked dividend after paying 1.5 cents per share for a final dividend for the previous financial year.  

Net profits were up 39 per cent to close the half-year at $12.1 million.

Mader chief executive Justin Nuich said the company had laid solid revenue growth foundations.

“We continued to see an expansion in our traditional service offerings and are excited by the early success of new growth platforms introduced in recent years,” Mr Nuich said in a statement.

“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.”

Revenue growth for the infrastructure maintenance division was up 70 per cent on the prior corresponding period.

“These business units allow Mader to broaden its revenue base and provide new services utilising labour outside of our traditional talent pools,” Mr Nuich said.

Mader also secured a new 3,400 square metre maintenance facility in which is scheduled for completion later this year.

Mader Group shares were up over 6 per cent before closing the day 2.26 per cent higher at $2.26.