How Did MLG Oz Achieve 15.5% Revenue Growth Amid Operational Challenges?
MLG Oz Limited reported a 15.5% increase in revenue to $548.3 million and a 10.7% rise in net profit after tax to $12.1 million for FY2025, driven by new contract wins and improved margins in the second half. Despite strong financials, the company declared no dividend for the year.
- Revenue up 15.5% to $548.3 million in FY2025
- Net profit after tax increased 10.7% to $12.1 million
- Second-half EBITDA margin improved to 13.5%
- New contracts with Westgold South and Rio Tinto expanded operations
- Capital expenditure of $56.9 million and reduced debt gearing to 0.96x
Strong Revenue Growth Despite Early Year Challenges
MLG Oz Limited has delivered a robust financial performance for the year ended 30 June 2025, with revenues climbing 15.5% to $548.3 million and net profit after tax rising 10.7% to $12.1 million. The first half of the year, however, was marked by a transitional phase in crushing and screening operations, following the completion of major campaigns in the previous year, which temporarily dampened activity levels and margins.
Contract Wins Drive Second-Half Momentum
The company’s fortunes turned in the second half, buoyed by several significant contract wins, including the Westgold South haulage contract and MLG’s inaugural agreement with mining giant Rio Tinto. These new projects catalyzed a ramp-up in crushing and screening volumes and increased haulage demand, pushing the EBITDA margin up to 13.5% in the latter half compared to 10.9% in the first half. This operational scale-up underscores MLG’s ability to diversify its client base and expand its footprint across Western Australia and the Northern Territory.
Focused Investment and Financial Discipline
MLG invested $56.9 million in capital expenditure during FY2025, primarily to expand and replace fleet assets and upgrade systems. This strategic reinvestment supports the company’s vertically integrated model and positions it for sustained growth. The company also improved its financial health by reducing debt gearing to 0.96 times, reflecting disciplined capital management amid expansion. Net tangible assets per share increased to $1.07, signaling a stronger balance sheet.
Labour Market and Cost Pressures Remain Key Risks
Despite the positive results, MLG continues to face challenges from a tight labour market, particularly for skilled road train drivers and mechanical trades, which has led to labour inflation. The company mitigates this through internal training and proactive recruitment. Inflationary pressures on parts and equipment procurement, as well as fuel price volatility, also pose ongoing risks. Additionally, weather events impacting off-road mining sites could disrupt operations and revenue timing.
No Dividend Declared as Earnings Reinvested
In line with its growth strategy, MLG has chosen not to pay a final dividend for FY2025, opting instead to reinvest earnings into fleet expansion and technology enhancements. The company’s remuneration framework aligns executive incentives with shareholder returns, emphasizing performance and long-term value creation. The audited financial statements received an unqualified opinion, reinforcing confidence in the company’s reporting and governance.
Bottom Line?
MLG Oz’s FY2025 results reflect a company navigating operational transitions and market pressures while securing new contracts that promise resilience and growth ahead.
Questions in the middle?
- How will MLG manage labour shortages and inflationary pressures in FY2026?
- What impact will the Rio Tinto and Westgold South contracts have on future earnings visibility?
- Will MLG resume dividend payments as capital expenditure stabilizes?
