Mastermyne’s FY25 Revenue Falls 27% but Order Book Hits $314 Million
Mastermyne Group reported a 27% revenue decline in FY25 amid mine disruptions but maintained steady cash flow and expanded its order book to $314 million, underpinned by improved safety and strategic focus.
- Revenue down 27% to $214 million due to mine suspensions and closures
- Underlying EBITDA halved to $13.2 million with cost efficiencies underway
- Order book grew to $314 million with new contracts at Centurion and Appin mines
- Safety performance improved significantly, TRIFR reduced to 5.09 with zero life-changing incidents
- Interim dividend paid; no final dividend declared to conserve cash for growth
Navigating a Challenging Year
Mastermyne Group Limited’s FY25 results reveal a company grappling with significant external disruptions yet demonstrating resilience and strategic discipline. Revenue fell sharply by 27% to $214 million, primarily due to operational suspensions at key sites including Grosvenor and Integra mines, and restrictions at Moranbah North. These events, outside the company’s control, weighed heavily on top-line performance and earnings.
Despite this, Mastermyne managed to sustain an underlying EBITDA of $13.2 million, roughly half of the prior year’s $29.4 million, reflecting the impact of these external shocks but also the benefits of cost reductions and efficiency improvements that are expected to fully materialize in FY26.
Order Book and Cash Flow Strength
One of the standout positives is the growth in the company’s order book, which expanded to $314 million from $280 million in FY24. This increase was driven by new contract awards at Peabody Energy’s Centurion mine and Glencore’s Appin mine, signalling confidence from major clients and a solid pipeline of future work. The company also reported steady net operating cash flow of $16.9 million, consistent with the previous year, helping to boost net cash reserves to $29.1 million.
Mastermyne’s decision to pay a fully franked interim dividend of 0.5 cents per share but withhold a final dividend underscores a cautious approach to capital management, prioritizing liquidity to support organic growth and potential acquisitions.
Safety and Governance Advances
Safety remains a core focus, with the company reporting a significant reduction in its Total Recordable Injury Frequency Rate (TRIFR) to 5.09 from 9.85 the previous year, alongside zero life-changing incidents. This improvement is attributed to targeted leadership training and behavioural safety initiatives, reinforcing Mastermyne’s commitment to a positive safety culture.
On governance, the appointment of a new non-executive chair and a rebalanced Audit & Risk Committee charter reflect an enhanced emphasis on risk management and corporate responsibility. Environmental initiatives are also gaining traction, with the development of a climate-related disclosure roadmap and efforts to reduce the company’s carbon footprint.
Looking Ahead
Mastermyne’s FY26 outlook is cautiously optimistic. The company plans to leverage its strengthened balance sheet and expanded order book to pursue both organic growth and strategic acquisitions, including potential diversification into adjacent sectors. Internal efficiency projects and supplier partnerships aim to sharpen competitive advantages amid ongoing market headwinds.
While challenges remain, particularly from legacy legal matters and market volatility, Mastermyne’s blend of operational resilience, financial prudence, and strategic focus positions it well to navigate the year ahead.
Bottom Line?
Mastermyne’s FY25 results highlight resilience amid adversity, setting the stage for growth if external headwinds ease.
Questions in the middle?
- How will legacy incident prosecutions impact future operations and costs?
- What specific growth opportunities might Mastermyne pursue through M&A or diversification?
- Can efficiency gains and new contracts offset ongoing market pressures in FY26?
