MLG Oz Surges 73% Profit Despite Weather and Safety Setback
MLG Oz Limited reported a robust half-year with revenue up 5.3% to $287.2 million and net profit soaring 73.3% to $7.1 million, overcoming early weather disruptions and a significant safety fine.
- Revenue increased 5.3% to $287.2 million
- Net profit after tax jumped 73.3% to $7.1 million
- Early quarter weather disruptions impacted operations
- Safety fine of $750,000 imposed for 2022 incident
- Interim fully franked dividend declared at 1.25 cents per share
Strong Recovery After Weather Challenges
MLG Oz Limited has delivered a notably strong financial performance for the half year ended 31 December 2025, reporting a 5.3% increase in revenue to $287.2 million and a striking 73.3% rise in net profit after tax to $7.1 million. The company faced a challenging start to the period, with heavy rainfall in July and August disrupting operations across multiple regions and limiting haulage and site services activity.
However, from September onwards, MLG Oz demonstrated resilience and operational discipline, recovering momentum with improved fleet utilisation and tighter cost controls. This turnaround was particularly evident in haulage and site services, which benefited from sustained demand in the gold sector and stable pricing under existing contracts.
Growth in Crushing and Screening Segment
The crushing and screening division also contributed to the positive results, with revenues increasing by 4.1% to $22.8 million. This growth was driven by better utilisation rates and the mobilisation of new projects. The company has invested in additional crushing equipment during the period, positioning itself for further expansion as new contracts ramp up in the second half of the financial year.
Safety Incident and Corporate Response
MLG Oz was fined $750,000 by WorkSafe related to a safety incident from 2022. The company has since made significant improvements to its safety systems, controls, and culture, emphasizing safety as a core value. The Board and executive team continue to prioritise safety leadership, training, and risk management to prevent future incidents.
Operational Highlights and Market Position
Operationally, the Western Turner Syncline project stood out, with MLG Oz delivering contracted volumes ahead of schedule, leading to an extension of the contract with Rio Tinto. Civil construction activities also performed well, including the completion of the Castle Hill Road project for Evolution Mining, although some new tenders have been delayed due to client approval processes.
The company continues to navigate labour market challenges, particularly in securing skilled operators and maintenance personnel, through focused recruitment and training initiatives. Financially, net tangible assets per share improved to $1.06, reflecting a solid balance sheet and ongoing investment in fleet and equipment.
Dividend and Outlook
Reflecting confidence in its financial position, MLG Oz declared a fully franked interim dividend of 1.25 cents per share. While the company did not provide explicit forward guidance, the improved operational momentum and contract pipeline suggest a positive trajectory heading into the second half of the financial year.
Bottom Line?
MLG Oz’s strong rebound and contract wins set the stage for continued growth, but safety and labour market pressures remain key watchpoints.
Questions in the middle?
- How will MLG Oz sustain margin improvements amid ongoing labour shortages?
- What impact will delayed civil works tenders have on future revenue growth?
- Can the company maintain its enhanced safety standards to avoid further penalties?
