Mastermyne Reports $4.1M Underlying Profit on $108.9M Revenue in H1 FY26

Operational Recovery and Financial Highlights

Mastermyne Group Limited has delivered a notable turnaround in its half-year results for the period ending 31 December 2025. Despite a 7% decrease in revenue to $108.9 million compared to the prior corresponding period, the company achieved a 53% increase in statutory profit before tax to $1.9 million and a 129% surge in underlying net profit after tax from continuing operations to $4.1 million. This performance reflects a successful operational recovery following challenges in FY25, including production suspensions at Moranbah North and Grosvenor mines and the closure of Integra mine.

Contract Wins and Strategic Partnerships

The growth momentum was underpinned by the full ramp-up of a new contract at the Appin mine and increased activity across most projects. Mastermyne secured a six-month extension for contracts at three Anglo American underground mines and won new contracts at Yancoal Australia’s Ashton and Moolarben mines. Post-period, Anglo American issued a letter of intent for a further 12-month contract starting April 2026, reinforcing confidence in Mastermyne’s service offering. Additionally, the company extended its exclusive distribution agreement with Jennmar until 2047, securing access to market-leading resin injection and cavity filling products critical to its strata consolidation services.

Divestment and Focus on Core Operations

In a strategic move to sharpen its focus, Mastermyne completed the sale of its MyneSight training business in February 2026. The divestment aligns with the company’s intent to concentrate on its core underground coal mining services, as MyneSight had limited synergy and was loss-making. This decision is expected to streamline operations and enhance capital allocation towards higher-value opportunities.

Balance Sheet and Cash Flow Strength

Mastermyne’s financial position remains robust, with net cash increasing by 14% to $33.1 million at 31 December 2025. The company reported a strong order book valued at $275 million, up from $190 million a year earlier, reflecting a healthy pipeline of projects estimated at approximately $1.1 billion. Net tangible assets rose to $64.9 million, equating to 21 cents per share, underscoring the company’s solid asset base.

Legal Contingencies and Risk Management

The company continues to manage legal contingencies related to workplace incidents at Crinum and Moranbah North mines, with proceedings scheduled for trial in March 2026. Mastermyne has not recognised any liabilities in its financial statements for these matters, citing insurance coverage and the contingent nature of the claims. Investors will be watching closely as these cases progress.

Outlook and Strategic Direction

Looking ahead, Mastermyne anticipates sustained demand for metallurgical and thermal coal, supported by recent price recoveries and the recommencement of longwall operations at several Australian mines. The company plans to pursue disciplined growth, leveraging its financial strength to explore organic and acquisition opportunities while maintaining a strong emphasis on safety and operational excellence. This strategy aims to deliver consistent shareholder returns amid a dynamic market environment.