MLG Oz Lifts FY2026 Profit 19% on Crushing Growth and Contract Wins
MLG Oz Limited lifted net profit after tax by 19.2% to $14.5 million, supported by stronger crushing and screening services and renewed contracts with key mining clients.
- Revenue increased 3.4% to $567 million
- Net profit after tax rose 19.2% to $14.5 million
- EBITDA margin improved to 13.4%, driven by crushing services
- Five-year contract extension secured with Newmont's Tanami Operations
- Capital expenditure of $63.6 million including fleet renewal
Financial Performance and Margin Expansion
MLG Oz Limited (ASX:MLG) delivered a solid FY2026 result with revenue climbing 3.4% to $567 million and net profit after tax surging 19.2% to $14.5 million. The company’s pro-forma EBITDA margin increased to 13.4% from 12.2% in the prior year, reflecting improved operational efficiency and a stronger earnings mix.
The boost in profitability was largely driven by the crushing and screening division, which saw increased demand, longer contract durations, and better utilisation of its mobile fleet. This segment’s growth helped offset a slight slowdown following completion of the Western Turner Syncline 2 project with Rio Tinto.
Contract Wins and Portfolio Stability
MLG’s core mine site services and bulk haulage portfolio remained resilient, delivering consistent performance across both halves of the year. The company extended its integrated services with Westgold Resources in the Murchison region for an additional 12 months, reinforcing its recurring client relationships.
Notably, MLG secured a new five-year agreement with Newmont for its Tanami Operations, commencing May 2026, with two further one-year extension options. This contract underlines MLG’s strategic foothold in the Northern Territory and is expected to provide steady revenue visibility.
The civil construction arm marked a milestone with the completion of the 26.4-kilometre Castle Hill Road project for Evolution Mining, showcasing MLG’s capability in delivering complex infrastructure linking mining centres to processing facilities.
Capital Investment and Fleet Renewal
MLG invested $63.6 million in capital expenditure during FY2026, including $8.5 million to replace externally hired equipment with owned assets. This strategic move aims to reduce reliance on hire arrangements and improve margins over time. The company’s net debt rose to $77.2 million, reflecting these investments, with gearing steady at approximately 1.0 times.
Fleet renewal and expansion remain central to MLG’s growth strategy, supporting its integrated services across haulage, site services, and crushing. The company’s asset base now stands at a carrying value of $230 million in property, plant, and equipment.
Governance Changes and Leadership Structure
In April 2026, MLG restructured its board and executive leadership to sharpen strategic oversight and operational accountability. Founder Murray Leahy transitioned from Managing Director and CEO to Executive Chair, while Mark Hatfield stepped up as CEO. Anna Neuling was appointed Lead Independent Non-Executive Director, complementing the board’s expertise in mining services and governance.
Climate-Related Disclosures and Sustainability Initiatives
MLG released its inaugural climate-related disclosures aligned with the AASB S2 standard, highlighting physical and transition risks from climate change. The company identified acute weather events, rising temperatures, drought, and emerging emissions regulations as material risks, while also noting opportunities in fleet electrification and low-emissions mine site services.
MLG has begun deploying hybrid powered loaders, with 11 units currently in operation, representing a near 10% share of its loader fleet. These initiatives position MLG to meet evolving client decarbonisation requirements and regulatory expectations, although the company has not yet set formal emissions targets or linked climate metrics to executive remuneration.
Dividend and Outlook
The board declared a final fully franked dividend of $0.0130 per share, amounting to $2.1 million, reflecting confidence in the company’s cash flow and capital management. While MLG refrained from providing detailed forward-looking guidance, it underscored the importance of sustaining operational discipline, securing longer-term contracts, and advancing its low-emissions fleet strategy.
MLG’s FY2026 result and strategic moves, including the five-year Newmont contract and ongoing fleet investments, set a foundation for steady growth amid a challenging labour market and evolving climate regulations. The company’s ability to navigate these dynamics will be critical in maintaining its market position and margin expansion.
Bottom Line?
MLG’s FY2026 results demonstrate operational resilience and margin improvement, but sustaining growth hinges on contract renewals and effective climate risk adaptation.
Questions in the middle?
- How will MLG balance fleet electrification investments with client demand and emerging regulations?
- What impact will labour market pressures and inflation have on MLG’s cost structure and margins?
- Can MLG leverage its integrated service offering to secure longer-term contracts beyond key clients like Newmont?
