MLG Oz delivered a stronger earnings year, with statutory NPAT rising 19.2% and underlying EBITDA margin expanding to 13.4%. The mining services group has resumed dividends while taking on higher fleet investment and debt ahead of FY2027.
- Statutory revenue rose 3.4% to $567.0 million
- Statutory NPAT increased 19.2% to $14.5 million
- Pro forma EBITDA margin expanded to 13.4% from 12.2%
- FY2026 dividends totalled 2.55 cents per share
- Capital expenditure reached $63.6 million as MLG expanded owned fleet
Profit growth outpaces revenue
MLG Oz Limited (ASX:MLG) turned a relatively modest increase in revenue into a much stronger improvement in earnings during FY2026. Statutory revenue rose 3.4% to $567.0 million, while net profit after tax increased 19.2% to $14.5 million.
The underlying result was stronger still. MLG’s pro forma EBITDA climbed 14.2% to $75.5 million on pro forma revenue of $561.4 million, while pro forma NPAT rose 34.7% to $16.3 million. The pro forma figures exclude a $750,000 fine linked to a 2022 safety incident and a $1.6 million non-cash write-off of facilities at the King of the Hills site.
Pro forma EBITDA margin widened to 13.4%, from 12.2% a year earlier, with the second half reaching 14.1%. Management attributed the improvement to tighter cost control, better fleet utilisation, labour productivity, procurement and a stronger contribution from crushing and screening.
Crushing work and long-term contracts support the mix
Mine site services and bulk haulage remained the core of the business, generating $512.7 million in revenue compared with $494.9 million in FY2025. The portfolio absorbed the completion of MLG’s Rio Tinto Western Turner Syncline 2 engagement, with recurring work across its customer base helping to keep performance resilient.
Crushing and screening revenue increased 7.0% to $48.7 million as MLG secured more projects and longer-duration engagements. The company commenced a 30-month contract with New Murchison Gold and continued crushing and stemming work for Fortescue and Northern Star. The result builds on the Newmont Tanami extension, which earlier coverage said carried a five-year term and two one-year options.
MLG also agreed new commercial terms with Newmont for integrated services at its Tanami Operations. The agreement provides a five-year term from May 2026, plus two additional one-year extension options. Civil capability gained further profile through completion of Evolution Mining’s 26.4-kilometre Castle Hill all-weather haul road.
Fleet investment lifts debt and ownership exposure
The sharper margins came alongside a substantial investment cycle. Capital expenditure totalled $63.6 million, comprising $30.6 million of sustaining capital, $24.5 million of growth capital and about $8.5 million spent late in the year replacing hired equipment with MLG-owned fleet.
Net debt was described as $75.5 million in the chair and CEO reports, while the statutory financial review reported $77.2 million. Gearing was approximately 1.0 times EBITDA. The ownership strategy is intended to reduce equipment-hire costs where utilisation and project duration are sufficiently certain, but it also leaves MLG carrying more capital and financing exposure if work levels soften.
Cash generated from operating activities fell to $51.9 million from $57.8 million, even as profit improved. The financial statements show $46.7 million of equipment finance drawdowns during the year, highlighting the funding required to expand and renew the fleet.
Dividend resumes as leadership changes
The board declared a fully franked final dividend of 1.30 cents per share, taking FY2026 dividends to 2.55 cents per share after the 1.25-cent interim payment. The resumption of distributions comes as MLG reports stronger earnings, although it coincides with a higher debt load and continued investment requirements.
Leadership responsibilities also shifted during the year. Founder Murray Leahy moved from managing director and CEO to executive chair, Mark Hatfield became CEO, and Anna Neuling moved from chair to lead independent non-executive director. MLG said the structure separates strategic oversight from day-to-day management as the group grows.
FY2027 begins with contracted and recurring work, including the commencement of the Develop engagement. Earlier coverage described that project as a A$70 million integrated mining and crushing contract at the Pioneer Dome lithium project, with a 12-month campaign starting in July 2026. MLG has not provided numerical earnings guidance.
Climate reporting adds disclosure, not yet targets
MLG’s first AASB S2 climate report identifies acute weather, rising temperatures, drought and water stress, emissions regulation and shifting client requirements as relevant risks. It reported Scope 1 emissions of 147,062 tonnes of CO2 equivalent and Scope 2 emissions of 341 tonnes, while noting that some fuel data was estimated and that Scope 3 emissions were omitted under transitional relief.
The company has no formal climate-related targets, internal carbon price or link between climate performance and executive remuneration. It has deployed 11 hybrid-powered loaders and is piloting electric trailers, but says the financial effects of lower-emissions equipment remain unquantified.
Bottom Line?
MLG’s immediate test is whether FY2026’s margin gains can persist while owned-fleet investment, debt servicing and new contract execution all rise together.
Questions in the middle?
- Can MLG sustain a 13% plus EBITDA margin after the completed Rio Tinto project and the shift towards greater fleet ownership?
- Will the Develop, New Murchison Gold and expanded Newmont work translate into stronger FY2027 cash generation rather than simply higher capital requirements?
- How quickly will hybrid and electric equipment move from early-stage trials into commercially material contracts or cost savings?