Daily Roundup

MAH.ASX DRR.ASX COH.ASX SRG.ASX RWC.ASX

Macmahon Holdings Delivers Record Results and Boosts Shareholder Returns

Mining services company Macmahon Holdings capped off a strong financial year with record revenue of $2.6 billion, up 8% from FY25. The standout performer was underlying EBIT(A), which jumped 11% to $190.1 million, reflecting improved project execution across its Underground Mining and Civil Infrastructure divisions. The company also made significant progress on its balance sheet, slashing net debt by 31.6% to $111.1 million.

Shareholders will be pleased with the 47% increase in the full-year dividend to 2.20 cents per share, fully franked. Looking ahead, Macmahon is well-positioned for continued growth, backed by a diversified order book worth $5.9 billion and $2.2 billion of secured work in hand. The company guided for FY27 revenue between $2.85 billion and $3.05 billion, with underlying EBIT(A) expected to land between $205 million and $225 million.

SRG Global Accelerates Growth with Record Order Book

Infrastructure services provider SRG Global delivered a stellar FY26, with revenue surging 27% to $1,675.5 million and underlying EBITDA climbing 34% to $170.1 million. The company exceeded its upgraded FY26 guidance and demonstrated strong cash conversion, with EBITDA translating to cash at a 101% rate. SRG Global also swung back to a net cash position of $6.2 million from proforma net debt of $52.5 million.

The TAMS acquisition, completed during the year, delivered above expectations in its first eight months and is now fully integrated. This strategic addition enhanced SRG Global's marine services capabilities and contributed to a record work in hand of $5.1 billion, up 42% year-on-year. The company upgraded its FY27 guidance to $195 million to $205 million in EBITDA and $150 million to $160 million in EBIT(A). With approximately 80% of earnings now derived from recurring revenue streams and an $11.5 billion opportunity pipeline, SRG Global is building a more resilient, diversified business. The board declared a 2H fully franked dividend of 4.0 cents per share, up 33%.

Cochlear Advances Strategic Initiatives Despite Modest Growth

Hearing implant manufacturer Cochlear reported a 2% increase in sales revenue to $2.3 billion in constant currency for FY26, meeting the upper end of its revised guidance. Underlying net profit reached $322 million, reflecting solid operational performance. The company marked a strategic milestone with the launch of the Cochlear Nucleus Nexa System, a smart implant designed to enhance patient experience, while also investing more heavily in R&D and taking steps to reduce fixed costs and improve margins.

For FY27, Cochlear expects low single-digit constant currency sales growth and underlying net profit between $330 million and $350 million, with gross margin anticipated around 70-71%. The company remains confident in its long-term growth prospects, driven by unmet clinical need and increasing awareness of hearing loss globally.

Deterra Royalties Strengthens Position with Thacker Pass Progress

Royalties company Deterra Royalties reported a 5% increase in profit after tax to $164.2 million for FY26, despite an 8% decline in revenue to $242.4 million, primarily due to lower MAC capacity payments and reduced gold offtake revenue. The company completed the acquisition of Trident Royalties PLC and subsequently divested non-core precious metal assets for US$82 million, effectively acquiring Thacker Pass for a net US$106 million. This divestment delivered approximately 45% of the consideration paid for Trident with a 28% pre-tax internal rate of return.

Deterra maintained a strong balance sheet with net debt reduced to $132.5 million and $357 million in undrawn debt capacity. The company declared a fully franked final dividend of 10.8 cents per share. Thacker Pass is on track for mechanical completion in 2027, with full Phase 1 production capacity expected in 2028. The project has been derisked with US$1.2 billion drawn on a US$2.2 billion US Department of Energy loan, backed by US Government equity rights.

Reliance Worldwide Faces Headwinds Amid Brookfield Proposal

Plumbing and water products company Reliance Worldwide Corporation reported a challenging FY26, with net sales declining 0.7% to $1,305.6 million. The reported net profit after tax fell sharply by 95% to $6.3 million, though adjusted net profit (excluding one-off charges from manufacturing closures) was $125.1 million, down 15.3%. The company grappled with US tariffs, higher input costs, and weaker demand in key markets.

RWC generated $263.4 million in cash from operations and reduced net debt to $243.4 million. However, the company did not declare a final dividend following an unsolicited proposal from Brookfield Capital Partners to acquire the company for A$4.75 per share—a 31.6% premium to the last closing price, valuing RWC at approximately A$4.1 billion. RWC has entered a process deed with Brookfield and will negotiate in good faith over the coming weeks, with a 'go-shop' period allowing the company to solicit third-party interest. For FY27, RWC expects sales to grow by mid to high-single digits in constant currency, though it doesn't anticipate significant improvement in broader economic conditions.