MAAS Group (ASX:MGH) executives highlighted higher earnings, stronger cash flow conversion and an upgraded full-year outlook during the company’s first-half FY26 results call, while also emphasizing the strategic significance of its announced construction materials divestment to Heidelberg.
First-half performance and upgraded FY26 outlook
CEO and Managing Director Wes Maas said underlying group NPAT rose 26% from the prior corresponding period. The company reported underlying EBITDA of AUD 115.3 million for the six months ended 31 December 2025, up 21% year over year, supported by revenue growth of 33%.
On cash generation, Bellamy said operating cash flow conversion was 100%, improving materially from the prior period due to working capital control. Net maintenance capex was approximately AUD 15 million, which he said is consistent with the long-term average since listing.
Heidelberg transaction and capital recycling
Management reiterated the previously announced sale of its construction materials (CM) portfolio to Heidelberg for north of AUD 1.7 billion, describing it as consistent with its “build, scale, recycle, reinvest” model. The transaction is expected to complete in the second half of calendar 2026, subject to customary regulatory approvals. Until completion, the construction materials business will remain owned by MAAS and contribute earnings through FY26.
Maas and Bellamy pointed to the return profile of the CM portfolio. Maas said that since listing—and assuming completion of the sale—the construction materials division will have delivered an effective annual return on capital employed of 56% per annum. He also cited 28% per annum annual return on capital employed at the overall group level since listing.
Separately, the group continues to pursue property-related capital recycling. Bellamy said MAAS settled AUD 56 million of investment properties during the period and has sold a further AUD 114.7 million due to settle across the balance of calendar 2026, taking total sales secured or settled to about AUD 171 million. The company reiterated an expectation (excluding the CM sale) to achieve AUD 200 million+ in capital recycling over the remainder of calendar 2026.
Segment results: Construction materials, civil construction and hire, and electrical
In construction materials, management reported strong first-half revenue growth driven by organic growth across quarry operations and contributions from recently acquired businesses. Segment EBITDA increased 38% year over year, with margins “slightly lower” due largely to a higher proportional contribution from lower-margin asphalt revenues. Cash flow conversion for the segment was 99%, up from 96% in the prior period.
The civil construction and hire (CCH) division delivered EBITDA of AUD 34.1 million, up 66% year over year, supported by improved plant hire utilization and a “strong contribution” from the electrical division. Cash flow conversion was 106%, up from 81% in the prior period.
During Q&A, Maas said there was zero Firmus-related revenue recognized in the first half, with electrical growth instead coming from transmission and high-voltage work, as well as activity across the broader electrical business including manufacturing. Looking ahead, he said the electrical business (excluding Firmus and data-center related opportunity) has a “very strong” outlook and that management expects it could “double… over the next 3–5 years, maybe earlier.”
Firmus contract: timing, delivery footprint, and follow-on discussions
Management discussed the previously announced AUD 200 million contract with Firmus Technologies for the manufacture and integration of containerized PTUs (Power Cubes) and backup diesel generator modules. The contract commenced in January and supports an initial 100 MW deployment, with delivery scheduled for the end of the third quarter of calendar 2026. Maas said the work can be fulfilled from existing manufacturing and assembly facilities in Orange, Newcastle, Dubbo and Vietnam.
Asked about revenue recognition, management indicated the contribution would not be a simple straight-line split and is expected to be “a little bit more back-end weighted” due to staging and ramp-up, though it “may be more linear” between halves than a two-thirds/one-third split.
On potential follow-on work, Maas told analysts the company expects confirmation within “the next sort of 60 to 90 days,” adding that it expects follow-on work to be confirmed in the second half that would roll into the back end of calendar 2026 and into 2027. He said scale benefits and efficiencies are expected, but deferred to Firmus for confirmation of its rollout timetable.
In response to questions about additional investment and capital requirements, management said there is no required capex for the electrical contract work with Firmus because the group already has facilities and capability that can be expanded, and that there is no further intended equity investment in Firmus at this time.
Residential and commercial real estate: settlements, margins, and fair value
In residential real estate, MAAS reported 80 land lot settlements in the first half, up from 61 in the prior corresponding period (excluding build-to-rent), and said the division has a strong backlog into the second half of FY26 and into FY27. EBITDA (excluding fair value gains) increased 51%, with land gross profit per lot improving to approximately AUD 116,000 from AUD 102,000. The company said overall pricing remained stable and home construction margins improved due to disciplined cost control.
For FY26, MAAS expects 240–260 lot settlements (including build-to-rent unit sales), with management stating approximately 100% are already secured. Maas also said the company has a strong FY27 carry-in with 90 lots under contract. During Q&A, management said build-to-rent volumes are small, later specifying 11 total (six in the first half and five in the second half).
In commercial real estate, revenue declined due to a land inventory sale in the prior period that contributed around 20% of segment revenue. Fair value gains on investment properties were AUD 19.1 million, slightly down from the prior period, with management saying about 90% of the first-half FY26 gain relates to a property under contract expected to settle in calendar 2026. The segment recorded approximately AUD 52.5 million of development sales proceeds in the first half, all above book value, and management said capital employed is expected to reduce across FY26 as recycling exceeds development spend. Maas said the group is also investigating opportunities to establish a funds management platform.
Bellamy said fair value gains for FY26 are expected to be similar in the second half to the first half.
On capital structure, Bellamy said net debt (excluding AASB 16) was AUD 640 million at period end, with gearing at 2.6x, near the midpoint of the target 2–3x range. The company declared a AUD 0.035 fully franked dividend and said its share buyback program remains active.
About MAAS Group (ASX:MGH)
MAAS Group Holdings Limited, together with subsidiaries, engages in the provision of construction materials, equipment, and services for civil, infrastructure, and mining sectors in Australia, Vietnam, Indonesia, and internationally. It operates through Residential Real Estate; Commercial Real Estate; Civil, Construction and Hire; Manufacturing; and Construction Materials segments. The Residential Real Estate segment develops, invests, builds, and sells residential land and housing properties. The Commercial Real Estate segment builds and constructs commercial and industrial properties; supplies building products; and invests in commercial real estate properties.
