Mastermyne Surpasses FY26 Expectations with $237.7M Revenue and $20.3M EBITDA, Strengthens Order Book and Cash Position

Strong Second-Half Performance Propels Revenue Beyond Guidance

Mastermyne achieved FY26 unaudited revenue of $237.7 million, exceeding the previously announced guidance range of $220 million to $230 million on 25 February 2026. This outperformance highlights effective operational execution and favourable market dynamics during the period. Managing Director and CEO Jeff Whiteman remarked that the accelerated second-half results underscore the company’s strong team and market capabilities.

The first half of FY26 generated $108.9 million in revenue, while the second half contributed approximately $128.8 million, reflecting a significant uptick in project activity and client engagements. This surge was primarily driven by elevated strata consolidation services and increased production across major projects. Positive coal sector market conditions enabled Mastermyne to optimise workforce utilisation and technical expertise throughout its operating regions.

Underlying EBITDA Growth Reflects Enhanced Operational Efficiency

Underlying EBITDA for FY26 reached $20.3 million, surpassing the upper guidance of $18.0 million. This represents earnings before net finance costs, taxes, depreciation, and amortisation, marking a substantial increase from FY25’s $13.8 million. The improvement evidences operational enhancements and effective leverage of increased revenues.

Better cost control and operational efficiency contributed to this EBITDA growth. The first half recorded $8.3 million in underlying EBITDA, with the second half delivering around $12.0 million, reinforcing the momentum and strong market conditions late in the year. This performance instills investor confidence in Mastermyne’s ability to convert higher revenues into earnings growth.

Order Book Growth to $432 Million Enhances Revenue Visibility

Mastermyne’s order book expanded 38% year-on-year to $432 million as of 30 June 2026, up from $314 million at the same time in 2025. This includes contract extension options, providing substantial forward revenue visibility for FY27 and beyond. The growth stems from successful contract wins and extensions across strata consolidation, development, longwall and outbye support, technical services, and product offerings.

The enlarged order book signals strong market confidence in Mastermyne’s expertise and ongoing demand for underground mining solutions in Australia’s coal sector. A larger order book reduces revenue uncertainty and aids resource and workforce planning. Combined with the company’s opportunity pipeline, the $432 million order book forms a solid base for FY27 revenue.

$1.5 Billion Pipeline with $823 Million Near-Term Opportunities

Beyond contracted work, Mastermyne identified a $1.5 billion pipeline of targeted opportunities, up from $1.1 billion at mid-FY26. Of this, $823 million is classified as near-term, with contract awards expected within 12 months. This provides investors with insight into probable upcoming contracts across the company’s markets and regions.

The sizeable near-term pipeline reflects strong demand in underground mining services and positions Mastermyne for continued contract wins in FY27 and beyond. This pipeline underscores the company’s market position and relationships with major coal operators in New South Wales and Queensland. Management’s transparent disclosure offers investors a clear view of the addressable market and growth potential.

Net Cash Strengthens to $46.5 Million Amid Robust Cash Flow

Mastermyne’s net cash position improved to $46.5 million at 30 June 2026, rising from $33.1 million at 31 December 2025, demonstrating strong cash conversion during the year. This $13.4 million increase highlights the company’s ability to translate revenue growth into cash generation and financial flexibility. The net cash figure excludes a $7.0 million financial penalty plus $0.3 million regulator’s costs imposed by the District Court of Queensland on 1 May 2026 related to a September 2021 Crinum mine incident; the company has filed an appeal.

Additionally, Mastermyne maintains access to $40 million in credit facilities, providing further financial flexibility. The improved net cash position during a period of revenue and EBITDA growth indicates disciplined working capital management, including efficient receivables and payables handling. This strong financial footing supports strategic options such as growth investments, shareholder returns, or managing contingencies without external financing.

Mastermyne’s Core Expertise and Market Position

Since its founding in 1996, Mastermyne Group Limited has specialised in underground mining solutions, excelling in strata consolidation, development, longwall and outbye support, technical services, and products. Operating under the Mastermyne and Wilson Mining brands, the company serves all three major coal basins in New South Wales and Queensland, offering geographic and operational diversification that enhances resilience and revenue diversity.

Strata consolidation is a vital safety and productivity service in underground coal mining, making Mastermyne’s capabilities essential to its customers. Complementary technical services and products create multiple revenue streams and strengthen client relationships. The company’s market-leading position, expanded order book, and opportunity pipeline highlight its strong competitive standing.

Regulatory Penalty and Appeal Update

On 1 May 2026, the District Court of Queensland imposed a $7.0 million financial penalty plus $0.3 million regulator’s costs on Mastermyne related to a September 2021 incident at Crinum mine. The company has lodged a notice of appeal against the conviction. This regulatory matter is material for investors and has been excluded from net cash calculations to clarify operational cash flow.

The ongoing appeal indicates the legal issue remains unresolved. Investors should monitor developments closely, as the final outcome could materially affect the company’s cash position. Transparent separation of this penalty from operational cash metrics aids investor evaluation of performance and legal risks.

Outlook for FY27 and Market Environment

CEO Jeff Whiteman noted that Mastermyne enters FY27 with a robust order book, a strong pipeline of near-term opportunities, and a solid balance sheet. Although specific FY27 guidance has not been provided, the current order book and pipeline suggest continued revenue stability and market momentum. The strong FY26 second-half acceleration and expanded opportunity pipeline indicate management’s confidence in capturing ongoing underground mining demand.

Mastermyne will release its audited FY26 results and Annual Report on Wednesday, 26 August 2026. These audited figures may adjust the unaudited results and will offer detailed insights into market conditions, strategic plans, capital allocation, and management commentary. Investors will have the opportunity to assess the full audited position and engage in investor forums or briefings thereafter.

Upcoming Milestones and Investor Focus Areas

The key upcoming event is the release of audited FY26 results and the Annual Report on 26 August 2026, providing comprehensive financial and operational disclosures. Investors should review these documents for detailed segment data, cash flow analysis, market commentary, and strategic outlook.

Following the audit, investors will watch for contract awards from the $1.5 billion pipeline, especially the near-term $823 million opportunities, as indicators of execution and market position. The progress of the Crinum mine regulatory appeal remains material, along with potential announcements on capital allocation such as dividends, buybacks, or growth investments. The company’s ability to grow or sustain its order book while managing costs will be critical in assessing future investment potential.