Mader Group’s (ASX:MAD) March Quarter Reflects Revenue Surge in Business Segments


  • Mader Group’s 90% revenue comes from its Australian operations.
  • Revenue from the North American segment is expected to grow as the Company is all set to enter the Canadian market.
  • The demand for expert services of Mader is growing worldwide. MAD started operating in Mauritania during the March quarter.

Global heavy equipment maintenance services provider Mader Group Limited (ASX:MAD) has gained considerable traction in its business segment, which is quite evident in the group’s soaring revenues and profits.

Increasing Business Confidence (Copyright © 2021 Kalkine Media Pty Ltd.)

In its latest update, MAD reported a 5.7% year-on-year (y-o-y) increase in total revenue and 17% y-o-y growth in its EBIDTA for the March 2021 quarter. The company offers a unique blend of services, which are in line with the industry’s requirements and are bolstering the business. Also, the disruptive business model has resulted in the Company’s remarkable growth on a global scale.

Latest update: Mader Group (ASX:MAD) records strongest revenue quarter ever in Q3 results

The data from its quarterly report paints a bright outlook for MAD. The Q3 FY21 revenue stood at AU$75.9 million, of which a major portion or nearly 90% came from the Australian market. MAD recorded an 8% increase in its Australian revenue to AU$68.5 million during the March quarter.

The robust Aussie mining industry provides ample opportunities for the service industry. The ease of movement after the lifting of COVID-19-related restriction is shoring up the confidence of the industry, which is expected to grow further.

The Company continues to diversify its Ancillary and Infrastructure Maintenance services in Australia. MAD has introduced a range of complementary and value add services to its clients.

To secure customer requests for process and non-process infrastructure, power generation plants, rail and port infrastructure, MAD has appointed a new management structure to its Infrastructure Maintenance business unit. During the quarter, the business segment saw a jump of 31.5% in its revenue with respect to the year-ago period.

More on MAD leadership team: Meet the Stalwarts Steering Mader Group (ASX:MAD) on High-Growth Path

Mader successfully completed several key ancillary projects in the Pilbara region during the reported period. The projects included maintenance support to a large integrated mine and a railway project, and installation of an Equipped Manual Vehicle (EMV).

During the March quarter, Mader expanded its business operations on the East Coast. The Company was included in a panel of preferred maintenance providers for a major miner of the region. MAD has been appointed to provide its specialised services to the miner across its eight mining sites for a period of three years.

MAD has filled its order book with a new range of work scopes, especially after entering into the Northern Queensland region.

North America  

In the North American region, the United States was the centre of the company’s operations. However, MAD’s preparations are in full blast to foray into the Canadian market. The US fleet will provide initial support to commence the operations in Canada, once work scopes are secured.

During the March quarter, revenue from North America stood at AU$5.6 million, 27% up from the pcp. MAD has expanded its operations to four new major mining states- West Virginia, South Carolina, Montana and California. Now, the Company operates in 15 states across the US.

Read more: Mader Group (ASX:MAD): A One-Stop Solution for Mining Support Services

Rest of World

During the reported period, Mader commenced its operations in Mauritania. The Company also continued to carry out recurring scopes of equipment maintenance in Papua New Guinea, Laos, Mongolia and Zambia.

The operations in Asia and Africa continued to rebound with Mader generating a revenue of AU$1.9 million from the two regions. However, the operations remain limited despite huge customer demand. The Company is conducting risk and opportunity assessments for all service requests.

Business Outlook

Many parts of the world are still facing the challenges posed by COVID-19. As the vaccine drive is picking up pace and the market is gaining confidence, the global demand for commodities is expected to surge further. 

Australia and North America present an excellent opportunity for growth and many regions are still untapped.

Mader remains well positioned for its next chapter of growth, on the back of positive momentum across all reporting segments, growth investment initiatives and strong macro trends.

Good read: How Mader Group (ASX:MAD) is powering the mining industry forward

Share Price

MAD traded at AU$0.950 per share on 5 May 2021. The Company has a market cap of AU$190 million.

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