Mader Group Stock

Thank you for standing by, and welcome to the Mader Group Full Year Results Announcement. [Operator Instructions].

I would now like to hand the conference over to Mr. Justin Nuich, Executive Director and Chief Executive Officer. Please go ahead.

Thanks very much, Sherry. Good morning, everyone, and welcome to Mader Group's Full Year Results Presentation for the 2026 financial year. Joining me today as well is our Chief Financial Officer, Paul Hegarty.

As Mader moved into its third decade of operations, we are proud to reflect on [ a while so ] year for the group, marked by stronger achievement [ to ] business. This year, we successfully closed out the final year of our first 5-year strategic plan as a listed company, delivering record annual revenues of [ $1.1 billion -- $1.1 million ], a 15% increase on FY '25. This incredible achievement reflects the discipline and precision with which our teams operate across the globe.

Through their commitment, they have continued to grow our customer base, strengthen our market position and further establish Mader as a leader in technical services across industries. Our people have played a critical role in achieving the results we're presenting today, and I'm truly grateful to their contribution.

Now we've got quite the deck to get through. So with that said, let's dive into it. For those that are unfamiliar with our journey, Mader was founded in 2005 by our Executive Chairman, Luke Mader, identifying an underserviced niche in the industry, we've started providing flexible maintenance solutions to customers with the youth or trucks for our North American [ listeners some tools ] and a vision. Today, that vision has led moved to become a global business, delivering a wide range of technical services across multiple industries in 10 countries. Back [ side ] of more than 4,500 skilled employees around the world. We proudly provide support for the 520 customers in more than 685 locations.

As you can see on this slide, we have successfully evolved into a truly global diversified company with our unique business model replicated across multiple industries and service lines. While launching fully organic start-ups in new markets, expanding geographically and broadening our suite of trades, we have delivered around 30% comparing annual growth over the last 10 years. As I mentioned earlier, this achievement would not have been possible without our people, which leads nicely into our next slide, highlighting the specialized workforce that makes it all happen.

From the start, a core part of [ Lex ] vision to Mader was to build a workforce where people not only take pride in what they do, but also get the job done while working alongside their [ rates ]. This idea has grown from one mechanic into a global business, comprising a highly skilled team of technicians, each with diverse and specialized skill sets. This includes heavy mobile [ agreement ] technicians, auto and high-voltage electricians, road transport and light vehicle mechanics, fixed plant trades, welding and fabrication and so much more.

While we strive to build meaningful careers for people at any stage in [ Mader ] as you can see on the screen, around 60% of our workforce is under the [ agency ]. This is largely driven by our culture and the flexible and adventurous career pathways that our [ world ] offer. Mader's unique offering typically attracts people who are looking for more logistic job and rather a career for [ an endless ] adventure and opportunities.

Complexible [ Ross ], site variety and diversity across industries, locations and equipment, we invest heavily in our [ network ] so we can deliver opportunities that are truly unrolled within the industry's work. The 2 core drivers to this are on the spoke culture-led programs, global pathways and [ 3 years ], which I'll speak more on later.

However, one thing that has remained unchanged since day 1 is our commitment to the safety of our people. This financial year made a reported -- a total recordable injury frequency rate of 3.65 recordable injuries per [ million ] hours, made a strong safety track record was supported by ongoing education, innovation and investment in our geared to safety program. This continued strengthening -- the strengthening of motors engineered safety controls within its global service vehicles, as well as hosting more safety focus Mader [ date ] across our global operations, while continuing to recognize positive behaviors through field-based safety awards and engaging vehicle campaigns that reinforced our commitment to sending everyone home safely.

Now moving on to the executive overview. I'd like to provide a quick summary of our FY '26 highlights. In FY '26, we delivered a record annual revenue of [ $1.101 billion ] an increase of 15% versus the prior corresponding period. NPAT closed out at $65.4 million, up 15% on the PCP. And furthermore, our balance sheet was strengthened delivering a net cash of $35.7 million, up from $8.3 million in net debt versus the PCP. The labor markets in which we operate continue to exhibit extremely competitive divisions. However, through our multidimensional recruitment pathways, strong brand and attractive employment opportunities, we delivered strong net headcount growth of Circus 600 during the financial year. Demand remains strong across all regions with our core mechanical and other industries vertical service offerings, consistently meeting customer needs.

The North American segment continued its steady growth profile delivering $186.6 million in revenue, a 12% increase on the PCP or more importantly, a [ 17% ] on a constant currency basis. And we successfully closed out our 5-year strategic plan, exceeding market guidance year-on-year during this phase.

So let's have a look into how our geographical segments performed. As you can see on the left, in Australia, revenue was up 16% versus the PCP, delivering $797.7 million. Infrastructure maintenance and ancillary services delivered strong revenue growth of 45% and 37%, respectively, versus the PCP. In North America, revenue increased by 12% or 17% on a constant currency basis, producing $186.6 million for the full year. We also achieved a record headcount of 660 employees within that region. In Canada, headcount growth was supported by our global [ pata ] program, which deployed more than 240 technicians in FY '26. And jumping over to the Rest of the World operations, we provided [ specialist ] services and technical support to customers in 7 countries across Africa, Asia and Oceana. We mobilized close to 50 technicians to fulfill these projects in these regions.

I'll now pass over to our CFO, Paul Hegartt, to run through the financials in more detail. Paul, over to you.

Thanks, Justin. Good morning, everyone, and thanks for joining us on the call this morning. As Justin mentioned, we delivered record annual revenue of [ $1,101 million ] up 15% on the PCP. This result marks the end of the group's first 5-year plan as a listed company and is a significant achievement. When this plan was enacted in FY '21, our annual revenue was circa $300 million, delivering an NPAT of $19.3 million. To be standing here today, having delivered the strategic plan outcomes and being part of a much larger, more diversified business is a momentous occasion and something we have Mader are all extremely proud of.

Importantly, this revenue growth has been delivered to plan, and not at the cost of lower margins. Over the last 5 reported financial years, the group's NPAT margin has not deviated by more than 0.6% between the highest and lowest reported year. From a shareholder perspective, EPS increased to a record of $0.322 per share, an increase of 14% versus the PCP. The Board has elected not to declare a dividend in respect of this financial year given a number of organic and inorganic growth opportunities that are being considered at present.

Let's move on to the financial position. As you can see, our asset base primarily comprises cash on hand, trade receivables and property plant and equipment. Our trade receivables position is largely with Tier 1 principles and large mining contractors. And generally, touchwood, we don't have any abnormal credit risk profiles in the debtor book. Our DSO improved by 2 days during FY '26, closing the year at 67 days.

Our disciplined use of capital and asset base is reflected in our return on invested capital, which was 25% in FY '26. Importantly, this isn't a one-off. These returns have been consistently delivered at this rate over many years. Likewise, when it comes to our return on assets that closed FY '26 at 18%, a slight improvement on the PCP. We are well supported by our Australian lenders, in particular, now than Westpac, the flexibility that has been established within our finance facilities allows us to respond quickly to opportunities when necessary. Finally, we announced about 18 months ago, a plan to transition the business towards net cash in the medium term. I am pleased to update you that this has now been achieved with a net cash position at 30 June of $35.7 million, up from a net debt position of $8.3 million at the PCP. This will allow greater flexibility and freedom to make strategic decisions around future growth.

Now on to the cash flow slide. Our net cash flows from operations was $85 million for the year. Our intense focus on EBITDA conversion was maintained, operating cash flows before interest and tax as compared to EBITDA were 99%. This reflects the quality of our client base and trade receivables ledger, as I mentioned earlier. Free cash flow generation continued to improve year-on-year. In FY '26, the group generated $57.5 million of free cash flow. This is reflective of the shift in capital requirements as the group expands its revenue base into new opportunities that are extremely capital light. This is expected to continue into FY '27 with our capital expenditure expected to be between $30 million and $35 million for the year which is about the same level as it was in FY '26. Given this strong free cash flow generation is expected to continue into the new financial year. As I mentioned earlier, the group is now in that cash position, much to the disappointment of our lenders. This place is Mader in an enviable position to tackle the next phase of growth. This funding flexibility will be critical to achieving the next 5-year strategic plan, which Justin will talk about in a few slides time.

That's all for me. Back to you, Justin.

Thank you, [ Paul ]. Good set of numbers, well done. So 5 years ago, the Board led the foundation for our future. By setting out some key areas of focus in our strategic plan as a publicly listed business. Since then, this has been a blueprint to guide our growth. The strategic plan set growth targets and operational goals in 4 key areas while keeping culture at our core. Number one was geographical diversification. The second was service line diversification. Third, expansion of industry verticals. And fourth, and definitely not least, of course, to scale the existing business.

Further, ambition stretch targets for NPAT was set and successfully exceeded. And now with our first 5-year strategic land complete, we look forward to the next 5 years and continued long-term growth beyond. This 5 years we are embarking on is the next stepping stone on the way to a generational plan to build Mader group into a large global industrial [ com grower ].

So let's take a deeper look at what the future looks like. Over the next 5 years, Mader will activate accelerated growth initiatives in new service verticals as part of our global expansion strategy. Our focus will be on front-end loading of high-growth areas, mergers and acquisitions, increased development pathways, capital investment into growth and new market benches. All building blocks that will lead Mader towards the goal of becoming a globally diversified industrial encore. As always, Mader strong culture continues to be the foundation of its business model. So let's have a look at what's expected over the coming years.

Over the next 5 years, the business expects to deliver the following things: circa 15% EPS growth per annum, existing strong margins are to be maintained, capital investment of $30 million to $50 million per annum and expansion into new markets. These initiatives will be pursued while maintaining a measured leverage position and delivering market-leading returns on capital.

So now that we've covered our growth trajectory. Let's have a look at the core building blocks on delivering this next phase. So just deliver the next phase, Mader is focused on the following 5 core building blocks, continuing to increase our footprint into the opportunity-rich North American market, continuing expansion across the industries in Australia and in new verticals beyond our existing service lines through organic and inorganic means, investing in workforce development power plays and maintaining our culture led approach. Together, these building blocks position our business to sustainable growth while staying true to the values that define our success.

Now let's jump across to our workforce. A key differentiator for Mader is its unique global workforce opportunities and culture-led approach. Our success is built on attracting and retaining a highly skilled team that delivers a premium service to our customers worldwide. We support our people through structured career development, including the global pathway initiative, which creates opportunities to work and grow across international markets which I'll touch more on [ sure ]. We also invest heavily in our leadership capability, strengthening our entire leadership team to drive strong accountable operational performance. Complementing this [ is 3 years ], our employee engagement and retention program, which helps build culture from the ground up. Together, these initiatives create a motivated, capable workforce that underpins Mader onto its long-term growth.

So let's jump across investing in our people. This is a key pillar for Mader's long-term success. Through mentoring, training and structured development programs, we create clear career pathways that support progression from field-based roles into leadership and management positions and beyond. This approach has helped build a strong homegrown leadership pipeline from within the business with 89% of Mader management and 82% of general managers and executives beginning their career as technicians.

In addition, our general managers and executives have an average tenure of 11 years, reflecting the strength of our culture and employee retention. By investing in our people, we strengthened culturally aligned leadership capability, preserve operational expertise and support sustainable growth across the entire organization. So let's look at how we're looking our opportunities globally.

Our global pathway initiative connects our people with career opportunities across the world. With employees already participating in overseas placements and 2-way transfers between Australia and North America are underway, the program supports talent mobility, workforce development and access to global telecos. FY '26 alone saw more than 240 specialists deployed to North America and almost 50 across other countries in Asia, Africa and Oceana. Global Pathways has been a key enabler of both employee growth and major international expansion. And I think needless to say, with the [ assistance of Elbow and Jim's ] latest budget, it has never been easy to convince people to [ embark on ] an offshore opportunity.

Now let's look at our offshore demand over the coming years. The demand for skilled trades people continues to outpace supply, creating a significant workforce challenge across Australia's mining and resources sector. As you can see on this slide, more than 24,500 additional BET qualified [ roses ] are needed by 2035 to meet Australia's mining and resources [ metal ].

With that said, access to skilled labor will be a key differentiator and Mader investment in recruitment, training, development and retention positions our business to meet this demand and support ongoing growth. This challenge really puts Mader in the backseat to utilize its many angles. It has to fulfill the gaps on top of our existing 4,500 people, creating a significant market to get started.

On the topic of talent, let's have a look at one more of major key training and upskilling progress. As we've seen in the previous slide, demands of skilled technicians continues to grow. Mader is proactively investing in its future workforce and one of the ways we do this is by the trade-up program. This program helps bridge the skills gap by developing and upscaling tradespeople across key markets while creating long-term career opportunities for employees. Since inception in 2019, over 520 apprentices and graduated from the program across Western Australia, Queensland, New South Wales and Canada. So let's take a look at our multidimensional recruitment model.

As represented in this slide, Mader's workforce pipeline is supported by a multichannel recruitment strategy that has been designed to deliver still talent at scale. While combining employee referrals, international mobility programs, new talent pools, team-led hiring and rapid mobilization capabilities, we can efficiently attract and deploy employees when they need it the most. This recruitment model and approach supports growth while maintaining the flexibility to respond to changing customer demand -- so let's jump across and take a look at the resilience of the Mader business model.

This is probably one of my favorite slides. So this will highlight the resilience of our business model and its ability to deliver consistent growth across varying market conditions. Over the past decade, the business has achieved a revenue CAGR of approximately 30%, growing from $43 million in FY '14 to $1 billion in FY '26. Importantly, this growth has been achieved despite significant fluctuations in commodity prices across iron ore, coal, copper and gold being our highest exposure commodities.

Mader's reactive service model allows the business to capture opportunities through commodity cycles, while our employment model provides flexibility for employees and helps protect margins. In addition, the continued diversification of service offerings reduces the reliance on any single commodity or sector. So let's take a look at the opportunity ahead of us in Australia.

In addition to our core business, Mader also see strong growth opportunities across infrastructure, transport and logistics, and defense with the defense sector allocated a budget of $897 billion over the next decade. All of these sectors and opportunities share a common need for reliable maintenance, services, skilled technicians and mobile workforce solutions in an already depleted trade-based labor market. With a strong pipeline of infrastructure investment, a large national freight network and substantial long-term [ defense ] team, these sectors represent incredibly attractive opportunities to diversify revenue streams and expand Mader's addressable market within Australia.

Moving on. The next slide illustrates the mining process. From extraction of the pit through processing, rail and road transport and ultimately to port operations for export. Today, approximately 93% of Mader's revenue is generated in the excavation and extraction phase of that value chain. This highlights a significant growth opportunity within the resources industry itself. As maintenance expenditure continues across every stage of the process, Mader is well positioned to leverage its existing with expertise, workforce and customer relationships to expand further downstream.

While increasing our presence across processing infrastructure, transport networks and port operations, we can capture a greater share of mining maintenance spend and unlock additional revenue opportunities throughout the entire pit to [ for ] -- so let's cross over to North America, the land of opportunity. So North America remains a strong growth segment for Mader with a CAGR of approximately 54% -- in the region. It demonstrates market acceptance and execution capability. Although our entry has been strong, we are still relatively early in our journey in the region with great prospects for expansion and growth. The opportunity for Mader is to continue replicating our proven Australian model across the North American market, which is several times larger in scale, which will have a [ little at now ].

Australia remains Mader's most mature market, generating approximately $800 million in FY '26 revenue compared to approximately $190 million in North America. That said, despite North America's smaller current revenue contribution, the region presents a significantly larger addressable market and a substantial growth in [ late ] -- to start as North America has a population of more than 620 million people compared to around 27 million in Australia, providing a much larger labor and customer base.

The mining and resources sector is materially larger with about 3,500 active mines and projects versus approximately 900 in Australia. As you can see, resource production is also significant [ in rate ] across [ Ron ] gas and oil production. With a relatively small share of a very large addressable market, North America remains a key long-term growth driver for our business. The focus is on expanding service lines, increasing market penetration and leveraging Mader's workforce model to capture a greater share of this opportunity.

So let's have a look at the opportunity ahead. On this slide, we compare Mader's North American business today with where the Australian business is currently positioned, to highlighting the significant growth highlight -- still Australia is a mature and diversified operation with [ HD ] mechanics making up around 46% of the workforce, supported by a broader mix of trades and multiple service verticals. In contrast, [ 17% ] in North America's workforce is currently made up of HD mechanics, reflecting the business' early stage of development in that region.

Labor storages across North America, driven by an aging workforce and declining trade participation creates strong demand for skilled technicians and specialized workforce solutions. Programs such as made a global part initiatives are helping the business access international talent and support access international talent and support workforce growth in this region. Now let's sit across and have a look at our growth -- our postgrowth as a business.

Mader's growth strategy has historically been built on organic expansion, underpinned by technical capability, on customer relationships and a customer approach. Now in our third decade, this approach has enabled us to successfully enter new markets and expand into new industries while maintaining operational -- our culture remains a common foundation across every growth initiative, providing a scalable platform for entering new sectors and geographies. While organic growth remains the primary focus, we also remain open to small sinusitis we like to accelerate growth, add capability will provide access to attractive markets.

The solvency is simple, acquired more than scale hard, made up as a prudent framework for growth. in capability, leverage culture, new markets and scale efficiently over time. As mentioned in the previous slide, while organic growth remains our primary strategy, we are also evaluating targeted acquisitions. We focus is not on large transformational deals, but on the quarry businesses that complement makes existing capabilities and culture. Acquisitions can significantly accelerate revenue generation and market entry. Allowing Mader to establish a presence much faster than building organically from the ground up.

Our key benefit is immediate access to establish customer relationships, improve the market credibility and existing revenue streams. These acquisitions will also overcome various tier, such as the high opportunity sectors like defense, where acquiring can provide access to specialized licenses, accreditations and technical capabilities. as well as work panels that would otherwise take many years to develop organically.

So let's have a look over at the FY '26 outlook. If you come to mind back to Slide 10, where we touch on our strategic plan, this slide shows our progress against the NPAT target set. As you can see for the entirety of our first 5-year strategic plan, we have not only achieved but exceeded our impact guidance. These results highlight the strength of our scalable operating model and execution capability.

To summarize the approach for the next 5 years, our goal towards becoming a globally diversified industrial conglomerate is well underway. During this next phase, the business expects to deliver the following: circa 15% EPS growth per annum, continued strong margins, capital investment of $30 million to $50 million per annum. New market expansions, our measured leverage position and market-leading return on capital. With existing solid foundations, made is strongly positioned to continue building a global business at scale that pushes boundaries and delivers long-term value for our shareholders. customers and employees alike. I'd now like to cover our FY '27 guidance.

FY '27 is a year of heavy strategic investment and front-end loading of high-growth opportunities. We expect revenue of at least $1.13 billion of NPAT and at least $72.5 billion -- sorry, $1.13 billion of revenue and NPAT of at least $32.5 million all while expanding to new margins and packing high-growth opportunity. We will continue building an opportunity which is to capitalize on future growth prospects. Our focus is simple. Good scale, strengthen our portfolio and deliver market-leading returns over the long term.

Now let's say, look at our investment case. With Slide 26 wrap up or improve confidence as we enter this new financial year. The current and prospective investments made to present a robust investment opportunity with many prospects ahead. That's field adaptable business model, we have grown to have a market cap of around [ $1.2 billion ] today. The resilience and hardware as been shown through in many areas. And within behind us, we'll continue to deliver a superior to invest for our customers and value to our shareholders. So that concludes today's presentation. Thank you for joining us, and we'd be pleased to take your questions at this time.

[Operator Instructions]. The first question comes from [indiscernible] from Unified Capital Partners.

First question here is a great job on achieving the long-term targets, which is good, going from 300 milligrams to 1 bill organically in a small amount of capital is increasing in an achievement. Can we spend a bit more time on the 15% per annum target, Justin. We're quite here were quite large at the moment, and the law of large numbers means to get higher and harder. We'll just growth be a mix of organic and inorganic or mostly small bolt-ons loading the balance sheet strength.

Yes. Thank you, Joe. If you haven't hit enough of my voice in -- yes. But I mean, 16% year-on-year, they are the targets, especially off the bikes that we're -- and look, I think hence the guidance for this year, and I must really just double down on the investment in some of the new opportunities we're looking at. We've just taken on the other side of our workshops and we've doubled the size of our workshop capability, so putting 8,000 meters under roof. We've started up the defense business. So obviously, the start up of that and associated starting of that. We bought executive and -- people into key infrastructure and project roles. As well as support teams to focus on supercharging those. We've incorporated an indigenous joint venture within the infrastructure of rail division and then also working in the background on a couple of large opportunities. as well.

But needless to say, those required some significant investment. I mean we see the markets, we've seen the opportunities. North America remains a massive addressable market for us. But again, we'll troop and gives us nothing but confidence that is been to over the medium and long term will be at

Thanks, Justin. A question here on FX headwinds in the in the financial year. I'll take that, and you can have a rest. There were a little bit there. I guess the FX impact to the revenue line was about $8.2 million to the negative. That would have been closer to $1.010 billion. We have those FX movements and the NPAT impact was close to $800,000. So it would have been sort of north of $66.1 million NPAT without those FX headwind.

Perhaps extending new verticals, Justin. Which of these are most likely probably the infrastructure maintenance space to oadly in Australia. Anything further to add in that space?

No. Look, I mean we've done a few bit of DD on the sense, look, we know how big that industry is and the spend that's coming up to there via passenger we've been on. So we've chosen to be a titer. So we're well underway to tendering working in defense. Infrastructure maintenance is just in lowering some executive and see cause powder to really supercharge that effort and that is huge as well as rail and road transport. The North American market as well, I mean needless to say -- you saw on the slide, any that is we've seen tailwinds in both the U.S.A. and Canada. So again, we'll throw the kitchen at making sure that, that has the support needed to scale as quickly as we need so.

A question from Joe House from Bell. In North America, what vertical market penetration is the easiest to deliver in the near term is it structural? Yes, we recite Look, I think some of the service lines as well, like our electrical trades, fabrication trades and the like that we sort of support within our core business as well with being up there. infrastructure differently, and they're certainly seeing some big projects come online that we could definitely plan to support rolling at this point in time.

So a little bit -- another question from John on from Unifi. A couple or any further information on rest of world, how we're feeling about that in the second half, and then I'll talk about guidance assumptions?

Yes. Thanks, Jon. Yes. Look, rest of the world, we're always busy doing a bunch of business development. Obviously, that went backwards a little last year and the reason for that was a large contract that we had in -- with us all these has come to an end, which was I was on a finite time anyway. We started some other stuff up in New Zealand where we're doing another job in Africa as well. So it will always be ends and flows of that rest of the world business, but we love to keep doing that to create opportunities for people that have those opportunities and will continue to do so.

And just to round out your question there, John, FY '27 assumption from Rest of World is sort of not much coming from a growth perspective there. Do you think that we can hold the line there, but it will be a growth footing, but we're not putting out too much that for FY '27, the growth will come out of Australia and in North America?

Okay. A question from [ Garen Alestra ] -- when thinking about the 15% medium- and long-term growth targets, can we take this to be organic growth with inorganic growth perhaps accelerating this from time to time? How do we feel about that?

I think you probably said it perfectly -- an organic contain most of our sort of gross assets. But obviously, new organic will accelerate in from time to time as we see the opportunity to spring or us beyond what we could do organically.

Excellent. Just a question from Nika Palmer from -- in FY '27, NPAT growth -- is this deliberately conservative given the investment phase is an upside to FY '28 as those investments mature. That's only for the conservative big let's talk to that, but to be next...

Thanks, Mike. Yes, look, it's definitely -- look, there's is. But we also had enough organic start-ups to know that -- these things don't just turn on and it produces bulk input and revenue on day 1 year. They take a while to get going to get teams in there as we work to mobilize and start really kicking in, in a meaningful way. So we are allowing for that this year. We are investing hard. We know the opportunities there, we believe in it. But we're not even enough to say it's going to too in H1 '27, like that is something that we're really investing hardly now the siege if you look beyond the 11% this year, our EPS guidance is 15% over the 5 years. So if we take those short-term lens is off and have a look sort of beyond FY '27, the investment today will pay dividends into the future. So it's kind of a go fast approach...

Very good. A question from Ivy from [indiscernible], lots for the question about M&A as you say everyone was to about it. A question around M&A. Can the existing business delivered this 15% CAGR growth without any M&A? Just a review.

I think we've got liquid easy, to be honest, but we are we're committed to exploring M&A. And as I said before, I think where it makes sense and where it can give us a springboard in sort of beyond what we can do organically, we'll definitely consider and definitely take up those opportunities as they arise if they make sense. Very good. Just a clarification on cutter as well. The guide of $50 million per annum in the long-term plan, that is excluding M&A. So that's that service vehicles and tooling and the like that we need to deliver the revenue growth not including any M&A allowances in that number.

Okay. Maybe A question from that, Josh from -- can we talk about defense industry and what we're thinking about there and the size of that opportunity? How do we feel about the trends, particularly given all the -- as changes happening in the next decade?

Yes. Thanks, Matt. Good to see you for the annual report. Early with the cars as always. But yes, look, we made a small acquisition into the fence. It was a small consulting base company, maybe white collar, but it gives us is it gives us panels on labor panels and essentially some experts within the defense industry that are going to help us get going within the fence. So needless to say, we are busy tendering for work in defense and working with -- are there other primes and partners within that industry and we're in a good position to head into at in FY '27.

Thanks, Justin. A question from John Ferguson from the Australian Shareholder Association. This question is 12% of the major workforce auto and Machan, with the shift to electrification across the Australian economy, are their plans to boost this 12%.

Yes, John. Good to hear from you, mate. Yes, look, at some earlier needless to say the effort towards electrification, both in mining equipment and infrastructure and renewables and the like is real. So we think -- and again, that's probably another investment that we make in sort of supercharging our electrical divisions. So it sort of recruit electrical trades, but also our training departments that have very successfully been upskilling people through trade-up programs and the like.

To look at dual trading to look at how we sort of trade the task on some electrical sort of works that are required. So yes, so your question, John, we expect to see that piece of the pie graph grow significantly over the company years.

Thanks, Justin. Christian, another follow-up question from -- from Bells. North American margin FY '26 EBITDA [ 17.5 ] historically made been sort of 20%, how should we see the margin to be business?

Great question, Ed. We saw second half EBITDA margins in North America improved by about [ 1% ], and that's helped overall margins come up. We think that the 20% target that we've talked about is very real and insight for FY '27. There's been a lot of good work completed in that in that market as well as the significant pipeline of new opportunities in North America that will only improve the margins across cross a lot over there. And perhaps on that, Justin, we are pretty buoyant about North America, both U.S.A. and Canada. Do you want to talk about the general state of the nation over there?

Yes, I can do, Paul. Yes, I think probably starting in Canada, that is -- I think, outperformed everybody's expectations, probably even including our continues to be a great proving ground for us. The team up there has set up an absolute force of a team. We would have obviously, circa 150 to 200 vacant roles to fill in Canada as it stands today, which is -- sorry, the demand for our products, the demand for the skilled trades and also the opportunity that provides for our business to fulfill those roles. The U.S.A., again, seen some great tailwinds. I think the current administration as you will, but certainly pro industry. I would say as well as sort of everybody with a golden copper mine at the moment is try to as much getting out of the ground as they can. So is the activity there has grown significantly. So to see both North American opportunities really pushing in leases now is great to see. And we don't really see that changing over the sort of medium term. We think the opportunity is real. Those addressable markets are there. We think it's really go time as far as how we accelerate just beyond HD mechanics in North America, bringing in our other service lines, looking at other opportunities in different industries and scaling a side as we can.

Very good. I think we'd probably as -- one last question again on M&A because that's what we've opened the door on that. A question from Julian in from [indiscernible]. Any color on M&A pipeline, anything currently advanced? Or is organic still focus for us at the moment.

Yes. Thanks,. Look, certainly some stuff well and truly in advanced discussions on the M&A pipeline. I want to look at pretty much color on what that is at the moment. Yes. There's probably 2 in particular that sort of down the track on a bunch of discussions. But again, they're not transformation joint acquisitions, these are things are going springboard us into opportunities that would take us a little longer to do organically.

Well, I think that might be the end of the time that we have allocated for questions. We will leave it there. Thanks very much for joining us this morning.

Thanks, team.

Goodbye, and welcome to the Made Group half year results announcement. If you would like to ask a question today via the webcast, please enter into the Ask Question box and click submit. I'd now like to hand the conference over to Mr. Justin Norwich, Executive Director and Chief Executive Officer. Please go ahead.

Thanks very much, Darcy, and good morning, everyone, and welcome to MadaGroup's FY '26 Half Year Results Presentation. Thanks for joining us this morning. And Jody this morning is our Chief Financial Officer, Paul Egoli. All right. Let's get underway. So with the first half of FY '26 completed, we're proud to have delivered a record half year revenue of $485.2 million, an increase of 18% compared to the first half of FY '25. This result positions us well as we enter the second half of FY '26 and approach our target of $1 billion of annual revenue.

These results are a testament to the alignment, hard work and dedication of the Meda team which has positioned the business well to successfully close out the final year of its 5-year strategic plan. This strategic plan has been a blueprint for our business to deliver continued growth and diversification of revenue base for the last 4.5 years.

We enter the final 6 months with confidence that we'll deliver to plan and lay a solid foundation for what lies ahead. I'd like to extend my gratitude to the entire Meta team for their commitment and determination that they have demonstrated day in and day out. Okay, with that said, let's jump into it. For those unfamiliar with our duty, Meda was founded 20-plus years ago in 2005 by our Executive Chairman, like mad, identifying an underserviced niche in the industry, Luke started providing flexible maintenance solutions to customers with a youth or truck for our North American listeners, some tools and a vision.

Today, that vision has led made to become a global business, delivering technical services across multiple industries and service lines in 10 countries backed by a team of more than 4,100 specialists around the world, we proudly support over 490 customers in more than 685 locations.

As you can see, we have successfully evolved into a truly global diversified company with our unique business model replicated across multiple industries and service lines across the world. By launching fully organic start-ups in new markets, expanding geographically and broadening our suite of trades, we have delivered an impressive average compounding annual growth rate of circa 30% over the last 10 years.

As I mentioned earlier, this achievement would not have been possible without the hard work and dedication of the major team. This leads me to our next slide, a snapshot of our specialized workforce. From the start, a core part of Luke's vision are made up was to build a workforce where people not only have pride in what they do, but they get the job done while working alongside their mates.

This idea has grown from 1 mechanic into a global business comprised of a highly skilled team technicians, all with diverse and specialized skill sets. This includes heavy mobile equipment technicians, auto and high-voltage electricians, road transport and light vehicle mechanics. Fixed plant trades, welding and fabrication, energy specialists, rail and rolling stock experts and so much more.

And while we strive to build meaningful careers for people at any stage of life, as you can see on the screen, more than half of our workforce is under the age of 35, which unfortunately rules Paul and I added that back at these days. This is largely driven by our culture and the flexible and adventurous career pathways in our roles offer. Made is unique offering typically attracts people who are looking for more than just a job but a career full of endless possibilities.

From flexible rosters, site variety and diversity across industries, locations and equipment, we invest heavily in our people so we can deliver opportunities that are truly unrivaled in the industries in which we operate.

The 2 core drivers for this are our bespoke culture lead programs, global pathways and 3 years. These have both been continuously refined to ensure alignment with the growth of business and the needs of our people and more on these later. This year, Meda also received 2 prestigious awards as WA Large Business of the Year as well as the overall winner of the WA business of the year at the Western Australian business awards.

This is an incredible honor among some stiff and worthy competition and great recognition for the entire team who have work portable injury frequency rate of 3.6 recordable injuries per million hours worked -- made a strong safety track record was supported by ongoing education, innovation and the investment in our gear for safety programs.

This included continued strengthening of Meda's engineered safety controls within its global service fleet evolving the Madorapp as well as hosting after safety-focused made to days across our global operations to further educate our teams on safety-related information.

Before we head into the financial review, I'd like to provide a quick snapshot of our half year highlights. We delivered a record half year revenue of $485.2 million, an increase of 18% on the prior corresponding period. This was coupled with a solid NPAT of $30.5 million, up 17% on the [indiscernible] . Further, our balance sheet was strengthened with net debt down 57% to just $3.6 million.

The labor markets in which we operate continue to exhibit extremely competitive conditions. However, through our multidimensional recruitment pathways, we delivered strong net headcount growth of more than 250 people during the first half.

This is evidence of our ability to continually attract and retain the best talent in the industries in which we operate as well as deliver value to our technicians with unrivaled growth and development opportunities. These include our global pathway initiative and trainer program that unlock career possibilities around the world as well as our 3-years program that promotes comradery and Advent, 2 venues that are at the core of everything made it does.

Demand remains strong across all regions with our core mechanical and other industry vertical service offerings consistently meeting customers' needs. The North American segment continued its steady growth profile, delivering its third consecutive half year period of revenue growth, delivering $90 million of revenue. This sets a solid foundation and positive outlook for the remainder of the financial year. We are more than ever focused to achieve our strategic plan with guidance in line with expectations for FY '26.

Now onto a more detailed look into our performance across our all market segments. Our Australian segment continues to move from strength to strength with revenue up 19% on the PCP for the half year. Demand for ancillary and infrastructure services continues to grow with both areas delivering strong revenue during the period. As mentioned earlier, our North American segment delivered steady growth.

Drilling down into the half the segment is showing positive upticks our workforce and customer base continues to grow. Our customer profile in this segment is very strong a large portfolio of blue-chip companies secured across both Canada and U.S. operations. This high caliber of customers supports a stable pipeline of work for the group as we move into the second half of the financial year. In terms of our Rest of the World operations, made delivered a 36% increase in revenue for the period.

This was achieved through our continued diversification in our global operations, including putting our first boots on the ground in New Zealand. This global growth is supported by made strong reputation for safety and technical excellence. Our team continued to deliver significant value to customers across the globe. We bespoke tailor-made solutions designed to improve equipment reliability, safety and upskill local workforces. I'll now pass you over to our CFO, Paul Agee, to run through the financials in more detail.

Thanks very much, Justin, and thanks to everyone who's taken the time to join us on the call this morning in what is a very busy results day. I'll be going over the half year financial performance for the group. .

To start with -- as Justin mentioned, we delivered $485.2 million in revenue, up 18% on the PCP. This growth rate exceeds the growth rate implied in our annual revenue guidance of 15%. Importantly, this revenue growth has been delivered with stable margins with NPAT being delivered at 6.3%, consistent with the PCP and in line with our historical first half versus second half metrics. Our second halves typically deliver a stronger NPAT margin as we scale into the operating base that is established in the first half.

Importantly, we are comfortable with the margin position as it stands today. There are several margin optimization projects in place as they always are in any services business, which are expected to improve our second half margins in parallel with operating leverage, as I referred to earlier.

North America continued its growth trajectory, delivering its third consecutive half-on-half revenue growth with it now representing almost 20% of group revenue. Excitingly, the visible workflow pipeline ahead is encouraging for this segment's second half. EBITDA increased by 9.2% versus PCP which is a little behind our NPAT growth rate of an increase of 17% versus PCP. The reason for this is with much stronger growth momentum and improved earnings our annual short-term incentive payments have scaled upwards, which reflects the much stronger position the business is in today compared to 12 months ago.

For those shareholders familiar with our performance-driven growth-focused incentives these payments accelerate in line with NPAT growth. And given NPAT has increased by 17% versus PCP. Our incentive payment accruals reflect this. From a shareholder perspective, EPS increased to just over $0.15 per share, reflecting an increase of 16% versus the PCP. Finally, the interim dividend was suspended this half year following the review of the capital management strategy by the Board.

Typically, capital management reviews and alterations like this point to something less positive happening in the business. But in our case, it points to something much more exciting ahead and I'll touch on capital management on the next slide. Let's move on to the financial strength of the business. Cash collection and free cash flow generation improved during the half year, and days sales outstanding reduced by 10 days down to just 50 days compared to 60 days at 30 June 2025.

This in conjunction with an increasingly capital-light service delivery model contributed to a reduction in net debt by 57%, down $4.7 million which meant we closed out the half year with net debt of just $3.4 million. This translates to net leverage of just 0.03x which is as close to new net debt that we can get without actually getting there.

We continue to be well supported by our lenders with our primary lender Nav in Australia and also have strong working relationships established in the U.S. and Canada. This leads nicely on to an update to our capital management framework, as I mentioned earlier. The Board has adjusted its capital management framework and elected not to pay an interim dividend for the first half. This action, in combination with improved free cash flow, which I'll expand on in a few minutes, we'll accelerate the group's pathway to net cash and strengthen our liquidity to support a more aggressive approach to organic and inorganic growth opportunities.

In the past, the group's dividend payments have been modest with a dividend yield of circa 1%. Given this, the group's primary focus remains on optimizing capital allocation to fund growth. This approach is intended to enhance overall shareholder value through higher earnings capacity in the future, improved returns on capital and increased financial flexibility whilst, of course, maintaining a growth-focused business direction.

Now on to the cash flow. Our net cash flow from operations was $30.9 million. Our intense focus on EBITDA conversion was maintained throughout the first half of FY '26. Operating cash flows before interest and tax as compared to EBITDA was 98%. This great result reflects the quality of our client base in the trade receivables ledger, as I mentioned earlier. Consistent with the lighter ratio of capital expenditure to revenue growth, Free cash flow increased to $15.8 million for the half year. And I'll expand on this point a little further to help paint the picture a little more clearly.

This is the sixth consecutive half year period of positive free cash flow and is being made possible by scaling non-vehicle based service delivery lines, meaning we can grow earnings without having to purchase the high lux Land Cruiser or Dodge Ram for every new employee we bring into the business. Whilst we have always considered our business model to be capital light, it is becoming more so as we scale into new verticals with lower capital requirements. That's probably enough for me on the financials. Jan, back to you.

Thanks, Paul. Let's keep it moving on to our next slide, the strategic plan. Almost 5 years ago, the Board laid the foundation for our future by setting out some key areas focus in our first strategic plan as a publicly listed business. Since then, this has been a blueprint to guide our growth. The strategic plan set growth targets and operational goals in 4 key areas: geographical diversification, service line diversification, expansion of industry verticals and of course, to scale the existing business.

Further, targets for NPAT were set out, as you can see detailed on the slide. With that said, we identified the need to establish a series of core building blocks to create a solid foundation for future growth, which leads us on to Slide 13 and 14, our building points. Over the years, we've built a strong foundation for growth and 1 that goes beyond just financial metrics. At the heart of it all is our culture, and our culture is the driving force behind everything that we do.

Programs like Global pathways and 3 years bring this to light, offering our people incredible opportunities to travel the world whilst working and spending their R&R creating memories with their team and families. These programs are now active across Australia and North America, and I would also add that these experiences are currently unmatched in our industries. We have worked diligently to expand both programs, so the opportunities are bigger and better than ever before.

This has seen more than 160 employees during the first half, take on both short- and long-term overseas comments as well as an extensive range of adventures cultivated for our global team. Of course, culture is just 1 piece of the puzzle. Another key driver of our growth is how we apply our proven business model across different industries. By expanding into new markets, we're creating a compounding effect by diversifying revenue streams and tapping into large addressable markets.

Resources and infrastructure maintenance remains a core focus of the business as we continue to demonstrate our quality service delivery offering. Over to Slide 14. We see 2 more large addressable markets energy and transport logistics. In the energy market, we have primarily been focused on delivering latence for natural gas compression stations in the United States. In the transport and logistics industry, we have expanded our efforts to provide maintenance for rail and road transport now operating across most of Australia. Given the critical role of transport and logistics in Australia's resources industry, there is significant growth potential that aligns well with our existing operations. Finally, our building block that is key to future growth involves deliberate entry into emerging markets. As necessary, we'll conduct market research into new industries and assess the suitability for the motor business model to be deployed with some very positive due diligence advancing.

An evolving business, Slide 15. We have a proven track record of organically replicating our unique business model across multiple industry verticals. Exploring opportunities outside of our core services will allow us to capitalize on extending across industry verticals and geographies, effectively creating more opportunities for our level and diversifying revenue streams sustainable growth while tapping into new labor and talent pools.

In addition to enhancing our service offerings, geographical expansion remains central to our growth strategy. We have multiple geographical beachheads and are always looking to enter new locations and diversify our commodity exposure. The Australian business continues to generate the largest portion of revenue for the group at 79%. We are confident in the stability of this segment and now we will continue to deliver strong results in this area. The North American segment continued gaining momentum and contributed 19% of the group's revenue.

There is a significant runway ahead for us in this region with a solid foundation laid. The outlook is really positive for the mid- to long term. Our Rest of the World segment contributed 2% to revenue across the business. And whilst this is still a modest number, it is an important offering for our most specialized technicians. As a business, we continually seek to improve the diversity of our revenue profile. This is a pivotal step towards achieving our FY '26 target of $1 billion in revenue.

Through the strategic enhancement of our service offerings, we can tap into new markets that allow us to expand the group's revenue streams. We are constantly assessing addressable markets where we can apply our culture led business model. This is key to driving future growth and ensuring long-term sustainability of the business.

Our diversified operations continue to create sustainable compounding returns for our shareholders with a continuing high-growth agenda ahead. Now if you can to wind back to Slide 12, where we first touch on our strategic plan, this slide here shows our progress against the NPAT target set on that plan. As you can see for the first 4 years of our strategic plan, we have not only achieved but exceeded our NPA targets.

This half year, we have retained 47% of the target today. We are pleased with this result and remain focused on achieving this goal as we close out FY '26.

With low capital intensity, a unique culture led business model and opportunities identified to drive growth we are pleased to reaffirm Made's FY '26 guidance of $1 billion of revenue and an NPAT of at least $65 million. We have delivered a 10-year compounding annual growth rate of around 30%, and as the business continues to mature, we are excited for what lies ahead as we deploy the compounding effect of the major business model to existing and new markets.

With the first half of FY '26 wrapped up, I'm filled with nothing but confidence as we complete the remainder of this year. The current and prospective investors made to present a robust investment opportunity with many prospects ahead. Backed by a nimble, adaptable business model, we have grown to have a market cap of around $1.8 billion.

The resilience and hard work of our team shines through in many areas, and with them behind us, we will continue to deliver a superior service for our customers and value for our shareholders. Okay. That concludes today's presentation. So thanks, everyone, for joining us, and we'll be pleased to take some questions at this time.

Okay. Let's move into the question time. Normally, it's you asking me the Kelly question we quite like it being on the other foot. Let's start with Joe House from Belote, and we'll break this down probably by segment and go around the grounds. So what exactly is giving you the confidence in the outlook for the Australian segment in the sort of second half and moving into FY '27. And then we'll move into other segments after that.

Yes, good stuff Yes. Thanks, Johan. Thanks for joining us. I guess, look, starting with Australia, as you can see, that 19% revenue growth in the first half, it just shows really positive ongoing compounding growth in Australia. We're watching our verticals continue to scale, infrastructure maintenance, road transport, rail and the like, Joe, on top of an ever growing core business gives us that confidence that there's just a huge runway ahead for us in Australia as time goes by. .

But I think if we look across the rest of the business, North America, some decent growth of 13% there. Really quite I suppose, a building block has for us there in North America. We're seeing a lot of work come on, watching the flow of people both -- through both global pathways in sort of Jan 7 and beyond coming into Canada and the U.S. as well as internal recruitment on top of a very good customer demand in that segment. We're really excited about what's happening in North America moving forward.

And then Rest of the World continues to scale. We had some work come on in New Zealand some really good conversations in other parts of the world as well. And although it is a small part of our revenue sort of profile, we continue to made adding value in these parts of the world and continuing to get interest from customers to continue to scale in there.

So with all those things as well as some of the emerging stuff up and coming, it's a pretty exciting story ahead. I'm fairly excited about where we're at and where we're going, Joe.

Tough. Thanks, Justin, for that one. If Matt Josh from Manasquestion around the strategic plan, timing of its release, how are you feeling about all that, Justin?

That wouldn't be a question all with you without the 5-year strategic plan. But it's coming together really nicely, might where I'd say we're probably a couple of months away from sort of releasing that and mainly just to keep the business really focused on what we're delivering for this financial -- sorry, for this strategic plan.

But yes, pretty excited to deliver that when the time comes before end of financial year.

Thanks, Justin.

Question from Joe from Bell Potter again. Echoing back to my comments around the EBITDA margins being softer compared to prior years. And as discussed, Joe, it's really around -- the main driver is around those material annual incentive payments, which have scaled up in line with NPAT growth. They're a really important feature of us sort of driving growth and resetting every year. You only pay that incentive for that growth once baseline resets every year. So that's a really positive thing that the business is very comfortable with. Importantly, those bonuses are divided by 12 and amortized or expensed over the 12 months. So you actually get a little bit of operating leverage in the second half as the revenue base grows without obviously the incentive payments scaling up at the same time. So hopefully, that answers your question on that.

Another question from Joe. probably for you, Justin. Let's talk a little bit more about the organic and inorganic growth opportunities that we've talked about a little bit today. What do they look like? How close are they -- and what does it mean for the business going forward?

Yes. Thanks, Joe. Look, I guess the organic growth profiles, the opportunities continue to grow for us every time we sort of expand into a different area, a different region of countries we operate in currently as well as sort of the new ones that we spend into, yes, those are continuing sort of on a daily basis. Inorganic, we -- again, we're not sort of sitting here and so we're going to turn into this big M&A company. We're not. But we are looking at and opportunities that can really springboard us into new industries and areas that we haven't worked and don't have the current specialist sort of knowledge of.

So you're looking at how we potentially do a strategic M&A to push us into large addressable markets that are sort of here and now. So they are coming along really well, Joe. We're having some really positive conversations probably too early to let on more than that, but pretty encouraged by where we're at.

And yes, looking forward to the next few months as that unfolds.

A question here from Matt again, probably along the same sort of lines. With the dividend being held back or chats being built, -- when we talk about an acquisition, if that is in case -- that is indeed where the money is spent. Is it -- what's the scale like? Is it going into $100 million of debt? Like what does it look like from that point of view?

Yes. I think for anyone that's followed us for a while now, we're not -- we're kind of allergic to debt. We really don't like it. So we want to build that watches that gives us the optionality to really pursue things aggressively, but pursuit with cash or very low debt. We're not there to put hundreds of million dollars of debt on the balance sheet.

We really want to be strategic and deliberate but take small deliberate steps towards where we want to go next.

Question from Khalid from Bluestem. Of the 250 plus net head count globally, how many were field deployed technicians generating revenue versus corporate and support staff. So a good ratio there, Colitis sort of 7% to 8% of that number is in the support function, workforce coordination recruitment, et cetera, with the rest being in field technicians.

We'll move down to Sam Pittman from Taylor Collison morning, Sam. Thanks for joining us. Probably just let's circle back to the Rest of the World segment, small. How do we think about growth there?

Yes. I mean I think if you have a look at the on the slides there, Sean, the addressable market in those areas is undeniable. I guess, with the rest of the world, we're quite cautious around how we approach that and where we work. But we do look for Tier 1 clients in safe and stable jurisdictions to deploy our technicians into. And yes, there's plenty of that going on around the world and we're in sort of various stages of sort of business development as we enter there. So look, it's certainly exciting. It's certainly 1 that we see a massive sort of growth platform ahead but we're very cautious, deliberate and just safety and security focused, really pointing our efforts towards Tier 1 global clients where we enter those. Good stuff.

Thanks, Justin. A question here from Mitch from Macquarie. Can you give us a little more detail or color on the initiatives underway to improve margins? Was there any other factors impacting first half margins, AG mix of work, scaling up new regions Petra. I'll grab that one. .

There's a couple of things, Mitch. There's always things in a business and a services business like ours where we're looking to optimize margins. Those things include, for example, renegotiating flight discounts with the major airlines, which we have completed and is now in place to the second half. It's things like PPE sourcing and other initiatives of that nature. They're not designed to move the needle by 2% or 3% of the NPAT line, but incremental optimizations that we're always looking to eke out a little bit of margin.

The other factor is operating leverage. We have structured up, particularly in the infrastructure maintenance teams, for example, as 1 that comes to mind, structured with an overhead ahead of the revenue profile. And as we move into the second half and revenue continues to expand we expect we'll get operating leverage for that in the second half. I hope that answers the question there, Mitch.

Question from Sam Pittman from Taylor Collison for you, Justin. With the demand for trade being so high at the moment, -- are you seeing any change in what employees want from an employer?

Yes. Thanks, Sam. Look, from time to time, Sam, it sort of varies a little bit, but we really stick to the model that we that we've got sort of down patent as long as we're paying the teams well and providing these great opportunities sort of around the world and working with their buddies on flexible rosters and different mine sites and working on equipment that they love with their bodies. That's really what we can provide over and above sort of what competitors and essentially sort of 1 miners can. So we slot into that position, and that really keeps us as a as an attractive employment prospects to trade people.

Thanks, Jon. A question from Greg from Fattal Investment Research. Can you just talk us through this not a new truck for every new employee and how that is sort of transitioning -- or how that is continuing to reduce the capital intensity of the business?

Yes, for sure. Yes, Greg, I guess, earlier on in the the business field service operations and a lot of the, I suppose, the core business, the mechanics in trucks fixing sort of yellow and orange equipment was very I suppose, capital intensive around vehicles for -- it was probably 1 to 2.

Every 2 employees have started there be a truck required as we grew those different stores. What we're seeing now, and I guess probably getting back to that, the surge into North America, we saw a high peak or a higher sort of peak in capital as we -- we bought those expensive Dodge Rams and Ford F trucks with cranes and welders and heated bodies and all that sort of stuff for the North American teams -- what we're seeing now with things like infrastructure maintenance, rail, road transport, they're less capital intensive. Our infrastructure maintenance team would have a couple of buses and couple of dual abuts to sort of vary people around to shutdowns.

And so you're sort of seeing hundreds of people come into the business without a need for that equivalent ratio of capital to be spent on service vehicles. So as we're seeing that -- and that probably is true for other different verticals that we're moving into as well. We're just seeing the revenue versus CapEx profile of the business really sort of peel apart in a good way, if that makes sense.

Yes. Thanks, Justin.

A question from Gavin Allen from Euros Hartleys. -- as wouldn't be a half year results question with that question about North America more specifically. So Gates led this 1 off. We talk about the encouraging pipeline in North America. Can you give us a bit more of some insights into their present short-term opportunities, for example? What are we seeing?

Yes. Thanks, Kev. Look, yes, North America, I think we're seeing I guess it's probably the most encouraging growth profile across the business in North America at the moment. I would hazard a guess that there are close to 100 unfilled roles that we can get after in North America as it stands today, which is as good as it's probably been gone.

So we are really doubling down on both internal recruitment in North America as well as our global pathways programs to to get people up there and filling those roles and delivering value to our customers and obviously, building our revenue profile. But yes, I think the opportunity there, it's just I can't remember being as excited as I am about North America as I am sitting here today.

Just a question from Matt Chen from Matt. Again, thank you for joining us as well. Really that question around the EBITDA margins in the first half and in the incentives. There's not too much around incentives from a pretax perspective, that bonuses or incentives were set of $6 million plats was 1.5%. So there's the sort of the mix of cost into the business.

And then when you get to the NPAT line, obviously, there's about a $1.5 million delta to the interest expense with that net leverage coming down. So hopefully, that reconciles back to or your various models just working through a couple of things here Indy from Belo question on margins, comfortable with Australia, 12% in North America at 18% to 20% and Rest of the World circa 15%. I think that's a fair assumption moving forward. in the long term. So yes, no changes there.

CapEx question, what does that look like for the full year. We're thinking $35 million to $40 million for the CapEx forecast FY '26 Indy and then probably a question around the dividend and holding that interim dividend back.

With the focus on growth, does it mean the dividend policy has been reset.

I think it just means that it's been it's under review, and we've made a change to date, and we'll see how that goes into the future probably be the only thing I can add to that.

A question from Mitch and this looks like it might be the last question if anything else comes through. Mitch from Macquarie. -- probably back to North America, market conditions you've talked about what about customers and commodities, particularly in Canada? How do you see those conditions playing out for us into the future?

Yes. Thanks, Mitch. Canada in particular, our expansion, I guess, from the first year or 2, where we were very oil sands dominant, where we sit today our customer base has expanded incredibly well with both sort of Tier 1 customers as well as a really good variety of commodities. I'd say oil sands would probably be if it's not 30%, it's probably there or thereabout.

So from being probably 90% 2 years ago to 30% now. And not that oil sands are shrunk, we've just managed to really grow well over on the East and West Coast. So a lot of gold, a lot of precious metals, copper, there's some coal, there's some phosphates, there's aggregates the spread of commodity is, I would say, as good as Australia. And then our customer base continues to just get more and more robust.

So really, really happy and comfortable with where that sits today.

It's an interesting concept. We get a bit of conversation around the customer base in Canada, and there's probably a misunderstanding in the market out there about how good that customer base action is -- any thoughts on that?

Look, I mean, I think when you look at a lot of the global miners that operate here in Australia are absolutely our customers over there as well. You look at the likes of the text and the Arcelor Mattels and the Glencores and all the sort of certainly a name dropping, but they are. I mean, we're not sort of sitting there at night worried about an aged debt situation or customers that can't pay. I mean we're really yes, we're as comfortable with our Canadian customer base as we are here in a -- good stuff.

I think that's all the questions that I can see on the screen that have come through. We'll wrap it up there and move on to some broker calls. So yes. Thanks very much for joining us. I'll hand it back to you, Darcy. .

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.