Mader Group suspends dividend as it builds warchest for acquisitions
Mader, which is now deploying its tradespeople into the energy, marine, maintenance and road transport sectors, is in early talks over strategic acquisitions.
Mader Group has pulled its interim dividend as the mining fleet maintenance company builds a war chest for expansion.
The fast-growing business, founded by diesel mechanic Luke Mader with a single ute in the West Kimberley in 2005, on Tuesday said it had “deferred” the historically “modest” payout, despite lifting interim net profit 18 per cent to $30.5 million.
Mader, which is now deploying its tradespeople into the energy, marine, maintenance and road transport sectors, said the suspension of the dividend would “accelerate its pathway to a net cash position” and “support a more aggressive approach to organic and inorganic growth opportunities”.
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By continuing you agree to our Terms and Privacy Policy.Noting that the dividend had historically been small, Mader chief executive Justin Nuich said the group was in early “positive conversations” about potential strategic purchases as it chased “opportunities that really springboard us into new industries”.
However, there was no thought of taking on substantial debt to fund acquisitions, with the group preferring to fund the expansion with cash.
“We’re allergic to debt, we really don’t like it,” Mr Nuich told investors.
“We want to build that war chest to give us the optionality to pursue things aggressively, but pursue with cash or very low debt,” he said.
“We want to be strategic and take small deliberate steps towards where we want to go.”
Mader paid out 4¢ a share for the same half-year in the 2025 financial year for a total return of about just $8m. The lion’s share was pocketed by Mr Mader and wife Amy, who own a combined 51.8 per cent of the company.
Mader shares plunged as much as 19 per cent after the profit and dividend announcement, with investors previously showing a willingness to punish the company when it hasn’t smashed its guidance.
However, the stock recovered most of the loss to close 3.7 per cent lower at $8.50 to value Mader at $1.73b.
Mader remains on track to achieve at least $1 billion in revenue for the full year after raking in $485.2m in the six months to the end of December, up 17 per cent on a year earlier. It has guided shareholders to a full-year profit of $65m.
