Mincon’s 2025: profits rebound as strategy takes hold
Mincon Group plc posted a tidy recovery in 2025. Group revenue edged up 2% to €148.7 million, but the real story is profitability: total operating profit more than doubled to €12.1 million and profit for the year jumped 213% to €5.5 million. EBITDA from continuing operations rose 19% to €19.3 million, lifting the EBITDA margin to 13.0% (2024: 11.2%).
The improvement reflects cost discipline, a stronger construction book in North America, and the clean exit from loss‑making carbide operations.
Headline numbers investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total revenue | €148.7 million | €145.9 million | +2% |
| Gross profit | €44.4 million | €40.1 million | +11% |
| EBITDA (continuing) | €19.3 million | €16.2 million | +19% |
| EBITDA (total) | €20.4 million | €14.2 million | +44% |
| Operating profit (continuing) | €10.9 million | €7.6 million | +44% |
| Operating profit (total) | €12.1 million | €5.5 million | +119% |
| Profit for the year (total) | €5.5 million | €1.8 million | +213% |
| Basic EPS (total) | 2.60 cent | 0.83 cent | n/a |
| Total dividend | 2.10 cent | 2.10 cent | Unchanged |
| Cash and cash equivalents | €11.7 million | €15.0 million | -€3.4 million |
| Loans and borrowings | €33.5 million | €37.7 million | -€4.2 million |
| Net debt to equity | 0.30 | 0.29 | Slightly higher |
Quick refresher: EBITDA is profit before interest, tax, depreciation and amortisation – a proxy for underlying operating cash earnings.
What drove the stronger profit?
Cost base and mix improvements
- EBITDA margin climbed to 13.0% as 2024’s operational review bore fruit and raw material costs fell by 4% as a share of Mincon‑manufactured revenue.
- Large construction projects supported margin recovery.
- Discontinued operations helped: the sale and closure of the Sheffield carbide facility completed in early 2025 and delivered a €1.4 million gain on asset sales.
End‑market performance
- Construction up 14% and is now Mincon’s largest industry. North American projects that were delayed previously have kicked off.
- Mining down 9% as Mincon deliberately realigned its offer away from commoditised products in certain locations.
- Waterwell/geothermal remained subdued overall, though revenue rose 1% thanks to a solid Northern European geothermal base.
Regional picture
- Americas revenue up 6%, with North America up 12% driven by construction wins. Tariffs and US cost inflation remain a headwind, with price increases being passed through where possible.
- Europe, Middle East and Africa up 3%: geothermal in Northern Europe was sluggish, offset by growth in Central Europe and the Middle East.
- Africa up 13% helped by a DRC construction project and recovering gold mining demand in West Africa.
- APAC down 28% as the business is being restructured to target more profitable opportunities.
Cash flow, balance sheet and working capital
Operating cash flow was steady at €8.8 million (2024: €9.0 million). Working capital increased, chiefly due to inventory build to service large construction projects that began in Q4 2025. Inventory stood at €71.5 million (2024: €67.3 million).
Capital investment was disciplined at €3.0 million, aimed at automation and replacing high‑maintenance kit. Mincon also realised €2.3 million of proceeds from asset disposals. Loans and borrowings fell to €33.5 million, although cash declined to €11.7 million after dividends (€4.5 million) and debt and lease repayments. Net debt to equity nudged to 0.30.
Post year‑end, the Australian property held for sale completed on 31 January 2026 for AUD$13 million (€7.4 million) – a useful liquidity boost not yet reflected in the 2025 cash balance.
Strategy and growth options
Epiroc collaboration on HIT system
In September 2025 Mincon signed a 3‑year exclusive collaboration with Epiroc to commercialise its HIT system (formerly Greenhammer). The partnership gives Mincon access to a market‑leading rig platform and positions Epiroc with a performance edge in single‑pass drilling for surface mining. Management sees a “transformational opportunity” in North American copper in particular.
Subsea and renewables positioning
Mincon continued to invest in intellectual property. The Subsea project progressed with the successful installation of a subsea anchor – a step towards certification – and its Subsea Micropiles partner is pursuing opportunities in offshore wind and wider offshore construction. Management’s thesis is clear: construction, mining and renewables tied to electrification should underpin demand for efficient drilling solutions.
Dividend and capital returns
The Board recommended a final dividend of 1.05 cent per share, taking the 2025 total to 2.10 cent – unchanged on 2024. Subject to approval, it will be paid on 12 June 2026 to shareholders on the register at 22 May 2026.
The watchlist for 2026
- Commercialisation of HIT with Epiroc – evidence of orders, conversion of existing rigs, and new‑system deliveries.
- APAC restructuring – stabilisation and a return to profitable growth after the 28% revenue drop.
- Americas pricing power – progress on passing through tariffs and input inflation to protect margins.
- Inventory unwind – converting the Q4 2025 project build into cash and normalising working capital.
- FX headwinds – 2025 saw a €4.2 million translation loss in other comprehensive income; currency remains a swing factor.
- Mining mix – benefits from gold strength and copper expansion versus exposure to commoditised products.
My take: a leaner base with real optionality
This is a good quality recovery. Mincon grew revenue modestly but turned that into a much bigger jump in profit by tightening operations, improving its raw material economics and leaning into large construction projects. The closure and sale of the Sheffield carbide operation helped clean up the margin profile and removed a distraction.
Negatives are there: mining revenue contracted, APAC needs fixing, US tariffs and inflation add friction, and the stronger euro weighed on translation. Cash is lower year‑on‑year, though that January 2026 Australian property sale meaningfully offsets the picture.
Overall, the set‑up for 2026 looks constructive. If the Epiroc collaboration starts to translate into orders and APAC stabilises, there is scope for earnings to push on from a higher margin base. For income holders, the 2.10 cent dividend looks well covered by 2025 earnings of 2.60 cent per share, with management guiding to continued growth this year.
