Mincon half-year results 2026: construction growth drives profit recovery

Mincon Group Plc has delivered a much stronger first half, with revenue growth across all three of its main industries and a substantial improvement in profitability.

Revenue from continuing operations increased 19% to €87.8 million during the six months ended 30 June 2026. Operating profit more than doubled to €9.3 million, while profit for the period rose from €0.7 million to €6.8 million.

There are some qualifications. Reported earnings benefited from a €2.6 million gain on asset disposals and a favourable foreign exchange movement. Inventory also climbed to €83.7 million as Mincon prepared for contracted second-half demand and dealt with higher tungsten carbide prices.

Even after allowing for those points, the operational direction looks encouraging. Higher factory utilisation, growing sales of Mincon-manufactured products and better performance in mining suggest the recovery is broader than a single construction contract.

Mincon's key first-half figures

Continuing operations	H1 2026	H1 2025	Change
Revenue	€87.8 million	€74.0 million	19%
Gross profit	€26.8 million	€22.0 million	22%
Gross margin	30.5%	29.7%	0.8 percentage points
EBITDA	€13.8 million	€8.3 million	66%
Operating profit	€9.3 million	€4.1 million	127%
Profit for the period	€6.8 million	€0.7 million	871%
Basic earnings per share	3.19 cents	0.31 cents	Not disclosed

EBITDA means earnings before interest, tax, depreciation and amortisation. It is often used to assess the underlying performance of an operating business before financing and certain accounting charges.

The headline EBITDA figure includes the asset disposal gain. Excluding gains from capital asset sales and discontinued operations in both periods, EBITDA increased 36% to €11.2 million. That is a more useful indication of the improvement generated by trading.

Reported profit also benefited from a €0.5 million foreign exchange gain, compared with a €1.9 million loss in H1 2025. Investors should therefore avoid treating the full 871% increase in net profit as a purely operational improvement.

Construction led the growth

Construction remained Mincon's largest industry, representing 50% of revenue compared with 48% a year earlier. Construction revenue increased 23%, led by North America and supported by a large infrastructure project delivered steadily across the half.

Americas construction revenue rose 81%, including an 85% increase in North America. This more than compensated for steep declines in Asia-Pacific and Africa following the completion of major projects delivered in 2025.

That concentration is worth watching. A large contract contributed significantly to first-half growth, so future comparisons may become harder once it is completed. However, Mincon also reported demand from numerous smaller Northern European projects, where construction revenue rose 61%.

The company's spiral flush drilled-foundations system is gaining customer traction. Management believes this product is helping to expand its position in the construction market, although the announcement did not disclose its revenue contribution.

Mining's return to growth matters

Mining revenue increased 18%, reversing the 13% contraction recorded in H1 2025. Growth came from Australia, Africa and North America, while Europe and the Middle East declined.

Australian mining revenue rose 49% following weaker exploration activity and wet weather in the comparative period. African mining revenue increased 16%, while North American mining revenue grew 28%.

Management attributes part of this progress to product performance and Mincon's direct sales and service model. That is strategically important because repeat mining demand could prove less dependent on individual infrastructure projects.

The HIT system, previously called Greenhammer, began operating at a copper mine in British Columbia in July. Mincon and collaboration partner Epiroc are also in advanced contract discussions with several other large mining customers. No contract values, timing or expected revenue contribution were disclosed, so this remains an opportunity rather than booked financial growth.

Waterwell and geothermal revenue increased by a more modest 5%, supported by a 12% improvement in Northern Europe's geothermal market.

Better utilisation lifted the margin

Sales of Mincon-manufactured products increased 23% to €73.4 million, while third-party product sales were broadly flat at €14.4 million.

The greater weighting towards internally manufactured products improved factory utilisation and helped gross margin rise from 29.7% to 30.5%. Higher production volumes also allowed fixed factory costs to be spread across more units, creating better operating leverage.

This improvement was delivered despite a sharp increase in tungsten carbide prices. Carbide is an important raw material used in Mincon's drill bits. Existing price lists and customer agreements meant the company could not immediately pass through the full cost increase.

Management described this as an input-cost squeeze rather than a demand problem. Internal efficiencies and manufacturing utilisation more than offset the pressure during the half, but continued carbide inflation or delays in customer price increases could still weigh on margins.

Inventory is the main balance-sheet concern

Inventory rose by €12.2 million from the end of 2025 to €83.7 million. This included increases in raw materials, work in progress and finished goods.

Mincon said the increase reflected new supply-chain arrangements, higher carbide prices and stock built for contracted second-half demand. Inventory measured in months of cost of sales was unchanged from December 2025, which offers some reassurance that the increase was broadly proportionate to activity.

Even so, €83.7 million is a significant amount of capital tied up in stock. The investment case would be strengthened if project deliveries convert this inventory into revenue and cash during the second half as management expects.

Working capital absorbed €3.2 million of cash excluding foreign exchange effects. Despite this, net cash generated from operating activities improved to €6.5 million from €2.7 million.

Debt moved in the right direction

The sale of Mincon's Perth property and other capital assets generated €8.0 million of cash and a €2.6 million accounting gain. The entire cash proceeds were used to reduce debt.

The group repaid €12.4 million of loans and lease liabilities while drawing €5.0 million of new borrowing for equipment investment and downpayments. Net debt ended the period at approximately €16.0 million, which management described as comfortably below one times EBITDA.

Cash stood at €13.0 million, up from €11.7 million at the end of 2025. Mincon also paid the €2.2 million final dividend relating to 2025, although no new interim dividend was disclosed in these results.

What investors should watch in the second half

Mincon expects continued growth in profitability over the remainder of 2026. The most important tests will be whether contracted demand converts elevated inventory into cash, whether mining growth continues and whether carbide cost increases can be passed to customers.

The positives are broad-based revenue growth, recovering margins, improved operating cash flow and lower debt. The main uncertainties are the contribution from a large North American construction project, raw-material inflation and the lack of disclosed financial detail around HIT and offshore wind opportunities.

Overall, this is a materially improved trading update. The quality of the next phase will depend less on one-off disposal gains and more on Mincon sustaining underlying EBITDA growth, protecting margins and releasing cash from working capital.

The full figures and accompanying notes are available in the original company announcement.