Mining does not stop.
Across Australia and the globe, resource rich regions are alive with constant activity. Excavators dig, trucks haul, and drills operate day and night. Investors in mining giants like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) ride the ups and downs of commodity prices, hoping the high points will outweigh the inevitable lows.
However, there is another way to gain exposure to the global resources boom without betting on the price of iron ore, copper, or coal.
That is where Mader Group Ltd (ASX: MAD) comes in and as at the time of writing, the share price has climbed more than 30% since the near-end of FY 2025.
Image source: Getty Images
What does Mader Group do?
Mader does not mine or explore. It services the machines that do.
The company sends a skilled workforce directly to remote worksites to repair and maintain heavy equipment used in mining, infrastructure, and energy. When machinery stops working, Mader gets it moving again.
Crucially, Mader works across multiple brands and is not tied to any single manufacturer. Its services are often faster and more cost-effective than those of the original equipment manufacturers. That makes Mader the first call for many operators once warranty periods expire.
How the company makes money
Mader operates an asset-light business model focused on people and service. The company does not own the equipment it services. Instead, it builds long-term relationships with mining and infrastructure clients by delivering reliable, high-quality work on demand.
Its core strength lies in its workforce of highly trained technicians and its ability to mobilise quickly. In Australia, Mader is the largest independent maintenance provider to the mining sector.
When commodity markets slow down, Mader often benefits. It can hire talent let go by miners, expand its market share, and maintain solid margins while competitors retreat.
Solid financial results in 1H FY 2025
Earlier this year, Mader reported record half year revenue of $411.5 million for the first half of FY 2025, up 10% on the prior corresponding period. Profit margins remained steady, with operating earnings (EBITDA) of $51.5 million and net profit after tax of $26 million. The first half result accounted for 46% of the company's full-year NPAT guidance, in line with previous financial year patterns.
Operations across nine countries were supported by a growing global workforce, which reached more than 3,500 people by the end of the period. That expansion is not slowing down, with the North American market becoming a key growth engine for the group.
One to keep on the radar
With more than a skilled workforce of technicians, a founder-led culture, and a strong balance sheet, Mader Group has built a business that continues to grow steadily and profitably.
Despite its share price rally in the last two months, the company still flies under the radar for many investors.
It is certainly one to keep an eye on.
