Highlights

  • Unaudited revenue reached $59.4 million for the nine months to September 2026.
  • Reported profit after tax was $1.3 million against a $3.9 million loss a year earlier.
  • Gross profit increased to $12.8 million, with improvement in the Metals segment.
  • Cash was $7.8 million at quarter end, while a secured bank facility matures in November.

Magontec Limited (ASX:MGL) manufactures cathodic corrosion protection products and supplies recycled magnesium alloys and specialised metals. Its unaudited results for the nine months ended 30 September 2026 show higher revenue and a shift from a reported loss to profit. The company also reported positive underlying operating cash flow, alongside financing and market pressures that remain relevant to its operations.

Revenue and profit measures

Magontec Limited (ASX:MGL) reported revenue of $59.4 million, compared with $46.1 million in the corresponding nine-month period, representing 28.9 per cent growth. Gross profit increased to $12.8 million from $9.3 million, a rise of 38.1 per cent. Reported profit after tax was $1.3 million against a $3.9 million loss. EBITDA excluding unrealised foreign exchange movements was $3.2 million versus a $1.5 million loss. Excluding unrealised foreign exchange effects and significant items, net profit after tax was $1.6 million compared with a $1.9 million loss. The report presents amounts in dollars without specifying a currency.

Two businesses contribute differently

The cathodic corrosion protection division makes anodes for water heating and heating, ventilation and air conditioning applications. Its gross profit was $10.4 million, up from $9.7 million, while ICAS electronic-anode revenue rose 26 per cent in constant currency. The Metals operation, which recycles and supplies magnesium alloys, generated $2.4 million in gross profit after a $0.4 million loss in the comparable period. For Magontec Limited (ASX:MGL), the divisional figures show improvement across differing product lines rather than dependence on a single activity.

Cash conversion and borrowing maturity

Underlying operating cash flow for the nine months was $3.4 million, compared with a $1.3 million outflow. The company said working capital absorbed $3.5 million during the period. Cash at 30 September 2026 was $7.8 million and net debt was $1.4 million. Magontec Limited (ASX:MGL) reported a secured Commerzbank borrowing facility with $7.8 million drawn and a 30 November 2026 maturity. A separate RMB 10 million facility was undrawn and undergoing renewal. Its report did not confirm whether the secured facility would be renewed or refinanced.

Trading conditions and management expectations

Magontec Limited (ASX:MGL) described pricing pressure in the Chinese magnesium-anode market and low magnesium prices linked to Chinese overcapacity. It also cited softer European automotive production, competition in anode markets and supply-chain difficulties for special metals. The company expected ICAS sales in the December 2026 quarter to remain around the level seen across the preceding nine months, while recycling efficiency initiatives were expected to deliver results during 2027. Those statements are management expectations, not reported outcomes.

Key Insights

Magontec Limited (ASX:MGL) delivered improved nine-month earnings and operating cash flow, while reporting uneven conditions across its business lines. The approaching secured debt maturity and the conversion of working-capital movements into cash provide important context for the reported profit recovery.