Mincon returns to growth, driven by pivot towards construction sector
In the six months to June 2025, the company's revenue rose 9 per cent to €74 million, despite the impact of currency exchange providing a 1 per cent headwind.
The company said growth was driven by activity in the construction sector, which rose 47 per cent year-on-year in revenue as the company recorded major project wins in Australia and Africa.
However, mining revenue was down 13 per cent on a year earlier, while geothermal revenues were 9 per cent lower.
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Gross profit was €22 million, up 27 per cent and in line with analyst forecasts, while operating profit for the period was €5.4 million, rising from €200,000 a year earlier.
'This improved performance has been driven by increases in our construction revenues. This strong construction performance is due to a combination of our superior engineered product offering as well as onsite service support,' said chief executive Joe Purcell.
'In conjunction with our improved sales, we have continued our focus on driving operational efficiencies across the group, which is enhancing our margins and competitiveness.'
Geographically, Mincon saw revenue in the Americas rise on stronger construction sales, while mining revenues grew in North America. This was offset by reductions in South America.
In Europe and the Middle East, revenue was 6 per cent higher.
'Our water well/geothermal market was slow in the first half of 2025 reflecting a depressed Scandinavian housing market, however we see this picking up as the year progresses,' Mr Purcell said.
Income in Africa shrank, with construction revenue increasing in the region, while mining revenue declined.
'On top of this, there has also been a rowing back on certain climate commitments which is concerning in the global push to reduce emissions. In the context of these challenges, it is important to take a step back and note the flexibility that our global spread gives us to try and mitigate tariffs,' Mr Purcell said.
'Also, the requirement of reducing emissions is directly related to increasing the efficiency of drilling which also impacts drilling costs. In that context, our engineering focus on efficiency remains a cornerstone in our push to win profitable market share.'
The company said the macroeconomic uncertainty due to the emerging global tariff situation has 'given pause for thought'.
In a note to investors, Davy analysts said Mincon's operating profit level was 9 per cent ahead of its expectations.
'The business is well placed for the rest of the year despite currency and trade headwinds,' Davy said. 'We expect to leave our underlying operating profit forecast for the year (€9.8 million) unchanged following today's results."
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