Why long-term holders are exiting Macmahon Holdings after its 160% re-rating

A tender pipeline worth $25.6 billion and ASX 300 inclusion have finally been reflected in Macmahon's share price, prompting some of its longest-standing holders to sell.

30 Jun 2026 · 5 min read

Mining and civil contractor Macmahon Holdings has delivered one of the more complete re-rating stories among small-cap industrials, culminating in Forager Funds exiting a fourteen-year investment in 2026. Forager's Annual Report described the business as larger and more diversified than just a few years ago, with earnings before interest and tax up 17% in its first-half results and return on capital employed climbing above 21%.

A decade-long holding finally recognised by the market

Forager's April 2026 Presentation put the payoff in context: the fund had owned the stock for fourteen years through a period of good operational progress that the share price largely ignored through 2025, before the stock rallied 160% over the following twelve months as positive sentiment toward the mining sector finally caught up with the underlying business. Ryder Capital sold its own long-held position for similar reasons in April 2026, describing the exit as purely on valuation grounds after what it called a very successful holding.

Macmahon's (MAH AU) was a strong contributor to the portfolio during the quarter, driven by a combination of solid 1H26 results and an expanding tender pipeline that is beginning to attract broader institutional attention.

— Ellerston Capital, Monthly Report, March 2026

Ellerston Capital's March 2026 commentary detailed the scale of that pipeline: a tender book that had grown to $25.6 billion, with $14.4 billion expected to be awarded within twelve months across the mining and civil divisions, underpinning management's medium-term targets of $750 million-plus in underground revenue and $1 billion in civil revenue by FY28. The stock's inclusion in the ASX 300 in March 2026 brought index-driven buying that further widened the institutional shareholder base.

What managers are watching next

Not every manager is following the exits. Ausbil Investment Management initiated a position in May 2026, pointing to a 12-month contract extension at Black Cat's Majestic mine as part of a run of contract wins across the Northern Territory, North Queensland and New South Wales, arguing there is growing earnings visibility over the coming years even as the stock's valuation has caught up with its improved fundamentals.