I would now like to hand the conference over to Mr. Tim Smart. Please go ahead.
Yeah, good morning everybody. It's Tim Smart here, Head of Corporate Strategy and Investor Relations for Maas. Welcome to our first half 25 results. We appreciate your interest. I realize it's a very busy day of other results, and we look forward to seeing and speaking to many of you in the coming days post this presentation. Without further ado, I'm gonna hand it over to our CEO and Managing Director, Wes Maas. Over to you, Wes.
Thanks, Tim. Good morning and welcome everyone to our first half 25 results presentation. In terms of the agenda, I'll go through the first two sections and then hand over to our CFO, Craig Bellamy, who will go through the group-level consolidated financials, after which I'll wrap up and be sure to leave ample time for questions and answers. Moving to slide three, our overarching aim is to compound capital, delivering attractive returns through the cycle. We've been doing this now for over 20 years, and since FY20, since FY20 through to this year, using the midpoint of our guidance, we've delivered an EBITDA, EBITDA CAGR of 29%. Throughout our history, while growth has been strong, it has not been linear. Indeed, we invariably go through periods of consolidation and then step changes in our growth.
We invest for the long term, and our success is a function of our disciplined investment framework and underpinned by our strategic fundamentals, namely an asset base which we continue to invest in that is directly exposed to the key renewable energy and infrastructure projects, which have long-term tailwinds despite some near-term challenges. We have a highly aligned and incentivized founder-led focus team, and we're focused on being the lowest-cost provider in each end market. We have a successful track record of organic growth and accretive acquisitions, complemented by prudent capital allocation. Moving to slide four, our values-driven culture is the foundation for our success and growth and is a true differentiator. An important focus for us as we complete recent Construction Materials acquisitions is ensuring alignment with our new businesses and the team members not only understand our values but embrace them.
Having just last week held our quarterly business review and strategy day, where a number of our staff from the newly acquired businesses attended, I'm encouraged that this is very much the case. Moving to slide five, the outlook for infrastructure and renewable energy development across the East Coast remains very strong, and we continue to expand our footprint to be well-positioned to benefit from this. Our recently completed acquisitions add two new hubs in Wollongong with Cleary Bros and in Canberra with the Capital Asphalt business. Both of these acquisitions open up new and exciting hubs for the group. Moving to slide six, as well as opening up two new hubs in Wollongong and Canberra, the acquisition of Aerolite further strengthens our Greater Melbourne footprint, providing quality, long-life hard rock quarry reserves on a freehold property of more than 380 hectares.
This is well-situated to supply the Western Growth Corridor in the Greater Melbourne market. Our integrated Greater Melbourne business now incorporates five hard rock quarries, one sand quarry, and nine concrete plants, and is situated in those outer ring growth corridors. Notwithstanding the soft macro environment, which is well-documented, we are well-positioned. Our businesses are well-located and have proportionately greater exposure to infrastructure, commercial, and industrial end markets, lessening the impact from the residential slowdown. We have also acquired these businesses in the prevailing soft macro environment already, reflected in our acquisition earnings and the multiples. Our quarry-led strategy provides organic growth opportunities as we optimize supply to downstream operations in a market that is supply-constrained.
Moving to slide seven and turning to our Construction Materials strategy and status of our previously announced acquisitions, reiterating that we are a quarry-led strategy where our primary focus is to acquire and develop upstream quarry assets and integrate with our downstream businesses to maximize overall throughput and returns. I'm pleased to announce that we've been able to complete the announced acquisitions slightly ahead of schedule with all three businesses now settled. Transition plans are progressing well, and these businesses will not only contribute to the second half 2025 but also provide an exciting step change in growth for the CM business for 2026 and beyond. Moving to slide eight in the first half of our financial highlights, we produced AUD 95 million EBITDA, which was in line with the guidance, and continued Construction Materials growth, offsetting project headwinds impacting the Civil Construction and Hire business.
Construction Materials EBITDA of AUD 45 million, representing 24% growth on the prior corresponding period, and CM is now comfortably the largest contributor to our overall earnings. Capital recycling of AUD 90.7 million exceeded our targets, and sales were made in excess of book value with AUD 11.2 million in previously stated previous period fair value gains crystallized, and again demonstrating the validity and indeed the conservatism of our fair value adjustments. Our leverage ratio at 2.2 is at the lower end of our targeted range, reflecting the strong capital position we have. Importantly and pleasingly, our main safety indicator, our LTIFR, reduced to 3.1, which is a great achievement as we integrated new businesses and our safety initiatives. Moving to slide nine and the outlook, guidance for FY25, inclusive of the acquisitions, is underlying EBITDA in the range of AUD 215-245 million.
Some of the factors affecting the FY25 guidance and the outlook include acquisitions that are expected to contribute in the second half in the range of AUD 10 million-AUD 12 million. Construction Materials growth to continue to be underpinned by volume growth and ongoing integration benefits. The expectation that delayed renewable procurement timelines will continue to improve momentum, which will be likely seen late in the second half 2025 and will roll into FY26. Expectation that residential settlements will be in the range of 150 to 180, including some build-to-rent sales. Approvals to enable the residential and englobo sales are achieved, and an expectation that fair value gains are recognized from investment properties will be consistent with FY24.
Moving to slide 10, in terms of factors underpinning growth beyond FY25, they include full-year contributions from the recently acquired acquisitions of Capital Asphalt, Cleary Bros, and Aerolite, including growth expected from the identified synergies. Construction Materials growth overall to continue and dominance in terms of its earnings contribution to increase. Delayed renewable energy projects expected to come online. The establishment of our Ellida Estate in Rockhampton to capture demand stimulated by interest rate cuts in a highly supply-constrained environment. Easing rate cycle expected to provide impetus for strong residential settlement growth. In terms of our key priorities that we're focused on, integration of our Construction Materials acquisitions and execution of their transition plans. Increasing our secured pipeline of work in the CCH division and identification of the opportunities to increase the plant utilization rates over the coming periods.
Continued execution of our capital recycling initiatives to achieve more than AUD 100 million in FY25 proceeds and a continued focus and implementation of our safety initiatives, including rolling out in the newly acquired businesses to sustain improved trajectory. Moving to slide eleven, the safety of our people is our highest priority. We are pleased to see that our lost time injury frequency rate has declined to 3.1 from 4.3, something we're extremely proud of. We have worked hard to institute safety initiatives across all of our businesses, and it is a testament to the leaders at the operation level that even the new business being integrated, we've been able to make solid progress and improvement. Moving to slide twelve, we're committed to operating in a sustainable way, recognize the importance and the role we play in reducing environmental and climate-related impacts.
There are a number of initiatives underway across our business that target reducing environmental impact. In a number of cases, we're also generating positive financial outcomes. As a company, we understand the increasing expectations around sustainability, and we're committed to developing a roadmap to meeting and exceeding sustainability reporting requirements. Moving to slide 13 and moving on to our individual business units operating in the industrial and real estate segments, you can see here the respective EBITDA contributions with Construction Materials now easily the largest contributor at 42% of group EBITDA. With new acquisitions to contribute and grow from the second half 2025, Construction Materials is expected to grow in proportionate importance to the group earnings as we move forward. Moving now to slide 14 and turning specifically to the Construction Materials business and the first half 2025 result.
Construction Materials delivered solid growth with EBITDA up 24% on previous year, driven mainly by strong contributions from the businesses acquired in FY 2024. Existing quarry businesses achieved higher margins through sales volume growth and cost of production reductions. Overall, Construction Materials margins decreased very slightly on the first half 2024, driven by a high contribution of lower margin revenue from concrete and asphalt and spray seal. Note that the pie chart and associated percentages relate to the gross segment sales, which incorporate intra-segment sales such as internal sales from the quarry products to our downstream concrete operations. The gross segment revenues and associated product percentages give more accurate representations of the relative growth and contribution of the different products. In terms of the outlook, overall construction activity remains relatively soft and less conducive to ongoing price rises. We continue to identify significant opportunities from infrastructure and renewable energy zone-related projects.
Acquisitions made this year have significantly strengthened our Greater Melbourne network, and there remains substantial opportunity to integrate and optimize across the divisions to further enhance margins and returns. Our recently completed acquisitions create exciting growth opportunities with new hubs of Wollongong through Cleary Bros and the access to the Sydney market from there and also Canberra through Capital Asphalt. Moving now to slide 16 and zooming out for a moment, it is worth reflecting that we've managed to build in the Construction Materials segment since listing. We've focused our capital in a disciplined way to expand the footprint and capability of the business to generate well over AUD 100 million in EBITDA as a run rate. The most recent acquisitions further strengthen our position as well as establishing new opportunities for growth.
2024 was a year when attractive long-term fundamentals in this segment were recognized by foreign operators who have significantly increased their presence here through acquisitions of valuations much higher than where we've been able to acquire our assets. The entry and expansion by foreign operators not only validates our strategy at attractive multiples that we've been showing the attractive multiples that we've been able to acquire at, but also further consolidates the market with greater rationality in competitive behavior, and we believe this to be a longer-term norm. Moving to slide 17 and turning to our other industrial operating business of construction, Civil Construction and Hire . Since listing, our Civil Construction and Hire business has grown strongly, and as previously mentioned, we've strategically aligned the business towards renewable energy opportunities. This has been a successful strategy, and I remain confident that moving forward, it will remain very strong.
As I will discuss in greater detail in the coming few slides, a combination of projects rolling off and delays in some of these expected projects have contributed to the result. The Central-West Orana REZ is the first of the REZ projects to commence, and pleasingly, the early works packages associated with the project have now commenced, and we will see some benefits from this through the second half 2025 and into FY 2026. There is less visibility on a number of other delayed projects, with the reasonable likelihood that they commence later in second half 2025, providing a partial contribution to FY 2025, but a stronger run rate heading into FY 2026. This is reflected in our updated guidance.
Beyond the short-term challenges, there remains a very large pipeline of work in our regions that we're well-positioned to capture, and I remain very confident in the people, process, and plant that we have to execute on this. Moving to slide nineteen, given the impact of the project delays in the Civil Construction and Hire segment and the overall result, I want to provide some more project detail to the extent that I'm able to. The nature of the generational energy transition is that there are obstacles and challenges arise that are unforeseen and need to be overcome. Procurement times for early works packages associated with the renewable energy projects have taken longer than expected, with the Central-West Orana REZ being the first of the REZ to be approved and developed. Many of the issues are rising and being resolved after the first time.
Precedents will be set for future projects, and there's a reasonable expectation that lessons will be helpful in reducing unforeseen delays in the future. In terms of the factors impacting on the Civil Construction and Hire EBITDA reduction for the first half 2025, include, whilst not an exhaustive list, we will call out four projects: three in the Central-West Orana, New South Wales, and one in Central Queensland, where they're expected to have meaningful contributions in the first half 2025 but were delayed. Early works packages associated with the largest of all the projects, the Central-West Orana REZ, were deferred but have now commenced and are scaling up over the course of the second half 2025, with significant further packages expected to contribute in FY 2026 and beyond.
In terms of the works packages and associated other projects, they remain at various stages of progression, but with some uncertainty still on their commencement. Additional to the project delays impact, we have also had two unexpected losses in the period. These projects have now completed, so there will be no further losses that have negatively impacted on the first half result. Moving to slide twenty, pleasingly, early works packages for the Central-West Orana REZ have now commenced and will contribute to the second half 2025 and beyond. Civil Construction and Hire is well-positioned for a number of large renewable projects that are expected to commence over the course of 2025, but delays in procurement and contribution is now likely in late second half 2025 and move into FY 2026.
As you can see here by the latest Macro monitor, renewable energy forecast charts, the outlook and opportunity in the regions we operate remains enormous. We have the capability in terms of quality people, disciplined processes, an extensive fleet of plant and equipment, and we remain excited about the future in spite of the near-term challenges that we have encountered. It is also worth pointing out that in our Queensland civil business, through our Schwarz brand and Aerolite businesses, we have significant existing work in traditional energy generation should there be a shift in the energy policy. Moving now to slide 21. As I mentioned, the Central-West Orana REZ renewable energy zone is the first of the renewable energy zones to be approved, and associated early works have now commenced.
With a total project value of in excess of AUD 3.2 billion, it will initially deliver 4.5 gigawatts, with capacity planned to increase to six by 2038. The project covers an overall area of 20,000 sq km, very much in our backyard, and associated transmission lines will facilitate the connection of wind, solar, and battery generation projects to the grid. EnergyCo NSW, New South Wales government, is the infrastructure owner, with the D&C head contractor being ACEREZ, the joint venture between Acciona and Cobra. Not only are we well-positioned through plant hire and our civil business, but also the electrical work and the pull-through from our quarries and concrete businesses, which are strategically located in the region. As progress on the Central-West Orana REZ occurs, momentum for associated wind, solar, and battery generation projects are also expected to build.
Moving now to slide twenty-two and onto our Residential Real Estate business. EBITDA, excluding fair value gain, decreased by 38%, driven by an englobo sale in the first half 2024, contributing 60% of the first half 2024 EBITDA, which did not repeat itself in this half. Pleasingly, the business settled 90 lots in first half 2025, including the disposal of 29 build-to-rent properties, up from 38 in the first half 2024. We generally guide for land gross profit per lot at around 100K, and indeed, for the first half, it was 102,000 per lot, driven by a state and product sales mix, with overall pricing remaining stable. Home construction margins improved in the first half 2025, driven by disciplined cost control. While still subdued, the market outlook is improving, and Tuesday's long-awaited start of an easing rate cycle should provide positive impetus.
With 88% of our FY25 target settlements achieving, we have strong visibility in terms of overall settlement targets. We will continue to focus on our master plan community strategy, which includes the development of the Ellida Estate in the Rockhampton market, with stage one sales beginning now and settlements moving into FY26. Moving on to slide twenty-four and our Commercial Real Estate business. While revenue decreased marginally, EBITDA increased by 91% while the increase in fair value gain on investment properties. EBITDA increased by 28% gain on sale of surplus land parcel. The segment achieved proceeds on sale of developments of AUD 74.5 million in the first half 2025 as part of their group's recycling capital program, which were in excess of book value, providing validation for fair value gains recognized previously.
In terms of the outlook, we will continue to focus on self-storage, childcare, and industrial assets, and we've identified further assets for sale, which see a reduction in overall capital employed. I will now pass over to our CFO, Craig Bellamy, to go through the group financial performance. Thank you.
Thanks, Wes, and good morning, everyone. Starting on slide 27 with the group underlying performance for the half, and as Wes has already noted, the EBITDA for the period of AUD 95 million was in line with the guidance, driven by increases in Construction Materials and Commercial Real Estate , offsetting the softer environment in the Civil Construction and Hir e segment. Revenue for the half was flat in comparison to the prior corresponding period, with the strong increases achieved in Construction Materials being offset by performance in Civil Construction and Hire due to the project delays already touched upon.
Our EBITDA margin for the period of 21% was flat with the prior period, and excluding fair value gains was 16%, which compares to 19% to the prior period. Once again, the decrease driven through the performance of Civil Construction and Hire . Other income for the period totaled AUD 23.6 million, with the largest contributors being the fair value changes for commercial property at AUD 20.4 million, profit on the sale of assets and investment properties of AUD 2 million, and the fair value changes on the residential build-to-rent portfolio of AUD 600,000. Looking at the group expenses, the group has continued our strong focus on cost management across the business. Overall expenses for the group increased by 3% for the period, with the vast majority of the increase attributable to a full six months contribution for the businesses previously acquired in FY24.
The existing business saw a reduction in expenses largely in line with the decrease in the CCH segment turnover, namely civil projects. The group also took up a AUD 2.1 million increase in expected credit losses during the period. Depreciation for the period increased by AUD 5.4 million to AUD 27 million, driven largely by the full period's depreciation of the Construction Material businesses acquired during the second half of 2024, and our amortization has decreased to AUD 3 million for the six months, mainly due to the unwind of amortization of customer contracts previously recognized under AASB 15. Turning to slide 29 and looking at the group's underlying cash flow. Our operating cash flow for the period was approximately AUD 60 million, with a cash flow conversion rate achieved for the period of 81%, which is consistent with prior periods and sits within our target range of between 80% to 100%.
There was a net increase in land with AUD 22 million invested into development during the period, compared to 11.7 in the prior period, noting that approximately 50% of the spend in the first half of 2025 was at our Tweed Heads property, which is now classified as an investment property at balance date and will no longer be shown in the operating cash flows going forward. Taking a closer look at the underlying cash flows by segment, you can see that Civil Construction and Hire Construction Materials and Commercial Real Estate achieved cash flow conversion rates in the range of 81%-122% for the period, driven by prudent working capital management. Turning to slide thirty-one and looking at the capital investments, we have maintained a disciplined and prudent approach with respect to capital management and investment for the period.
Our capital investments for the period comprised the acquisition of a 75% interest in Capital Asphalt, which occurred in December, the acquisition and development of commercial property, and investment into growth CapEx in both the civil construction, hire, and Construction Materials segment. As can be seen from the table, we realized close to AUD 75 million in sales from investment properties, which combined with the proceeds from the sale of surplus land, we achieved, we realized AUD 90 million in proceeds and will continue to focus on further opportunities during the second half. Our maintenance CapEx for the period was AUD 10 million, with our net PP&E spend of AUD 8.1 million for the half. Looking at slide thirty-two and our capital management, the company continues to have a disciplined approach with respect to its capital management program.
During the period, we completed a capital raise, a syndicated refinance of our debt facilities, increasing our facility limit as well as the size of our banking group. In addition, we incorporated an accordion facility to provide additional debt capacity in the future. At year-end, we had approximately AUD 440 million of liquidity post the acquisition of Capital Asphalt. Our leverage ratio at the end of the period was 2.2 times, which sits at the low end of our target range of two to three times, with approximately 20% of the debt being fixed. We also declared an interim dividend fully franked at AUD 0.035 per share, and our share buyback program remains active where applicable.
Looking at the group's balance sheet on slide thirty-three, the balance sheet continues to remain strong and heavily asset-backed, with AUD 1.6 billion in total assets and AUD 1.4 billion in total tangible assets. As discussed, our main investment for the period has been the acquisition of the Capital Asphalt business. Before handing back to Wes, looking at slide thirty-four and our capital employed, the capital employed at the end of the period was approximately AUD 1.35 billion. The return on capital for the period of 10% was down on the prior corresponding period, largely driven by performance of Civil Construction and Hire , and the timing of the residential englobo sale in the first half of 2024.
Our Commercial Real Estate business has seen an improvement in its return on capital, largely driven through the capital recycling already discussed, and our expectation is that our return on capital will continue to improve across the group for the balance of FY25. Thank you, everyone, and I'll now hand back to Wes.
Thanks, Craig. So to summarize the key messages, first half 2025 EBITDA of AUD 95 million was in line with guidance, driven by strong Construction Materials contribution. The guidance for FY25 of AUD 215 million to AUD 245 million is inclusive of the acquisitions. C onstruction Materials continues to deliver strong growth, and the successful completion of the three acquisitions ahead of schedule provides a step change in growth, with new hubs in Canberra and Wollongong established. Capital recycling proceeds of AUD 90.7 million exceeded target and was above book value, with more to come.
Beyond the near-term delays, the outlook and opportunities from the transmission and renewable energy projects remain substantial. In concluding, I remain excited by the growth opportunities, and I'm confident in our ability to capture them. We've never been in a better position in terms of quality of assets and people from which to execute these. My confidence in the business and its outlook is reflected in my participation in the recent capital raise. Subject to the EGM approval next week, I'll take up my AUD 25 million allotment of stock at the AUD 4.65 issue price. I also highlight the participation of the other directors as well on the same terms as a signal of their confidence in the business and alignment with shareholders. I appreciate your interest in our company, and that concludes our formal presentation. I'll now open up for questions. Thank you.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on speakerphone, please pick up the handset to ask your question. Your first question comes from Mitchell Sonogan from Macquarie. Please go ahead.
Good morning, Wes and Craig. Can you hear me all right?
Yes, it's Mitchell.
Yep. Craig. Thanks for taking the questions. Just firstly, on Construction Materials , you obviously talked about a bit of a softer overall construction market there, making it less conducive for price rises. Yeah, can you maybe just give a little bit more color on how you're seeing overall demand in CM across the different geographic regions and maybe just give an update on how you're seeing the competitive landscape as well? Thank you.
We would say it's still a strong market. It's not a weakening market. Across our different areas, we see significant upside opportunity in volume out of the Queensland market, which is relative to the Rockhampton and that central Queensland growth. It's a very strong market at this minute. In New South Wales, we would say it's moderate to up. In Victoria, we would say at this minute, volumes are probably flat, and then the recent acquisition of Cleary, as we see, it's a very strong market and significant opportunity there to expand. If I were to go back to the Melbourne market, with the recent acquisition of Aerolite, and we're still integrating the various businesses we have together, so I think there's upside opportunity for us.
And then with the easing of the interest rate cycle, we expect over the coming years that we will see quite a bit of upside and also the supply constraints. So we're extremely happy with what we've acquired and the network that we've built in that market. As far as the general overall landscape, there has been a lot of consolidation in the market, in all markets. We've seen the multinationals and also the Australian businesses consolidate some of those markets. So we see it's quite rational.
Yep, thanks. I'll just jump you onto the Civil Construction and Hire . You've obviously put in a fair bit of detail on the renewables. Just on the Central-West Orana, Wes there, you've said there's some early works packages kicking off at the moment.
Yeah, do you mind just maybe giving me a bit more color on just how you're seeing activity there, but also I guess some of the other big projects that you thought might be coming down the pipeline in the next couple of years, just any sort of updates on how you're seeing progress? Thanks, guys.
Yeah, obviously it's well documented from us that we've seen a number of delays. I would say we're more than six months behind on some of those projects just from a start date, but they are starting now. It's slower than anticipated, but we expect it to gather momentum from this point forward. The REZ is the enabler, so that's run by EnergyCo, the joint venture that's in place to operate. And off the back of that is the private proponents that run and operate and own the wind, solar, and battery projects.
So we expect it to materially increase over the coming periods.
Perfect. That's all from me. Thanks, guys.
Thanks, Mitch.
Thank you. Your next question comes from James Ferrier from Wilsons Advisory. Please go ahead.
Morning, Wes, Craig, and Tim. Thanks for your time. Could I ask you first of all about the return on capital in the Construction Materials business? So slide 34 is probably the reference point there. 12% in the PCP, 10% this period. Can you just talk a bit about sort of where you see the trends that are influencing that current result and where you see it trending? I appreciate you've got a medium-term target there, a longer-term target, but where you see it trending over the next 12 months and the drivers?
Obviously, when you capture half by half, it distorts it a little bit because of the contribution.
Our asphalt and seal business materially increases in the second half, which will naturally increase. But we also say that every business that we acquire, it's probably got a two- to three-year maturity. So if we sat as a static portfolio, we would expect it to significantly increase over a two- to three-year period. And then from there, it would organically or slowly increase just in line with general markets. But in that first two- to three years, we envisage that we will materially increase to take it up to a mature or forecasted level.
Yeah. Okay. And to what extent did the delayed project activity in CCH impact any of the expected volumes coming through from CM?
It would contribute in that. I don't have an exact number, James, so I would be giving you a bit of an estimate.
I would say in the 10%-15% range that we could have had more volumes. And that's primarily around the New South Wales and Queensland business rather than the Victoria.
Yeah. And that's quarry content versus concrete or something else? That's probably a high-margin product?
Predominantly quarry. Yeah, quarry is our main driver, and it is the largest margin.
Yep. No, that's helpful, Wes. And then on the CCH business, I think obviously you've had some delays with projects sort of rolling off and then commencement. But when we look at the guidance that you have, the earnings guidance you have for FY25 now, I'm interested in your view of where the implied asset utilization is for the CCH segment in the second half based on that guidance relative to where that utilization performance was back in FY24?
In FY24, it would have been in the 70-80% range. In the first half, it would be in the 50-60% range. We expect to exit FY25 above 80%.
Yeah. Yeah. And so just, I guess, on balance, what do you see?
Sorry, James. The allocation of the assets is a pretty good measure too. With the delays in the projects, there's a lot of the fleets allocated for these projects, which we know they're coming. So that's why the utilization's down a little because you can't go and allocate that fleet out with the projects that are about to start also. So that leads to a bit of the sway in the utilization, right?
Yep. No, that's helpful color. Thanks. And then lastly, just on Commercial Real Estate , what's your view on the cadence here of capital recycling versus commercial land acquisitions?
Do you see this segment as a net cash flow neutral type trajectory, or is it more like a net inflow over the next year or two?
It would be neutral to inflow. It won't be increased, but yeah, neutral to inflow. We're not actively driving higher or driving more capital into that segment. But I mean, from half to half, it'll just get a little bit distorted. If you looked at it on a three-year chart, it would be neutral to inflow.
Yep. No, that's good to hear. Thanks for your time.
No worries. Thanks, James.
Thanks, James.
Your next question comes from Liam Schofield from Morgans. Please go ahead.
Morning, guys. Just a quick question on slide 16. You've just got that track record from Construction Materials growth, and then yo u've just got those three boxes there talking about the elements.
Can you sort of distill to us what organic growth versus acquisition growth look like for, I suppose, for the first half and for FY25? How do we think about that split between organic and acquired growth?
First half, small organic growth in the Construction Materials space expected to improve during the second half.
Yeah. Single digits. Is that sort of what you're thinking?
Yes. Yes, mate.
Yes. Okay. No worries. And just on regional REZ markets, there'd been some sort of anecdotal reports of improvements. What are you guys seeing there? And then maybe just sort of draw the distinction between central New South Wales and regional Queensland.
Yeah. We definitely are seeing a positive inquiry, and we're hopeful that turns to positive conversion. We recently, two weeks ago, released our Ellida Estate in Rockhampton and significant response.
So we're quietly optimistic that FY26 and beyond, we will hit our targets in our sales there over time. It's probably too early. I think the positive inquiry has been since they came back from Christmas rather than what happened on Tuesday. Yes.
Thanks, guys.
Once again, if you wish to ask questions, please press star one on your telephone and wait for your name to be announced. There are no further questions at this time. I'll now hand back to Mr. Maas for closing remarks.
Thank you all. Just to summarize those key messages again, we're extremely positive on the outlook. We remain very excited about the growth opportunities and the long-term opportunity with the asset-backed business and founder-led aligned team. Thank everyone for your interest, and that concludes our presentation today. Thanks, everyone.
Thank you.
Thank you.
That does conclude our conference for today. Thank you for participating.
You may now disconnect.