Good morning, ladies and gentlemen. My name's Stephen Bizzell. I have the pleasure of chairing MAAS Group Holdings, and on behalf of my fellow directors, I'd like to welcome you to the 2026 Annual General Meeting of MAAS Group Holdings. As it's 9:00 A.M., and I'm informed by our company secretary that in accordance with the company's constitution, a valid quorum is present, I therefore declare the AGM formally open. As well as attendance here in person, the AGM is also being held virtually via the share registry virtual meeting platform, and we encourage all shareholders to take part in the meeting in person or online. I acknowledge this AGM is being produced on the traditional lands of the Turrbal and Jagera peoples, and I pay my respects to their elders, past, present, and emerging. A few housekeeping issues before we kick off.
I'd appreciate it if all mobile phones could be turned to silent, and recording devices and cameras shouldn't be used during the meeting. In the event of an emergency, please follow the emergency exit sign and instructions of the venue staff, or grab your favorite Morgans advisor who'll lead you out. Our company secretary has confirmed the notice of meeting has been made available to all shareholders and other persons entitled to receive it within the notice period. Now, I'd like to introduce our directors and secretary here in person in Brisbane. We have Non-Executive Directors David Keir, Ms. Tanya Gale, and Mick Medway; and our Company Secretary and General Counsel, Ms. Candice O'Neill; and in the front row, our CFO, Craig Bellamy. Also, Mr. Wes Maas, our CEO, sends his apologies for not being here and present in Brisbane.
Unfortunately, family commitments kept him away, but he's present online. I'm having nods. Yep. Also present is the company's auditor, Mr. Tim Mann of BDO Australia, and he'll be available to answer any questions you have about the audit of the financial statements later in the meeting. The AGM addresses for myself and Wes have already been released to the market, and before we turn to those addresses, I'd like to outline some technical and procedural matters for this meeting. For those here present online, if you've registered, I'd like to make sure that you've registered your attendance, even if you're not a shareholder. You can see the representatives from our share registry at the back of the room for that.
In relation to when we get to the voting, if you have a yellow voting card, you are a voting shareholder, proxy holder, or corporate representative, and you'll be entitled to both vote at the meeting and speak at this meeting. If you have a blue card, you are a non-voting shareholder, and while you're entitled to ask questions and make comments, you are not entitled to vote at this meeting. If you have a white card, you're a visitor and not entitled to vote or speak. If anyone with a yellow or blue card wishes to speak when we get to the resolutions, please raise your hand at the appropriate time and a representative will bring a microphone to you. Please identify yourself before asking your question.
For those shareholders who are joining us for the meeting online, I ask that you familiarize yourself with the virtual meeting online guide, which will direct you as to how to ask written questions or to ask questions verbally via the web phone. You will be able to finalize and submit votes at any time during the meeting and up until five minutes after the meeting ends. If you are present in the meeting here, your vote will not be collected until the close of the meeting by representatives from the share registry. All items of business to be voted on today will be decided by a poll, which is now open. If you experience any difficulties using the virtual meeting platform, please check the virtual meeting guide on our website or contact the helpline shown on the screen.
Resolutions and proxy results will be displayed on the screen as we reach each resolution, and if you have any questions, you can submit the comments or questions. I ask that you limit your questions to one at a time, and also restrict your questions and comments to the resolution being considered, and any general shareholder questions submitted and not answered during the meeting will be addressed after the formal business is completed. If we are not able to answer all questions today, or if there are specific questions that would be better addressed on an individual basis, we will respond to them after the meeting. Mrs. Secretary, are there any apologies?
Stephen, there are no apologies. I also confirm I have received a valid list of proxies from our share registry, the results of which will be presented at each resolution.
Thank you. The matters requiring consideration today are outlined in detail in the notice of meeting that has been sent to all shareholders. The notice will be taken as read. Now, I would like to provide my annual address. It is a privilege to report on another defining year for MAAS Group and to reflect on the important strategic steps taken to position the company for its next phase of long-term growth. The company delivered another strong financial result in FY 2026 while continuing to apply a disciplined approach to capital allocation and value creation. In today's address, I will provide a brief overview of the company's FY 2026 performance, the proposed divestment of the Construction Materials division, the evolution of our strategy towards next- generation infrastructure, and our ongoing focus on sustainability, safety, and capital management.
I'll then hand over to our Managing Director, Wes, who will provide further detail on the group's performance, strategy, and outlook. FY 2026 was a significant year for MAAS. The group delivered underlying EBITDA of over AUD 300 million, compared with AUD 219 million in FY 2025, and an 89% increase in statutory net profit after tax to AUD 136 million, compared with AUD 72 million in FY 2025. These results are particularly pleasing given continued variability in market conditions, project delivery challenges, and weather-related disruptions. Our commitment to safety, our people, our communities, and sustainable practices remain central to our strategy. During FY 2026, the company completed its first reporting cycle under Australia's mandatory climate-related financial disclosure framework, strengthening our understanding of climate-related risks and opportunities as we continue our sustainability journey. Safety also remains our highest priority, and our group-wide message, "Think safe, act safe, look after your mate," continues to be embedded across the organization.
The company continues to be well led by its entrepreneurial founder, Wes Maas, supported by an experienced and stable management team. Their focus remains on disciplined capital allocation, rigorous execution, maintaining our values-driven and high-performance culture, and creating sustainable long-term value for shareholders. In February of this year, the company announced the proposed sale of its Construction Materials division to Heidelberg Materials Australia for cash consideration of up to AUD 1.7 billion. The proposed transaction outcome reflects the quality, scale, and performance of the Construction Materials platform built by the MAAS team over recent years. Following careful consideration, the board concluded that the proposal provides best outcome for shareholders and represents an attractive opportunity to crystallize significant value while positioning MAAS for its next phase of growth. Subject to shareholder approval today and satisfaction of the remaining conditions precedent, completion is expected next month.
The transaction is expected to materially strengthen the group's balance sheet, reduce net debt, and increase financial flexibility. It will also support the disciplined redeployment of capital into areas that the board believes offer superior long-term returns, including electrical infrastructure, industrial services, digital infrastructure, electrification, and energy transition-related assets. Resolution 5 of today's meeting seeks approval for the Construction Materials sale for the purposes of ASX Listing Rule 11.2, and your directors unanimously recommend that shareholders vote in favor of that resolution. The company's objective of creating long-term shareholder value through disciplined investment and capital allocation remains unchanged. Each investment continues to be subject to rigorous due diligence, disciplined valuation, and targeted returns on capital. During the year and subsequent to financial year-end, MAAS took meaningful steps to increase its exposure to next-generation infrastructure.
This included a strategic investment in Firmus Grid Limited, securing significant electrical infrastructure work supporting the development of AI and data infrastructure in Australia through JLE Group, and the acquisition of commercial property with power availability and grid proximity for future digital and energy infrastructure developments. These initiatives, together with the proposed Construction Materials divestment, represent a clear evolution in the group's strategic direction. The company has also continued its on-market share buyback program as a disciplined capital management tool. Resolution 4 today seeks shareholder approval to provide additional flexibility for the company to acquire and cancel shares beyond the 10% limit during the 12 months following approval. The board will continue to assess buybacks against other potential uses of capital, including organic growth, acquisitions, and debt reduction, and will deploy capital in this regard where it considers that doing so will enhance shareholder value.
Looking ahead, the group's solid pipeline of work, the proposed capital recycling from the Construction Materials divestment, and the opportunities emerging in electrical, digital, and AI infrastructure position MAAS well for FY 2027 and beyond. We remain confident in our strategy and focused on disciplined execution. I'd also like to take this opportunity to advise of a transition in our market communication strategy. The company will be discontinuing the practice of providing formal short-term quantitative earnings guidance, such as underlying EBITDA forecast ranges. MAAS Group has evolved into a highly diversified industrial services, real estate, and investment business operating across multiple segments. The timing of large-scale asset recycling initiatives, property settlement cycles, infrastructure project approvals, and period-end mark-to-market of investments held and major strategic transactions can cause non-operational short-term fluctuations in half-year or full-year earnings metrics that do not reflect the intrinsic long-term value being built across the portfolio.
Management believes that directing the market's focus towards operational drivers, execution of capital allocation, and multi-year strategic milestones is more aligned with sustainable wealth creation for MAAS shareholders. MAAS Group remains fully committed to its culture of transparency and proactive market engagement. The company will continue to provide detailed updates to investors, including detailed disclosures on key business drivers, including material developments in its investment activities, comprehensive half-year and full-year financial result presentations, and periodic corporate and operational updates. In conclusion, I'd like to thank my fellow directors for their efforts, support, and guidance during this important year for the company. We trust shareholders will support the re-election today of Non-Executive Director David Keir. David brings more than 35 years of experience in the property industry and continues to make a valuable contribution to the board.
I'd also like to give particular thanks to Wes and his management team for their dedication, commitment, and leadership. Our people, also, across all of our operations who continue to embrace the unique MAAS culture and values, who've been integral to the company's success. Their hard work and contribution are acknowledged and sincerely appreciated. Finally, on behalf of the board and management, I extend our thanks to you, our shareholders, for your ongoing support and confidence. The future is exciting, and we are proud of the business we continue to build and shape. We look forward to sharing our success with you on the journey ahead. That concludes my annual address and technology working. I'll now invite Wes Maas to address the AGM.
Good morning, everyone. Thank you, Chairman, and good morning to our shareholders, employees, customers, and partners joining us today. It is a pleasure to present the results of MAAS Group Holdings for the 2026 financial year and provide an update on our strategic priorities and our outlook. As the Chairman outlined, FY 2026 was a defining year for MAAS. We delivered a record financial result, entered into an agreement to divest our Construction Materials business, and took significant steps towards the next phase of the group's growth. My focus today is on how we delivered the result, what we learned during the year, and how we intend to execute the next phase of growth. FY 2026 was not only a year for MAAS, it was the year we positioned the business for its next decade of growth. The result reflects more than strategic positioning and supportive demand across parts of our portfolio.
It reflects the strength of our team and a culture built on ownership, teamwork, commitment, and candid conversations that continually challenge us to improve. Those values have been part of MAAS since day one, and they remain central to how we operate, how we respond to challenges, and how we deliver for our customers and shareholders. FY 2026 was a year of strong performance, but it was not without challenge. Across the group, our teams operated through variable market conditions, weather-related disruption, project delivery pressures, cost inflation, and continued competition for skilled people. Conditions also varied across our end markets. Demand for our electrical and digital infrastructure strengthened significantly. Renewable energy and transmission projects moved into delivery and supporting higher activity across the electrical, civil construction and plant hire.
Regional residential markets remain resilient, supported by constrained housing supply, low rental vacancy, and continued population movement into markets in which we operate. Buyer sentiment continued to be influenced by interest rates, cost of living pressures, and broader economic conditions, but inquiry, sales, and settlements increased during the year. Construction Materials delivered a higher revenue, supported by the contribution from the business acquired in the prior periods. Earnings were broadly in line with FY 2025 as softer quarry and concrete volumes, particularly in Melbourne. Also, some wet weather, high fuel costs, and greater weighting towards the lower margin asphalt work affected margins. Against this backdrop, our priorities remain consistent. We focus on protecting our people, delivering on our commitments to customers, manage working capital carefully, and allocating capital where we believe we can generate an attractive long-term return. The year demonstrated the benefit of our diversified model.
More importantly, the ability of our people to work together across the group to find solutions, respond to changing conditions, and remain accountable for the result. The group delivered a record underlying EBITDA of AUD 300.3 million, an increase of 37% on FY 2025 and within our upgraded guidance range. Underlying revenue increased 27% to AUD 1.264 billion. Underlying net profit after tax increased 57% to AUD 123.4 million, while the underlying earnings per share increased at 51% to AUD 0.342. Statutory net profit after tax attributable to owners of MGH increased 89% to AUD 136.1 million. Importantly, the result was supported by strong cash conversion. Operating cash flow for the land interest and tax was AUD 183.5 million, representing cash conversion of 93% of our underlying EBITDA, excluding the fair value gains. Leverage at the 30th of June was 2.6x , well within our target range of 2x-3x .
The strength of our continuing operations is particularly important. Continuing operations generated EBITDA of AUD 184.9 million, excluding the AUD 41.7 million uplift in Firmus. Continuing operations EBITDA was AUD 143.3 million, an increase of 37% on the prior year and above the previous guidance we'd given in August. This performance reflects the quality of our underlying business and increasing contribution from the electrical, civil construction and hire, and the residential real estate and manufacturing businesses. It demonstrates that while the composition of the group is evolving, our focus on disciplined execution, accountability, and return on capital remains unchanged. Our remuneration framework on this approach by aligning reward with sustained performance, return on capital, and the creation of long-term value for shareholders. Re taining, developing, and appropriately awarding high-quality performing people remains important to the continuity of our leadership and the successful delivery of our strategy. Moving now into the separate segments.
Civil construction and hire delivered underlying EBITDA of AUD 65.1 million, an increase of 64% on FY 2025. This result was driven by strong growth in electrical and the commencement of progression of AI-related infrastructure, data center and energy infrastructure work, and improved utilization in the plan hire as renewable energy transmission projects moved into delivery. Revenue increased across each of the segment principal streams. Electrical manufacturing expanded meaningfully. Civil construction benefited from previously delayed projects moving into delivery. Plant utilization improved and electrical service revenue increased. The business has now approximately AUD 1.2 billion of secured electrical work in hand. This includes the approximate AUD 855 million work order received in August for the manufacture, supply, and delivery of modular PowerCube solutions and associated high- voltage infrastructure over the next 18-month period.
This level of secured work provides meaningful visibility across FY 2027 and beyond and positions MAAS to participate in the delivery of infrastructure required for data centers, AI factories, renewable energy, and electrification projects across Australia. The scale of this work represents a significant opportunity for the group, but it also raises the standard required by us. Successful delivery will require teamwork across our engineering, procurement, manufacturing, logistics, and project delivery functions. It will require transparent conversations to identify risks early and get decisions right. It will require our people to take ownership of outcomes and maintain unwavering commitment to our customers. Our focus is on the safe delivery, manufacture quality, program certainty, supply chain discipline, and careful management of working capital. Recent investments in our manufacturing capability in Newcastle, Orange, and Vietnam has positioned the business to respond to the increasing demand while maintaining quality and delivery performance.
From FY 2027, the former civil construction and hire segment will be renamed electrical as this reflects the growing importance of electrical manufacturing, high-voltage infrastructure, and associated civil and plant hire activity in the future earnings profile of the group. Moving now on to the residential real estate, where we delivered an underlying EBITDA of AUD 31.8 million, an increase of 44%. Excluding fair value gains, underlying EBITDA increased 64%. The business settled 264 lots during FY 2026, including 11 build-to-rent properties. Excluding the build-to-rent transactions, settlements increased from 151 lots in FY 2025 to 253 lots in FY 2026. We achieved the first settlements at our Ellida Estate in Rockhampton, progressing civil works in Arcadia in Tamworth and Collina North in Griffith, and continued development across our established regional portfolio. The business enters FY 2027 with over 200 lots secured, providing a solid level of forward activity and increased revenue visibility.
The result reflects the commitment of our teams in delivering to the communities that people want to live in while maintaining the discipline required to progress these developments through an increasingly complex planning, approval, and delivery environments. Our focus remains on master plan communities and affordably positioned residential products in an undersupplied regional markets. The timing of settlement remains subject to development approvals, civil works, service and construction programs, buyer demand, and pricing also remains sensitive to interest rates and broader economic settlement. We therefore continue to manage our development program carefully and align the release of capital with demonstrated customer demand. On the commercial real estate, it generated underlying EBITDA of AUD 59.4 million, an increase of 20%, supported by fair value gains on investment properties. During FY 2026, we realized AUD 93.6 million from the sale of commercial developments.
Together with residential build-to-rent disposals, total capital recycling for the year was AUD 99.3 million. A further AUD 158.3 million of property sales had been contracted at the year-end and are expected to settle across FY 2027 and the first half of FY 2028, subject in some cases to the remaining conditions and settlement timing. These outcomes demonstrate the continued application of our build, develop, realize, and recycle approach. The segment also established a position in the Western Sydney Aerotropolis. This gives the group exposure to a strategically important industrial and infrastructure precinct through a capital-efficient funding structure. The Aerotropolis is expected to support logistics, manufacturing, warehousing, cold storage, and potential data center activity over time, a lthough the timing and value of returns will depend on development milestones, approvals, market demand, and land values. The performance of our commercial real estate business reflects a culture of accountability and disciplined capital.
Our teams remain focused on progressing projects efficiently, managing development risk, and continually assessing the invested capital return on our objectives. Moving now on to manufacturing. Manufacturing delivered an underlying EBITDA of AUD 6.4 million, an increase of 26%. The improvement was supported by strong international market engagement on the equipment sales, aftermarket activity, higher revenue, and developing electrical manufacturing contribution. During the year, the business strengthened engagement with Tier 1 customers across Australia, New Zealand, the Pacific Islands, South Africa, and Southeast Asia. Our parts service and rental continued to provide recurring income that complements the new equipment sales and supports long-term customer relationships. Our manufacturing operations in Australia and Vietnam remain an important capability for the group. They support quality, cost competitive, production flexibility, and delivery certainty across electrical products, underground equipment, and industrial machinery.
The development of our international manufacturing capability demonstrates what can be achieved when teams take ownership, work across business boundaries, and remain committed to the delivery of practical solutions for our customers. One of the strengths at MAAS has always been our willingness to be candid when we perform well and we can continue to improve. Safety remains our highest priority and one of the most significant operational opportunities for us to focus on as we scale the business. The relationship between safety and performance is clear. Our safest businesses are also generally our most productive and operationally disciplined businesses. Strong safety performance supports better planning, improved asset availability, greater workforce engagement, and more consistent project delivery, and better outcome for customers. These outcomes ultimately support stronger and more sustainable financial performance.
During FY 2026, the group operated at an increased scale with approximately 2,143 direct employees working across Australia and internationally. Activity increased across electrical infrastructure, renewable energy manufacturing, civil construction, and real estate. Against the backdrop, we recorded a lost time injury frequency rate of 5.6 and a total recordable injury frequency rate of 16.7. These measures were higher than FY 2025 and remain above our long-term targets. At the same time, we continued to develop our safety systems, strengthen reporting, and improve the consistency of which the safety risks are identified and discussed as a group. We are encouraged by the increasing ownership of our people in taking over safety outcomes and the willingness of our teams to speak up about those risks, incidents, and opportunities to improve. That candor is important. These transparent conversations allow us to learn, strengthen controls, and get decisions right.
The opportunity ahead is to convert engagement into more improved performance. We will continue to strengthen the critical control verification, increase visibility with the leadership in the field, and embed consistent safety expectations across every business. We will also continue to improve the use of safety data and AI tools for operational insights so that we can target the activities with the greatest potential to prevent injuries and improve productivity. This is not simply a safety program, it is part of how we build a stronger operating business. By working together, taking ownership, and focusing on practical solutions, we believe we can deliver safer work practices, more consistent operational performance, and stronger long-term results. Our message remains simple and unchanged: think safe, act safe, and look after your mate. Our culture remains one of the group's greatest strengths.
MAAS was built by people prepared to take ownership, solve problems, and remain accountable for outcomes. As the group has grown, protecting that culture has become increasingly important. During FY 2026, we continued investing in leadership capability, professional development, AI adoption, and internal promotion in trade skills. Our leading-edge MAAS Leadership program has now reached more than 174 managers and people leaders. The program is designed to build an organization-first mindset and strengthen the ability of our leaders to support their teams, improve performance, and deliver strategic outcomes. We are also supported by 80 trade apprentice positions, including 37 trainees enrolled in the accredited programs. These investments are important as we expand our electrical manufacturing and infrastructure capabilities and compete for skilled labor across tight markets. Strong culture does not mean avoiding difficult conversations. It means having those conversations early, openly, and respectfully.
It means working as one team to find solutions. It means empowering people to act while maintaining accountability for the result, and it means delivering on our commitments we make to customers and shareholders and each other. Our long-term incentive program framework supports this culture by linking reward to sustained earnings per share growth, return on equity, and continuing contribution from the group. The proposed performance rights in relation to Tanya Gale recognized the period of service as an Executive Director of Corporate Development during FY 2025 and remains subject to performance hurdles extending through to FY 2029. This reflects the principle that rewards should remain connected to the long-term shareholder outcomes rather than a short-term activity. On the Construction Materials divestment, as the Chairman has outlined, in February 2026, we announced the proposed sale of Construction Materials division to Heidelberg Materials Australia for a cash consideration of up to AUD 1.7 billion.
This includes AUD 120 million of contingent cash consideration linked to the agreed post-completion operational and commercial milestones and remains subject to applicable purchase price adjustments. The transaction received ACCC approval on the 31st of July and subject to shareholder approval and satisfaction of the remaining conditions. Completion is expected next month in October 2026. The proposed transaction represents the next step in the evolution of MAAS. It recognizes the quality, scale, and performance of the Construction Materials platform built by our people over many years. Our strategy has consistently been to identify attractive sectors, build capability, scale businesses, improve performance, and where an attractive opportunity is available, crystallize value and redeploy that capital into the next phase of growth. The proposed sale is consistent with that approach.
It provides an opportunity to unlock significant value, materially strengthen the balance sheet, and create the financial flexibility to pursue opportunities across the electrical infrastructure, digital infrastructure, electrification, and other sectors supported by long-term structural tailwinds. We believe it represents a compelling outcome for shareholders and an important step for the positioning of MAAS in its next phase of growth. I support the board's unanimous recommendation that shareholders vote in favor of Resolution 5. In the absence of a superior proposal, I intend to vote all shares held or controlled by me in favor of that resolution. Approximately 1,140 employees are expected to transition with the Construction Materials business. I want to recognize those people directly. The quality and value of the platform being sold is a direct reflection of their hard work, commitment, and pride over many years.
We are working closely with Heidelberg Materials Australia to support the business continuity and an orderly transition for employees, customers, and suppliers. On the capital allocation and capital management. Following completion of the proposed Construction Materials sale, the group expects to have materially strengthened balance sheet and an increased financial flexibility. That flexibility does not lower our standards for capital deployment. It increases the importance of them. Every dollar of capital will continue to compete for deployment. We will assess each opportunity against strategic fit, return on capital, execution capability, downside risk, and the alternative uses available to us.
Our capital allocation priorities include investing in the organic growth of our continuing operations, supporting delivery of the secured electrical and digital infrastructure pipeline, pursuing selective acquisitions and strategic investments aligned with our capabilities, c ontinuing development of our residential and commercial property portfolios, reducing debt and maintaining prudent balance sheet capacity, and buying back shares where we believe the market price represents an attractive return relative to the alternative uses of capital. The board has adopted a capital management framework that provides greater flexibility to allocate across these priorities. The approval sought under Resolution 4 would provide additional capacity for on-market share buybacks beyond the ordinary 10 of the 12 limit during the 12 months following the AGM. This does not mean that the capital will automatically be directed to buybacks.
It means the board will have greater flexibility to act when the company shares are trading below its assessment of the underlying value, and when a buyback is expected to generate superior returns compared with organic investments or acquisitions or debt reductions. The same discipline will be applied to every alternative opportunity. We will only deploy capital where we believe the prospective return justifies the risk and enhances the long-term shareholder value. Moving now on to sustainability. During FY 2026, MAAS completed its first reporting cycle under Australia's mandatory climate-related financial disclosure framework. This has strengthened our understanding of the climate-related risks and opportunities that has helped establish the systems, data, governance processes required to support further development of our reporting. Following completion of the Construction Materials divestment, the group's operating and emissions profile is expected to materially change.
During FY 2027, we intend to review our emissions profile, undertake a more detailed scenario analysis focused on our continuing operations, and continue developing appropriate targets and transition planning. For the continuing group, opportunities include improving energy, fuel, and water efficiency, increasing the beneficial reuse of materials, supporting energy-efficient residential developments, and participating in the electrical and civil infrastructure required for the electrification and renewable energy connections. Our approach will remain practical. We will focus on alternatives that reduce risk, improve operational efficiency, and we will respond to customer expectations and support long-term value creation. On the FY 2027 priorities and outlook, l ooking ahead, our confidence is based on the work already secured, the strength of our operating platforms, and the financial flexibility expected from the proposed Construction Materials transaction.
Our principal operating priorities for FY 2027 are safety and efficient delivery of the electrical manufacturing and infrastructure work already secured, broadening our electrical customer base and progressing further infrastructure opportunities, converting the residential real estate forward sales positions into settlements, completing contracted property sales and continuing disciplined capital recycling, supporting an orderly transition of the Construction Materials business, maintaining rigorous working capital and balance sheet discipline, continuing to improve our safety and operational performance, and preserving the ownership mindset and team culture that have underpinned the group's success. Based on the current work in hand and prevailing industry conditions, we expect electrical and manufacturing to become the principal revenue and earnings driver of the renamed electrical segment. The approximately AUD 1.2 billion of electrical work in hand provides visibility across FY 2027 and beyond.
The 200 residential lots secured in FY 2027 support the residential real estate pipeline, while contracted property sales of AUD 158.3 million support our capital recycling program across FY 2027 and the first half of FY 2028. We also expect completion of the Construction Materials transaction, if approved, once remaining conditions are satisfied and waived, to provide materially stronger capital positions to support our continuing business and pursue selective growth opportunities. These opportunities are significant, but they are not without risk. Actual outcomes may be affected by the timing or completion of the Construction Materials, transition arrangements, project delays or cancellations, customers and counterparty concentration, the outlook for AI and data center-related investment, competition, supply chain constraints, labor availability, interest rates, residential demand, property settlement timing, and adverse weather. Our expectations are based on the work in hand, present market conditions, and management's assessment of the delivery programs.
These expectations are forward-looking and subject to unknown risks and uncertainties. Actual results may differ materially from those anticipated, and the company will continue to update shareholders in accordance with its disclosure obligations. What we can control is how we respond. We can work as one team, focus on safety, practical solutions, have transparent conversations to get decisions right, take ownership of outcomes, and deliver on our commitments. These behaviors have driven MAAS for more than two decades and will remain fundamental to our next phase of growth. My closing remarks, FY 2026 has positioned MAAS for its next strategic horizon. We delivered a record result. We strengthened the contribution from our continuing operations. We secured a substantial electrical order book. We recycled capital, and we positioned MAAS for the next decade of growth. Our confidence does not come from trying to predict every movement in the market.
It comes from our people, our culture, our secured work, our customer relationships, our assets, and our ability to execute. The teams expected to transition the Construction Materials business, thank you for helping build an exceptional platform that has delivered a significant value for shareholders. To our continuing MAAS team, thank you for your resilience, ownership, and commitment throughout a year of significant activity and change. To our customers, partners, and communities, thank you for the trust you place in us. To our board, thank you for your guidance through a significant year of strategic thinking making. I would particularly like to acknowledge David Keir. David Keir's extensive experience across property, infrastructure, and major commercial operations continues to provide valuable perspective as the group evolves, and I support the board's recommendation for David Keir's re-election under Resolution 2.
I also acknowledge Tanya Gale's contribution during Tanya Gale's period as Executive Director, Corporate Development. The performance rights considered under Resolution 3 retain a clear connection to the future performance and long-term shareholder outcomes. The remuneration arrangements presented under Resolution 1, the re-election of David Keir under Resolution 2, the performance rights considered under Resolution 3, and the additional capital management flexibility sought under Resolution 4, each support important elements of our governance, leadership, and long-term valuation framework. Resolution 5 is particularly important to the future direction of the group. The proposed construction material sale provides an opportunity to crystallize significant value, strengthen our financial position, and support the next phase of growth. I encourage shareholders to continue the notice of meeting an explanatory memorandum in full when voting on each resolution. Finally, to our shareholders, thank you for your continued support and confidence in MAAS Group.
We enter FY 2027 with significant momentum, a clear strategy, substantial secured work, and clear pathway to materially strengthen balance sheet. We remain focused on disciplined execution, operational excellence, and creating sustainable long-term value for shareholders. Thank you.
Thank you, Wes. There will be an opportunity for general business questions after the formal items of business, which we will turn to now. The first item of business is to consider the annual report of the company and its controlled entities for the year ended 30 June 2026, which includes the financial report, the directors' report, and the auditor's report. As noted earlier, our auditor, Mr. Tim Mann from BDO, is in attendance to answer any questions about the conduct of the audit and the content of the independent audit report. There will be no vote on this item. It is a discussion item only. Are there any questions from the floor? Any questions online?
There are no questions online, Stephen.
Thank you. Are there any questions on the phone, moderator?
Mr. Chairman, there are no questions via the phone line.
Thank you. We will turn to the next item of business being Resolution 1, which is the adoption of the remuneration report. Resolution, as displayed on the screens for those in the room, is to consider, and if thought fit, pass the following resolution as an ordinary resolution, that for the purposes of section 250R(2) of the Corporations Act 2001, and for all other purposes, approval is given by the shareholders for the adoption of the remuneration report as contained in the company's annual report for the year ended 30 June 2026. The proxy votes received before the meeting are as presented on the slides showing just over 98% votes in favor. Are there any questions from the floor? No questions online, Candice?
There are no questions online, Stephen.
Do we have any questions on the phone, operator?
Mr. Chairman, there are no questions via the phone.
Thank you. As noted earlier, all resolutions will be decided formally by poll at the conclusion of the meeting. The next item of business is Resolution 2, which is a re-election of Mr. David Keir, and the resolution is to consider, and if thought fit, pass the following resolution as an ordinary resolution that for the purposes of clause 9.2(a) of the Constitution and ASX Listing Rule 14.4, and for all other purposes, David Keir, who was appointed as a director and retires, and being eligible offers himself for re-election, be re-elected as a director of the company. As noted by both Wes and I, the directors unanimously support David's re-election. Proxy votes received before the meeting are as presented in the slides. Are there any questions from the floor? Any questions online, Candice?
No questions online, Stephen.
Any questions from the operator?
There are no questions via the phone lines.
Thank you. As displayed on the screen, and for those online, the proxy votes are approximately 97% in favor of that resolution. Resolution 3 is a special item of business, and it relates to the approval of an issue of performance rights under the company's long-term incentive plan. It is for the approval of the issue of performance rights to Tanya Gale for the financial year ended 30 June 2025 under the long-term incentive plan.
Resolution is to consider, and if thought fit, pass the following resolution as an ordinary resolution that approval be given for the purposes of ASX Listing Rule 10.14, and for all other purposes, for the issue of 25,524 performance rights to acquire ordinary shares in the company, and the issue of ordinary shares on the vesting of the performance rights to Tanya Gale in accordance with the company's long-term incentive plan for the financial year ended 30 June 2025, on the terms and conditions set out in the explanatory memorandum. Proxy votes are presented in the slides and show 84% in favor of the resolution. Any questions regarding this resolution from the floor? Any questions online, Candice?
No questions online, Stephen.
Are there any questions from the operator?
Mr. Chairman, there are no questions by the phone lines.
Thank you. Turning to Resolution 4, is in relation to the company's share buyback. The resolution is to consider, and if thought fit, pass the following resolution as an ordinary resolution, that for the purposes of section 257C of the Corporations Act 2001, and for all other purposes, shareholder approval is given for the company to conduct an on-market buyback of up to 70,325,627 shares, representing approximately 20% of the fully- paid ordinary shares in the company in the 12-month period following approval of this resolution, on the terms set out in the explanatory memorandum. Proxy votes received before the meeting are as presented on the screen, with approximately 99% in favor of this resolution. Are there any questions from the floor? Any questions online, Candice?
There are no questions online, Stephen.
Any questions on the phone, operator?
There are no questions via the phone lines.
Thank you. Our final formal resolution for today is Resolution 5 in relation to the divestment of the Construction Materials division to Heidelberg. The resolution is to consider, and if thought fit, pass the following resolution as an ordinary resolution, that for the purposes of ASX Listing Rule 11.2, and for all other purposes, shareholder approval is given for the company and its subsidiaries to enter into arrangements to give effect to, and to implement, the Construction Materials sale as described in the explanatory memorandum and any related or connected transaction or arrangement. Are there any questions on this resolution? Any questions online, Candice?
No questions online, Stephen.
Are there any questions on the phone, operator?
Mr. Chairman, there are no questions by the phone line.
Okay. No questions on those resolutions, and that concludes the formal part of the meeting. It is now an opportunity for any general business questions that shareholders may have. No questions here in the room. Do we have any questions online, Candice?
No questions online, Stephen.
Any questions from the operator?
Mr. Chairman, there are no questions via the phone.
As there is no further questions, there will be an opportunity for those here in the room to join the board and management for a coffee and a biscuit at the end of the meeting. Otherwise, as there is no further business for the meeting and no further questions, I declare the 2026 AGM of MAAS Group Holdings Limited closed. In relation to the resolutions that will be decided by a poll, for those shareholders in the room yet to cast their vote, representatives from our share registry will come around and collect those votes. For those who are submitting votes via the online platform, a countdown timer will appear at the top of your screen on the online platform, which will denote the time remaining to submit your votes.
The results of today's AGM will be released to the market and made available on the company's website as soon as possible, which should be later this afternoon. Once again, thank you for your participation in today's meeting and for your support of MAAS Group Holdings. Thank you.