MASTEK Q2 CONCALL: EXPECTS NORTH AMERICA RECOVERY IN H2, TARGETS 160 BPS EBITDA MARGIN IMPROVEMENT & REPORTS 45% AI-LED ORDER BOOKINGS

• MANAGEMENT EXPECTS FY27 PERFORMANCE TO IMPROVE OVER FY26, WITH HEALTHY BUSINESS MOMENTUM ANTICIPATED DURING H2 FY27 • NORTH AMERICA REVENUE EXPECTED TO RECOVER MEANINGFULLY FROM H2 FY27, SUPPORTED BY STRONG ORDER BOOKINGS & NEW CLIENT ADDITIONS • MANAGEMENT TARGETS APPROXIMATELY 160 BPS EBITDA MARGIN IMPROVEMENT OVER THE MEDIUM TERM, AIMING TO RETURN TOWARD 16% FROM CURRENT 14.4% • NORTH AMERICA ORDER BACKLOG UP 47.9% YOY & 7.8% QOQ, SUPPORTED BY HEALTHCARE, LIFE SCIENCES & AI TRANSFORMATION DEALS • AI-RELATED DEALS CONTRIBUTED APPROXIMATELY 45% OF Q2 ORDER BOOKINGS, WITH 53 AI ORDERS SECURED DURING THE QUARTER • MANAGEMENT EXPECTS AI REVENUE CONTRIBUTION TO INCREASE, WITH SEPARATE AI REVENUE DISCLOSURE PLANNED FROM Q3 FY27 • AI TRANSFORMATION PROJECTS GENERALLY GENERATE ABOVE 40% GROSS MARGINS, WITH CERTAIN ENGAGEMENTS EXCEEDING 50% • MANAGEMENT EXPECTS NORTH AMERICA & MIDDLE EAST OPERATING MARGINS TO IMPROVE FROM Q3 FY27, SUPPORTING CONSOLIDATED PROFITABILITY • AI-LED PRODUCTIVITY INITIATIVES DELIVERED APPROXIMATELY 200 BPS EFFICIENCY BENEFITS, PARTIALLY OFFSETTING EMPLOYEE COST & PROJECT-MIX PRESSURES • UK HEALTHCARE BUSINESS EXPECTED TO RECOVER DURING Q3–Q4 FY27 AS DELAYED PROJECTS RESTART & CONTRACT RENEWALS PROGRESS • MANAGEMENT HIGHLIGHTED MULTIPLE LARGE-DEAL OPPORTUNITIES EXCEEDING $100 MN, WITH DECISIONS EXPECTED OVER THE NEXT 6–9 MONTHS • COMPANY COMPETING FOR AN NHS-RELATED CONTRACT EXCEEDING £100 MN, WHILE A SEPARATE $25 MN U.S. FEDERAL PROJECT FACES EXECUTION DELAYS • STRATEGIC PARTNERSHIP WITH INNOVACCER EXPECTED TO EXPAND HEALTHCARE AI OPPORTUNITIES, WHILE SERVICES AS SOFTWARE & CYBERSECURITY BUSINESSES HAVE SECURED INITIAL COMMERCIAL DEALS • COMPANY SECURED THREE NEW UK ENERGY & UTILITIES FRAMEWORKS, PROVIDING ADDITIONAL OPPORTUNITIES FOR BUSINESS DIVERSIFICATION • 12-MONTH ORDER BACKLOG DOWN 7.7% QOQ TO $286.2 MN DUE TO PROJECT DELAYS; UK STAFFING COSTS, MIDDLE EAST WEAKNESS & SLOWER ORDER CONVERSION REMAIN KEY RISKS

MASTEK LTD

← Back to feed