The Maas Group Holdings Ltd (ASX: MGH) share price is having a very strong day.
In morning trade, the ASX 300 construction material, equipment and service provider's shares were up 13% to $3.26.
The Maas share price has since pulled back a touch but remains up 9% to $3.13 at the time of writing.
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Why is this ASX 300 share charging higher?
Investors have been scrambling to buy the company's shares on Thursday following the release of a trading update.
According to the release, Maas expects to report pro forma first half EBITDA in the range of $64 million to $66 million. This represents an approximate 60% increase on the pro forma EBITDA of $40.1 million it achieved in the corresponding period.
Looking further ahead, for the full year, management has reconfirmed its guidance for pro forma EBITDA in the range of $150 million to $180 million. This represents growth of approximately 20% to 44% on the pro forma EBITDA recorded in FY 2022.
This is also in line with the guidance it provided back in November, which was a downgrade from $180 million to $200 million due to wet weather impacts. Investors appear relieved that the downgrades are over for this ASX 300 share and that normal operating conditions have returned.
Maas CEO, Wes Maas, notes that "a solid first half result and year on year earnings growth had been delivered despite the significant impacts of weather to the group's operations during the period."
He also points out that "the FY23 result will be strongly second half weighted, driven by the expected return to normal operating conditions for several major infrastructure projects with more favourable weather conditions expected in the second half, and the group continuing to take advantage of its strong market positions."
