Monadelphous Group (MND) H2 2024 earnings summary

Executive summary

• Revenue reached AUD 2.03 billion (or $2,029.8 million), up 11% year-over-year, driven by strong demand in maintenance and engineering construction sectors.

• Net profit after tax increased 16.2% to AUD 62.2 million, with EPS at 64.1 cents.

• Secured over AUD 3 billion in new contracts and extensions, including major wins in iron ore, energy, lithium, rare earths, and renewables.

• Workforce grew by 31% to over 7,400, reflecting increased activity, strategic acquisition, and investment in training and leadership programs.

• Acquisition of Melchor Contracting expanded civil construction capabilities.

Financial highlights

• Maintenance and Industrial Services division delivered record annual revenue of AUD 1.32 billion.

• Engineering Construction division revenue rose 31.5% to AUD 712.7 million.

• EBITDA increased 16.8% to AUD 127.4 million; EBITDA margin improved to 6.28% from 5.96% year-over-year.

• Earnings per share reached 64.1 cents; full year fully franked dividend of 58 cents per share, payout ratio 91%.

• Cash flow from operations was AUD 187.7 million, with a cash flow conversion rate of 169% and year-end cash balance at AUD 225.9 million.

Outlook and guidance

• Market outlook remains positive, with robust demand in resources and energy sectors and a strong pipeline of opportunities.

• Decarbonisation and energy transition projects are expected to drive future capital expenditure.

• Maintenance revenue growth expected to be low single digits; construction growth dependent on new awards.

• Selective approach to new work, focusing on quality of earnings and risk allocation.

• Skilled labour shortages persist, but workforce initiatives are in place to support growth.