Monadelphous Group (MND) H2 2024 earnings summary

Executive summary

• Revenue reached AUD 2.03 billion, up 11% year-over-year, driven by strong demand in maintenance and engineering construction sectors.

• EBITDA increased 16.8% to AUD 127.4 million, with net profit after tax up 16.2% to AUD 62.2 million; EPS rose 14.7% to 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 Melcor Contracting expanded civil construction capabilities.

Financial highlights

• Maintenance and Industrial Services division delivered record annual revenue of AUD 1.32 billion, up 1.9%.

• Engineering Construction division revenue rose 31.5% to AUD 712.7 million, driven by major contract awards in lithium, energy, and renewables.

• Earnings per share reached AUD 0.641; full year fully franked dividend of AUD 0.58 per share, up 18.4%.

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

• CapEx was elevated to support new contracts and fleet expansion, expected to normalize to 2% of revenue.

Outlook and guidance

• Market outlook remains positive, with robust demand and a significant pipeline in resources, energy, and renewables.

• Decarbonization 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.

• High production levels to support ongoing sustaining capital and maintenance activity.