Monadelphous Group (MND) H2 2025 earnings summary

Executive summary

• Revenue reached $2.27 billion for FY2025, up 12% year-over-year, driven by increased construction activity and strong maintenance demand, especially in energy and resources sectors.

• Net profit after tax rose 34.6% to $83.7 million, with EPS at 85 cents and a fully franked dividend of 72 cents per share, up 24%.

• Secured a record $2.5 billion in new contracts and extensions, expanding presence in energy transition and renewables, and providing a robust pipeline for FY2026.

• Workforce grew 23% to over 9,000, with expanded diversity and inclusion initiatives.

• Acquisition of High Energy Service strengthened high voltage capabilities and supported strategic growth in energy transition.

Financial highlights

• EBITDA rose 24.2% to $158.2 million, with margin improving to 6.98% from 6.28%.

• Cash balance at year-end was $205.8 million; cash flow from operations was $81 million, with a 77% conversion rate.

• EPS rose 32.7% to 85 cents; fully franked dividend up 24% to 72 cents per share, payout ratio at 85%.

• About one-third of EBITDA margin improvement attributed to non-operating items, notably insurance proceeds.

Outlook and guidance

• Entered FY2026 with a strong committed work pipeline and rising activity levels, positioning for growth.

• Robust long-term demand forecast across resources and energy, with significant prospects in construction, maintenance, and energy transition metals.

• Maintenance revenue expected to be stronger in the first half of FY2026 due to turnaround activity.

• Cash flow conversion expected to normalize to historical levels (~100%) in FY2026.