Monadelphous Group (MND) H2 2026 earnings summary

Executive summary

• Achieved record FY 2026 revenue of $2.98 billion, up 31.5% year-over-year, driven by strong operating conditions, major contract wins, and expansion in both Engineering Construction and Maintenance & Industrial Services divisions.

• Net profit after tax rose 52.1% to $127.3 million, with earnings per share up 50.1% to 127.6 cents and a full year dividend of 108 cents per share, totaling a payout ratio of 85%.

• Strategic acquisitions, including Kerman Contracting, Australian Power Industry Partners, and High Energy Service, expanded service offerings and market reach.

• Workforce reached a record 9,365, with strong retention, expanded training, diversity initiatives, and 97% key talent retention.

• Secured over $2.7 billion in new contracts and extensions since July 2025, supporting delivery capability and future growth.

Financial highlights

• Engineering Construction division revenue grew 48.5% to $1.37 billion, driven by major iron ore and energy projects.

• Maintenance and Industrial Services posted record revenue of $1.62 billion, up 20% year-over-year, with high turnaround activity and increased maintenance for iron ore customers.

• EBITDA increased 43% to $226 million, with an EBITDA margin of 7.58%.

• Cash balance at year-end was $293.6 million, with cash flow from operations of $245 million and a cash flow conversion rate of 147.4%.

• Dividend payout ratio reached 85%.

Outlook and guidance

• FY 2027 expected to be a year of consolidation and positioning for future growth, with revenue expected to be flat or show modest growth and a robust pipeline of secured work.

• Focus on leveraging enhanced delivery capability, consolidating recent growth, and expanding in resources, energy, and renewables.

• Corporate costs expected to rise in line with CPI, with margin performance supported by economies of scale and strong execution.

• CapEx expected to average 2% of revenue per annum.

• Over $680 million in new contracts secured since the start of FY27.