Monadelphous Group Ltd reported a robust first half of FY2025 with revenue climbing 4.2% to $1.051 billion and net profit after tax surging 41.3%, underpinned by a strong contract pipeline and operational improvements.
- Revenue increased 4.2% to $1.051 billion
- NPAT rose 41.3% to $42.5 million
- EBITDA margin improved to 7.59%
- Secured $1.7 billion in new contracts and extensions
- Interim fully franked dividend declared at 33 cents per share
Financial Performance Highlights
Monadelphous Group Ltd (ASX: MND) has delivered a strong half-year performance for the six months ended 31 December 2024, reporting revenue of $1.051 billion, a 4.2% increase compared to the prior corresponding period. The company’s net profit after tax (NPAT) surged 41.3% to $42.5 million, reflecting both operational improvements and favourable non-operating items.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 30.2% to $79.8 million, with the EBITDA margin expanding from 6.08% to 7.59%. Approximately half of this margin improvement was driven by non-operating factors such as insurance proceeds and foreign exchange gains, while the remainder stemmed from enhanced operational efficiency.
Contract Wins and Sector Diversification
Since 1 July 2024, Monadelphous has secured approximately $1.7 billion in new contracts and extensions, spanning energy, iron ore, other minerals, and renewable energy sectors. Notably, the company won major contracts with blue-chip clients Woodside and Shell valued at around $800 million, including a multidisciplinary construction contract for modifications at Woodside’s Pluto LNG Train 1 facility and a seven-year maintenance contract for Shell’s Prelude FLNG facility.
In the iron ore sector, Monadelphous expanded its footprint with Rio Tinto and BHP through multiple contract awards, including fixed plant maintenance, sustaining capital projects, and new construction contracts at sites such as Tom Price, Brockman 4, and Prominent Hill. The company’s joint ventures, including Mondium and Zenviron, also secured significant projects, reinforcing its position in both mining infrastructure and renewable energy markets.
Operational Divisions and Market Outlook
The Maintenance and Industrial Services division generated $645.1 million in revenue, experiencing a slight decline due to normalization of energy sector turnaround activities. Conversely, the Engineering Construction division posted a robust 33.7% revenue increase to $405.4 million, driven by strong project execution and contract awards.
Looking ahead, Monadelphous anticipates sustained demand in resources and energy sectors, supported by ongoing production levels and increased investment in decarbonisation and renewable energy infrastructure. The company forecasts high single-digit revenue growth and improved operating margins for the full financial year, leveraging its strong balance sheet and selective approach to new work.
Sustainability and Workforce Initiatives
Monadelphous continues to embed sustainability into its operations, focusing on safety, diversity, community engagement, and environmental responsibility. The company exceeded its targets for First Nations workforce participation and business spend, while advancing its Net Zero by 2050 roadmap through initiatives such as electric vehicle trials and renewable power installations.
Employee retention improved, with a workforce of 7,289 including subcontractors, and ongoing investment in talent development programs. Safety metrics remained stable, with the Total Recordable Injury Frequency Rate at 3.34 incidents per million hours worked, complemented by industry recognition for safety and innovation.
Bottom Line?
Monadelphous’ solid half-year results and strong contract pipeline position it well to capitalize on the evolving resources and energy landscape, though execution risks and global uncertainties remain watchpoints.
Questions in the middle?
- How will Monadelphous manage execution risks amid a growing contract backlog?
- What impact will global economic uncertainties have on future contract awards?
- How aggressively will the company pursue strategic acquisitions to diversify its portfolio?