Monadelphous Posts 34.6% Profit Surge on $2.27B Revenue in FY25

Strong Contract Wins Drive Momentum

Monadelphous Group Limited has delivered a standout year, securing approximately $2.3 billion in new contracts during the 2025 financial year, the highest on record for the company. This momentum has continued into the current year with an additional $570 million in contracts awarded post-year end. Major wins spanned the energy, iron ore, and renewables sectors, including significant projects with industry giants such as Shell, Woodside, Rio Tinto, BHP, and Fortescue.

In the energy sector alone, Monadelphous secured over $1 billion in construction and maintenance contracts, highlighting its entrenched position in this critical market. Noteworthy projects include a seven-year maintenance contract for Shell’s Prelude FLNG facility and a major construction contract with Woodside for modifications to the Pluto LNG Train 1 facility to process Scarborough gas.

Financial Performance and Operational Highlights

The company’s financial results reflect this robust activity. Revenue climbed 12% to $2.27 billion, while EBITDA surged 24.2% to $158.2 million, aided partly by non-operating items such as insurance proceeds. Net profit after tax rose 34.6% to $83.7 million, translating to earnings of 85 cents per share. The board declared a final dividend of 39 cents, culminating in a fully franked 72 cents per share for the year, representing an 85% payout ratio.

Operationally, Monadelphous expanded its workforce by more than 20% to 9,100 employees, reflecting elevated activity levels across construction and maintenance divisions. The Engineering Construction division saw a 30% revenue increase, driven by projects in iron ore, energy, copper, lithium, and renewables. Meanwhile, the Maintenance and Industrial Services division posted record revenue of $1.35 billion, buoyed by sustained demand in energy and resources sectors.

Strategic Acquisitions Bolster Market Position

Monadelphous continued to execute its long-term growth strategy through targeted acquisitions. The purchase of Perth-based High Energy Service enhanced its high voltage electrical services capability, while the recent acquisition of Kerman Contracting broadened its design and construction services in non-process infrastructure. Additionally, the agreement to acquire Queensland’s Australian Power Industry Partners (APIP) further strengthens Monadelphous’ foothold in power transmission and distribution.

These acquisitions not only diversify the company’s service offerings but also position it strongly within emerging sectors linked to the energy transition, including renewables and critical minerals infrastructure.

Safety and Sustainability Focus

Despite the strong operational and financial performance, Monadelphous acknowledged a setback in safety, with its 12-month Total Recordable Injury Frequency Rate rising to 4.42 incidents per million hours worked. The company has launched targeted safety campaigns to address this and reaffirmed safety as its highest priority.

On the sustainability front, Monadelphous advanced its Net Zero initiatives by electrifying its fleet, transitioning operations to renewable power, and supporting customers’ decarbonisation goals. The company also exceeded targets under its Stretch Reconciliation Action Plan, increasing Indigenous workforce participation and supplier spend, while continuing to promote gender diversity and community engagement.

Outlook – Growth Amid Global Uncertainty

Looking ahead, Monadelphous projects a 20 to 25% increase in full-year revenue for FY26, forecasting around $1.51 billion for the first half. While acknowledging some short-term global economic uncertainties, the company remains confident in the resilience of demand across resources and energy sectors. Sustained production levels and ongoing investment in Western Australia’s iron ore projects underpin this outlook.

The energy transition continues to present significant opportunities, with Monadelphous well positioned to capitalize on growth in renewable energy generation, storage, and transmission. Its joint venture Zenviron is expected to secure further work in wind and battery energy storage projects, while the company’s expanded capabilities in high voltage and infrastructure services support a diversified and resilient business model.

Monadelphous’ disciplined approach to earnings quality, strategic acquisitions, and market diversification suggests it is gearing up for sustained long-term growth in a rapidly evolving industry landscape.