Monadelphous builds a bigger FY27 runway after record earnings

Record earnings meet a substantial FY27 workload

Monadelphous has given shareholders a strong starting point for FY27: revenue including joint ventures rose 31.5% to a record $2.98 billion, while net profit after tax climbed 52.1% to $127.3 million. EBITDA increased 42.9% to $226.0 million, lifting the margin to 7.58%, and operating cash flow reached $245.1 million.

The figures are consistent with the company’s previously released FY26 results, but the annual report adds a sharper view of what sits behind them. More than $2.7 billion of contracts and extensions were secured from 1 July 2025 through to the release of the results, while more than $680 million of additional work was won after the start of FY27. Management says the new year is expected to focus on consolidating a business whose revenue has grown by about 50% over two years.

Iron ore and energy projects drive the construction surge

Engineering Construction revenue rose 48.5% to $1.37 billion, supported by major iron ore activity and more integrated work across civil, fabrication and electrical services. The portfolio includes BHP’s Jimblebar Train Load Out Replacement Project, BHP’s approximately $175 million car dumper replacement contract and Rio Tinto’s approximately $250 million Brockman Syncline 1 project.

The year also included the $200 million BHP port contract, which covers the construction and commissioning of Car Dumper 6 and related materials-handling facilities at Nelson Point, with completion expected in 2028. Monadelphous also secured the $380 million Brigalow power contract, involving 12 gas turbine generator units with combined capacity of 400 megawatts. Work is expected to begin in the second half of 2026 and finish by early 2029.

Maintenance provides the steadier second engine

Maintenance and Industrial Services produced its fifth consecutive year of record revenue, rising 20% to $1.61 billion. Demand was particularly strong across energy and iron ore, with long-term or extended work secured with Rio Tinto, BHP and Fortescue, alongside services for Woodside, INPEX and Shell.

That recurring workload matters because it gives Monadelphous a broader base than project construction alone. The division secured approximately $1.1 billion of contracts and extensions during the year, including a five-year Rio Tinto fixed-plant and shutdown maintenance contract valued at about $300 million, and a three-year Fortescue maintenance contract covering Pilbara operations.

Acquisitions broaden the energy-transition pitch

Monadelphous completed the acquisitions of High Energy Service, Kerman Contracting and Australian Power Industry Partners during the year. The purchases add high-voltage electrical services, non-process infrastructure design and construction, and access to transmission and distribution work. The company’s renewable energy joint venture Zenviron also reported higher activity in wind and battery storage projects.

The strategic shift is meaningful, but not yet a wholesale change in revenue mix. Oil and gas accounted for 37% of revenue including joint ventures, compared with 7% for renewable energy and 6% for energy-transition metals. Monadelphous identifies changing customer behaviour as an increasing transition risk, even as it argues its people, equipment and engineering capabilities can be redeployed across markets.

Dividend strength comes with a litigation overhang

The board declared a fully franked final dividend of 59 cents per share, taking the full-year payout to 108 cents and an 85% payout ratio. Cash stood at $293.6 million at year-end, borrowings had been repaid, and the group reported net cash of $252.8 million, although lease liabilities remained on the balance sheet.

One unresolved issue sits outside the earnings headline. Unitywater has amended its Supreme Court of Queensland claim against a Monadelphous subsidiary to approximately $200 million over the Kawana Sewage Treatment Plant upgrade. Monadelphous denies the allegations and says it will defend the claim and pursue counterclaims; the directors do not consider the other claims disclosed in the report to create a material exposure, but the Unitywater proceeding remains a specific item to track.