Monadelphous Group (ASX:MND) reported a strong start to FY26 in its investor and analyst briefing covering the six months ended 31 December 2025, led by record revenue, higher earnings, and a large volume of work secured in recent periods. Managing Director Zoran Bebic and Chief Financial Officer Philip Trueman outlined performance across the group’s Engineering Construction and Maintenance and Industrial Services divisions, as well as contract wins and the company’s outlook.
Record half-year revenue and higher profit
Monadelphous delivered half-year revenue of AUD 1.53 billion, a 46% increase on the prior corresponding period. EBITDA rose 46% to AUD 116.2 million, with an EBITDA margin of 7.59%. Net profit after tax increased 53% (Phil Trueman cited 52.6%) to AUD 64.9 million, and earnings per share were AUD 0.652.
Monadelphous ended the half with AUD 322 million in cash and AUD 171 million in operating cash flow, equating to a 186% cash flow conversion rate. Trueman said the cash position was boosted by “a number of material advances” received during the period, and by collections of receivables that had built up at 30 June 2025 due to increased activity leading into the prior year-end. He added that around AUD 20 million in cash related to the Kerman Contracting acquisition was owed to vendors under the deal terms.
Contract awards and work secured
Bebic said the company secured AUD 1.4 billion in new contracts and extensions since the start of FY26, with strong demand continuing in Western Australia’s iron ore sector and additional activity in energy and renewables.
- BHP: A multidisciplinary contract for the Jimblebar Train Loadout Replacement Project (with earthworks and civils delivered by Melchor and fabrication/procurement by Inteforge) and a AUD 175 million contract linked to a car dumper project at Finucane Island in Port Hedland.
- Rio Tinto: An integrated multidisciplinary contract valued at around AUD 250 million for the Brockman Syncline 1 deposit development, and a five-year maintenance services contract totaling approximately AUD 300 million for fixed plant and shutdown services across Pilbara operations.
- BHP maintenance extensions: A three-year extension to the maintenance master services agreement across BHP’s Pilbara operations, and a two-year reappointment to the BHP WAIO Site Engineering Panel.
- Energy sector: A four-year maintenance contract with BW Offshore for the BW Opal FPSO (about 300 km north-northwest of Darwin) and a contract for hookup and commissioning of Shell’s Crux platform off WA.
- Renewables (Zenviron): A contract with Flow Power for the Bennetts Creek Battery Energy Storage System in Victoria, including balance of plant design, construction, installation, and commissioning.
Divisional performance: construction and maintenance both grew
The Engineering Construction division posted revenue of AUD 677.8 million, up 67%, supported by strong demand across sectors and a “greater contribution from vertically integrated projects.” Bebic pointed to service expansion and end-to-end delivery capability, including contributions from Melchor and Inteforge. Zenviron also saw increased activity from larger wind and battery projects.
Engineering Construction secured about AUD 770 million of new work since 1 July 2025. Bebic cited project completions and ongoing work across iron ore, energy, and renewables, including BHP and Rio Tinto project activity, works at Woodside’s Pluto LNG Train One facility, and continued electrical infrastructure work at Chevron’s Jansz-Io compression project. Zenviron activity included balance of plant works for battery energy storage and wind projects in Victoria and Queensland.
The Maintenance and Industrial Services division delivered record half-year revenue of AUD 852 million, up 32%. The division secured roughly AUD 640 million in new contracts and extensions since the start of the financial year. Management described strong demand in energy and iron ore, including shutdown and major works for INPEX (with over 1,000 people mobilized across offshore and onshore facilities), ongoing work for Woodside, and maintenance services for Shell at Prelude and for QGC at Curtis Island LNG operations. In iron ore, Monadelphous provided maintenance services and sustaining capital works to major customers including Rio Tinto, Fortescue, and BHP.
Acquisitions and capability expansion
Monadelphous highlighted three acquisitions completed in late 2025: Perth-based Kerman Contracting (design-and-construct non-process infrastructure), Brisbane-based Australian Power Industry Partners (APIP) (high-voltage electrical contracting), and Perth-based High Energy Service (high-voltage services). Bebic said the acquisitions broaden delivery capability and open new markets.
During Q&A, Bebic said High Energy Service had been in the business for six months and was tracking consistent with expectations and the acquisition business case. He said APIP and Kerman were only completed in the last couple of months, with modest contributions so far as integration progresses. He also noted potential future acquisition opportunities in energy transition-related markets as the company builds capability and services.
Outlook: strong pipeline, but focus on sustainability of growth
Looking forward, Bebic said long-term demand in resources and energy remained strong, supported by an improved global growth outlook but tempered by trade tariffs, geopolitical tensions, and ongoing conflicts. He said high production levels across commodities continued to drive sustaining capital and maintenance demand, with firm iron ore prices supporting production rates and investment in WA. He also said the outlook for energy transition metals was strengthening with battery metal prices recovering.
The company forecast FY26 full-year revenue to be approximately 30% higher than the prior year, with the first-half operating margin maintained. Management emphasized a selective approach to new work, collaboration with customers, and disciplined risk allocation.
On growth beyond FY26, Bebic cautioned that the pace of expansion over the past two years would be difficult to sustain, describing more than 50% growth over two years as “four or five years’ worth of growth in a two-year period.” He also noted that part of the strong maintenance result included sustaining capital work that may not replicate, and that future construction revenue would depend on the timing of project awards and customer commitments.
On margin sustainability, Bebic pointed to economies of scale and consistently strong execution across the business, while stating the company would “work as hard as we can” to maintain margins. He said the company had greater visibility and confidence to provide margin expectations due to the record level of work secured last financial year and progress on current work.
Management also discussed labor conditions, describing the labor market as still tight despite slight moderation, and highlighted that electrical trades remained particularly constrained.
About Monadelphous Group (ASX:MND)
Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to resources, energy, and infrastructure industries in Australia, Chile, Mongolia, Papua New Guinea, and internationally. It operates through Engineering Construction, and Maintenance and Industrial Services divisions. The company offers fabrication, modularization, offsite pre-assembly, procurement, and installation of structural steel, tankage, mechanical and process equipment, piping, demolition, and remediation works; multi-disciplined construction services; plant commissioning; electrical and instrumentation services; engineering, procurement, and construction services; process and non-process maintenance services; and front-end scoping, shutdown planning, management, and execution services.
