Shares in Monadelphous Group fell 13.01% to A$28.16 on Tuesday after the infrastructure and mining services provider reported record annual revenue but provided cautious guidance for the current financial year.
The company posted revenue of A$2.98 billion for the year ended June 30, 2026, a 31.5% increase from the prior year. Net profit after tax rose 52.1% to A$127.3 million, while earnings per share climbed 50.1% to 127.6 cents. The board declared a fully franked dividend of 108.0 cents per share, up 50% year-over-year.
EBITDA surged 42.9% to A$226.0 million, lifting the EBITDA margin to 7.58% from 6.98% in FY25. Operating cash flow totaled A$245.1 million, with a cash flow conversion rate of 147.4%. The company maintained a workforce of 9,365 employees and subcontractors as of June 30, 2026.
Revenue growth was led by the Engineering Construction Division, which posted a 48.5% increase to A$1.37 billion, with iron ore (42%), energy (23%), and renewable energy (14%) as the top customer sectors. The Maintenance & Industrial Services Division achieved its fifth consecutive record year with revenue of A$1.62 billion, up 20% from FY25, driven by energy (49%) and iron ore (23%).
Monadelphous secured A$2.7 billion in new contracts and extensions during FY26, including major projects for BHP, Rio Tinto, CS Energy, Shell, and Santos. The company also completed strategic acquisitions of Kerman Contracting, Australian Power Industry Partners, and High Energy Service.
For FY27, management described the outlook as a "year to consolidate and position for future growth," with revenue expected to be "flattish with potentially some modest growth." EBITDA margins are projected to remain around current levels, while capital expenditure is expected to average approximately 2% of revenue.
The company highlighted contributions from renewable energy (7% of revenue) and energy transition metals (6%), alongside progress in diversity initiatives, including a 3.2% Indigenous workforce participation rate and A$40 million spent with Indigenous businesses.
