Monadelphous Group Limited

Revenue from contracts with customers was $1.53 billion, up around 46% year over year. EBITDA was $116.2 million, up 46%, with an EBITDA margin of 7.59%. NPAT increased 53% to $64.9 million, and EPS was $0.652. The Board declared a fully franked interim dividend of $0.49 per share. Cash at half year-end was $322 million, operating cash flow was $171 million, and cash flow conversion was 186%. For FY26, management is forecasting full-year revenue to be approximately 30% higher than the prior year and said first-half operating margins should be maintained.

Zoran Bebic said the company had a fantastic start to FY26, driven by record work secured in the prior year and strong execution across both divisions. He emphasized that Monadelphous is broadening its capability through acquisitions such as Kerman, APIP and High Energy Service, and is positioning for long-term opportunities in energy transition and high-voltage services. His tone was positive but measured: he repeatedly noted the need to balance growth with business capacity, risk discipline and maintaining margins after two years of very strong growth.

Phil Trueman highlighted the strong half-year financial outcome, pointing to $1.53 billion of revenue, $116.2 million of EBITDA, 7.59% EBITDA margin and $64.9 million of NPAT. He said cash of $322 million was boosted by material advances and included about $20 million related to Kerman vendor amounts, while the release of receivables helped produce $171 million of operating cash flow and 186% cash conversion. On capital spending, he said there was no fundamental step change and that CapEx should run around the long-term 2% of revenue level, while depreciation was up about 5% to 6% and should be similar for the full year.

Analysts focused on whether the current revenue growth and 7.59% margin can be sustained into FY27. Management said FY27 growth will be harder to replicate because the business has already seen about 50% growth over the last two years, and some maintenance work will not repeat; they also said the margin outlook is supported by volume, mix and strong execution, but they need to work hard to maintain it. Questions also covered labor tightness, where management said the market is still generally tight, especially for electrical trades, and on the timing of project approvals, where Zoran said some opportunities feel like they are drifting a little. On cash conversion, Phil said there is no real seasonality and the metric can swing with advances and customer payment timing.