Monadelphous Group Limited

Monadelphous reported record FY26 revenue of $2.98 billion, up 31.5% year over year. EBITDA increased about 43% to $226 million, producing an EBITDA margin of 7.58%, while NPAT rose 52% to $127.3 million and EPS reached $1.276. The Board declared a final dividend of $0.59 per share, taking the full-year fully franked dividend to $1.08, and cash flow from operations was $245.1 million with a year-end cash balance of $293.6 million. Looking ahead, management said FY27 revenue is expected to be “flattish” with potentially modest growth, and that maintenance revenue may step back slightly versus FY26 because the prior year was unusually strong; they also described FY27 as a consolidation year after about 50% revenue growth over two years.

Zoran Bebic emphasized that FY26 reflected strong operating conditions, a record backlog, and the benefit of recent acquisitions and integrated services capabilities. He highlighted the breadth of opportunities across iron ore, energy, renewables, gas, and energy transition, pointing to a pipeline that he said looks very strong over the next 2 to 3 years. His tone was confident but measured, repeatedly stressing selective bidding, prudent risk management, and the need to consolidate in FY27 rather than chase growth for its own sake.

Philip Trueman focused on the financial strength of the year: revenue up 31.5% to $2.98 billion, EBITDA up about 43% to $226 million, EPS at $1.276, and a full-year dividend of $1.08 per share, implying an 85% payout ratio. He said cash flow from operations was $245.1 million and cash conversion was 147.4%, with the $293.6 million cash balance helped by material advances on large construction contracts. On costs and capital allocation, he said corporate overhead should move closer to CPI next year and that CapEx should remain around a 2% of revenue average; he also said the underlying tax rate should stay around 30%.

Analysts pressed management on whether the FY27 ‘consolidation’ comment meant flat revenue, and Zoran said revenue next year should be flattish with potentially modest growth, noting that not all of the work won in the last 12 months will run off in FY27. Questions also focused on margins, with management saying they would like to at least hold current margins and that further accretion is possible, but execution remains key and a tighter labor market could return if the opportunity set keeps expanding. Other Q&A covered maintenance normalization, where Zoran said FY26 was abnormal and FY27 should see less turnaround activity, plus project risk on gas and wind work, where he said Monadelphous does not carry turbine delivery risk under its contracts.