Monadelphous Achieves Record Revenue and Share Price Highs
Engineering and maintenance contractor Monadelphous has soared to new heights, setting a revenue record and boosting its share price significantly. The Victoria Park-based company announced on Tuesday that its first-half revenue reached an unprecedented $1.53 billion, driven by strong demand across Australia's resources sector and energy transition initiatives.
Financial Performance and Dividend Increase
Profit for the six months ending December surged by 52.6% to $64.9 million, while earnings before interest, tax, depreciation, and amortisation jumped 45.6% to $116.2 million. In response to these stellar results, the board declared a fully franked interim dividend of 49 cents per share, a substantial increase from 33 cents a year earlier. This financial strength propelled the company's share price to a record high of $35.38 in early trading, before settling at $34.51, still up more than 12% for the session.
Growth Drivers and Sectoral Contributions
Monadelphous attributes its success to several key factors:
- Net Zero Ambitions: Australia's push towards net zero emissions is creating a pipeline of growth opportunities, particularly in renewable energy and critical minerals.
- Energy Transition Metals: The race for metals like copper and battery minerals is strengthening, with prices recovering and driving investment in mining and mineral processing.
- Resilient Resources Sector: High production levels in commodities such as iron ore, which remains firm in price, support ongoing capital works and maintenance services.
The company's engineering construction division saw revenue rise 67% to $677.8 million, thanks to service expansion and enhanced end-to-end delivery capabilities. Meanwhile, the maintenance and industrial services division reported a 32.1% increase in revenue to $852 million. Zenviron, Monadelphous' renewable energy business, also experienced heightened activity from larger wind and battery energy storage projects.
Outlook and Future Prospects
Despite challenges like trade tariffs and geopolitical tensions, Monadelphous remains optimistic. Managing director Zoran Bebic forecasted full-year revenue to be approximately 30% higher than the previous period, with operating margins maintained from the first half. Since the start of FY26, the company has added $1.4 billion in new work to its order book and ended the half with $322 million in cash, positioning it well for continued growth in the medium to long term.
