Monadelphous profits up 41.3% on strong demand for first half of FY25

Continually strong demand in the resources and energy sectors has helped to boost Monadelphous Group Ltd’s (ASX:MND) profit to $42.5 million for the first half of the 2025 fiscal year, the company has told investors.

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This number represented a 41.3% rise in net profit after tax compared to the prior period for the engineering company, which also reported a 30.2% rise in EBITDA (earnings before interest, taxes, depreciation and amortization), to $79.8 million.

Revenue had also risen by 4.2% to $1.051 billion during the six months.

The strong figures reflected securing a strong suite of new contracts and extensions, for a total value of $1.7 billion, and a pipeline of other activities in the sectors of resources, energy and renewable energy.

More specifically, MND said strong demand was evidenced in the maintenance and industrial services division – resulting in revenue of $645.1 million for the six months to December – while the engineering construction division reported revenue of $405.4 million, a rise of 33.7% during the same period.

Monadelphous declared an interim dividend of 33cps for the first half of FY25.

Managing Director Zoran Bebic said although global uncertainty remained, there would continue to be work prospects across the energy, materials, and renewable energy sectors.

“Resources and energy demand is expected to remain strong over the long-term, underpinned by sustained economic growth and increasing investment in decarbonisation activities,” Mr Bebic explained.

“Significant investment in the renewable energy sector is also forecast to support the energy transition.

“The company continues to focus on sustainable growth and quality of earnings through a selective approach to new work, collaborative customer engagement, high standards of delivery, and the appropriate allocation of risk.”

Monadelphous has been trading at $15.59.

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