S&P/ASX 200 Index (ASX: XJO) stock Monadelphous Group Ltd (ASX: MND) is on a tear today.
Shares in the engineering and mining services company closed yesterday trading for $11.82. At the time of writing, shares are swapping hands for $13.01 apiece, up 10.03%.
For some context, the ASX 200 is up 0.13% at this same time.
This outperformance comes following the release of Monadelphous' financial results for the full year ended 30 June (FY 2024).
Read on for the highlights.
ASX 200 stock soars on rising profits
- Revenue of $2.03 billion, up 11% from FY 2023
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $127.4 million, up 16.8% year on year
- Net profit after tax (NPAT) of $62.2 million, up 16.2% from FY 2023
- Final dividend of 33 cents per share fully franked, up 32% from the prior final dividend
What else happened with Monadelphous in FY 2024?
Investors are bidding up the ASX 200 stock today after the company reported achieving record full-year revenue of $1.32 billion from its Maintenance and Industrial Services segment.
Revenue from the Engineering Construction segment was up 31.5% from FY2023 to $712.7 million.
Monadelphous said that its ongoing focus on operational discipline and productivity enhancement contributed to an improved EBITDA margin of 6.28%, up from 5.96% the prior year.
In other key metrics, cash flow from operations came in at $187.7 million, and Monadelphous had a cash balance of $225.9 million as at 30 June.
The 12 month period also saw the ASX 200 stock secure more than $3.0 billion in new contracts and extensions in the energy, lithium, iron ore, and renewable energy sectors.
On the passive income front, Monadelphous will have paid out a total of 58 cents per share in fully franked dividends for FY 2024. That's up 18.4% from FY 2023 and represents a dividend payout ratio of 91%.
Monadelphous shares are shaking off the loss of some $75 million to $85 million in forecast revenue for FY 2025 after United States lithium giant Albemarle Corporation (NYSE: ALB) terminated construction and maintenance servicing contracts at the Kemerton Expansion Project in Western Australia.
What did management say?
Commenting on the results sending the ASX 200 stock flying higher today, Monadelphous managing director Zoran Bebic said:
Prospects remain positive in resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects making up an increasing share of capital expenditure forecasts and the pipeline of renewal energy opportunities expanding.
What's next for the ASX 200 stock?
Looking at what could impact the ASX 200 stock in the year ahead, management said sustained global economic growth, urbanisation and decarbonisation are expected to support commodity prices.
According to Monadelphous:
Despite ongoing short-term global uncertainties and cautious sentiment, the resources and energy sectors continue to provide a significant pipeline of opportunities, with projects related to decarbonisation making up an increasing share of capital expenditure forecasts.
Production across most commodities is expected to remain high, supporting ongoing sustaining capital and maintenance activity.
Monadelphous said it will also continue to assess potential acquisition opportunities "to facilitate service expansion, market diversification and long-term sustainable growth".
Monadelphous share price snapshot
With today's intraday boost factored into the Monadelphous share price, the ASX 200 stock is now down just under 2% over 12 months.
