Hello and welcome to the Monadelphous 2025 Full-Year Results Investor and Analyst Briefing. I'd like to begin by acknowledging the traditional owners of the lands on which we are joining you from today in Boorloo, Perth, the Whadjuk people of the Noongar Nation, and the traditional owners of country, and pay respect to elders past, present, and emerging, and extend that respect to all Aboriginal and Torres Strait Islander peoples. Presenting from Perth are Monadelphous' Managing Director, Zoran Bebic, and Chief Financial Officer, Phil Trueman, who are joined in the room by our Chair, Rob Velletri. Throughout this presentation, the speakers will guide you on when to click through to the next slide. The structure of this morning's presentation will be similar to previous results presentations, with some further detail provided as appendices. Copies of today's presentation and associated materials are available on our website at monadelphous.com.au.
I'll now hand over to our first presenter today, Zoran Bebic, who will start on slide two.
Thanks, Kristy, and welcome to our 2025 full-year results briefing. Today, Phil and I will present our financial and operational performance for the year ended 30 June 2025, as well as our outlook. We'll then answer any questions you may have. I'll begin with our group performance and highlights on slide three. Monadelphous recorded revenue of AUD 2.27 billion for the financial year, which is a 12% increase on the prior year, reflecting an increased level of construction activity during the period. The maintenance and industrial services division reported record revenue for the year of AUD 1.35 billion, a slight increase on the prior year, driven by strong demand for maintenance services and sustaining capital works, particularly in the energy sector. The engineering construction division delivered revenue of AUD 925 million, up 30% on last year, experiencing significant levels of demand in both resources and energy.
Improved operating margins contributed to net profit after tax increasing to AUD 83.7 million, up 34.6% on the prior year, delivering earnings per share of AUD 0.85. The board declared a final dividend of AUD 0.39 per share, taking the full year fully franked dividend to AUD 0.72. We ended the year with a strong cash balance of AUD 205.8 million. Cash flow from operations for the period was AUD 81 million, delivering a cash flow conversion rate of 77%. Zenviron, our renewable energy joint venture, continued to strengthen its market position and secured a number of key contracts in the renewable energy sector during the year. We progressed our markets and growth strategy related to the energy transition with the acquisition of Perth-based high-voltage services business, High Energy Service. HES provides specialist high-voltage electrical maintenance and testing, commissioning and engineering to major resources companies throughout W.A., and adds to our existing electrical services capability.
Since the beginning of the 2025 financial year, we have secured approximately AUD 2.5 billion in new contracts and extensions, representing a record total value of awards in a period, and providing us with a strong pipeline of committed work. Moving now to slide four. In the energy sector, we were awarded approximately AUD 1.1 billion in major construction and maintenance contracts with blue-chip customers, including Shell and Woodside . A highlight was the award of a seven-year contract to continue providing maintenance services at Shell Australia's Prelude FLNG off W.A.'s northwest coast. We also secured a major construction contract with Woodside for modifications to the Pluto LNG train one facility, which will enable the processing of gas from the Scarborough field.
We continue to experience strong demand for services in the iron ore sector in W.A., securing a significant volume of both maintenance and construction work with long-term customers Rio Tinto, BHP, and Fortescue. This included a five-year services agreement for marine structural integrity works at Rio Tinto's Cape Lambert harbour, and we secured our first package of works under the agreement. Zenviron was awarded contracts to deliver EnergyAustralia 's Wooreen battery energy storage system in the Latrobe Valley, Victoria, as well as CS Energy's Lotus Creek wind farm in central Queensland. Moving to slide five, our total workforce, including subcontractors, grew 23% compared to the prior year, reaching a record number of over 9,000 people at year end. This reflects high levels of maintenance activity and the continued ramp-up in construction work. We remain focused on investing in early careers and leadership development.
Over the year, around 330 graduates, undergraduates, apprentices, and trainees took part in our early career programs. We were recognized amongst Australia's top 20 intern programs and top 20 graduate program employers for 2025 by the Australian Association of Graduate Employers. Throughout the year, more than 100 of our future leaders participated in our in-house leadership programs, while our registered training organization engaged with over 2,800 trades personnel. To strengthen our attraction efforts, we conducted a comprehensive review of our recruitment process and introduced a refreshed induction hub for new starters. As part of our ongoing commitment to providing safe, respectful, and inclusive workplaces, we further embedded our Respect@Monadelphous framework through the launch and rollout of our Respect in Every Step initiative, a leadership-led program that reinforces behavioral standards for all employees. Let's now look at safety and wellbeing on slide six.
Our total recordable injury frequency rate for the year was 4.42 incidents per million hours worked, a result well short of our expectations. In response, we launched various targeted campaigns aimed at improving performance. To address equipment-related risks, we deployed several technology-enabled systems across the business. These included a driver fatigue and distraction monitoring system across our vehicle fleet, a pedestrian avoidance system in telehandlers and forklifts, and an overload override alert system to our fleet of Franna cranes. We maintained our ongoing commitment to employee health and wellbeing, rolling out a range of initiatives focused at both general and mental health. Our safety and innovation efforts were recognized across industry, with Monadelphous receiving multiple awards during the year. This included awards at the Mason Construction W.A. Awards, the West Australian Civil Construction Industry and Training Awards, and the Crane Industry Council of Australia.
We were also proud to be named as a finalist in awards presented by industry regulators and recognized safety bodies. Moving now to diversity and inclusion, community, and environment on slide seven. We maintained our focus on initiatives to increase diversity and inclusion, enrich the communities in which we operate, and progress towards our net zero emissions by 2050 goal. Pleasingly, we exceeded all commitments outlined in our stretch reconciliation action plan and commenced its renewal. Our indigenous workforce participation was 3.5% at year end, supported by long-term indigenous employment opportunities and delivering meaningful training and development. Our continued support of indigenous businesses resulted in an increase of 35% in our indigenous business spend to more than AUD 27 million. We continued to advance career pathways for women and develop emerging and high-potential female talent in line with our gender diversity and inclusion plan.
The outstanding contributions of our female employees were recognized in the 2025 Women in Resources Awards, winning the Outstanding Tradeswoman in the Northern Territory and being nominated as a finalist in Western Australia. As part of our commitment to making a positive impact in the regions where our people live and work, we expanded our community grants program to support a broad range of community and grassroots organizations across the Karratha, Darwin, and Bunbury regions. This more than doubled the number of grants awarded compared to last year. To minimize the impacts of our operations on the environment, we continued to progress initiatives in line with our goal of net zero by 2050. We trialled fully electric utility vehicle options, increased the number of hybrid and electric vehicles across the business, and conducted site-based trials of a hybrid power solution.
We also installed solar systems on our Mackay and Karratha workshop facilities, with installations also underway on our Darwin and Gladstone workshops. We also supported our customers' decarbonisation efforts, highlighted by the installation and commissioning of Fortescue's first battery charging facilities to support the transition of its mobile plant fleet from diesel to electric. Turning now to our engineering construction divisional highlights on slide eight. For the year, the division reported revenue of AUD 925.3 million, which is a 30% increase on the previous year. This result was driven by high levels of construction activity across the iron ore, energy, copper, lithium, and renewable energy sectors. Since the start of the financial year, we secured approximately AUD 1 billion of new construction contracts.
Continuing to support key customers in Western Australia's iron ore sector, we progressed work at BHP's Car Dumper 3 Renewal Project at Nelson Point in Port Hedland and Ore Body 32 in Newman. For Rio Tinto, we completed shutdown works at the Western Range project in Paraburdoo, and after year end, we were awarded a contract for electrical and instrumentation construction services at the Parker Point stockyard sustaining project near Dampier. Mondium, our engineering procurement and construction joint venture with Lycopodium, secured a major design and construct contract with Rio Tinto for a new sampling facility at Cape Lambert. In the energy sector, we commenced construction works on modifications to Woodside 's Pluto LNG Train 1 near Karratha, which I mentioned earlier, and we progressed work at Chevron Australia's Jansz-Io compression project on Barrow Island.
In South Australia, we were awarded a multidisciplinary construction contract for BHP's Prominent Hill expansion mine, an underground mining operation and copper processing facility. The project includes supply, fabrication, and installation, with steelwork delivered by our fabrication business Interforge and civil services by Melchor. In the lithium sector, we continued delivering construction services at Talison Lithium's Greenbushes site in southwest W. A. and completed construction of the wet plant at Liontown Resources' Kathleen Valley project near Leinster, also in W. A. Our Interforge business supported the Iluka Eneabba Rare Earths Refinery project with the supply and fabrication of structural steelwork. Post year end, Interforge secured a two-year extension to its Master Goods Agreement with Origin Energy to continue supplying packaged and modularized equipment for APLNG in Queensland, which it has been providing since 2015.
In Mongolia, we successfully completed construction of surface infrastructure at the Oyu Tolgoi underground project, achieving a strong safety record throughout. In the renewable energy market, Zenviron commenced balance of plant, civil, and electrical works at the Lotus Creek wind farm and completed its first battery energy storage system at Tilt Renewables Latrobe Valley project, located south of Morwell in Victoria. Looking now at our maintenance and industrial services division, slide nine. The division delivered another record annual revenue result of AUD 1.35 billion, as strong demand for maintenance services continued. Since the beginning of the financial year, the division secured approximately AUD 1.5 billion in new contracts and contract extensions. Activity remained high across the energy sector, where we delivered a significant volume of work.
As mentioned earlier, we secured a long-term maintenance contract at Shell Australia's Prelude FLNG, as well as a seven-year maintenance and construction services contract at Shell's QGC Curtis Island operations in Gladstone, where we have been providing services since 2013. Following year end, we secured a contract with Technip Energies for the hookup and commissioning of Shell's Crux platform, located around 160 km from the Prelude facility. We are also undertaking hookup and commissioning of Woodside 's floating production unit in the Scarborough gas field off the Pilbara Coast. We continued decommissioning services for Petrofac on the Northern Endeavour floating production storage and offtake facility, with the vessel ready to move off station in the coming months. In Western Australia's iron ore sector, we saw sustained demand continue for maintenance and sustaining capital services from long-term customers Rio Tinto, Fortescue, and BHP.
For Rio Tinto, we were awarded multiple contracts, including marine structural integrity works, fixed plant maintenance and sustaining capital projects, and structural remediation works. During the period, we procured a 250-ton jack-up barge to enhance our marine structural integrity service offering to customers. We also secured a contract for the upgrade of the rolling stock maintenance workshop at Fortescue's Thomas Marshalling Yard in Port Hedland. In Papua New Guinea, we continued to provide sustaining capital projects and maintenance forward activities at Newmont's gold operations at Lihir Island, as well as Santos's production and support facilities in the Southern Highlands. Finally, during the year, we were awarded a three-year contract for shutdown and maintenance services at South32's Worsley Alumina operations in W. A., as well as a new contract for minor project works at the site, where we have maintained a presence for over 20 years.
We'll now move to slide 10, and I'll hand over to Phil, who will provide you more detail on our financial performance.
Thank you, Zoran, and good morning, everybody. This slide, slide 10, compares our financial performance for the year ended 30 June 2025 to last year. Overall, it's been a very strong year from a financial perspective. Revenue from contracts with customers was AUD 2.27 billion, up around 12% on the 2024 financial year. Our earnings before interest, depreciation, and amortization was AUD 158.2 million, an increase of 24.2% on the previous year, and our EBITDA margin increased to 6.98%, up from 6.28% last year. About 1/3 of the variance is attributable to non-operating items, most notably proceeds from insurance, with the balance of the increase relating to an improvement in the operating EBITDA margin. Improved operating margins contributed to net profit after tax increasing to AUD 83.7 million, up about 35% on the prior period, and delivering earnings per share of AUD 0.85.
The board declared a final dividend of AUD 0.39 per share, which takes the full year fully franked dividend to AUD 0.72, which is up about 24% on last year. We ended the year with a strong cash balance of AUD 206 million, and our cash flow from operations for the period was AUD 81 million, delivering a cash flow conversion rate of 77%. Our strong balance sheet supports our strategy of growing sustainably over the long term and enables us to pursue targeted acquisition opportunities and build a more diverse and resilient business. I'll hand you back to Zoran, who'll provide you with an overview of the outlook for Monadelphous.
Thanks, Phil. Looking now at slide 11, which provides a broad view of relevant current and forecast Australian market conditions for our business per Oxford Economics. Pleasingly, as you can see, the sectors in which we operate continue to have a positive outlook for capital investment and operating expenditure over the coming years. Turning to slide 12, energy transition. Australia is undergoing a major energy transition, moving towards a decarbonized economy. At the same time, the demand for energy is growing rapidly, partly impacted by the rise of artificial intelligence and the expansion of data centers. This represents a long-term opportunity that will play out over decades to come and which will require a significant level of investment. Monadelphous is well positioned to play a key role in this transition by leveraging our core capabilities and developing new services across the four energy transition sectors shown on the slide.
Right now, we are actively delivering work across critical minerals, renewable energy generation and storage, and the electrification of our customers' operations. We see this as the early phase of what is expected to be a strong long-term pipeline of opportunities. Moving now to the outlook on slide 13. Longer-term demand trends across the resources and energy markets are forecast to continue to remain robust, despite the short to medium-term impacts of moderating global economic growth and the higher level of global uncertainty. Production levels across most commodities continue to drive demand for sustaining capital works and maintenance services. Despite a lower forecast for iron ore prices, production rates are expected to be at least maintained and will support the continued investment in new projects in Australia's iron ore sector, with a focus on efficiency to maintain its globally competitive position.
Demand for energy transition metals is showing signs of improvement following a period of significant price volatility. Over the long term, mining and mineral processing development in this sector, including copper and critical minerals, is projected to increase, requiring substantial capital investment to meet projected demand. The energy sector continues to provide significant opportunities, including several gas construction projects and ongoing strong demand for maintenance services. We remain well positioned to continue supporting customers throughout the asset lifecycle, including late life and deconditioning support. Customer decarbonisation activities continue to support the electrification of operations and energy storage and are now driving a more significant pipeline of nearer term prospects. Australia's net zero emissions objective is driving a pipeline of opportunities in the renewable energy sector over the coming years, with investment activity increasing across generation, storage, and transmission.
Zenviron remains well positioned to continue to secure work in the wind farm and battery energy storage sectors and to capitalize on this growth sector. Although labor demand has eased and workforce availability has improved, skilled labor shortages persist across Australia's resources and energy sectors. We are responding to this challenge by strengthening the capability and capacity of our workforce through focused employee attraction and retention and development initiatives, supporting long-term employee engagement. We remain focused on sustainable growth and the delivery of quality of earnings by taking a selective approach to securing new work, fostering collaborative customer relationships, upholding high standards of delivery, and taking a disciplined approach to our allocation of risk.
Pleasingly, we have entered the new financial year with a strong pipeline of committed work, and with activity levels rising across the business over the past six months, we are well placed to deliver growth for the 2026 financial year. We are focused on growing over the long term by continuing to expand our services and capabilities and diversify our markets. This strategy is supported by a strong balance sheet, which provides the flexibility to assess and pursue targeted acquisition opportunities that align with our vision of building a more diverse and resilient business. In closing, I would like to express my sincere gratitude to our dedicated team, whose loyalty and commitment are fundamental to our continued growth and success. I also extend my thanks to our customers, shareholders, and our many other stakeholders for their continued trust and support. Thank you.
I'll now hand over to the operator for any questions.
As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from William Park, with Citi. Your line is open.
Thank you. Thanks for taking my question, Zoran and Phil. Just on cash conversion, clearly second half, it's stepped down a fair bit from first half levels due to the receivables balance being much higher in second half versus first half. In terms of how your expectations around cash conversion in first half FY 2026, are you expecting to recover most of these receivables? Just trying to work out, just trying to understand how you're thinking about cash conversion in first half and second half FY 2026, please. Thank you.
Yeah, morning. You're right. The second half, we saw activity levels increase about 15% or so over the first half, and obviously we saw a corresponding increase in working capital. You know the debtors are getting paid as we would expect, so we're very comfortable that you know there's no concerns with the cash flow conversion rate. I mean, really, even though it was a little bit lower in the second half, it was very high in the first half. You really have to look at it as an average over a sort of a period of time. I've got no concerns about the cash flow conversion rate.
Thank you. Perhaps if I could just touch on underlying EBITDA margin for the year, I appreciate your comment around what the underlying component is versus sort of non-operating items. Just in terms of how you're kind of thinking about margin upside from here, are you expecting any sort of meaningful margin upside as construction projects continue to ramp up and productivity levels across those projects ramp up as well, not just in construction but across maintenance as well?
Oh, I think, you know, we try and do our absolute best with our margins, and you know I think the business is performing very well at the moment. The underlying margins, or the, sorry, the normalized margins first half, second half were about the same. We always continue to do what we can to improve, but really it's going to come down to how well we execute our work. That's the plan.
You can clearly see when we spoke about the step up in EBITDA margin over the 12-month period, clearly we'd like to see that EBITDA margin on an underlying basis maintained or some improvement to it.
Thank you. Just one last question I had was on the top line. If I take your second half E&C revenue profile, how should we sort of think about that as, you know, from your perspective, is that sort of a, you know, floor as you look at first half and second half onwards? Do you look to sort of build from those levels? That's on E&C side. On the maintenance side, should there be any sort of first half, second half skew that we need to be thinking about for FY 2026 due to your turnaround work schedule? Thank you.
I think the E&C level of activity, and you talked about the second half, it probably does look something like a bit of a floor going into FY 2026. If I look at the maintenance portfolio, I do think given the profile of turnaround activity, I do think that the first half will probably be stronger than the second half from a revenue perspective.
Thanks very much.
Thank you. Our next question comes from Jack Karnis with Jarden Australia. Your line is open.
Morning, Zoran. Morning, Phil. Will got through a fair amount of those questions there. Well done, Will. I'm just wondering about the unsatisfied performance obligations as you print them. Obviously, they're continuing to build. Can you just help us understand for some of the engineering construction work that you've won recently, whether there was some pull forward of ramp-up costs or anything in the margin in the second half that could potentially unwind as we move through to 2026? I guess what I'm talking to there, guys, is just mobilisation or staffing ahead of contract commencement dates, please?
No, not that I'm aware of. I mean, the margins that, you know, we've declared on these jobs are the margins that we're comfortable with. We don't ever go up and down, but, you know, we don't have no pull through of costs really or anything like that.
Okay, thank you. Zoran, just in the comments there that you've made about the labour market tightness still existing, can you talk to some of the productivity or rostering considerations that you guys are making either as a retention attraction tool, and also how you're seeing that impact on site performance?
I guess onsite performance has been consistent with the assumptions we've made, certainly in engineering construction, in terms of how we've priced work. That's always been a key focus and will continue to be a key focus. I mean, we're a people business, so we've got to make sure that we're working in the retention and development space on a consistent basis. The commentary around slight easing in the labour market probably recognizes the fact that overall there has been a slight easing, so there are more people in the market. I think the ability to find skilled trades is still difficult, and specifically in particular disciplines, there are particular disciplines that are very tight at the moment still.
Thanks, that's helpful. Of those disciplines, Zoran, we're hearing a lot of the fitters and some of the more specialized metal works. There is still tightness there, particularly around experienced labor. Is that something that you're seeing across the business? Could that provide a complication of you having to pay more versus where you have historically, or is it just about making sure that you retain the key staff as you get through your project work?
We're going to continue to maintain people, but you know, to execute this work, we've got to mobilize resources as well. I mean, that's one example you've raised. Electrical trades generally are tight in the market at the moment as well. In many respects, it's almost business as usual. It's not a new issue we're contending with.
Understood. Okay, one final one just for Phil. The step up in D&A 2025 and 2024, obviously that follows the CapEx that you guys delivered in FY 2024. Do we expect a similar step up again in 2026 on 2025, maybe to a lesser magnitude? Just give me a sense just around that depreciation line if you could, please.
Yeah, I mean, we spent a hump in the FY 2024 year. We spent about AUD 100 million on new plant and equipment. Obviously, that arrived at particular points through last year that we've obviously had that around for the full year now. The CapEx this year was only about AUD 30 million. There will be a bit of a step up, but not of the same magnitude as we saw between FY 2024 and FY 2025.
That's helpful, guys. Thank you. Thanks for the questions.
Thank you. Our next question comes from Nicholas Rawlinson with Morgans. Your line is open.
Hi, Zoran and Phil, thanks for taking my question. Just on maintenance, could you just flesh out the outlook for oil and gas turnaround activity over the next couple of years? My understanding is you go through these phases every four years or so, and it looks like we're due for another phase of heavy turnarounds in 2026 and 2027. Usually that leads to maintenance revenue growth quite substantially. Just want to understand if I'm thinking about it in the right way.
I couldn't project that far out, but from what I have seen in the energy market, certainly I made comment earlier around the first half, profile will be very strong off the back of a number of significant key turnaround customers. From what it won't be, it'll come off a little in the second half. I think the first half of the next financial year, the turnaround profile looks pretty strong. Having said that, we're also executing other work. There are a number of brownfields projects that will feature in this half as well, which will support the level of activity, not which will, which does support the current level of activity.
That's helpful. Thanks, Zoran. Moving on to E&C, could you just comment on the level of tendering activity at the moment, what the pipeline looks like over the next 12 to 24 months, and sort of when you expect some awards to land?
Yeah, there's no doubt that the pipeline has thinned out a little over the last 12 months, but it's still reasonably solid. If I look at it by market, certainly within the iron ore sector, we're bidding a reasonable amount of work, and I would expect that probably three or four more material opportunities will be awarded over the next three to four months.
Okay, that's helpful. The order book for the group is up more than 20% year on year, so sort of very strong to start FY 2026. Could you just comment on what sort of visibility you have over earnings for the next year or two?
I think the fact that we've highlighted that we're well positioned for growth in FY 2026, probably traditionally we wouldn't provide a view around revenue projection at the end of a financial year. You know, given the commentary around AUD 2.5 billion worth of secured work in the period, it gives us a strong pipeline going in. We've made the comment that we've seen increased levels of activity generally across the business over the last six months. I think we're pretty well placed. We're pretty well placed to see growth over the next 12 months. Beyond that, you know, I made the comment that the tendering pipeline is still pretty reasonable. I think on some of those opportunities, I would like to think that we're well placed.
It will be subject to what we win over the next six months, but I think the opportunities are there and our position in our core markets is relatively strong.
Just one last question, if I may, Zoran. I'm surprised to hear that the pipeline is thinning out a little bit, just in the context that Rio 's got a huge amount of replacement spend coming over the next couple of years. Is that just a timing thing, do you think, or is there something else that's driving that?
No, I think we've made comments before in terms of there aren't a lot in the way of new greenfields projects, particularly in iron ore, over the next couple of years. They sit in the portfolio of sustainment capital, so there are more of them, but not a significant size. I think the thinning out, part of that is to do with the timing of award, has definitely slipped out. We've seen that occur over the last nine months, so we probably don't reach a peak or a spike like we would have anticipated 18 months ago. Some of those opportunities are pushed out further in terms of duration.
Great, that's it for me. Thanks very much, guys, and congrats on the results.
Probably just add to that, in terms of the broader market, we're still seeing opportunities and bidding work in the energy market. We've talked about our plans in terms of energy transition, so the broader market view is still pretty strong.
Awesome, thanks, Zoran.
Thank you. As a reminder, to ask a question, please press star one one on your telephone. Again, that is star one one to ask a question. Our next question comes from John Patel with Macquarie. Your line is open.
Good day, Zoran, Phil and Rob. Hi, Drew, Will. Just had a couple of questions, if I can. Look, just further to Will's earlier question there on revenue. Obviously, engineering construction revenue was AUD 520 million for the second half. If I've sort of interpreted the earlier comment correctly, you think you should be able to at least sort of annualize that revenue into 2026, which would take you above the AUD 1 billion mark on an annual basis.
Well, possibly.
Got to get somebody to win. You know what I mean? We're in it, but we've got to win it. It's the timing of those wins that also could impact how we end up. Yeah, as I said, the pipeline's strong.
I mean, we've got to...
Bill said we need to win the work, but yeah, if things play out the way we expect, we'd like to think that the E&C business can achieve that sort of revenue.
Thank you. You mentioned the next question before, that sort of three to four opportunities over the next few months. Are they primarily in iron ore?
More of them are in iron, not exclusively, but most of them are in iron ore, yes.
In relation to the energy transition, I see you've got a specific sort of slide on that this time around. I think we've obviously all been waiting quite a while for, I'm sure you have as well, for the energy transition opportunities to actually come through. You've seen that the opportunities are here and now. Have we arrived in terms of at least some of these opportunities, which you know have been out there for many years?
I think that's a fair way of thinking about it. For the first time, the opportunities are here. I made the comment that we're actually executing a couple of smaller packages of work across a couple of those sectors we identified in the slide, and we're also bidding a couple of other opportunities. I expect that will continue to grow from this point, but we have more confidence than we have previously.
Thank you. Just the final one for Phil. In relation to the cash flow conversion again, would you be expecting a more normal level of cash conversion in 2026? Typically you've sort of run it, you know, circa 100%.
Yeah, John, I would be expecting that, absolutely. You know, if I get a big bill that's paid on the 30th of June o r the 2nd of July , it can swing things. Yes, I'm expecting a 100% cash flow conversion rate. That's what we've done for certainly, probably the last two, three, and four years.
Thank you.
Just really, just remember that the cash flow conversion rate has been impacted by the working capital buildup as a result of the increased activity levels. It's as simple as that.
Thanks.
Thank you. Our next question comes from Nathan Reilly with UBS. Your line is open.
Thanks. Hey guys, I'm Zoran, just a little, I'm quite interested in the outlook for gold projects at the moment. Can you give us an update on how you're seeing the pipeline in terms of gold customers?
In terms of pipeline for large construction opportunities in the gold market, we're not currently bidding any, and it's probably most of the opportunities we're seeing are in our regional locations at the smaller end. If I look at our pipeline, there aren't too many large gold projects that we're closely monitoring in terms of material size outside of probably Hemi.
No problems. What about the promise?
I was just thinking it's probably highlighting the fact that, you know, we do have a fair bit of activity in PNG or on Lihir Island there. In terms of major construction opportunities, I'm going from memory here in terms of our pipeline prospects.
Yeah, it's about the only one.
For those tier two, once you get below tier one customers in their gold space, and a number of these projects are with tier two, tier threes, they tend to be EPC projects as well, Nathan.
Yep, understood. Thank you. Finally, just in terms of not providing the revenue growth guidance from a quantitative point of view, are we back to kind of historical practice? You'll wait for the AGM, maybe give us an update on a quantitative basis on the first half? Is that what we should be thinking?
Yeah, that's probably a fair assumption.
Good one. Okay, thank you.
Thank you. I'm showing no further questions at this time. I'll turn it back to Kristy Glasgow for closing remarks.
Thank you all for your participation today. That now concludes our briefing.
Thanks, everyone.
This concludes today's conference call. Thank you for participating. You may now disconnect.