Annual financial statement
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MONADELPHOUS GROUP LIMITED A.B.N. 28 008 988 547 CONSOLIDATED FINANCIAL REPORT 30 JUNE 2026
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MONADELPHOUS GROUP LIMITED A.B.N. 28 008 988 547 CONTENTS PAGE Overview Corporate Directory 3 About Monadelphous 4 Operating and Financial Review Chair’s Report 6 Company Performance 16 Governance and Risk Management 18 Sustainability Report Sustainability Report 24 Directors’ Declaration 55 Independent Auditor’s Report 56 Financial Report Directors’ Report 60 Remuneration Report (within Directors’ Report) 67 Auditor’s Independence Declaration 89 Independent Auditor’s Report 90 Directors’ Declaration 95 Consolidated Income Statement 96 Consolidated Statement of Comprehensive Income 97 Consolidated Statement of Financial Position 98 Consolidated Statement of Changes in Equity 99 Consolidated Statement of Cash Flows 101 Notes to the Consolidated Financial Statements 102 Consolidated Entity Disclosure Statement 153
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MONADELPHOUS GROUP LIMITED CORPORATE DIRECTORY 3 DIRECTORS ASX CODE Robert Velletri MND – Fully Paid Ordinary Shares Chair AUDITORS Zoran Bebic Ernst & Young Managing Director 9 The Esplanade Perth Susan Lee Murphy AO Western Australia 6000 Lead Independent Non-Executive Director CONTROLLED ENTITIES Dietmar Robert Voss Monadelphous Engineering Associates Pty Ltd Independent Non-Executive Director Monadelphous Engineering Pty Ltd Monadelphous Properties Pty Ltd Helen Jane Gillies Monadelphous Workforce Pty Ltd Independent Non-Executive Director Genco Pty Ltd Monadelphous Electrical & Instrumentation Pty Ltd Enrico Buratto Monadelphous PNG Ltd Independent Non-Executive Director Monadelphous Holdings Pty Ltd Moway International Limited Company Secretaries Inteforge Pty Ltd Kristy Glasgow Moway AustAsia Steel Structures Trading (Beijing) Company Limited Philip Trueman Monadelphous RTW Pty Ltd Monadelphous Group Limited Employee Share Trust PRINCIPAL REGISTERED OFFICE IN Monadelphous KT Pty Ltd AUSTRALIA Monadelphous Energy Services Pty Ltd 59 Albany Highway Monadelphous Mongolia LLC Victoria Park M&ISS Pty Ltd Western Australia 6100 M Maintenance Services Pty Ltd Telephone: +61 8 9316 1255 Monadelphous NPI Pty Ltd Facsimile: +61 8 9316 1950 M Workforce Pty Ltd Website: www.monadelphous.com.au Monadelphous Investments Pty Ltd MWOG Pty Ltd POSTAL ADDRESS Arc West Group Pty Ltd PO Box 600 MOAG Pty Ltd Victoria Park Monadelphous International Holdings Pty Ltd Western Australia 6979 R.I.G. Installations (Newcastle) Pty Ltd R E & M Services Pty Ltd SHARE REGISTRY Pilbara Rail Services Pty Ltd Level 17, 221 St George’s Terrace EC Projects Pty Ltd Perth Inteforge Engineering & Fabrication (Tianjin) Co. Ltd Western Australia 6000 MMW Projects Pty Ltd Telephone: 1300 364 961 BMC Holdings (Vic) Pty Ltd Facsimile: +61 8 9473 2500 BMC Welding & Construction Pty Ltd BMC HV Electrical & Instrumentation Pty Ltd Melchor Contracting Pty Ltd High Energy Service Pty Ltd High Energy Service Group Pty Ltd Kerman Contracting Pty Ltd Australian Power Industry Partners Pty Ltd
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MONADELPHOUS GROUP LIMITED ABOUT MONADELPHOUS 4 Monadelphous is an Australian engineering group headquartered in Perth, Western Australia, providing construction, maintenance and industrial services to the resources, energy and infrastructure sectors. The Company builds, maintains and improves its customers’ operations through safe, reliable, innovative and cost-effective service solutions. It aims to be recognised as a leader in its chosen markets and a truly great company to work for, work with and invest in. OUR HISTORY Monadelphous emerged from a business which started in 1972 in Kalgoorlie, Western Australia, providing general mechanical contracting services to the growing mining industry. The name Monadelphous was adopted in 1978 and by the mid -1980s the Company had expanded into a number of markets, both interstate and overseas. In the late 1980s, a major restructure of the Company took place with the business refocusing on maintenance and construction services in the resources industry. By the 1990s, under a new management team, the Company had established the foundations for sustained growth and continued to diversify and extend its reputation as a supplier of multidisciplinary construction, maintenance and industrial services to many of the largest resources and energy companies. Today, Monadelphous’ shares are included in the S&P/ASX 200 index. OUR OPERATIONS Monadelphous has two operating divisions working predominately in Australia, with overseas operations and offices in China, Mongolia, Papua New Guinea, Vietnam and the Philippines. Engineering Construction The Engineering Construction division provides large -scale, multidisciplinary and vertically integrated project management and construction services. These include earthworks, structural concrete and inground services, fabrication, modularisation, structural, mechanical, piping, heavy lift, electrical and instrumentation, commissioning, demolition, design and construction of non -process infrastructure, high- voltage electrical construction, and balance -of-plant design and construction of renewable energy developments. Maintenance and Industrial Services The Maintenance and Industrial Services division specialises in the planning, management and execution of mechanical and electrical maintenance services, shutdowns, sustaining capital works, fixed plant maintenance services, access solutions, specialist coatings , rail maintenance and high-voltage electrical maintenance services. OUR PURPOSE To build, maintain and improve our customers’ operations through the reliable delivery of safe, cost-effective and customer-focused solutions. OUR VISION Monadelphous will achieve long -term sustainable growth by being recognised as a leader in our chosen markets and a truly great company to work for, to work with and invest in. We are committed to the safety, wellbeing and development of our people, the delivery of outstanding service to our customers and the provision of superior returns to our shareholders.
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MONADELPHOUS GROUP LIMITED ABOUT MONADELPHOUS 5 OUR COMPETITIVE ADVANTAGE We deliver what we promise. OUR VALUES Safety and Wellbeing We show concern and actively care for others. We always think and act safely. Integrity We are open and honest in what we say and what we do. We take responsibility for our work and our actions. Achievement We are passionate about achieving success for our customers, our partners and each other. We seek solutions, learn and continually improve. Teamwork We work as a team in a cooperative, supportive and friendly environment. We are open -minded and share our knowledge and achievements. Loyalty We develop long -term relationships, earning the respect, trust and support of our customers, partners and each other. We are dependable, take ownership and work for the Company as our own.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT 1 Includes Monadelphous’s share of joint venture revenue – refer to page 17 for reconciliation 2 Refer to page 17 for reconciliation of EBITDA 6 The Directors of Monadelphous Group Limited are pleased to report the Company’s financial results for the year ended 30 June 2026. FINANCIAL RESULTS Revenue Monadelphous reported a record annual revenue result of $2.98 billion1 for the financial year ended 30 June 2026, a 31.5 per cent increase on the prior year, with strong operating conditions experienced across all sectors. Activity levels were supported by the record level of work secured during the previous period, together with more than $2.7 billion in new contracts and contract extensions awarded since the beginning of the 2026 financial year. The Engineering Construction division delivered revenue of $1.37 billion 1, an increase of around 48.5 per cent on the prior year, with significant project activity experienced in the iron ore sector. The result also reflected the success of the Company’s service expansion and integrated services delivery strategy, with growth in the Melchor civil business and Inteforge’s fabrication services, as well as the acquisition of Kerman Contracting. Zenviron, the Company’s renewable energy business, also experienced higher activity levels with the delivery of larger wind and battery energy storage projects. The Maintenance and Industrial Services division reported record annual revenue of $1.61 billion, up 20 per cent on last year, reflecting high levels of turnaround activity and project work in the energy sector, and increased levels of maintenance activity with iron ore customers. Statutory revenue from contracts with customers, which excludes Monadelphous’ share of revenue from joint ventures, was $2.79 billion. Earnings Strong operational performance and economies of scale resulting from growth during the period drove a significant lift in earnings for the Company. Earnings before interest, tax, depreciation and amortisation (EBITDA) was $ 226.0 million2, an increase of 42.9 per cent on the prior period, delivering an EBITDA margin of 7.58 per cent. Net profit after tax was $ 127.3 million, up 52.1 per cent compared to the prior financial year, resulting in earnings per share of 127.6 cents. Dividend Monadelphous’ Board of Directors declared a final dividend of 59 cents per share, taking the full year fully franked dividend to 108 cents per share, resulting in a dividend payout ratio of 85 per cent. The Monadelphous Group Limited Dividend Reinvestment Plan will apply to the final dividend. Balance sheet Monadelphous ended the year with a cash balance of $293.6 million, boosted by a number of material advances associated with the award of several large construction contracts. Increased activity levels within the business contributed to cash flow from opera tions for the period of $245.1 million and the Company delivered a strong cash flow conversion rate of 147.4 per cent. The Company’s strong balance sheet continues to support investment in strategic growth opportunities that will deliver long-term business sustainability and shareholder value.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 7 STRATEGIC PROGRESS Monadelphous has been awarded more than $2.7 billion in new work since 1 July 2025 and enters the 2027 financial year with a strong pipeline of committed work, an expanded customer base and a broadening capability aligned with long-term industry growth prospects. Over $1.6 billion of construction and maintenance contracts were secured in Western Australia’s (WA) iron ore sector during the period. In construction, awards included a multidisciplinary contract with BHP associated with the Jimblebar Train Load Out Replacement Project, a car dumper replacement contract, also with BHP, valued at approximately $175 million, and a contract with Rio Tinto worth approximately $250 million for the Brockman Syncline 1 iron ore development. Subsequent to year end, Monadelphous was also awarded a major construction contract, valued at around $200 million, associated with the Port Debottlenecking Project 2 located at BHP’s Nelson Point Port Facility in Port Hedland. The scope includes the installation and commissioning of all structural, mechanical, piping, electrical and instrumentation activities associated with the construction of the new Car Dumper 6 and its supporting materials handling facilities, with work expected to be completed in 2028. The Company secured several long -term services contracts with iron ore customers in the Pilbara. Awards included three contracts with Rio Tinto, including a five-year contract valued at approximately $300 million for fixed plant and shutdown maintenance se rvices, a three -year contract for multidisciplinary sustaining capital works, and a new five -year panel award to provide mobile crane and lifting services. The Company was also awarded a three-year contract to continue delivering maintenance services across Fortescue’s Pilbara operations and secured extensions to its BHP maintenance and panel agreements. In the energy sector, Monadelphous progressed the provision of multidisciplinary services associated with the hook-up and commissioning of Woodside’s Floating Production Unit in the Scarborough Gas Field, located approximately 375 kilometres off the Pilbara coast of WA, and forming part of Woodside's Scarborough Energy Project. The Company also secured a contract with Technip Energies for the provision of multidisciplinary services associated with the hook-up and commissioning of Shell’s Crux platform. The platform, which is located approximately 620 kilometres north-east of Broome and is around 160 kilometres from Shell’s Prelude floating liquefied natural gas (FLNG) facility, forms part of the long term ba ckfill to Prelude. Monadelphous continues to grow its market position supporting Australia’s energy transition. A major highlight was the award of a $380 million construction contract with CS Energy for the Brigalow Peaking Power Plant near Chinchilla in Queensland. Once ope rational, the facility will supply energy to more than 150,000 homes during peak demand, supporting grid reliability and complementing renewable energy. Work will commence in the second half of 2026 and is scheduled for completion in early 2029. The Company also continued to support Fortescue’s decarbonisation activities during the year, completing construction of the North Star Junction battery energy storage system (BESS), located south of Port Hedland, WA, and securing its third BESS project for Fortescue at the Cloudbreak mine site, WA. Monadelphous was also awarded a contract to install wind turbine generators as part of Fortescue’s Nullagine Wind Project in WA. Zenviron, the Company’s renewable energy joint venture, further strengthened its market position with the award of a contract to deliver the Bennetts Creek BESS in the Latrobe Valley, Victoria, including balance-of-plant design, construction, installation and commissioning, with completion expected in late 2027. Monadelphous completed several strategic acquisitions during the year, progressing its markets and growth strategy and enhancing the Company’s capability.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 8 In November 2025, the Company acquired Kerman Contracting (Kerman), a Western Australian -based design and construction business specialising in non -process infrastructure. Kerman has a long -established reputation for the successful delivery of site infrastructure, accommodation, bulk storage and materials handling facilities in the resources, agriculture, and transport and port infrastructure sectors. The acquisition further broadens Monadelphous’ delivery capability, enabling the provision of non -process infrastructure design and construction services across both existing and new markets. Post year end, Kerman secured a contract for the design and construction of non-process infrastructure associated with Rio Tinto’s Brockman Syncline 1 project, valued at approximately $165 million. The Company also advanced its energy transition strategy through the acquisition of Australian Power Industry Partners (APIP), a high -voltage electrical contractor servicing utilities, resources and renewable energy customers across multiple states of Australia. This acquisition further expands the Company’s high - voltage electrical services offering following the acquisition of Perth -based High Energy Service, which completed on 1 July 2025. SUSTAINABILITY Monadelphous remains focused on achieving long -term sustainable growth and building on its strong reputation as a trusted business that people choose to work for, partner with, and invest in. The Company is committed to ensuring the safety and wellbeing of its people, delivering strong value for customers and shareholders, and contributing to and supporting local communities. This approach is guided by the Company’s Sustainability Framework, which includes the key focus areas of People, Safety and Wellbeing, Diversity and Inclusion, Community and Environment. People Monadelphous’ workforce (including subcontractors) at 30 June 2026 totalled a record 9,365 people, a 3 per cent increase on the prior year. The Company remains focused on retaining, developing and attracting highly talented people who align with the Company’s values and contribute to its ongoing success. During the year, around 430 graduates, undergraduates, apprentices, and trainees participated in Monadelphous’ early career programs, with nearly 200 of the Company’s emerging and senior leaders engaged in programs focused on networking and leadership deve lopment skills. The Company’s ongoing focus on employee development supported strong key talent retention of 97 per cent. Monadelphous also introduced a new contracts pathway within the graduate program for commerce and law graduates to develop contracts specialists, and also launched a bespoke program to develop its own skilled and capable riggers. During the year, the Company’s registered training organisation continued to deliver a significant number of workforce development activities for trades personnel including high -risk work licencing, nationally accredited training, and verification of competency assessments. Monadelphous continued its long -standing partnership with the Starick Foundation in Perth, WA, and 4Voices in Brisbane, Queensland, supporting the organisations’ work in providing safety and assistance to women and children experiencing family and domestic violence. The Company again participated in the ‘16 Days in WA’ walk in collaboration with the Chamber of Minerals and Energy Western Australia, demonstrating its ongoing commitment to advocacy and community leadership in preventing family and domestic violence.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 9 Safety and Wellbeing Monadelphous’ 12-month Total Recordable Injury Frequency Rate at 30 June 2026 improved by 19 per cent to 3.57 incidents per million hours worked, following successful campaigns to ensure the safety and wellbeing of its employees through a period of rapid growth. The Company’s High Potential Incident Frequency Rate also continued to improve, reaching a historically low level, reflecting a relentless focus on the prevention of fatal risks. Guided by its safety principle The Safe Way is the Only Way and its Fatal Risk Control Standards, programs were rolled out to engage frontline employees and enhance awareness of the key controls to eliminate the risk of fatal hazards. An in-depth review was completed of forklift operations and interaction with pedestrians, followed by the rollout of a campaign to focus awareness and compliance on the most critical, essential and practical controls for reducing risk in this area. The Company also reviewed the effectiveness and efficiency of competency assessments for high-risk work, improving the focus on fatal risks. Monadelphous enhanced its use of technology to address safety hazards, embedding and refining the Driver Fatigue and Distraction Monitoring systems, as well as utilising drones for high-risk inspections to eliminate the need for employees to enter confined spaces. The Company progressed the rollout of a Pedestrian Avoidance System on mobile plant including forklifts, telehandlers and cranes. The system uses Artificial Intelligence (AI) to identify and alert operators and pedestrians where proximity limits are reache d. The Company also implemented Franna Crane Overload Over-ride Monitoring, an in -house innovation to prevent articulated cranes from toppling or being overloaded. Employee health and wellbeing remained a priority. Psychosocial risk management and mental wellbeing awareness were enhanced through the implementation of training programs focusing on risk management and improved mental health. The Company continues to provide employees with complimentary services and resources supporting physical, mental and emotional wellbeing. Externally, the Company was recognised for its commitment to safety and wellbeing with the award of the 2025 AREEA Mental Health and Wellbeing Award for its Wellbeing Supporter Program, and was also named as a finalist in both the Technology and Engineerin g categories at the Workplace Health and Safety Foundation Awards of Excellence. Furthermore, Alevro was recognised as a finalist in the Department of Local Government, Industry Regulation and Safety (LGIRS) Work Health and Safety Excellence Awards 2025. Diversity and Inclusion, Community and Environment Monadelphous is committed to promoting a positive legacy in the regions where it operates, with a focus on enhancing diversity and inclusion, enriching communities and successfully progressing towards its Net Zero by 2050 goal. The Company launched its new Stretch Reconciliation Action Plan 2026-2029, having exceeded the commitments outlined in its previous plan. The new plan sets clear priorities across four key areas including strengthening cultural learning and understanding, investing in development, training and career pathways, gaining a deeper insight into how best to influence engagement, attraction and retention, and further developing collaboration with business partners. Monadelphous’ Aboriginal and Torres Strait Islander workforce participation rate at 30 June 2026 was 3.2 per cent, continuing its commitment to providing meaningful, long -term employment, training and development opportunities for Indigenous peoples. Initi atives included supporting career pathways for current and future Aboriginal and Torres Strait Islander employees through traineeships, apprenticeships and
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 10 the Indigenous Pathways Program in partnership with Rio Tinto, which was extended for a further five years. The Company also continued its partnership with the Polly Farmer Foundation, focused on creating industry pathways for students and alumni. The Company strengthened its engagement with Indigenous businesses, spending approximately $40 million with Indigenous suppliers during the financial year, an increase of approximately 42 per cent on the previous period. Monadelphous continues to promote development opportunities and celebrate the contributions of women across the business in line with its Gender Diversity and Inclusion commitments. Several employees were recognised with industry awards for their efforts, including at the BHP Women in Resources National Awards, the Gladstone Engineering Alliance Awards, and the Women in Resources Awards in the Northern Territory. The Company advanced its objectives around diversity, inclusion and education through the AREEA Bright Future STEM Program and the AREEA Elevate Roundtable, helping inspire future careers in STEM and providing networking opportunities for women across the resources sector. Monadelphous also strengthened its relationship with the National Association of Women in Operations (NAWO) by promoting Walk and Talk networking events and supporting employee participation in the Gender Equity Men program, which gives men in operational leadership the tools, frameworks and peer support to implement change. Together, these initiatives reflect a sustained and strategic commitment to building stronger communities, supporting social equity and fostering meaningful partnerships. The Company continued to support local communities during the year, expanding its Community Grants Program from three to eight regions. More than 350 applications were received, with nearly $130,000 contributed across around 100 community grassroots organisations. In total, Monadelphous invested around $200,000 in 130 community organisations across 19 locations. Monadelphous further advanced its environmental commitments associated with its Net Zero by 2050 goal, progressing a suite of initiatives. A major focus was the expansion of onsite renewable energy generation across operational facilities. Approximately 4 0 per cent of total power consumption across the Company’s owned facilities with solar installations is now sourced from renewable energy. Monadelphous also strengthened its low emissions fleet capability through targeted investment informed by trials conducted through the Net Zero working group. The Company acquired two 250 tonne hybrid cranes and integrated two electric forklifts into its f leet, reducing fuel consumption and operational emissions. In parallel, the Company also purchased its first BESS with a supporting solar panel system, with the objective of deploying these power solutions more broadly following successful commissioning. During the year, the Company completed preparations for reporting under Australian Sustainability Reporting Standard AASB S2 Climate -related Disclosures for the year ended 30 June 2026 and embedded its greenhouse gas reporting solution to support complianc e with the new disclosure requirements. Work progressed on the development of Scope 3 greenhouse gas emissions methodology and data collation in preparation for reporting in 2027. PRODUCTIVITY AND INNOVATION Monadelphous is committed to continuous improvement and understanding industry trends and technologies which positively impact operational performance. The Company actively engages employees in creating innovative solutions that create a safer workplace, w hile delivering greater productivity and value for customers.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 3 Includes Monadelphous’s share of joint venture revenue 11 During the year, Melchor developed a one -step wall-pouring method for a customer’s urea storage facility, delivering labour and equipment cost reductions, while also enhancing safety. The team engineered a solution eliminating the requirement for a second concrete pour, reducing the working-at-height exposure, whilst also delivering significant time savings. Monadelphous’ maintenance team at a major LNG processing facility were recognised for the creation of a lifting cradle innovation. Designed to safely handle motors weighing up to 400 kilograms, the cradle replaced a higher-risk traditional method and provided a stable, adjustable and easy -to-operate solution that retrofits to existing trolleys, improving safety and reducing downtime. For an offshore energy customer, the Company developed a ventilation solution to enable multiple confined space entries that were previously prohibited due to safety constraints. This solution eliminated cross - contamination risks and enabled simultaneous work without relying on traditional controls. At an alumina refinery, the Monadelphous team identified that several pressure relief valves were no longer required due to existing protections. Their permanent removal eradicated a recurring high-risk task, removed the need for scaffolding and specialised handling, and is delivering ongoing savings for the customer, while reducing hazardous waste generation. The Company continues to actively monitor and harness emerging technologies to advance innovation, safety and productivity, and ensures that appropriate governance structures are in place to guide the safe, ethical and effective use of AI, positioning Monadelphous to benefit from AI’s potential. OPERATIONAL ACTIVITY Engineering Construction Monadelphous’ Engineering Construction division reported revenue of $1.37 billion 3 for the period, an increase of 48.5 per cent on the prior year. Demand for construction services was strong across the iron ore and energy sectors, with a greater revenue contribution from projects with integrated services. The division has secured more than $1.6 billion of new contracts since 1 July 2025, including several major multidisciplinary contracts. The Company successfully performed several packages of work for BHP during the period, including the Car Dumper 3 Renewal Project at Nelson Point in Port Hedland and Orebody 32 in Newman, both in WA. Work also commenced on an additional car dumper project at Finucane Island in Port Hedland, as well as on a major multidisciplinary construction contract associated with BHP’s Jimblebar Train Load Out Replacement Project near Newman, with the earthworks and civil services delivered by Melchor, and fabrication and procurement being performed by Inteforge. Monadelphous was also awarded a major multidisciplinary construction contract with Rio Tinto at the Brockman Syncline 1 iron ore development in WA’s Pilbara region . The integrated contract includes fabrication and supply, detailed concrete and earthworks, structural, mechanical, piping and electrical and instrumentation works. Shutdown and miscellaneous services were also delivered at Rio Tinto’s Western Range Project in Paraburdoo, along with electrical and instrumentation services at the Parker Point Stockyard Sustaining Project near Dampier, both in WA. Monadelphous continued to support Fortescue’s energy transition and commitment to decarbonising its Pilbara operations, securing several BESS and wind projects in WA. In the energy sector, modification works continued at the Woodside -operated Pluto Liquefied Natural Gas (LNG) Train 1 facility near Karratha, WA, with Monadelphous installing new piping and electrical infrastructure to the existing plant, as well as performing testing and insulation works. The Company also completed the i nstallation and modification of essential electrical power and control infrastructure for Chevron Australia’s Jansz-Io Compression Project in WA.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 12 Monadelphous completed work on a multidisciplinary construction contract at BHP’s Prominent Hill Expansion Project in South Australia, as well as at Talison Lithium’s Greenbushes site in the southwest of WA. In Queensland, the Company secured a major construction contract late in the year with CS Energy for the Brigalow Peaking Power Plant near Chinchilla, and also completed electrical and instrumentation works for McConnell Dowell Constructors and B.M.D. Constructions Joint Venture on the Fitzroy to Gladstone Pipeline. Melchor progressed structural concrete works for the Saipem Clough Joint Venture at Project Ceres, Perdaman Industries’ urea plant near Dampier, WA, with Alevro providing heavy haulage services to the project. Melchor also progressed work on the Geraldton Port Maximisation Project in WA for Mid West Ports Authority. Post year end, Melchor secured a contract with Pilbara Ports associated with the Utah Ring Road Reconstruction Project at the Utah Bulk Handling Facility in Port Hedland, WA. Work will commence immediately and is expected to be completed in the first half of 2028. Monadelphous was awarded a new five-year panel contract to provide mobile crane and lifting services across Rio Tinto’s Pilbara operations in WA. The Company continued to provide heavy lift services across Fortescue’s iron ore sites in the Pilbara, with Al evro delivering specialist haulage and lifting services to Woodside-operated facilities in Karratha. Inteforge supported Iluka’s Eneabba Rare Earths Refinery Project through the supply and fabrication of structural steelwork and pipe racks, and also secured a two-year extension to its master goods agreement with Origin Energy for the supply of modularised equipment. Kerman, the Company’s recently acquired design and construction business specialising in non -process infrastructure, experienced strong market demand for its services and was awarded two significant contracts with Rio Tinto in WA’s Pilbara region . The first was for the design and construction of non -process infrastructure at the Hope Downs 2 project. Subsequent to year end, Kerman secured a contract valued at approximately $165 million for the design and construction of non-process infrastructure facilities associated with the Brockman Syncline 1 project. The work, which includes a heavy mine equipment workshop, as well as heavy and light mine equipment washdown, tyre change and fuel storage and refuelling facilities, is expected to be completed in 2028. Zenviron experienced high levels of activity in the renewable energy sector, progressing balance -of-plant design and construction activities for EnergyAustralia’s Wooreen BESS in the Latrobe Valley, Victoria, as well as at CS Energy’s Lotus Creek Wind Farm in Central Queensland. APIP, Monadelphous’ recently acquired high-voltage electrical business, will install 33kV overhead lines at the Lotus Creek Wind Farm. Maintenance and Industrial Services Monadelphous’ Maintenance and Industrial Services division reported its fifth consecutive year of record revenue, reaching $1.61 billion, an increase of 20 per cent on the prior period, with demand particularly strong within the energy and iron ore sectors. Since the beginning of the financial year, the division secured approximately $1.1 billion in new contracts and contract extensions. Significant demand continued from energy customers including INPEX, Woodside and Shell. The Company also expanded its customer base with the award of a four-year contract with BW Offshore Australia to provide multidisciplinary maintenance services at the BW Opal Floating Production Storage and Offloading (FPSO) facility, located approximately 300 kilometres north-northwest of Darwin, Northern Territory (NT). Monadelphous delivered shutdown and other major works for INPEX. High levels of activity were experienced at the Ichthys LNG onshore processing plant in Darwin, NT, as well as at the Ichthys Explorer central processing facility and the Ichthys Venturer FPSO facility in the Browse Basin, WA.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 13 The Company continued to deliver maintenance, shutdown and brownfields project services under its long - term agreement at Woodside’s onshore and offshore gas production facilities in north -west WA. Monadelphous also progressed planning and execution work associated with the hook-up and commissioning of Woodside’s Floating Production Unit in the Scarborough Gas Field, off WA. Maintenance services were provided at Shell’s Prelude FLNG facility off the coast of WA, alongside planning and execution work for a major turnaround which commenced late in the 2026 financial year. After securing a contract with Technip Energies, the Company provided multidisciplinary services associated with the hook- up and commissioning of Shell’s Crux platform located around 160 kilometres from Shell’s Prelude FLNG facility. In Queensland, the Company was awarded a three -year contract, with two one -year extension options , to deliver multidisciplinary services at Santos’ upstream field development and production operations. Western Australia’s iron ore sector continued to experience strong demand for maintenance services, with Monadelphous delivering a large volume of work and securing significant sustaining capital and maintenance contracts with key customers Rio Tinto, BHP and Fortescue. Monadelphous was awarded two major multi -year contracts to continue providing fixed plant shutdown services and multidisciplinary sustaining capital works at Rio Tinto’s Pilbara iron ore operations. The Company was also awarded a contract for the fabricati on, supply, installation and commissioning of a new dust collector and ventilation system at Rio Tinto’s Paraburdoo mine. The Company continued to deliver maintenance services at Rio Tinto’s Tom Price mine, as well as multidisciplinary construction services at Brockman 4 for an ammonium nitrate storage facility. Monadelphous also progressed structural remediation works at Rio Tinto’s Paraburdoo, Marandoo and Western Turner Syncline sites, as well as modifications to the existing process plant for the Hope Downs 2 project. Furthermore, the Company secured a 12-month extension to its Rio Tinto marine structural integrity works master agreement, and under the agreement progressed replacement works at the Cape Lambert Wharf. Monadelphous secured a three-year contract to continue delivering maintenance services across Fortescue’s Pilbara operations and performed upgrade works on the Rolling Stock Maintenance Workshop at Fortescue’s Thomas Marshalling Yard in Port Hedland. The Company was awarded a three-year extension to its maintenance master services agreement across BHP’s Pilbara iron ore operations and was reappointed for a further two years to the Western Australia Iron Ore (WAIO) Site Engineering Panel. In Queensland, Monadelphous extended its long -standing relationship with Queensland Alumina Limited with a two-year contract for the provision of mechanical maintenance and shutdown services. The Company was also awarded a five -year extension to its contract providing maintenance services at Newmont’s gold operations in Boddington, WA, and Tanami, NT, with a 12 -month contract secured post year end for the provision of services at Glencore’s Murrin Murrin Operations located in the Goldfields region of WA. Monadelphous secured a further three -year agreement to continue providing operations and maintenance services at Synergy’s Muja Power Station in Collie, WA, and was appointed to a panel to provide maintenance services for Port Waratah Coal Services in Newcastle, New South Wales (NSW). In Papua New Guinea, Monadelphous secured further work with Santos , for the demolition and disposal of the Hegigio Pipeline Bridge, as well as two contracts associated with the APF Tie -In Project, for the construction of temporary camp facilities, along with well pad, gathering systems and brownfield facility upgrades. The Company also secured a construction contract with Harmony Gold at the Hidden Valley Gold Mine in the Morobe Province.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 4 This document may provide forward -looking statements, including forecast financial information, relating to the future financial or operational performance of Monadelphous. These statements are based on assumptions that are subject to risks, uncertainties and factors which may be outside the control of Monadelphous. Whilst due care and attention has been taken in preparing the assumptions underlying any forward -looking statements in this document, actual results may vary . 14 Other significant contract activity during the year included: • Completing decommissioning services for Petrofac on the Northern Endeavour FPSO; • Maintenance and shutdown services at BHP’s Olympic Dam mine site in Roxby Downs, SA; • Sustaining capital projects and maintenance support at Newmont’s Lihir Island operations in Papua New Guinea; • Maintenance services at Santos’ production and support facilities in the Southern Highlands region in Papua New Guinea; • Compressor station upgrade works at Jemena’s Eastern Gas Pipeline Reversal Project in Victoria and NSW; • Rail maintenance projects for Pacific National across WA, NSW and SA; • Maintenance services at BHP’s Mt Arthur Coal in the Hunter Valley, NSW; • Shutdown and maintenance services, as well as minor project works, at South32’s Worsley Alumina operations, WA; • Rope access and associated services for Dalrymple Bay Coal Terminal in Hay Point, Queensland; and • Dragline shutdowns for BHP Mitsubishi Alliance and Whitehaven Coal in Central Queensland. MARKETS AND OUTLOOK4 The long-term outlook for the resources and energy sectors remains strong. While geopolitical and trade - related uncertainties may have moderated, they continue to influence some investment decisions. Production levels for most commodities are forecast to grow, supporting the continued demand for sustaining capital works and maintenance services. The iron ore sector is expected to continue investing in both new projects and existing operations to mainta in production rates, with a high focus on productivity and cost competitiveness. The outlook for energy transition metals continues to strengthen, supported by improving battery metal prices and advancing major investment decisions. Over the medium to long -term, growth in mining and mineral processing, particularly for copper, other ba se metals and critical minerals, is expected to accelerate in response to increasing global demand, driving significant investment across the sector. The energy sector continues to present substantial opportunities, supported by multiple gas construction projects and sustained demand for maintenance services. Monadelphous remains well positioned to support customers across the full asset life cycle, including late-life operations and decommissioning activities. Increasing energy demand, together with the rapid expansion of data centres, decarbonisation initiatives, and grid stability requirements is driving long -term investment in energy generation, storage, and transmission infrastructure. Monadelphous is well positioned to capitalise on energy transition opportunities by leveraging its broad services capability and expanded high -voltage services offering, while Zenviron is well placed to secure further wind farm and battery energy storage system projects. Investment in gas generation to support baseload and peaking power requirements is also forecast to grow, presenting further opportunities for Monadelphous’ integrated capabilities. The Company’s committed pipeline remains strong, with more than $680 million in new contracts secured since the beginning of the new financial year. Following a period of significant expansion, during which revenue increased approximately 50 per cent over the past two years, FY27 is expected to focus on consolidating the business and positioning for future growth. Monadelphous is well positioned to capitalise on its broadening revenue base, robust pipeline of opportunities and positive outlook across all key markets.
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MONADELPHOUS GROUP LIMITED CHAIR’S REPORT (CONTINUED) 15 The Company remains committed to delivering quality earnings through a considered and selective approach to new work, strong and collaborative customer relationships, high standards of execution, and prudent risk management. Supported by a strong balance sheet, the Company will continue to leverage its enhanced delivery capability, including recent acquisitions, while maintaining the flexibility to pursue strategic opportunities that support long-term sustainable growth. In closing, I thank the entire Monadelphous team for their dedication and commitment, which are fundamental to our continued success. I also extend my gratitude to our customers, shareholders, and the many other stakeholders for their ongoing trust and support. Robert Velletri Chair 24 August 2026
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MONADELPHOUS GROUP LIMITED COMPANY PERFORMANCE 16 A review of the Company’s performance over the last five years is as follows: 2026 $’000 2025 $’000 2024 $’000 2023 $’000 2022 $’000 Revenue 2,796,117 2,162,571 2,015,915 1,725,691 1,810,390 Total revenue from contracts with customers including joint ventures 2,980,074 2,265,875 2,029,758 1,828,755 1,930,040 EBITDA 226,026 158,211 127,436 109,083 111,201 Profit before income tax expense 179,912 119,140 91,945 73,446 73,511 Income tax expense 52,612 35,393 29,720 21,520 21,227 Profit after income tax expense attributable to equity holders of the parent 127,300 83,721 62,203 53,543 52,219 Basic earnings per share 127.56c 85.01c 64.08c 55.85c 54.90c Interim dividends per share (fully franked) 49.00c 33.00c 25.00c 24.00c 24.00c Final dividends per share (fully franked) 59.00c 39.00c 33.00c 25.00c 25.00c Net tangible asset backing per share 528.62c 486.08c 458.99c 437.97c 427.54c Total equity and reserves attributable to equity holders of the parent 569,049 497,836 465,594 437,978 412,184 Depreciation 44,933 42,331 37,719 33,157 33,097 Debt to equity ratio 7.2% 8.4% 11.7% 8.7% 14.3% Return on equity 22.4% 16.8% 13.4% 12.2% 12.7% EBITDA margin 7.6% 7.0% 6.3% 6.0% 5.8%
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MONADELPHOUS GROUP LIMITED COMPANY PERFORMANCE (CONTINUED) 1 Represents Monadelphous’ proportionate share of the revenue from joint ventures accounted for using the equity method. 2 Represents Monadelphous’ proportionate share of the interest, depreciation, amortisation and tax of joint ventures accounted for using the equity method. 17 Revenue including joint ventures is a non -IFRS measure which does not have any standardised meaning prescribed by IFRS and therefore may not be comparable to revenue presented by other companies. This measure, which is unaudited, is important to management when used as an additional means to evaluate the Company’s performance. Reconciliation of Total Revenue from Contracts with Customers including joint ventures to Statutory Revenue from Contracts with Customers (unaudited) EBITDA is a non-IFRS earnings measure which does not have any standardised meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. This measure , which is unaudited, is important to management as an additional way to evaluate the Company’s performance. Reconciliation of profit before income tax to EBITDA (unaudited): 2026 2025 $’000 $’000 Total revenue from contracts with customers including joint ventures 2,980,074 2,265,875 Share of revenue from joint ventures 1 (193,269) (112,719) Statutory revenue from contracts with customers 2,786,805 2,153,156 2026 2025 $’000 $’000 Profit before income tax 179,912 119,140 Interest expense on loans and hire purchase finance charges 2,257 2,570 Interest expense on other lease liabilities 1,279 1,222 Interest revenue (9,312) (9,415) Depreciation of owned and hire purchase assets 36,586 34,234 Depreciation of right of use assets 8,347 8,097 Amortisation of intangibles 2,047 820 Share of interest, depreciation, amortisation and tax of joint ventures 2 4,910 1,543 EBITDA 226,026 158,211
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 18 GOVERNANCE The Board of Directors of Monadelphous Group Limited is responsible for establishing the Group’s corporate governance framework with regard to the ASX Corporate Governance Council ’s Principles and Recommendations. The Board guides and monitors the business and affairs of Monadelphous on behalf of its shareholders, by whom they are elected and to whom they are accountable. The Group has in place charters, policies and procedures which support the framework and ensure a high standard of governance is maintained. Monadelphous’ full Corporate Governance Statement, Board and Committee charters, and the Group’s governance policies, are published on its website. RISK MANAGEMENT Risk management roles and responsibilities The Board is responsible for setting the strategic direction of the Group and for creating and maintaining the environment and structures within which risk management practices can operate effectively. The Board also sets the Group’s appetite for risk taking and risk tolerance. The Audit Committee, in conjunction with the Board, assesses the effectiveness of risk management policies, procedures and internal controls in identifying business and financial risks and controlling their financial impact by considering any significant matters identified by management. The Managing Director and Chief Financial Officer have ultimate accountability to the Board for the risk management and internal control system. The Group Risk function is responsible for the risk management framework. The risk management framework describ es the processes and tools available to manage the risks which relate to the achievement of the Group’s vision and strategic objectives. It involves the identification of material risks relevant to the Group’s objectives, nominating risk appetite, assessing the risks in terms of likelihood and consequence, determining a response strategy and monitoring progress. It also provides a feedback mechanism to enable knowledge sharing. The framework is designed to identify potential events that may impact the Group and manage risks within the risk appetite endorsed by the Board to provide reasonable assurance regarding the achievement of vision and strategic objectives. The risk management framework is made up of the following elements: 1. Control Environment – The control environment sets the tone for the Group’s risk management, influencing the risk consciousness of its people and sets the basis for how risk is viewed and addressed. It is the foundation for all other components of risk management and provides discipline and structure. It includes the Group’s risk management philosophy and risk appetite, integrity and ethical values, and the environment in which it operates. 2. Risk Identification and Assessment – The identification and evaluation of internal and external factors that impact the Group’s performance and ability to meet its vision and strategic objectives. This includes the structured and disciplined oversight of all operations at both the Board and executive level and periodic environmental scans to understand current conditions in which the Group operates. 3. Risk Management and Control Activities – Risk management processes, including related systems of internal control, are formalised and maintained within the Group’s Business Management System (BMS). The BMS contains the policies and procedures designed to ensure that the Group operates within the risk appetite set by the Board. The BMS formalises the actions to be taken to ensure the effective management of operations, protection of shareholder value, compliance management and regulatory reporting. Risk management processes and controls include a range of activities as diverse as approvals, authorisations, performance reviews and the appropriate segregation of duties. The Group Process Authorities is a tool used to apply decision making and expenditure authorities as approved by the Board consistently across the Group.
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 19 4. Information and Communication – Relevant information is identified, captured and effectively communicated in a timely manner that enables people to carry out their responsibilities effectively and efficiently. Technology plays an important role in the flow of information in the Group, from its core business systems for accounting, through to its incident reporting system which provides an early warning system detailing the effectiveness with which major incidents and hazards are being managed. 5. Monitoring and Reporting – The processes to determine whether performance objectives are being met and internal controls are operating as designed. Both key performance indicators and internal controls need to be monitored regularly to assess performance. Any deficiencies detected through these monitoring activities should be reported and corrective actions taken to ensure the continued reliability of the system. Tools in place include strategic planning and analysis, the annual budget process, key performance indicator reporting, customer surveys, Board reporting, risk appetite and assessment reporting, the Group Assurance function and its associated reporting to the Audit Committee, the ongoing health, safety, environmental and quality certification process, and the Group’s productivity and innovation framework. The Group Assurance function is responsible for providing an appraisal of the adequacy of, and compliance with, the risk management and internal control system. The Group Assurance function reports to the Audit Committee and undertakes the annual audit pla n as approved by the Audit Committee. The function formally reports to the Audit Committee twice a year, or more regularly as required. On an annual basis, the Audit Committee reviews the Group’s risk management framework and makes recommendations to the Board. A review of the framework was conducted during the year ended 30 June 2026 with no material governance changes required. The Board formally reviews the material business risks and risk tolerance levels as part of the Group’s annual strategic planning process to ensure risks are effectively identified and addressed. Regular updates are provided by management on the effectiveness of the Group’s management of its material business risks. This includes an assessment of whether the Group is operating within, approaching or outside the Board’s risk tolerance levels. Economic, social and environmental sustainability risks In conducting its business, the Group takes commercial and business risks to achieve its objectives and deliver shareholder value. It is exposed to various risks in its day-to-day operation, both general and Group specific. The ability of the Group to achieve its objectives and long-term sustainable growth is impacted by the effective management of the risks to which it is exposed. The key material risks faced by the Group, and the management thereof, are outlined below, with further detail provided in the Chair’s Report. Risk Type Identified Material Risk Economic sustainability risks External market forces Contract pricing Contractual risk Operational execution Liquidity Acquisitions and joint ventures Foreign exchange Innovation and technology Cyber security and information technology (IT) business continuity Compliance with laws and regulations Social sustainability risks Employee retention, attraction and development Harm to people (safety and wellbeing) Industrial relations Environmental sustainability risks Harm to the environment Climate risk
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 20 Economic sustainability risks External market forces The Group operates in the resources, energy and infrastructure sectors. The demand for Monadelphous’ services can vary greatly as a result of changes in market conditions, including the timing and award of projects, project deferrals and cancellations, changes in political, economic and environmental conditions, the cyclical nature of commodity prices and the demand for customers’ goods and services. These markets are competitive by nature. Increased levels of competition and competitors’ particular strategic objectives may result in the Group unsuccessfully tendering for projects. In response to these risks, Monadelphous has an established markets and growth strategy ensuring a diverse offering of services and exposure across multiple markets. The limits of strategic risk the Group is willing to accept are defined within the strategy which is approved by the Board. The Group regularly reviews its market position and competitive advantage, as well as that of competitors, to ensure that it is well placed to secure opportunities as they arise . It undertakes a comprehensive opportunity identification and selection process when tendering for projects. The Group also has comprehensive crisis management and business continuity plans in place to assist with recovery from potential risk events which may significantly impact critical business processes, reputation and revenue streams. Contract pricing The Group undertakes a variety of fixed price lump sum, schedule of unit rates or cost-plus contracts, or a combination thereof. If Monadelphous underestimates the cost to complete a project, or applies an inadequate pricing strategy, there is a risk that the Group’s financial performance may be negatively impacted. Inaccurate or inadequate pricing may result in reduced margin and financial liability. To mitigate this, the Group is selective in the work that it tenders and undertakes a thorough review process for all tenders prior to submission. The Group has an established tender risk management system involving capable, experienced subject matter experts, historical data and productivity metrics and appropriate authority and approval levels, to ensure effective identification and assessment of risk at the tender stage. The Group also includes appropriate clauses in its contracts to address pricing fluctuations. Contractual risk The Group is typically contracted under customer proposed terms and conditions, which can vary widely and expose it to the risk of financial loss. The Group identifies and analyses contractual risk at the time of tender and employs suitably qualified and experienced personnel to undertake contractual negotiations in accordance with prescribed tolerance limits. Where contractual risk cannot be avoided through n egotiations, appropriate mitigating controls and treatment strategies are employed at an operational level to minimise risk exposure. Operational execution Monadelphous is involved in planning, developing, constructing and executing a range of projects and contracts with varying degrees of difficulty. If projects and contracts are not executed effectively, there is a risk of financial and/or reputational dama ge to the Group. Key risks include poor financial performance, schedule slippage, inadequate contract administration and poor execution quality. Supply chain disruptions may result in protracted lead times, delays and increased costs. Monadelphous maintains a robust project management system which effectively manages projects from inception to completion. The Group employs suitably qualified, experienced and capable employees for the work that it undertakes and ensures employees are familiar with the Group’s execution methodologies and provides them with the necessary resources to effectively and efficiently execute their responsibilities.
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 21 Relationships are maintained with key suppliers to ensure potential supply impacts are understood and can be planned around during execution. Projects and contracts are reviewed on an ongoing basis by general and executive management, as well as the Board, with independent performance reviews undertaken by divisional and Group assurance teams. Monadelphous operates management systems certified to ISO 9001 Quality Management Systems. Liquidity In the normal course of business, the Group is exposed to liquidity risks. Customers may extend payment terms beyond those contractually agreed and contractual variations or claims may take extended periods of time to resolve. In addition, certain contracts require the Group to provide bank guarantees or performance bonds. To ensure the Group maintains an effective and appropriate level of working capital, the Group regularly reviews cash flow forecasts including project cash flows, closely monitors cash collections and payment obligations and undertakes appropriate credit verification procedures on customers. The Group also regularly reviews its facility levels and compliance with banking covenants. Acquisitions and joint ventures To support its growth strategy, the Group may enter new markets and gain access to new customers via acquisitions and joint ventures. This may expose the Group to the risk of financial loss due to over valuation, underperformance of the acquired business or joint venture, or inadequate or poorly executed integration. The Group mitigates these risks by undertaking thorough due diligence and integration planning prior to executing agreements. This due diligence and planning covers, amongst other areas, valuation, financial stability and liabilities, alignment with strategic object ives, and complementary organisational values and culture. Foreign exchange The Group operates in, and sources supplies from, a number of foreign jurisdictions and as a result, is exposed to the risk of financial loss from fluctuating foreign exchange rates. The Group adopts practices in accordance with its Foreign Exchange Risk Management Policy to effectively mitigate and manage exposures to foreign currency fluctuations. This includes avoiding foreign exchange risk in contracts where possible, minimising the amount of excess foreign currency in foreign jurisdictions and hedging exposures using forward contracts. Innovation and technology The application of innovative solutions, including the use of technology in the provision of construction and maintenance services and administrative functions, can deliver improvements in productivity, quality, sustainability, safety and environmental per formance, and enable growth in new markets. The failure to identify and act decisively on threats or opportunities presented by innovation and new technologies can have a negative impact on the business in terms of reduced competitiveness, attractiveness as an employer and reputation among customers and industry more broadly. The Group drives innovation across the business by leveraging ideas from employees and industry, systematically implementing improvements and strategically monitoring the external landscape and actions of customers and competitors with respect to innovation, initiatives and technology adoption. Successfully implemented ideas are communicated across the business to drive replication and standardisation where it makes good business sense.
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 22 Cyber security and information technology (IT) business continuity The Group uses information technology in the conduct of its business and recognises the importance of protecting its systems and safeguarding sensitive data. The ever-increasing sophistication and frequency of cyber-attacks, such as phishing and ransomware and other malicious hacking activities, heightens the risk of business disruption, financial loss, legal implications and reputational damage should sensitive data be unlawfully accessed or lost. The Group may also encounter significant business disruption resulting in financial loss or reputational damage should there be a failure of critical IT systems. Monadelphous invests in systems, equipment, training and resources to mitigate the risks associated with maintaining the confidentiality, integrity and availability of its systems, IT equipment and data. Additionally, the Group ensures its systems are appropriately maintained and supported to meet agreed performance expectations and that contingency plans exist and are tested regularly to minimise downtime and data loss in the event of a system fault or failure. Compliance with laws and regulations The Group is subject to a range of legal and regulatory requirements in the jurisdictions in which it operates. Non-compliance with relevant laws and regulations may result in criminal prosecution, significant penalties or reputational damage, and can adversely impact the Group’s ability to operate. The Group manages its compliance with legal and regulatory requirements through the implementation of appropriate systems and controls, employing suitably qualified subject matter experts and engaging region- specific advisors where required. The Group also monitors changes in laws and regulations and updates its systems and controls as necessary to ensure ongoing compliance. If a non -compliance is identified, it is notified to the appropriate level of management or the Board for remediation. Social sustainability risks Employee retention, attraction and development As a services business, Monadelphous’ people are its greatest asset. The failure to retain, attract and develop highly competent people who live the Group’s values may impact its ability to achieve its strategic vision and deliver value for stakeholders, resulting in financial loss and reputational damage. The Group focuses on attracting people who desire to have a long -term career at Monadelphous, whose experience demonstrates proven capability and whose behaviours exhibit cultural alignment. Targeted sourcing strategies and resource planning ensure the Group can recruit and mobilise the right people at the right time. A strong focus is placed on developing employee skills and leadership capability to enable the achievement of the Group’s strategic objectives, whilst providing challenging and rewarding opportunities which facilitate career progression and retention. Monadelphous aims to retain all those who are aligned to its culture and contribute to its long-term success. Harm to people (safety and wellbeing) Monadelphous is subject to work health and safety regulations and there is a high degree of operational risk inherent in the industries in which it operates, along with psychosocial hazards. Failure to address these risks may result in wellbeing impacts, injury or loss of life to its peo ple and those people it manages and interacts with. The Group operates under its safety directive The Safe Way is the Only Way, with a goal of zero harm and a commitment to ensuring people are treated with dignity and respect. It has a robust, effective and mature safety management system and is committed to monitoring and improving safety performance, ensuring the provision of safe work practices and providing training and initiatives that ensure the safety and wellbeing of its employees. Monadelphous is certified to ISO 45001 Occupational Health and Safety Management Systems.
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MONADELPHOUS GROUP LIMITED GOVERNANCE AND RISK MANAGEMENT 23 Industrial relations A large proportion of Monadelphous’ workforce operates under collective industrial agreements. Monadelphous may be exposed to the risk of employee and industrial unrest associated with the management of these arrangements along with associated employee rel ated matters, which have the potential to impact operational continuity and damage the reputation of the Group. The Group mitigates this risk by ensuring processes are in place to proactively consider the appropriateness of these arrangements, effectively engage with employees, address grievances and comply with workplace laws. The Group also consults regularly with unions to understand and address any concerns in a cooperative manner. Environmental sustainability risks Harm to the environment Environmental risk is the actual or potential threat of harm to living organisms and the environment by effluents, emissions, waste and resource depletion, arising out of the Group’s activities. The Group’s reputation may be tarnished as a result of environmental damage from its activities, impacting its ability to retain and attract employees, retain and secure future work opportunities, and affecting shareholder value. Monadelphous conducts work in environmentally sensitive areas, has a responsibility to protect the local ecosystems when delivering projects, and aims to leave a lasting positive legacy at every stage in the lifecycle of its operational activities. It is committed to environmental sustainability through the diligent management of its activities, including the identification of risks to the natural and built environment and the implementation of strategies and actions to mitigate or reduce its impact. Monadelphous works together with its customers to identify specific environmental risks and determines how these can be managed, including biodiversity, climate change, flora and fauna, dust and emissions, heritage, soils, water and waste. E nsuring compliance with customer requirements and environmental legislation and regulation is also critical to maintaining its strong reputation as a contractor of choice. To support this, the Group applies an environmental management system that is certified to ISO 14001 Environmental Management Systems. Climate risk Climate risk is the risk that climate change poses to the Group’s strategy and business model. If the Group does not remain agile in adapting to the changing climate and associated market conditions, it may be exposed to financial and reputational loss. The move towards a low-carbon economy will continue to influence change in a number of industries within which Monadelphous operates. The Group’s markets and growth strategy provides the flexibility for the Group to diversify into new markets, creating opportunities and mitigating the risk of market changes. Monadelphous remains committed to the ongoing monitoring of its environmental risk profile, taking into consideration the impacts of climate change on its busi ness and strategy, and adapting to customer and market shifts.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 24 This report represents a complete set of climate-related disclosures for Monadelphous Group Limited and its subsidiaries (collectively, “the Group”) for the year ended 3 0 June 2026. The Group’s climate-related disclosures have been prepared in accordance with the Corporations Act 2001 and AASB S2 Climate-related Disclosures (AASB S2), which is the mandatory Australian Sustainability Reporting Standard (ASRS) that has been issued by the Australian Accounting Standards Board (AASB). As this is the first year in which the Group has applied AASB S2, it has applied the following transition reliefs for the first annual reporting period: • Not to disclose comparative information in this report; and • Not to disclose Scope 3 greenhouse gas (GHG) emissions. This report has been prepared for the same consolidated reporting entity and reporting period as the Group’s Consolidated Financial Statements (please refer to “Basis of consolidation” in the Notes to the Consolidated Financial Statements) and has incorporated climate-related information of the parent company and all of its subsidiaries. This report contains forward-looking statements and forward-looking climate-related information prepared in accordance with AASB S2. These statements are based on assumptions that are subject to risks, uncertainties and factors which may be outside the control of Monadelphous. Whilst due care and attention has been taken in preparing the assumptions underlying any forward -looking statements in this report, actual results, performance, outcomes or conditions may differ materially from those expressed or implied. Forward-looking information, including scenario analysis, transition and physical risk assessments, and projected emissions trajectories, is based on information available at the date of publication and reflects assumptions considered reasonable at that time. The information is current only as at the date of this report and Monadelphous does not undertake to update this report to reflect new information, except as required by law. In the assessment of climate-related risks and opportunities, the upstream and downstream value chain was considered using all reasonable and supportable information available without undue cost or effort for a comprehensive understanding of the climate -related risks and opportunities. The Group exercised judgement in assessing impacts and dependencies across the value chain that could reasonably be expected to affect its strategy, business model or financial position. These judgements were informed by assessment in line with the Task Force on Climate -related Financial Disclosures (TCFD), external views and publications on industry-relevant risks and opportunities, as well as the scenario analysis undertaken by the Group. The Group utilised data collated from across its value chain in order to disclose quantitative metrics and financial effects, where possible. In instances when quantitative metrics and amounts cannot be measured directly, the Group estimates value chain metrics using internal and external information (including industry benchmarks and other proxies) that are available. The estimation of anticipated financial effects is influenced by the assumptions and scenarios underpinning risk mo dels. The Group is committed to continuously improving the reasonability and accuracy of these assumptions and metrics. It is investing in improving data collection and reporting systems and engaging with customers and suppliers to obtain more precise data. Additionally, the Group continues to enhance its processes to better capture the potential impacts of climate change on its business, with the aim of providing more accurate estimations of anticipated financial effects in future sustainability reports. For the purposes of this report, the Group has considered information to be material for disclosure if the Group reasonably expects that primary users of this report would expect its disclosure, or where omitting, misstating or obscuring the information co uld reasonably be expected to influence decisions that primary users of the Group’s general purpose financial reports make on the basis of this report.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 25 Greenhouse gas emission calculations are subject to inherent uncertainty due to the inclusion of estimates, use of industry average emission factors and proxies in lieu of direct measurement. Every attempt has been made to reduce uncertainty in calculations undertaken using reliable data sources and endorsed emission factors. This report was authorised for issue in accordance with a resolution of the directors on 24 August 2026. 1. GOVERNANCE Monadelphous is an Australian engineering group headquartered in Perth, Western Australia, providing construction, maintenance and industrial services to the resources, energy and infrastructure sectors. The Group has two operating divisions working predominately in Australia, with overseas operations and offices in China, Mongolia, Papua New Guinea, Vietnam and the Philippines. The Engineering Construction division provides large -scale, multidisciplinary and vertically integrated project management and construction services. These include earthworks, structural concrete and inground services, fabrication, modularisation, structural, mechanical, piping, heavy lift, electrical and instrumentation, commissioning, demolition, design and construction of non -process infrastructure, high- voltage electrical construction, and balance -of-plant design and construction of renewable energy developments. The Maintenance and Industrial Services division specialises in the planning, management and execution of mechanical and electrical maintenance services, shutdowns, sustaining capital works, fixed plant maintenance services, access solutions, specialist coatings , rail maintenance and high -voltage electrical maintenance services. 1.1 Board and Committee responsibilities The Board has ultimate responsibility for overseeing the Group’s climate -related risks and opportunities. Whilst at all times the Board retains full responsibility for guiding and monitoring the Group, in discharging its stewardship it makes use of specialist Board committees, which can focus on a particular responsibility and provide informed feedback to the Board. The responsibilities of the Board and its Board Committees are reflected in the respective charters which are reviewed annually and are outlined below . Climate-related matters are considered by the Board and Committees in performing each of these responsibilities. The Board was informed about climate-related risks and opportunities 10 times during the financial year. Board The Board sets the strategic direction of the Group and is responsible for creating and maintaining the environment and structures within which risk management practices can operate effectively. The Board also sets the Group’s appetite for risk taking and risk tolerance. The Board continually monitors senior management’s performance and the implementation of strategy, contributes to and approves the Group’s performance objectives and annual budget , and oversees the Group’s performance against financial and other objectives.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 26 Climate-related activities undertaken by the Board during the year ended 30 June 2026 included: • Reviewed and approved the Group’s climate-related risks and opportunities and scenario analysis as part of the Group’s strategic planning process; • Reviewed business performance and the progress of strategic initiatives (including in addressing climate-related risks and opportunities) at monthly Board meetings; • Participated in dedicated climate change and climate reporting information sessions; • Annual review of environmental performance and emissions data and progress against the Group’s Net Zero strategy; • Reviewed and approved the corporate governance and climate-related disclosures included in the Group’s external reporting; • Considered climate-related risks and opportunities associated with acquisitions; • Reviewed and approved the methodology for Scope 3 emissions reporting. Audit Committee The Audit Committee assesses the effectiveness of the Group’s risk management policies, procedures and internal controls in identifying business and financial risks (including contemporary and emerging risks) and controlling their impact, and ensuring that the Group is operating with due regard to the risk appetite set by the Board. Climate-related activities undertaken by the Audit Committee during the year ended 30 June 2026 included: • Annual assessment of the effectiveness of the Group’s risk management framework (climate risk is managed within the Group’s risk management framework); • Reviewed the bi-annual assessment of the Group’s performance against the risk appetite set by the Board (climate risk is considered in this assessment); • Formally reviewed the progress of strategic initiatives in addressing climate -related risks and opportunities twice during the year; • Reviewed and recommended to the Board for approval the Group’s corporate governance and climate-related disclosures included in its external reporting. Remuneration Committee The Remuneration Committee assists the Board by ensuring remuneration policies are aligned with the Group’s purpose, values, strategic objectives and risk appetite. It oversees the measures set and the achievement of outcomes against the measures as they pertain to executive remuneration, which includes climate-related strategic initiatives. Climate-related activities undertaken by the Remuneration Committee during the year ended 30 June 2026 included: • Reviewed and agreed the key performance areas to be applied to the Combined Reward Plan for the year ended 30 June 2026; • Reviewed the progress of strategic initiatives (including climate-related initiatives) throughout the year considered in determining awards under the Combined Reward Plan; • Reviewed the disclosure pertaining to the Group’s remuneration policies and practices within the Remuneration Report. Nomination Committee The Nomination Committee regularly reviews (at least annually) the qualifications, skills, competencies, experience, independence and diversity represented on the Board (in conjunction with the board skills matrix – refer to section 1.2), including in relation to knowledge and familiarity with the Group and its operating environment, to ensure it collectively has the skills to understand and deal with existing and emerging issues, to discharge its duties effectively and efficiently, and to add value. The Nomination Committee also assists the Board with r eviewing and making recommendations in relation to Board succession planning.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 27 During the year ended 30 June 2026, the Nomination Committee: • Reviewed the composition of the Board and approved the Group’s Board Skills Matrix and confirmed that the Board and its Committees possess the required skills and competencies to assist the Group in managing risk and achieving its objectives, including tho se pertaining to climate - related risks and opportunities (refer to section 1.2 for further details). 1.2 Climate-related skills and experience The skills and experience required of the Board and its Committees is detailed in the Monadelphous Board Skills Matrix. The objective of the skills matrix is to align the skills and experience on the Board with the Group’s strategic objectives. As noted above, the Nomination Committee assists the Board with the regular review of its skills matrix (at least annually), taking into consideration the qualifications, skills, competencies, experience, independence and diversity represented on the Board and its Committe es, to ensure that it possesses the required skills to achieve its strategic objectives and address existing and emerging business and governance issues. Experience in environmental, including climate, risk and opportunity management, environmental responsibility and reporting frameworks, is a required area of skill and experience outlined in the skills matrix. Each director undertakes a self -assessment of their skills and experience against these requirements , applying a rating of strong, moderate or limited experience. Where gaps are identified, the Nomination Committee is responsible for identifying whether training or development is required or recommending changes to the Board in relation to its structure, size and operation. The Board has significant experience in the oversight of strategy in responding to risks and opportunities. Many of the skills outlined in the matrix are critical for the oversight of strategies to respond to climate - related risks and opportunities. The Board considers that collectively it possesses the skills, commitment, knowledge and experience of the Group and the industries in which it operates, to enable it to effectively understand and deal with current and emerging issues including climate-related risks and opportunities, to discharge its duties effectively and efficiently, and to add value. During the year, the Board and executive management (including the Managing Director and Chief Financial Officer) received a briefing from an external climate expert covering climate science fundamentals, climate-risks and opportunities, climate governance and director duties, and received regular updates from the Group’s auditors in the lead up to mandatory climate reporting in Australia. The Board Skills Matrix is available within the Group’s Corporate Governance Statement under Structure of the Board, Board Skills and Experience. The Corporate Governance Statement is located in the Corporate Governance section of the Group’s website at www.monadelphous.com.au/about-us/corporate-governance/. Director qualifications, experience and special responsibilities are detailed in the Directors section of the Directors’ Report.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 28 1.3 Management responsibilities In accordance with the Board Charter, management is responsible for implementing the strategic objectives of the Group, instilling and reinforcing Group values whilst operating within the board -approved risk appetite, designing and implementing the Group’s risk management framework, and providing accurate, timely and clear information on the Group’s operations and performance to enable the Board to perform its responsibilities. Climate-related matters are considered throughout these processes. The Board continually monitors senior management’s performance and the implementation of strategy and oversees the Group’s performance against financial and other objectives. The Managing Director is supported by executive and other management in the performance of these duties in relation to climate-related matters, as outlined below. Managing Director – The Managing Director is responsible for climate-related matters at the highest level and ensuring climate -related matters are embedded into the Group’s values, long -term strategy , risk management framework, processes and procedures, as appropriate. Chief Financial Officer – The Chief Financial Officer is responsible for incorporating climate -related matters into financial practices and financial reporting including climate-related disclosures. The Chief Financial Officer is also responsible for identifying, assessing and managing risk across the Group, and for the integration of climate risk into the overall risk management framework. The Finance and Group Risk functions report to the Chief Financial Officer and support the Chief Financial Officer in executing these responsibilities. General Manager Growth and Strategy – The General Manager Growth and Strategy is responsible for ensuring climate -related risks and opportunities are appropriately incorporated and considered in the Group’s strategy and aiding the business (operational and corporate teams) in the development of strategic initiatives, monitoring market trends and shifts and identifying strategic opportunities through business acquisition, partnership or joint venture. General Manager Human Resources – The Group Communication and Engagement function reports to the General Manager Human Resources and is responsible for the communication with and engagement of internal and external stakeholders in matters relating to diversity, community investment and environmental initiatives and programs at Monadelphous. Executive General Managers – The Executive General Managers of the Engineering Construction and Maintenance and Industrial Services divisions are responsible for ensuring alignment of divisional strategies with Group strategy with appropriate consideration of climate-related risks and opportunities, and the effective development and execution of divisional strategic initiatives. Group Manager Health, Safety and Environment (HSE) – The Group Manager HSE is the chief advisor to the Managing Director on HSE matters and is responsible for the management of the Group HSE function. Responsibilities include facilitating the development o f HSE strategy, overseeing the HSE governance framework and monitoring and reporting HSE performance, including greenhouse gas emissions. Executive HSE Committee – The Executive HSE Committee is responsible for providing leadership, governance and direction on the Group’s management of health, safety and the environment, to ensure the safety and wellbeing of its people and to minimise the impact of its operations on the environment. This includes endorsing and monitoring the implementation of the environmental strategy which includes the Group’s goal of Net Zero emissions by 2050 and its Energy and Emissions Reduction Roadmap, setting objectives and targets to continually drive HSE performance towards zero harm and monitoring the progress of strategic initiatives. The Executive HSE Committee is chaired by the Managing Director and its members include the Group Manager HSE and executive management.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 29 Environmental Strategy Steering Committee – The Environmental Strategy Steering Committee is responsible for providing direction and governance on the execution of the Group’s environmental strategic plan and decarbonisation journey. The Committee comprises key stakeholders representing areas of the business critical to the delivery of the strategy, external stakeholder facing business areas and environmental subject matter experts responsible for supporting delivery of the strategy. The Committee is chaired by the Group Manager HSE and comprises representatives from the Group’s operating divisions, HSE, Risk, Business Services and Communications and Engagement teams. Net Zero Working Groups – A number of working groups report to the Environmental Strategy Steering Committee and are responsible for the implementation of initiatives in line with the Group’s environmental strategy. In addition to working groups in the Engineering Construction and Maintenance and Industrial Services divisions, focused working groups are charged with transitioning the Group’s facilities and operations to renewable power, greening the Group’s fleet of plant and equipment and reducing carbon emissions through the optimisation of operational activities. The organisation chart below illustrates the Group’s climate governance structure and highlights the relationship between its Board, executive management and functional teams. Monadelphous Climate Governance Structure
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 30 Management training and updates Executive and general management have received formal climate training and regular updates on topics such as climate-related risks and opportunities, scenario analysis, reporting and greenhouse gas emissions. External experts are engaged as required, including to update the business on climate-related matters and in the development of climate-related methodologies or procedures. 1.4 How climate-related risks and opportunities are monitored, managed and overseen On an annual basis, Monadelphous undertakes an assessment of its climate-related risks and opportunities (refer to Risk Management section 3 below). The Board reviews the climate risk and opportunity assessment as part of the Group’s annual strategic planning process and considers the impact of climate -related risks and opportunities on the Group’s operations and strategy. The Board provides strategic guidance to management to aid in the development of the Group’s strategy for future years, including direction around target markets (with specific guidance for energy transition markets) or markets to divest from. Applying the Board’s guidance, it is the responsibility of management to develop the strategy for approval by the Board, including the identification of key strategic initiatives required to achieve the Group’s strategic objectives. Strategic initiatives to address climate -related risks and opportunities are allocated to the appropriate management personnel depending on the nature of the initiative. The progress of initiatives is reported to the Board via monthly Board reporting, with specific strategic and risk management updates provided to the Board and Audit Committee on a quarterly basis. In accordance with its charter, the Audit Committee reviews the Group’s risk management framework and risk appetite (of which climate risk forms a part) annually to ensure the effective integration of risk management in the Group’s day-to-day decision making. The Board and Audit Committee received regular updates by management and the Group’s external auditors on the Australian climate reporting requirements . Management also provided status updates on actions undertaken by the Group to enhance existing processes. The Group continues to improve and evolve its processes to ensure the consideration of climate and environmental risk in strategic and day-to-day decision making. The Board oversees the Group’s environmental strategy and the achievement of its goal of Net Zero emissions by 2050. Monadelphous’ Emissions and Energy Reduction Roadmap (Roadmap) outlines a series of interim targets towards achieving this goal . Targets are reviewed annually by the Executive HSE Committee and the Board. Refer to sections 4.4 and 4.4.1 for further detail. The Environmental Strategy Steering Committee is charged with overseeing the delivery of actions in line with the Roadmap . These initiatives are being actioned by Net Zero working groups from across the business focused on transitioning the Group’s facilities and operations to renewable energy sources, greening the Group’s fleet of plant and equipment and reducing carbon emissions through optimisation of operational activities. The progress of these initiatives is reported to the Board on a quarterly basis. An annual HSE management review is also presented to the Board which includes detailed environmental performance and emissions data associated with the Group’s Net Zero strategy. A scenario analysis is performed annually and presented to the Board along with the climate risk and opportunity assessment during the strategic planning process to aid in the development of strategic guidance to management. The climate risk and opportunity assessment incorporates the consideration of trade-offs between climate- related risks and opportunities and future financial performance. For example, market related transition risks associated with forecast reductions in the demand for fossil fuels are offset by increased investment in energy transition sectors, presenting an opportunity for the Group.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 31 The Group considers its markets and growth strategy related to the energy transition when considering significant investment or acquisition opportunities. Climate considerations are also incorporated into the Group’s acquisition target due diligence and integration process, considering the location of offices or workshop facilities (physical risk), exposure to markets potentially impacted by the energy transition and the extent of the acquisition target’s emissions (impacting the Group’s reporting and Net Zero emissions goal) where available or material. The Board is the approving authority for all acquisitions and significant investments, in accordance with the Group’s Process Authorities. 1.5 Controls and procedures used by management to support oversight of climate matters Management’s oversight of the Group’s climate-related risks and opportunities is supported by the use of controls and procedures relating to the identification of climate -related risks and opportunities and the monitoring of performance in managing those risks. These controls form part of t he Group’s risk management processes and are integrated throughout various business functions. Examples include monitoring market movements and customer activities to capitalise on energy transition opportunities, the inclusion of climate considerations in contractual terms and conditions, the insurance renewal process and future location planning and lease or buy decisions, as well as in processes outlined in various sections of this report including section 1.4 relating to the identification, monitoring and management of climate-related risks and opportunities. The Group continues to improve and evolve its processes to ensure the consideration of climate and environmental risk in all applicable areas of the business. Executive management plays a key role in implementing and monitoring the effectiveness of governance processes, controls and procedures, overseeing all key activities conducted in the business including climate risk and opportunity assessment, setting climate -related targets and strategies and tracking progress of initiatives against strategies. Management has the day -to-day responsibility for the implementation of governance frameworks and controls to support compliance and stakeholder communications. 1.6 Remuneration systems The Board is responsible for satisfying itself that the Group’s remuneration policies are aligned with the Group’s purpose, values, strategic objectives and risk appetite. The Board has an established Remuneration Committee which is responsible for making recommendations to the Board on Group policy and strategy in relation to appropriate remuneration arrangements for executives and employees. The Group seeks to retain a high -quality Board and executive team by remunerating directors and key executives fairly and appropriately with reference to the relevant employment market. To assist in achieving this objective, the Remuneration Committee links the nature and amount of executive directors’ and officers’ remuneration to the Group’s financial and operational performance. The Board exercises its discretion in relation to the issuing of awards and incentives under the Group’s short and long-term incentive plans (Combined Reward Plan and Long-Term Senior Leadership Performance Reward Plan), having regard to the overall performance of Monadelphous, the performance of the individual and the prevailing employment market. Strategic progress is one of the ‘other key performance areas’ considered alongside earnings performance in determining awards under the Group’s short-term incentive Combined Reward Plan. This is outlined in section 5.3 of the Remuneration Report . The progress of climate-related strategic initiatives is considered alongside other strategic initiatives during this process, therefore it is not possible to quantify the percentage of executive management remuneration recognised in the current period that is linked specifically to climate-related considerations. The strategic progress key performance area is weighted evenly with the other key performance areas (i.e. 20 per cent weighting). The progress and effective delivery of climate-related strategic initiatives is also considered when assessing an executive’s performance and determining the extent of fixed remuneration increases.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 32 The Group does not currently use climate -related metrics to determine the vesting of long -term incentive plans (Long-Term Senior Leadership Performance Reward Plan), which is based on the achievement of an earnings per share growth hurdle and continued employment. However, the overall progress against strategic initiatives is a consideration when determining the award thereof. As Monadelphous continues to progress the initiatives associated with its goal of Net Zero by 2050, the Group will consider the appropriateness of incorporating other climate -related metrics into executive remuneration arrangements. 2. STRATEGY 2.1 Business strategy Monadelphous recognises that climate change and the energy transition are driving significant investment across a range of activities and industry sectors . Additionally, the Group has a goal of minimising the environmental impact of its operations and working towards Net Zero emissions by 2050 through innovation and stakeholder collaboration, supporting its customers’ commitments to decarbonisation, and pursing opportunities to support a positive legacy. Monadelphous is well placed to contribute to and capitalise on these opportunities. Through its annual climate risk and opportunity assessment, the Group considers the climate -related risks and opportunities expected to affect its prospects and assesses the potential effects on the business. The following time horizons are considered in the assessment: Short-term – 5 years to 2031 Medium-term – 15 years to 2041 Long-term – 25 years to 2051 These time horizons were selected to align with the horizons applied to the Group’s strategic planning process. The short-term time horizon is linked to the Group’s five-year growth plan, with the medium and long-term time horizons considering the long term growth prospects of the sectors attractive to the Group, the anticipated progression of the Group’s climate -related strategic initiatives in line with its goal of Net Zero emissions by 2050 and the anticipated long-term impacts of climate change. For the purposes of strategic planning, the Group has used the Intergovernmental Panel on Climate Change Sixth Assessment Report (IPCC) Shared Socioeconomic Pathways (SSP) ‘middle of the road’ scenario (SSP2-4.5), as being the most likely climate change scenario based on current global policies and economic trends and it implies a global average temperature increase of approximately 2.7°C by 2100. This scenario describes a world that follows a path in which social, economic and technological trends do not shift markedly from historical patterns. Development and income growth proceeds unevenly, with some countries making relatively good progress while others fall short of general expectations. Global and national institutions work toward but make slow progress in achieving sustainable development goals. Environmental ecosystems experience degradation, although there are some improvements, and overall the intensity of resource and energy use declines. Global population growth is moderate and levels off in the second half of the century. Income inequality persists or improves slowly and challenges to reducing vulnerability to societal and environmental changes remain. To aid the strategic planning process, scenario analysis is also performed on the Group’s climate -related risks and opportunities under two alternate climate change scenarios to test the resilience of the Group ’s strategy and identify further action that may be required should such scenarios become more likely. Refer to section 2.5 for further details.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 33 2.2 Climate-related risks and opportunities and their impact on the business The transition towards a Net Zero emissions economy is and will continue to influence Monadelphous’ business. The Group remains committed to the ongoing monitoring of its environmental risk profile, taking into consideration the impacts of climate change on its business and strategy, maintaining an ability to adapt to customer and market shifts, and developing innovative solutions to reduce emission and energy consumption within its operations and those of its customers. Monadelphous is exposed to both transition and physical climate risks, but climate change also presents a significant number of opportunities for the Group through ongoing growth in existing markets, as well as through new and emerging markets related to the energy transition. At its core, Monadelphous is primarily a people business, providing expertise, labour and equipment to build, maintain and improve its customers’ operations in the resources, energy and infrastructure sectors. The Group uses a centralised pool of engineering resources and shared services in its delivery model. The services provided allow for the effective migration of employees and equipment between operating divisions, customers and markets, with the flexibility to pivot as cus tomer strategies adapt to changes in commodity markets or as markets evolve. This has always been the case and will continue to serve the Group well in the move towards a decarbonised economy. An overview of the Group’s climate risk and opportunity assessment is presented below, including the current and anticipated effects on its strategy and business model, the approach taken to mitigate or manage the impacts, and the current and anticipated financial effects over the short, medium and long-term. Risks and opportunities are predominantly concentrated around the anticipated changing revenue streams over time as industry shifts from the extraction and processing of fossil fuels to renewable energy sources, along with the physical effects of climate change on the areas of the business operating in extreme or harsh weather environments. Note, opportunities relating to Zenviron, the Group’s renewable energy joint venture, have been included in the table below as Zenviron forms part of the Group’s value chain but is not part of the consolidated reporting entity. In identifying climate-related risks and opportunities that could reasonably be expected to affect the Group, Monadelphous has used all reasonable and supportable information that is available to it at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future conditions. There is a high degree of uncertainty in the level of and time horizons for action the world will take to reduce greenhouse gas emissions. This affects predictions of warming levels, timing and climate events. There is also an almost infinite number of pathways for reducing greenhouse gas emissions as geographies around the world are unlikely to act to the same extent and in similar timeframes, whilst industry sectors will also take different trajectories to Net Zero. The Group has utilised publicly available information to aid in its climate risk and opportunity assessment with sources including but not limited to the latest Intergovernmental Panel on Climate Change Sixth Assessment Report (IPCC), Australia’s National Climate Risk Assessment 2025, Australian Climate Council’s Climate Risk Map, Oxford Economics Australia forecasts (Mining in Australia Report May 2026 and Engineering Construction in Australia Report August 2026), customer and peer reporting, and other industry and market materials, along with input from internal stakeholders.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 34 Risk (Risk Type), Time Horizon and Risk Status Risk Description, Current and Anticipated Business Impact and Concentration Risk Mitigation and Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Changing customer behaviour (Transition Risk – Market) Time Horizon – Coal Sector – Short to medium Time Horizon – Oil and Gas Sector – Long and beyond Risk Status – Increasing Risk Description The global shift towards a low carbon economy is expected to reduce the demand for fossil fuels. Current and Anticipated Business Impact and Concentration As Monadelphous provides services to customers producing fossil fuels, with coal and oil and gas sectors the most likely to be affected by the energy transition, the Group will be susceptible to reduced demand and revenue as customers transition towards alternate low-emission products (based on global demand shifts). Reduced demand and associated revenue are expected for both new construction projects, as well as ongoing maintenance opportunities in coal and oil and gas. While the Group continues to pursue available opportunities in the coal and oil and gas sectors, it continues to monitor industry and customer forecasts for shifting demand away from fossil fuels, working closely with customers. The Group will adjust its strategy accordingly to transition away from these sectors when the opportunities become limited or no longer deliver quality sustainable earnings. Monadelphous’ current markets and growth strategy identifies the key areas of opportunity which it plans to pursue in energy transition sectors. The Group is already actively involved in delivering work across critical minerals, renewable energy generation and storage, and the electrification of customers’ operations, and its acquisition of Australian Power Industry Partners (APIP) during the year (refer to Note 21 in the Notes to the Consolidated Financial Statements for further information on the acquisition) expands its capability and supports its positioning in the electrical infrastructure transmission and distribution sector. The Group will continue to pursue opportunities to capitalise on the growth in the energy transition sector. The core capabilities of the Group’s resources and its assets used in the coal and oil and gas sectors are largely transferrable to energy transition sectors. The Group considers its climate risk and opportunity assessment and climate change scenario analysis in its strategic planning process, to identify further potential impacts on its business resilience and will implement adjustments to its strategy and business model as required. No material impact in 2026. No. In relation to the coal sector, Oxford Economics forecast a reduction in new fixed asset construction by an average of 10 per cent per annum in the short-term (to 2032). A 64 per cent reduction is forecast for the five-year period from 2035 to 2039 compared to the period 2025 to 2029. Monadelphous assumes this reduction will continue in the long- term. This reduction is not expected to materially impact Monadelphous due to limited coal construction revenue currently, other than a reduction in future prospects in coal construction. Oxford Economics forecast an average of 2 per cent reduction in coal maintenance services revenue per annum in the medium-term (to 2040 when the forecast ends), in other words a 27 per cent reduction compared to current levels. Maintenance activities in the coal sector currently contribute approximately 5 per cent to Group revenue. Monadelphous assumes further reductions are expected in the long-term. In relation to the oil and gas sector, the impact from anticipated changes is expected to be more significant due to the Group’s current exposure to the sector (37 per cent of Group revenue), however the timing of the impact is forecast to be beyond the time horizons in this climate risk and opportunity assessment. Oxford Economics forecast oil and gas sector construction and maintenance levels to remain at 2028 levels or higher out to 2040. In the long-term, Monadelphous assumes continued demand on a similar basis, which is supported by key customer forecasts which indicate ongoing production well beyond the time horizons applied in this assessment, however it is anticipated there will be industry contraction at some stage in the future. In relation to the above forecasts, Monadelphous assumes revenue from contracts with customers will contract or grow in line with Oxford Economics forecasts.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 35 Risk (Risk Type), Time Horizon and Risk Status Risk Description, Current and Anticipated Business Impact and Concentration Risk Mitigation and Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Government climate policy and regulatory changes (Transition Risk – Policy and Legal) Time Horizon – Medium to long Risk Status – Increasing Risk Description There is a risk that governments in the jurisdictions in which the Group operates may implement climate or emissions related policies or requirements. This could be in the form of carbon pricing, increased reporting requirements or other regulations. Current and Anticipated Business Impact and Concentration The Group may incur increased operating costs associated with offsetting carbon emissions. There is also a risk of increased operating costs associated with additional climate or emissions related reporting to governments, customers and shareholders. The Group monitors proposed legislative and reporting changes in the jurisdictions in which it operates, enabling early action to address requirements. It also maintains strong relationships with stakeholders, including customers, to ensure a good understanding of current and future requirements to build these into its internal systems. The Group continues to progress actions under its environmental strategy to reduce its emissions in line with its goal of Net Zero emissions by 2050. Emissions accounting software has been implemented to enable better tracking. Ongoing monitoring of carbon offsetting programs will continue to inform the Group of the potential cost of offsetting future carbon emissions. No material impact in 2026. No. The Group is not aware of any proposed legislative or reporting changes at the time of reporting and is therefore unable to provide quantification of any anticipated financial effects over the short, medium or long-term. However, by way of example, should there be additional reporting imposed, the Group may need to employ additional resources or alter internal systems. It is estimated that additional full-time resources may be required, along with external expert advice or support. It is assumed that this cost would not be material. The Group has recently implemented the Workiva Carbon greenhouse gas reporting system which would likely assist with any increased reporting requirements. Using the current cost of carbon in Australia per the Carbon Neutral offset program of around $40 per tonne, the cost of offsetting the Group’s Scope 1 and 2 emissions for the current year would equate to an additional cost of approximately $310,000. If governments were to implement a carbon price system in the future, based on the Group’s current Scope 1 and 2 absolute emissions and its target reduction of 20 to 40 per cent by 2030, the cost in the short term (by 2030 for this example) would be approximately $340,000 to $460,000 (assuming a carbon price of $70 per tonne). This assumes the Group has not implemented any further interim targets by 2030 which affects the delta of emissions to be offset. Again, assuming ongoing emission reductions in line with the Group’s Net Zero by 2050 goal and applying an assumption that there will be a delta of hard to abate Scope 1 emissions requiring carbon offsetting of approximately 20 per cent, the cost in the long-term would be approximately $140,000. This assumes an increase in the cost of carbon to $120 per tonne. These costs would likely sit within administrative expenses and cost of services rendered and also impact cash flow from operations.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 36 Risk (Risk Type), Time Horizon and Risk Status Risk Description, Current and Anticipated Business Impact and Concentration Risk Mitigation and Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Extreme weather events (Physical Risk – Acute) Time Horizon – Short to long Risk Status – Increasing Risk Description Climate change brings an increased frequency and severity of extreme weather events such as cyclones, flood and bushfires. Current and Anticipated Business Impact and Concentration The Group operates in locations within Australia which have historically experienced extreme weather, including Western Australia’s north-west which experiences frequent cyclone activity and intense heat, and Australia’s east coast which is subject to flooding. Over the short to long-term this is expected to increase in frequency and severity. The Group has identified a number of its offices and facilities situated in locations with an elevated risk of flooding. The Group’s leased head office in Victoria Park, Western Australia, and owned workshops in Mount Thorley, New South Wales, and Chinchilla, Queensland, have a low to medium risk of riverine flooding. One leased facility located in Kooragang, New South Wales, is considered to have a medium risk of riverine flooding. The Group’s major leased office located in Milton (Brisbane), Queensland, has a very high risk of surface and riverine flooding. Adverse weather events have the potential to impact Group facilities, operations and projects, resulting in increased costs, disruption to operations or reduced operational activity and productivity, and an inability to deliver on contractual requirements. Disruptions may also occur as a result of damage to public infrastructure or energy networks, resulting in access or supply chain implications. Additionally, extreme weather events have the potential to impact the health and safety of the Group’s workforce. The Group analyses historical and recent inclement weather patterns and ensures implementation of appropriate mitigation strategies and provisions within contracts with customers for the impacts of adverse weather. This information is also considered in crisis management, business continuity planning and disaster recovery strategies. The Group also undertakes regular crisis management training across the business to prepare for potential adverse weather events. A climate risk assessment is undertaken for leased and owned facilities and climate risk is considered in future location planning and lease or buy decisions, as well as in the renewal of the Group’s insurance policies. No material impact in 2026. No. Flood risk could reduce future revenue and cash flows generated at Monadelphous’ workshops and facilities located in flood risk areas. The financial effects are expected to be a consequence of: • Business interruption due to facilities and workshops being inaccessible or non-operational for a period of time during a flood and clean up phase. • Damage to buildings, inventory, plant and equipment. The maximum exposure in any one location would be approximately $5 million. • Increased operating costs associated with site clean-up and maintenance. There is a high degree of measurement uncertainty associated with the short to medium-term effects of extreme weather event risk due to the difficulties in estimating the frequency and severity of such events, as well as the extent of the impact being dependent on the level of work undertaken at any point in time. However, the financial effects of business interruptions would likely be limited due to the ability for work to be transferred or relocated to another Monadelphous facility or workshop in accordance with the Group’s emergency management plans and incident response strategies. Additional financial effects in the medium-term are expected to arise from increased insurance costs as the insurance market deals with an increased frequency and severity of losses, break-lease or relocation costs associated with leased facilities or rehabilitation costs. The long-term effects are expected to be similar to that of the short to medium-term, albeit reduced to the extent of any relocations based on future decision making.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 37 Risk (Risk Type), Time Horizon and Risk Status Risk Description, Current and Anticipated Business Impact and Concentration Risk Mitigation and Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Shifts in weather patterns (Physical Risk – Chronic) Time Horizon – Short to long Risk Status – Increasing Risk Description Long-term shifts in the climate pattern include rising average temperatures, rising sea levels and chronic heat waves. Current and Anticipated Business Impact and Concentration Shifts in weather patterns, in particular extreme heat and prolonged heat waves, have the potential to impact the health and safety of employees, resulting in disruption to operations, reduced operational activity and productivity. The performance of plant and equipment may also be impacted, resulting in an increase in maintenance costs and reduced operational performance. These factors may result in the inability to deliver on contractual requirements. The Group operates in geographical locations that currently experience high temperatures and heatwaves which are expected to increase in the long-term. The Group is proactive in the management of its workforce operating in high temperatures and humid conditions, providing regular breaks, hydration and shaded work areas where possible. The Group also ensures equipment is regularly inspected and maintained. Productivity factors will be adjusted within contractual terms and conditions where required. The Group continues to progress initiatives to transition owned facilities to renewable power, as well as trialling alternative energy and storage solutions for plant and equipment. No material impact in 2026. No. It is expected that increased temperatures and shifts in other long- term weather patterns will have an adverse effect on the productivity of the Group’s workforce in the long- term, however it is unable to quantify the financial effects due to uncertainty over the extent of shifts in weather patterns and timing. The Group expects these effects will be industry wide and will endeavour to address through the adjustment of contractual terms and conditions to capture changes in productivity norms, thereby reducing the impact to the Group’s profitability. Opportunity (Opportunity Type), Time Horizon and Opportunity Status Opportunity Description, Current and Anticipated Business Impact and Concentration Opportunity Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Renewable energy generation and storage market presence (Energy Sources, Products and Services) Time Horizon – Short to long Opportunity Status – Increasing Increasing energy demand, together with the rapid expansion of data centres, decarbonisation initiatives and grid stability requirements is driving long- term investment in energy generation, storage and transmission infrastructure. Monadelphous is well positioned to capitalise on energy transition opportunities by leveraging its broad services capability and expanded high- voltage services offering, while Zenviron, its renewable energy joint venture, is well placed to secure further wind farm and battery energy storage, and solar projects. Opportunities are also expected in high- voltage electrical maintenance, as well as long-term maintenance opportunities following the construction of renewable energy assets. Investment in gas generation to support peaking power requirements is also forecast to grow, presenting further opportunities for Monadelphous’ integrated capabilities. The growth in renewable energy and the increasing pipeline of opportunities is expected to result in an increase in revenue from contracts with customers, revenue from contracts with customers including joint ventures and profits over the short to long-term. Oxford Economics forecast the broader electricity generation, transmission and distribution market is valued at an average of approximately $35 billion per annum out to 2040. Monadelphous will leverage capability across the business to support growth in the renewable energy sector. The Group will target construction and maintenance opportunities, including asset renewal, operations and maintenance. Zenviron has built a strong presence and reputation in the renewable energy sector for the delivery of balance-of- plant works for wind farms and more recently, battery energy storage systems. Zenviron will continue to enhance its position through securing further wind, battery storage and solar projects. Sectors are monitored by operational teams and strong customer relationships maintained to ensure the Group effectively targets the right opportunities. The Group will ensure sufficient resources and capacity to effectively capitalise on these opportunities. Around 7 per cent of the Group’s revenue was derived from customers in the renewable energy sector in 2026, an increase of 3 per cent compared to the prior year. No material adjustmen t expected. Potential for increased revenue associated with growth in renewable energy sector. Oxford Economics shows electricity infrastructure capital expenditure has grown on average 20 per cent per annum over the last 5 years. Oxford Economics forecast growth in this market to continue to 2030, before contracting in the early stages of the medium-term (to 2033), followed by an average industry spend of around $28 billion per annum out to 2040). Maintenance opportunities will arise following the substantial capital investment in the short to medium- term. Monadelphous and Zenviron are expected to benefit from this growth, with an increasing proportion of the Group’s revenue from contracts with customers including joint ventures expected to be attributable to the renewable energy sector. The Group’s investment in Zenviron is accounted for using the equity method, so the expected increase in investment associated with growth in revenue will result in an increase in the share of profit from joint ventures. In relation to the above forecasts, Monadelphous assumes revenue from contracts with customers will grow in line with Oxford Economics forecasts.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 38 Opportunity (Opportunity Type), Time Horizon and Opportunity Status Opportunity Description, Current and Anticipated Business Impact and Concentration Opportunity Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Capitalise on growth in existing markets (Markets) Time Horizon – Short to long Opportunity Status – Increasing Long-term demand in existing markets of resources and energy remains strong, providing a significant pipeline of prospects across a broad range of commodities, with substantial capital investment required to meet projected demand. Over the medium to long-term, growth in mining and mineral processing, particularly for energy transition metals, is expected to accelerate in response to increasing global demand, driving significant investment across the sector. Customer decarbonisation activities to support the electrification of operations and energy storage will continue to drive a growing pipeline of opportunities. Opportunities also exist in the decommissioning of existing assets (for example in the fossil fuel industries of coal, and oil and gas). It is expected that the energy transition metals sector and the delivery of services to support customers with electrification will represent an increasing proportion of the Group’s revenue from contracts with customers and profits over the short to long-term. The Group continuously monitors customer and market forecasts and adjusts its strategy as required. The Group’s strong reputation as a market leader in its core markets means it is well placed to capitalise on opportunities with existing and new customers. The Group will continue to target opportunities for the delivery of quality earnings. The Group will position itself for late life asset support in line with expected future reduced demand for fossil fuels (for example, decommissioning and mine rehabilitation works). The Group will ensure capacity to effectively capitalise on these opportunities. Around 6 per cent of the Group’s revenue was derived from energy transition metals. No material adjustmen t expected. Potential for increased revenue associated with growth in existing markets. Oxford Economics forecast an average annual increase of approximately 3 per cent in capital expenditure related to energy transition metals in the short term (2031). In the medium to long-term, Monadelphous assumes similar growth. Growth in maintenance services for energy transition metals over the short to long-term is expected to be around 2 per cent per annum based on Oxford Economics forecasts. Decommissioning opportunities in the coal sector are expected to arise in the medium to long-term, with opportunities in oil and gas expected beyond the time horizon considered in this assessment. Longer term opportunities will also exist in the decommissioning of mines and removal of infrastructure. Revenue related to supporting customers in the electrification of their operations is expected to represent a larger proportion of the Group’s revenue from contracts with customers, however demand will be dependent on the timing and pace of customer decarbonisation objectives and plans. In relation to the above forecasts, Monadelphous assumes revenue from contracts with customers will grow in line with Oxford Economics forecasts. Leverage existing capabilities to access new markets (Markets) Time Horizon – Short to medium Opportunity Status – Increasing The Group’s markets and growth strategy considers the entry into the electrical infrastructure transmission and distribution market, with opportunities in both construction and maintenance. Oxford Economics forecast the broader electricity generation, transmission and distribution market is valued at an average of approximately $35 billion per annum out to 2040, with approximately $10 billion per annum (based on five- year forecast) attributable to energy transmission and distribution projects. Opportunities also exist in asset renewal and maintenance. The Group conducts market analysis to understand and assess opportunities. The Group will assess multiple market entry options including acquisitions, partnerships and joint ventures to develop capability and capacity. During the year, the Group acquired high-volage electrical contractor APIP, expanding its capability and position in the electrical infrastructure transmission and distribution sector. No material impact in 2026. Refer to Note 21 in the Notes to the Consolidated Financial Statements for further information on the acquisition. No. The financial effects of this opportunity are difficult to predict given the Group’s recent entry into this market. Further investment may be required to build capacity and capability to capitalise on the available and growing opportunities in this market sector.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 39 Opportunity (Opportunity Type), Time Horizon and Opportunity Status Opportunity Description, Current and Anticipated Business Impact and Concentration Opportunity Management Current (2026) Financial Effects Significant Risk of Material Adjustment in 2027 Anticipated Financial Effects over Short, Medium and Long-Term Leverage existing capabilities to access emerging markets (Markets) Time Horizon – Medium to long Opportunity Status – Increasing The development of future energy markets will provide prospects for the Group. There will be an opportunity to leverage current capabilities in both construction and maintenance to new markets that emerge as a result of the transition to a low carbon economy. The Group will continue to monitor market movements and new opportunities resulting from advancing technologies. It will target new opportunities in future energy markets with existing and new customers and ensure sufficient capacity to effectively capitalise on opportunities. No material impact in 2026. No. The financial effects of this opportunity are difficult to predict given the uncertainty over the timing of technological advancements and the development of new markets. Impact likely to be in the medium to long-term.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 40 2.3 Resourcing the response to climate-related risks and opportunities Monadelphous monitors changes in demand across existing and target markets through the normal course of its business. The Group’s business model enables employees and assets to be directed towards attractive and suitable opportunities as they arise. Where Monadelphous does not currently operate in a target market, it will consider the most appropriate entry strategy, which may includ e acquisition, partnership or joint venture. The Group’s acquisition approach has historically been small sized acquisitions that support service or market expansion and have been funded from the Group’s retained earnings. 2.4 Climate transition plan and decarbonisation targets 2.4.1 Energy transition strategy Monadelphous’ markets and growth strategy is to maximise growth and returns from its core markets, focusing on service expansion, market diversification and a targeted approach to new work opportunities. The strategy specifically identifies five key areas of opportunity for the Group associated with the energy transition, with initiatives underway to achieve its objectives. The Group’s energy transition strategy is outlined below. Energy Transition Strategy Progress / Outlook Demand for energy transition metals Construction and maintenance of production assets for critical metals and minerals such as cop per, lithium, nickel, rare earths and minerals sands. Growth in energy transition metals mining and mineral processing expected to accelerate in response to increasing global demand. Renewable generation and storage Engineering, procurement and construction (EPC) balance -of- plant and construction of wind, solar and energy storage systems. Monadelphous and Zenviron are well placed to secure further wind farm and battery energy storage system projects. Electrification of operations Construction and maintenance of assets to electrify customer operations. Growing pipeline of decarbonisation opportunities in the resources and energy sector. Electrical infrastructure transmission and distribution Construction and maintenance of electrical infrastructure in the transmission and distribution networks. Acquisition of APIP expands capability in the transmission and distribution sector. Enabling and supporting assets Construction of gas peaking plants and gas infrastructure, and maintenance of legacy generation facilities. Investment in gas generation to support baseload and peaking power requirements is forecast to grow. Monadelphous remains well positioned to support customers across the full asset life cycle, including late -life operations and decommissioning activities. 2.4.2 Net Zero emissions by 2050 goal Monadelphous’ goal is to achieve Net Zero emissions by 2050 through innovation and stakeholder collaboration, supporting customers’ commitments to decarbonisation, and pursuing opportunities to leave a positive legacy. The Group has developed an Emissions and Energy Reduction Roadmap (Roadmap) which outlines the Group’s plan in achieving this goal. The Group’s specific decarbonisation targets, along with its plans for how these targets will be achieved, as outlined in the Roadmap, are detailed in section 4.4. The Roadmap was developed by the Health, Safety and Environment (HSE) function in consultation with a third-party sustainability specialist and other internal stakeholders. It provides guiding principles and key decisions associated with the development and planned implementation of the Group’s climate transition and decarbonisation efforts. The Roadmap is reviewed annually or when significant changes are required, and is approved by the Environmental Steering Committee, Executive HSE Committee and the Board. The Group’s climate goal and Roadmap align with the requirements of international and domestic greenhouse gas accounting standards, most notably the United Nations Framework Convention on Climate Change (the Paris Agreement), Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard (GHGP) and the National Greenhouse and Energy Reporting Act.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 41 The Roadmap which supports the Group’s goal of Net Zero Scope 1 and 2 emissions by 2050 for operationally controlled locations incorporates four key focus areas and is based on the dependencies and assumptions outlined below. The Group’s approach is based around mitigation of indirect emissions in the short-term, and over the longer term, incrementally lowering direct emissions through the application of lower emission generating products, technologies, equipment and operational methods. Refer to section 4.4.2 for information relating to the planned use of carbon credits. Switching to renewable power Optimising operational activities Greening the fleet Offset the rest Approach Eliminate Scope 2 emissions by targeting 100 per cent renewable power to be used at owned facilities in Australia by 2030. This will be achieved through: • Installation of rooftop solar on owned facilities (and potentially through on site energy storage units capturing excess renewable power generated that would otherwise be sent to the grid). • Switching to the purchase of green electricity mains power supply (for example, Power Purchase Agreements (PPA)). The long-term target also includes international operational control locations being supplied by 100 per cent renewable power sources. Lower Scope 1 emissions through undertaking a series of targeted initiatives focused on abating emission generating activities. Key initiatives include, but are not limited to: • Optimise welding and cutting gas usage and implement alternative low emission technology. • Make energy efficiency improvements to permanent offices, workshops and temporary site facilities. • Implement a review process to optimise equipment selection and allocation of assets (vehicles and non-transport fleet) to ensure low emission alternatives are utilised. • Expand methodologies for executing works to reduce reliance on persons being on site (for example, drones, artificial intelligence (AI), remote access) thereby reducing accommodation and transportation in the field. Lower Scope 1 emissions through the rollout of non-fossil fuel alternatives to the Group’s plant and equipment fleet (including generators, light vehicles, buses, trucks, elevated work platforms (EWP), forklifts and cranes). Key initiatives include, but are not limited to: • Adopt solar and battery hybrid power solutions across the Group’s operations to minimise reliance on diesel generators. • Trial biodiesel blends to reduce emissions. • Adopt hybrid power solutions for cranage. • Increase the number of hybrid vehicles and transition to low / zero emission vehicle options. • Push for increased availability of low / zero emission assets from suppliers. Review externally accredited carbon offset programs, or other alternatives, to address hard to abate residual emissions as the Group approaches 2050. Dependencies Structural and electrical infrastructure assessment and possible retrofitting to accommodate rooftop solar installation. Sufficient and appropriate renewable electricity products will be available for purchase. Investment in on site battery energy storage systems where cost effective. The emergence of alternative low emission technologies which are appropriate for the Group’s use, sufficiently available and affordable. The uptake and support of alternative methodologies from customers in executing remote or technology solutions. The emergence of alternative low emission plant and equipment and vehicle options which are appropriate for the Group’s use, sufficiently available and affordable. Sufficient Carbon Credit offerings become available which align with the Group’s expectations of environmental and community benefits, comply with Governmental Carbon Credit requirements and are cost effective. Assumptions Renewable power products will be readily available and commercially affordable by 2030. Power purchase agreements – supply of green power from the grid is available for the quantity of kilowatts required, in the regions where the Group operates and via contracts established with electricity providers. Above mentioned new technologies and equipment will become available within timeframes aligned with the Group’s anticipated rollout. Above mentioned equipment will become available within timeframes aligned with the Group’s anticipated rollout. Carbon offset costs and industry demand assumed to significantly increase in the medium and long- term time horizons. Offset will be required for hard to abate emissions where there have not been solutions available to mitigate these emissions. Refer to section 4.4.2 for further details regarding carbon credit assumptions.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 42 2.5 Climate resilience through scenario analysis To aid the strategic planning process, scenario analysis is performed on the Group’s climate-related risks and opportunities to test the resilience of the Group ’s strategy and identify further action that may be required under alternate climate change scenarios. This analysis is performed annually and presented to the Board along with the climate risk and opportunity assessment. All material Group operations are considered in the analysis. Two alternate scenarios have been used: • Accelerated action scenario – a low warming scenario where global average temperatures are limited to a 1.5°C increase above preindustrial levels aligned with the latest international agreement on climate change (Paris Agreement); and • Runaway climate change scenario – a high warming scenario where global average temperatures increase by greater than 4°C above preindustrial levels. These two scenarios have been selected as they represent two alternate extremes in comparison to the middle of the road scenario used in the climate risk and opportunity assessment for Group strategic planning, and capture both transition risks arising fro m the shift to a low carbon economy and physical risks resulting from the direct impacts of climate change. 2.5.1 Scenario assumptions The Group has utilised publicly available information of the potential effects under both alternate scenarios to determine the impact on the Group and the resilience of its strategy and business model. The assumptions under the IPCC’s SSP1 -1.9 (high transi tion risk) and SSP5 -8.5 (high physical risk) scenarios have been applied. This process has also been informed by peer benchmarking, industry research and input from internal stakeholders. The accelerated action scenario assumes rapid and large-scale decarbonisation efforts across all sectors to limit global warming to 1.5°C above pre-industrial levels by 2100. It assumes that governments around the world, including Australia, will implement policies that will achieve Net Zero by 2050 and the use of fossil fuels will be significantly reduced. The risks are primarily transition risks with the threat of extreme weather events akin to current conditions. The runaway climate change scenario assumes continued high reliance on fossil fuels and limited government policy, resulting in an increase in emissions and global average temperatures of greater than 4°C increase by 2100. The impacts of climate change would be extreme with the risks primarily being acute and chronic physical risks, with limited transition risks.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 43 Accelerated Action Scenario Limited to 1.5°C increase (SSP1-1.9 – high transition risk) Runaway Climate Change Scenario Greater than 4°C increase (SSP5-8.5 – high physical risk) Key assumptions Climate-related policies Immediate implementation of globally coordinated ambitious climate policies, including carbon pricing incentivising electrification and decarbonisation. Delayed and geographically fragmented climate policies (no additional policies beyond existing), and limited constraints on fossil fuels. Macroeconomic trends High long -term sustainability -oriented economic growth, resulting from renewable energy investment and productivity improvements. Rapid economic growth driven by abundant fossil fuels, rising costs associated with physical climate impacts. National or regional variables Frequency and severity of extreme weather events akin to current conditions. Extreme and escalating physical risks, including increased frequency and severity of extreme weather events, rising temperatures and prolonged heatwaves, drought, increased rainfall and rising sea levels. Energy usage and mix Transformation of global energy system, rapid phase out of unabated fossil fuels (for example coal) and a shift to renewable energy, supported by electrification, storage and grid stability. Abundant use of fossil fuels (for example coal and oil and gas), renewable energy expands but remains secondary. Developments in technology Accelerated transition to low emission technologies (renewable energy, storage and electrification of operations). Slow or limited technological breakthrough or advancement in low -emissions alternatives, technology oriented toward fossil-fuel sectors. The Group’s scenario analysis is considered appropriate for its current exposure to climate-related risks and opportunities at this point in time. Risks and opportunities may change or evolve over time and the Group will continue to develop and improve its processes, including quantifying the potential impact of risks on its future financial performance under alternate scenarios, and will expand its disclosures in future reporting periods accordingly as processes mature. 2.5.2 Scenario analysis The Group has assessed the impact of the above scenarios on its identified climate risks between the current period and the long -term time horizon (i.e. 2051). The assessment considers the impact across the entire business. The implications of the scenario analysis conducted in the year ended 30 June 2026 and the Group’s response is outlined below. Accelerated Action Scenario Limited to 1.5°C increase (SSP1-1.9 – high transition risk) Pathway used for strategic planning Estimated around 2.7°C increase (SSP2-4.5 – middle of the road) Runaway Climate Change Scenario Greater than 4°C increase (SSP5-8.5 – high physical risk) 2026 2051 2026 2051 2026 2051 Transition risks Policy: exposure to carbon policies and regulations Low High Low Medium Low Low Market: changing customer demands, fossil fuel divestments Low Very High Low High Low Low Physical risks Acute weather impacts: vulnerability of assets and operations (for example bushfires, floods, cyclones) Low Low Low Medium Low High Chronic weather impacts: impact on workforce productivity, health and safety (for example extreme heat) Low Low Low High Low Very High
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 44 Accelerated action scenario – limited to 1.5°C increase Overall physical risk exposure: Low Overall transition risk exposure: Low-Very High Risk/Opportunity Type Implications Response Market (Transition) An accelerated energy transition will increase demand and investment over the short to long-term in energy transition metals, renewable energy generation and storage, electrification of customer operations (to assist in meeting customer decarbonisation objectives) and electrical transmission and distribution infrastructure, including grid stability infrastructure. There will be limited new oil and gas construction project opportunities and reduced maintenance opportunities. Metallurgical coal activities will decline and eventually cease. Customers will focus on decommissioning facilities and operations resulting in opportunities for Monadelphous. Significant industry investment in new technology associated with the energy transition will present opportunities for Monadelphous, with new markets emerging at a greater pace. There will be greater expectation from customers of their suppliers and contractors to reduce their operational greenhouse gas emissions and may implement prohibitions on the use of assets and equipment which produce greenhouse gas emissions on their operational sites. Monadelphous will continue to monitor market forecasts, developments and changes, maintaining a diversified business and adapting to market changes where required. The Group has a strong existing presence in energy transition metals and renewable energy markets and is well placed to capitalise on increasing opportunities resulting from an accelerated energy transition. The Group’s resources and assets are largely transferable across market sectors. Available resources resulting from reduced activity in oil and gas and coal markets, can be deployed elsewhere taking advantage of increasing opportunities related to the energy transition, as well as those associated with the decommissioning of customer assets. With the emergence of new markets, the Group will assess desirability of market entry, ensuring risk is considered appropriately. The strategy employed will be highly dependent on technology advancements and the Group’s risk assessment, which remains uncertain. The Group will review its Net Zero by 2050 goal and Emissions and Energy Reduction Roadmap and accelerate its efforts to transition to solar power and electrify its plant and equipment fleet. Additional resources will be allocated where required. Advanced efforts may provide a competitive advantage with customers. Policy (Transition) Governments and regulatory bodies will impose rigorous climate policies and carbon price/tax regimes, with reduction requirements in fossil fuel industries and increased use of green energy. An increased cost of compliance would result from additional resources allocated to meet more stringent emissions targets (reassessed Group Net Zero goal and government-imposed targets), cost of offsetting net greenhouse gas emissions, more stringent reporting requirements, as well as an increased legal exposure. Opportunities outlined above will result from government policies prompting more rapid market shifts. Acute and Chronic Weather Impacts (Physical) Extreme weather events such as cyclones, flood and bushfires may impact operations, however disruption is not expected to be significant, with the frequency and severity of such events akin to current conditions. Long-term shifts in the climate pattern, such as rising temperatures and prolonged heat waves, will be avoided. The Group will continue to consider the physical impacts of climate change in its business decisions, including decisions around location of workshop facilities.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 45 Runaway Climate Change Scenario – greater than 4°C increase Overall physical risk exposure: Low-Very High Overall transition risk exposure: Low Risk Type/Opportunity Type Implications Response Market (Transition) Demand will continue for fossil fuels, including oil and gas and steelmaking coal, with some reduction in thermal coal expected. With continued demand for fossil fuels, it is expected there could be delays or deferral of energy transition metals and renewable energy projects, and slower advancement of new technology and emerging markets. The Group will continue to respond to opportunities in coal and oil and gas markets and pursue opportunities aligned to its strategy in energy transition markets, as they arise. Policy (Transition) Lack of, or geographically fragmented, government climate-related policy and rollback of existing policy. Reduced climate reporting requirements and associated costs. Acute Weather Impacts (Physical) An increased frequency and severity of extreme weather events such as cyclones, flood and bushfires will impact Monadelphous, with possible damage to Group owned facilities, disruption to operations and reduced productivity. There will be opportunities in new and existing markets in the construction, maintenance and repair of damaged assets. The Group will manage disruptions utilising business continuity plans and work closely with customers to address other operational impacts. Resources will be allocated to suitable opportunities in the maintenance and reconstruction of customer assets and operations (beyond existing markets). Chronic Weather Changes (Physical) Long-term changes in weather patterns, such as rising temperatures, prolonged heat waves, increased rainfall and rising sea levels will impact operational activity, productivity and threaten the health and safety of employees. There is potential for damage to owned facilities and assets, resulting in possible write-offs, increased maintenance cost and rising insurance costs (or failure of the insurance market resulting in self-insurance cost). The Group will monitor the impacts of changes in long-term weather pattern and maintain flexibility within its strategy and decision making to adapt to changes. 2.6 Significant areas of uncertainty in assessment of climate resilience The Group has used scenario analysis to assess the resilience of its strategy, however as the scenarios predict a future outcome, and may result from a combination of factors, there are areas of uncertainty which influence its ability to quantify the impact on its business model and business strategy. Significant areas of uncertainty include: • timing of market shifts away from fossil fuels and the extent of investment in energy transition markets; • the development of new technologies and emerging markets; • the timing and scope of government climate policies and regulatory requirements. 2.7 Capacity to adjust or adapt strategy and business model to climate change Monadelphous is a people business, providing expertise, labour and equipment to build, maintain and improve its customers’ operations in the resources, energy and infrastructure sectors. The Group uses a centralised pool of engineering assets and shared services in its delivery model. The services provided allow for the effective migration of employees and equipment between operating divisions, customers and markets, with the flexibility to pivot as customer strategies adapt to changes in commodity demands or as markets evolve. The Group’s capacity to remain resilient to climate change is also influenced by maintaining financial flexibility to allocate capital efficiently towards emerging climate priorities. This enables the Group to respond should risks and opportunities change as a result of shifting global action. As shown in the risk and opportunity assessment and scenario analysis, this flexibility will continue to serve the Group well in the move towards a decarbonised economy.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 46 As noted in the scenario analysis, the key areas of potential changes to capital allocation , resources and asset redeployment are as follows: If a low-warming world (accelerated action) scenario were to eventuate, the Group has the capacity to: • Short-term: Incrementally reallocate resources and assets towards emerging energy transition activities, while managing a gradual decline in demand in fossil fuel sectors; • Medium-term: Progressively redeploy engineering capabilities, workforce and equipment away from declining fossil fuel sectors to support growth in renewable energy, electrification and associated infrastructure; and • Long-term: Continue rebalancing portfolio toward energy transition -related opportunities and emerging low-emission markets, reflecting sustained shifts in global energy systems. Alternatively, if a high -warming world (runaway climate change) scenario were to eventuate, the Group has the capacity to: • Short-term: Continue supporting customers in the construction and maintenance of assets in fossil fuel sectors where demand remains stable; • Medium-term: Maintain capability in fossil fuel sectors while increasing allocation of resources to the maintenance and reconstruction of customer assets exposed to physical climate risks; and • Long-term: Expand service offerings into existing or new (to Monadelphous) markets impacted by climate change, including supporting the maintenance , reconstruction and adaptation of customer assets affected by more frequent or severe physical climate events. The above actions will be implemented should it become clear that a pathway more aligned to the above scenarios is emerging. Further detail on the outcomes of the scenario analysis is provided in the table s in section 2.5. 3. RISK MANAGEMENT Monadelphous’ risk management framework outlines the Group’s approach to risk and the processes and controls in place to aid in the identification, mitigation and management of material and emerging risks. Climate risk is integrated within the risk management framework and forms part of the Group’s broader approach to risk management . An overview of the Group’s risk management framework, along with a summary of climate risk, is included in the Governance and Risk Management section of this Consolidated Financial Report. On an annual basis, a climate risk and opportunity assessment is undertaken by management from the Group Risk and H SE functions, along with input and review by strategic and operational teams and executive management. The Group utilised the guidance of the Task Force on Climate -related Financial Disclosures and obtained input and review from an external climate expert in the development of its initial climate risk and opportunity assessment several years ago. Since then, the Group has continued to develop and refine its approach. Management undertakes research of publicly available climate data to understand the potential impact of climate change on the industries and geographical locations in which the Group operates. This includes external forecast data on the capital and maintenance spend in the Group’s key industry sectors, including resources, energy and infrastructure to understand potential impacts on revenue sources, and predicted weather patterns to understand potential operational impacts . Peer analysis is also performed, which includes review of publicly available disclosures to ensure alignment of identified risks where applicable. Refer to section 2.2 for further details on publicly available sources of information used.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 47 Customer analysis provides key information to the assessment. Operational and business development teams maintain strong relationships with customers, ensuring insight into current and future customer strategies, with information also sourced from external disclosures. The assessment considers the impact of climate risks across the entire business. Risks are assessed in terms of the nature, likelihood and consequence using the Group’s standard risk assessment matrix, with qualitative factors overlayed to ensure reasonableness. The Group discloses information regarding climate- related risks and opportunities that could reasonably be expected to affect the Group’s prospects. Scenario analysis is also performed annually to test the resilience of the Group’s risk management approach and strategy against various global temperature increase scenarios, and to identify any further risks that have not been captured, as well as additional actions that may be required to address the risks under certain scenarios. The potential impact over the long -term time horizon (2051) is considered for the alternate scenarios. Refer to section 2.5 for further information on the scenario analysis conducted. On an annual basis, the output of the climate risk and opportunity assessment and scenario analysis is considered during the Group’s strategic planning process (further detail is outlined in sections 1 and 2). The Group also reviews the current and emerging risks impacting the Group and its risk management framework to assess its effectiveness in identifying business and financial risks (including contemporary and emerging risks) and controlling their impact. During the year, the Group prioritised its climate-related transition risk mitigation strategies through progressing its markets and growth strateg ic initiatives focused on perusing opportunities within the energy transition sectors . Refer to sections 2.2 and 2.4 for further details of the Group’s energy transition strategy and associated risk mitigation and opportunity management actions. Climate-related risks are considered alongside the other material risks identified for the busi ness and managed within the Board’s risk appetite. The risk management framework is updated to reflect enhancements in systems and controls implemented during the year. The review is presented for assessment to the Audit Committee in accordance with its Charter. The Audit Committee also assesses whether th e Group is operating with due regard to the risk appetite set by the Board. Enhancements to the risk management framework implemented during the year associated with climate-related matters include the formal documentation of the process for the development of the Group’s climate risk and opportunity assessment. Whilst the risk and opportunity analysis is formally conducted annually, identified climate risks are reassessed during the year if there is a key change to assumptions or circumstances, a significant event or further information becomes available to indicate a change to the likelihood or consequence. The Group’s strategic objectives are overlayed against the climate-related risks and opportunities to ensure effective alignment and risk management. Specific actions to manage the identified key climate-related risks and opportunities are noted in section 2.2 . Strategic actions are recorded in the Group’s strategic management tool, alongside other strategic initiatives and the status reported upon monthly. 4. METRICS AND TARGETS Monadelphous is committed to minimising the impact of its operations on the environment and to the achievement of Net Zero emissions by 2050. The Group’s Emissions and Energy Reduction Roadmap outlines a series of interim targets towards achieving this goal and the Group continues to progress various initiatives to meet these objectives. The Group has an interim target of 20 to 40 per cent reduction in Scope 1 and 2 absolute emissions across its Australian and international operationally controlled locations by 2030. This is the first phase in a staged approach to reduce emissions. The key areas of focus to achieving these targets, which are supported by Net Zero working groups, include transitioning the Group’s facilities and operations to renewable energy sources, greening the Group’s fleet of plant and equipment and reducing carbon emissions through optimisation of operational activities.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 1 Base Year 2024 unaudited. 48 Monadelphous’ base year emissions have been recalculated following the acquisition s of Kerman Contracting and APIP during the financial year, with retrospective application in line with the GHG Protocol guidance for acquisitions. It is expected that future acquisitions by Monadelphous will similarly require recalculation of the base year emissions. Monadelphous continues to support its customers’ ambitions to pursue their Net Zero emission goals, constantly looking for ways to decarbonise its operations to reduce Scope 1 and 2 emissions produced on customer sites. During the year, the Group transitioned its Scope 1 and 2 reporting to the Workiva Carbon reporting solution for greenhouse gas data collation and analysis, providing greater reporting accuracy and efficiency, with Scope 3 reporting to be implemented in the following financial year. As Monadelphous continues on its climate journey, further measures and targets will be considered to assess the effectiveness of its climate-related strategies. For a copy of the Group’s Emissions and Energy Reduction Roadmap, refer to the Group’s website. 4.1 Greenhouse gases - 2026 results Scope 1 and 2 GHG emissions are measured in accordance with the GHG Protocol: A Corporate Accounting and Reporting Standard (2004) (GHGP). The boundary review for reporting against the GHGP also considered the requirements for future reporting of Scope 3 emissions. With the introduction of the Workiva Carbon solution, the Group conducted methodology reviews and assessed the nominated emission factors being applied from Australian and international sources. The Group has commenced using emission factors provided within Workiva Carbon libraries, ensuring alignment with the primary domestic data source being the National Greenhouse Accounts (NGA) Factors (Department of Climate Change, Energy, the Environment and Water). The Group confirms other sources of emission factors utilised within the Workiva Carbon solution for all emissions are within an acceptable variance, and documents this within its Scope 1 and 2 basis of preparation report. In preparation for future Scope 3 emission s reporting, Workiva Carbon includes domestically and internationally available emission factors for Scope 3 calculations, with the relevant sources being documented in the Group’s Scope 3 basis of preparation report. For all of its GHG emissions, the Group applies an operational control approach to define its organisational boundary for the purposes of calculating GHG emissions. This approach reflects emissions from assets and operations where the Group has the authority to implement operating and environmental policies and therefore can directly influence and manage greenhouse gas emissions. Management considers this approach to provide the most relevant representation of the emissions associated with operations under its control. The Group has elected not to disclose Scope 3 emissions for the year ended 30 June 2026 in accordance with the transition provisions of AASB S2 Climate-related Disclosures. 4.1.1 Scope 1 and Scope 2 GHG emissions Operational control GHG emissions fell 5 per cent compared to the nominated base year1 ended 30 June 2024, largely attributed to a reduction in electricity purchased across the Group’s offices and workshops. GHG Emissions (metric tonnes of CO2-e) Base Year 20241 2026 Scope 1 emissions 5,666 5,629 Scope 2 emissions 2,511 2,109 Total Scope 1 and 2 emissions 8,177 7,738 Scope 1 GHG emissions refer to the direct GHG emissions that occur from sources owned or controlled by the Group. Scope 1 direct emissions primarily relate to the Group’s combustion of liquid fuels and gases associated with activities undertaken within the Group’s workshops and yards.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 49 Scope 2 GHG emissions refer to indirect GHG emissions from the generation of electricity acquired and consumed by the Group. The Group’s Scope 2 GHG emissions are measured using a location -based methodology reflecting the specific emissions factors attributed to the electricity grids from which the Group sources electricity. Refer to Section 4.2.1 for specific source references. As part of its Net Zero goal, the Group is currently identifying and progressing opportunities for facility updates and improvements, including alternative renewable power supply options such as rooftop solar or purchasing renewable mains power for all Group owned facilities (including offices and workshops). Following the initial phase of rooftop solar installation to its workshop facilities, the Group will undertake a detailed assessment of its electricity usage profile and commence negotiations with electricity providers to secure contractual agreements for the supply of renewable Net Zero mains electricity for its residual power needs. The Group will also continue to assess usage and consider, where feasible, the installation of battery energy storage systems to further reduce reliance on grid supplied power. 4.1.2 Disaggregated Scope 1 and Scope 2 GHG emissions The Group’s disaggregated Scope 1 and Scope 2 GHG emissions are as follows: GHG Emissions (metric tonnes of CO2-e) Scope 1 Scope 2 Total Consolidated Group 5,629 2,109 7,738 Investments in joint ventures and unconsolidated subsidiaries (under operational control) - - - Total Scope 1 and 2 GHG emissions (operational control basis) 5,629 2,109 7,738 The above emissions do not include Monadelphous’ joint venture entities, Mondium Pty Ltd and Zenviron Pty Ltd, as Monadelphous does not control these entities in accordance with the GHGP (joint control and equity accounted). They have been assessed for inclusion in future Scope 3 emission reporting boundaries. 4.1.3 Value chain GHG emissions (Scope 3) Emissions that occur in the Group’s value chain as a result of Group operations, but not directly controlled by the Group (for example emissions from employee air travel and commuting, waste, purchased goods) equal the Group’s Scope 3 emissions. During the year, the Group confirmed its methodology and established procedures for implementation from 1 July 2026 to gather data to report Scope 3 emissions in the 2027 financial year. 4.2 Methodology for the calculation of GHG emissions 4.2.1 Calculation standard For the calculation of Scope 1 and 2 GHG emissions, the Group follows the guidelines and methodologies contained in the Greenhouse Gas (GHG) Protocol: Corporate Accounting and Reporting Standard (2004) and NGA Factors (2025). The Group’s basis of preparation documents for Scope 1 and 2 emissions details the application of boundaries, sourcing of data, and transformation of the data into a reportable emissions value via the Workiva Carbon solution, where relevant emission factors are applied, providing the total tonnes of CO2 equivalent for reporting. Operational Control: Each year, a review is completed of the locations the Group operates from, and the projects undertaken, to assign operational control status, and to check for any changes from the prior year. This list of operational control locations is then used as the b oundaries applied to data reported for the Group’s Scope 1 and 2 emissions. Operational control includes the offices, workshops and yards owned by the Group, or where the Group is the majority leaseholder.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 50 Recalculations: Recalculations occur where a new source of emission has been identified (such as a new fuel blend or supplier) or an error has been identified in a conversion. Methodologies for calculating reported emissions are aligned with the NGA Factors, GHG Protocol tools, and for international datasets, the International Energy Agency (IEA), which are verified within the Workiva Carbon solution. Emissions are calculated utilising published emissions factors which already convert constituent greenhouse gases into CO2 equivalent (CO₂‑e). Summary of Emission Factors and Data Treatment Scope Emission Category Activity Data Source Emissions Factor (EF) Source Methodology, Data Quality and Uncertainty Additional Notes Scope 1 Liquid fuels – Stationary combustion Quantity of fuel used for stationary energy purposes Fuel purchase transaction history including invoices Australian assets: EFs sourced from NGA Factors (2025) Non-Australian assets: N/A – No Scope 1 emissions Quantity of fuel consumed multiplied by the associated emission factor for each fuel type. High data quality, low uncertainty Workiva Carbon libraries prioritise which EF source is applied to each emission source. Where the Group has determined that the delta between the domestic EF sources and the alternatives used is greater than 5 per cent, a custom factor is established using the preferred domestic EF value. Liquid fuels – Transport combustion Quantity of fuel used for transport energy purposes Fuel purchase transaction history including invoices Gaseous fuels – Stationary combustion Quantity of combustible gas used for operational purposes (for example industrial heating and cutting, forklift operation) Invoices Australian assets: EFs sourced from NGA Factors (2025) Non-Australian assets: N/A – No Scope 1 emissions Quantity of gas consumed multiplied by the associated emission factor for each gas type combusted. High data quality, low uncertainty Workiva Carbon libraries prioritise which EF source is applied to each emission source. Where the Group has determined that the delta between the domestic EF sources and the alternatives used is greater than 5 per cent, a custom factor is established using the preferred domestic EF value. Gaseous fuels – Non- combusted (consumed only) Quantity of inert gas exhausted to the atmosphere during operational purposes (for example welding shielding gas) Invoices Australian assets: Energy content factors sourced from NGA Factors (2025) Non-Australian assets: N/A – No Scope 1 emissions Energy content is captured for monitoring as consumed not combusted entered as a custom factor in Workiva Carbon using Australian NGA Factors (2025) Energy Content factors – no tCO2-e reported for this source. Liquefied Natural Gas (LNG) supplied in pipeline Quantity of LNG supplied via pipeline (for example used for heat generation) Invoices Australian assets: EFs sourced from the NGA Factors (2025) Non-Australian assets: N/A – No Scope 1 emissions Quantity of gas consumed multiplied by the associated emission factor for each gas type combusted. High data quality, low uncertainty EF sourced from Australian NGA Factors (2025) and aligned within Workiva Carbon. Fugitive Emissions - Refrigerants and Sulfur Hexaflouride (SF6) Quantity of leakage (escaped emissions) for refrigerants gases (for example vehicle / SF6: Invoices and licence records / registers Refrigerants: Asset registers Australian assets: EFs sourced from either: - IPCC The Earth’s Energy Budget, Climate Feedbacks and Climate Sensitivity (Chapter 7: Supplementary Material) (2021); or Refrigerants estimated leakage methodology: Volume of gas units multiplied by the associated leakage rate and emission factor for each gas type and source type. Workiva Carbon libraries prioritise which EF source is applied to each emission source. Where the Group has determined that the delta between the
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 51 Scope Emission Category Activity Data Source Emissions Factor (EF) Source Methodology, Data Quality and Uncertainty Additional Notes building aircon operation) Quantity of SF6 gas consumed during storage and maintenance activities (for example high voltage switchgear servicing) - NGA Factors (2025) (Global Warming Potential (GWP) and leakage rates) Non-Australian assets: N/A – No Scope 1 emissions NOTE: IPCC AR6 GWP values are used for refrigerants and SF6 calculations SF6 estimated mass balance methodology: Volume of gas in stocktake year commencement and year end, plus adjustments, multiplied by the emission factor. Low data quality, moderate uncertainty domestic EF sources and the alternatives used is greater than 5 per cent , a custom factor is established using the preferred domestic EF value. Scope 2 Purchased electricity Electricity consumption Invoices Australian assets: EFs sourced from the NGA Factors (2025) Non-Australian assets: EFs from International Energy Agency (IEA) Emission Factors (2025) Location-based method. High data quality and low uncertainty due to complete invoice sets Workiva Carbon uses domestically available EF sources based on location configurations, and aligns this with available library publications Generated electricity Electricity generated by renewable sources Meter readings and invoices N/A Estimated from invoiced data and system size to calculate generated kWh and split between export and self-consumption, where applicable. Reported as avoided emissions 4.3 Other cross-industry metrics 4.3.1 Assets or business activities vulnerable to climate-related transition risks The Group has identified the following assets or business activities vulnerable to climate-related transition risks relating predominantly to the Group’s exposure to fossil fuel industries. Coal Metric 2026 $’000 Commentary Total revenue from contracts with customers including joint ventures from coal 161,979 This represents 5 per cent of the Group’s total revenue from contracts with customers including joint ventures. Oil and gas Metric 2026 $’000 Commentary Total revenue from contracts with customers including joint ventures from oil and gas 1,108,346 This represents 37 per cent of the Group’s total revenue from contracts with customers including joint ventures. In addition, the net book value of the Group’s plant and equipment fleet (owned and under hire purchase) that runs on fossil fuel sources is $125 million. However, the risk of impairment over the assessment time horizons is considered low, as the Group expects to be able to sell these assets while transitioning its fleet to alternative energy sources. Refer to section 2.2 for further details associated with the Group’s assessment of climate -related transition risks. 4.3.2 Assets or business activities vulnerable to climate-related physical risks Refer to section 2.2 for further details associated with the Group’s assessment of climate -related physical risks. Assets risk assessment and insurance coverage analysis The Group has assessed its facilities and operational locations to determine the potential impacts as a result of increased frequency and severity of extreme weather events such as cyclones, flood and bushfires.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 52 At time of reporting, there were no Group -owned facilities located in areas identified to be at a high risk of climate-related acute physical impacts. However, two leased facilities (one office and one workshop) are located in areas identified to have a medium to very high likelihood of experiencing climate-related flooding in the short to medium-term. These locations are considered potentially vulnerable to immaterial financial losses resulting from flood related contents damage and operational disruptions. During the period, the Group undertook a detailed review of its insurance policies to ensure sufficient coverage proportionate with its assessed exposure to climate-related acute physical impacts. The Group also evaluated its concentration risk and has assessed there to be a low probability of a single climate-related acute physical event impacting multiple Group facilities and operational locations, owing to geographical dispersion of its assets and limited exposure in locations vulnerable to climate-related acute physical impacts. The Group’s insurance policies include sub -limits for flood impacts (for both impacts to isolated locations and impacts to multiple locations from the same flooding event) . C onsistent with its concentration risk assessment, the Group has identified there to be a low probability of multiple facilities being impacted by a single flood event. The assessment of location s vulnerable to climate -related acute physical impacts was derived from data provided by the Climate Council – climate risk map of Australia utilising a medium emissions scenario and a short to medium timeframe. 4.3.3 Assets or business activities aligned with climate-related opportunities The Group has identified the following assets or business activities aligned with climate-related opportunities. Renewable energy Metric 2026 $’000 Commentary Total revenue from contracts with customers including joint ventures from renewable energy 197,177 This represents 7 per cent of the Group’s total revenue from contracts with customers including joint ventures for the period. Energy transition metals Metric 2026 $’000 Commentary Total revenue from contracts with customers including joint ventures from energy transition metals (includes copper, lithium, nickel and rare earths) 176,185 This represents 6 per cent of the Group’s total revenue from contracts with customers including joint ventures for the period. Opportunities related to new and emerging markets are expected to represent an increasing proportion of the Group’s revenue over coming years. Refer to section 2.2 for further details associated with the Group’s assessment of climate -related opportunities. 4.3.4 Capital deployment The Group continues to invest in initiative s supporting its Net Zero goal and opportunities to capitalise on the energy transition. The following table provides an overview of the amount of capital deployed during the year towards climate- related initiatives. Metric 2026 $’000 Capital expenditure and financing activities for 2026 relating to Net Zero initiatives 542
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 53 Climate-related opportunities are pursued as part of the Group’s markets and growth strategy. These activities are integrated within the relevant functions of the business, including strategy, business development, tendering and estimating. During the year, the Group advanced its energy transition strategy through the acquisition of high-volage electrical contractor APIP, expanding its capability and position in the electrical infrastructure transmission and distribution sector. Refer to Note 21 in the Notes to the Consolidated Financial Statements for further information on the acquisition. 4.4 Climate-related targets The Group’s goal is to achieve Net Zero emissions by 2050 through innovation and stakeholder collaboration, supporting customers’ commitments to decarbonisation and pursuing opportunities to leave a positive legacy. Monadelphous has set a target to achieve Net Zero Scope 1 and 2 emissions by 2050. This is a net target and does not currently include a separately defined gross emissions reduction target. The Group is developing its decarbonisation pathway, including the expected contribution of direct emissions reductions and the potential use of carbon offsets. Monadelphous’ Net Zero Scope 1 and Scope 2 emissions target to 2050 covers all greenhouse gases included in its emissions reporting boundary. These comprise carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O), which together represent the material sources of emission s from the Group’s operations. All emissions are measured and reported as carbon dioxide equivalent (CO₂-e). The Group’s climate-related targets as outlined in its Emissions and Energy Reduction Roadmap are detailed below. Committed to Net Zero by 2050 Metric Group-wide emissions reduction to Net Zero for Scope 1 and 2 emissions by 2050 with reference to the base line period 2024 (refer below), measured in tonnes of carbon dioxide equivalent (tCO 2-e) in accordance with the GHG Protocol Objective Mitigation of Scope 1 and 2 GHG emissions Scope Applies to all activities (including international) under the Group’s operational control Period Years ended 30 June 2024 to 30 June 2050 Base period Year ended 30 June 2024 (FY24) Milestones and interim targets Targeting a 20-40 per cent reduction in absolute Scope 1 and 2 emissions by the year ending 30 June 2030. Targeting 100 per cent renewable power supply to Australian operational control locations by the year ending 30 June 2030. Target type (absolute or intensity) Absolute quantitative target Alignment with jurisdictional commitment Target is informed by the latest international climate agreements (Paris Agreement), however has not been derived using sectoral decarbonisation approaches, science -based targets or global mitigation pathways. External validation No. Review process These targets are reviewed annually by the Executive HSE and Environmental Strategy Steering committees and the Board, as outlined in section 1 Governance. Metrics for monitoring progress Group-wide operational control Scope 1 and 2 emissions reduction to Net Zero by year ending 30 June 2050. Revision No revisions have been made to the target in the current period. Any future revisions to the target will be disclosed and explained in the annual Sustainability Report. Progress achieved during the year and status at year end 5 per cent reduction in total Scope 1 and 2 emissions compared to the base period (year ended 30 June 2024) (refer to section 4.4.1 for further details). 4.4.1 Performance against climate-related targets The Group’s Scope 1 and 2 GHG emissions increased by 9 per cent compared to the prior financial year due to a 31 per cent increase in operational activity across the business. However, the Group has achieved a 5 per cent reduction in Scope 1 and 2 emissions compared to its FY24 base year, mainly through its transition to renewable electricity under its Net Zero by 2050 strategy. As this is the Group’s first year of reporting, a detailed analysis of performance trends and changes has not yet been completed but will form part of the disclosures in subsequent reporting periods.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 54 A major focus for the Group during the year was the expansion of onsite renewable energy generation across operational facilities. Approximately 4 0 per cent of total power consumption across the Group’s owned facilities with solar installations is now sourced from renewable energy. Monadelphous also strengthened its low emissions fleet capability through targeted investment informed by trials conducted through the Net Zero working group. The Group acquired two hybrid cranes and integrated two electric forklifts into its fleet, reducing fuel consumption and operational emissions. In parallel, the Group also purchased its first battery energy storage system with a supporting solar panel system, with the objective of deploying these power solutions more broadly following successful commissioning. 4.4.2 Planned use of carbon credits to achieve its targets The Group is committed to lowering its operational greenhouse gas emissions in line with its Net Zero by 2050 goal. To meet its reduction targets, the Group is implementing direct abatement measures, with the use of voluntary carbon credits allowed for in its strategy as the Group approaches 2050 to support the achievement of its Net Zero target. The Group does not plan to purchase or use carbon credits in the near future and is focused on achieving its Net Zero goal through the implementation of emission reduction and abatement measures. In the event the Group does require the use of carbon credits, this will be disclosed including which accredited scheme is used, the typ e of carbon credit being nature -based or technology -based, and if the underlying offset is achieved via carbon reduction or removal. Any other factors in relation to the integrity and credibility of the carbon credits used in the future will be included in these disclosures. For illustrative purposes, the Group has outlined in section 2.2 the estimated cost where the purchase of carbon credits or offsets from an accredited program is undertaken to achieve the reduction targets within the Roadmap, such as for hard to abate or legacy tCO2-e. At time of reporting, the Group is yet to commence evaluation of carbon credit offerings. In future periods when evaluating carbon credit programs, the Group’s assessment criteria will aim to ensure environmental and community benefits and compliance with Governmental Carbon Credit requirements.
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MONADELPHOUS GROUP LIMITED SUSTAINABILITY REPORT 55 Directors’ declaration In the opinion of the directors of Monadelphous Group Limited (“the Company”), I state that the Company has taken reasonable steps to ensure that the substantive provisions of the Sustainability Report of the Company and its subsidiaries (collectively, “the Group”) for the year ended 30 June 2026, as presented on pages 24 to 54, are in accordance with the Corporations Act 2001, including: (a) Complying with Australian Sustainability Reporting Standard AASB S2 Climate -related Disclosures and any further requirements determined under section 296C(2) of the Corporations Act 2001; and (b) Containing the climate statement disclosures required by section 296D of the Corporations Act 2001. Made in accordance with a resolution of the directors of Monadelphous Group Limited pursuant to section 296A(6) of the Corporations Act 2001, as modified by section 1707C(2) of the Corporations Act 2001. On behalf of the Board Robert Velletri Chair Perth, 24 August 2026
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 9 The Esplanade Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Independent auditor’s review report to the members of Monadelphous Group Limited Conclusion We have conducted a review of the following information in the Sustainability Report of Monadelphous Group Limited (the Company) and its subsidiaries (collectively the Group) for the year ended 30 June 2026 (the ‘selective sustainability information’) as required by Australian Standard on Sustainability Assurance ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001 issued by the Auditing and Assurance Standards Board (AUASB): Selective sustainability information Criteria: Reporting requirement of AASB S2 Climate-related Disclosures (AASB S2) (including related general disclosures required by Appendix D) Location in Sustainability Report Governance Paragraph 6 Paragraphs 1.1 to 1.6 on pages 25 to 32 Strategy (risk and opportunities) Subparagraphs 9(a), 10(a) and 10(b) Paragraphs 2.1 to 2.2 on pages 32 to 33, the “Risk Type” and “Risk Description” disclosed in the tables on pages 34 to 37 and the “Opportunity Description” on pages 37 to 39 Scope 1 and 2 emissions Subparagraphs 29(a)(i)(1) to (2) and 29(a)(ii) to (v) Paragraphs 4.1.1 to 4.1.2 on pages 48 to 49 except “Base Year 2024” data The requirements of AASB S2 identified in the table above form the criteria relevant to the selective sustainability information and apply under Division 1 of Part 2M.3 of the Corporations Act 2001 (the Act). We have not become aware of any matter in the course of our review that makes us believe that the selective sustainability information specified in the table above does not comply with Division 1 of Part 2M.3 of the Corporations Act 2001. Basis for conclusion Our review has been conducted in accordance with Australian Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000) issued by the AUASB. Our review includes obtaining limited assurance about whether the selective sustainability information is free from material misstatement. In applying the relevant criteria, we note that subsection 296C(1) of the Act includes a requirement to comply with AASB S2.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Our conclusion is based on the procedures we have performed and the evidence we have obtained in accordance with ASSA 5000. The procedures in a review vary in nature and timing from, and are less in extent than for, an audit. Consequently, the level of assurance obtained in a review is substantially lower than the assurance that would have been obtained had an audit been performed. See the Summary of the Work performed section of our report. Our responsibilities under ASSA 5000 are further described in the Auditor’s responsibilities section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Act and the ethical requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (November 2018 incorporating all amendments to June 2024) (the Code) that are relevant to reviews of the selective sustainability information of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the Code. Our firm applies Australian Standard on Quality Management ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information or Other Assurance or Related Services Engagements, which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other information The directors of the Company are responsible for the other information. The other information comprises the Company’s Annual Report, but does not include the selective sustainability information and our review report thereon. At the date of this review report, in addition to the Sustainability Report, we obtained the Financial Report, the Directors’ Report, Chair’s Report, Company Performance, Governance and Risk Management that are to be included in the Annual Report. Our conclusion on the selective sustainability information does not cover the other information and we do not express any form of assurance conclusion thereon in this review report. We have issued a separate auditor’s report on the Financial Report and the Remuneration Report. In connection with our review of the selective sustainability information, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the selective sustainability information, or our knowledge obtained when conducting the review, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this review report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Responsibilities for the selective sustainability information The directors of the Company are responsible for: ▪ The preparation of the selective sustainability information in accordance with the Act; and ▪ Designing, implementing and maintaining such internal control necessary to enable the preparation of the selective sustainability information, in accordance with the Act that is free from material misstatement, whether due to fraud or error. Inherent limitations As discussed on page 24 to 25 of the Report, climate-related risk management is an emerging area, and often uses data and methodologies that are developing and uncertain. The Report contains forward looking statements, including climate-related scenarios, targets, assumptions, climate projections, forecasts, statements of future intentions and estimates and judgements that have not yet occurred and may never occur. We do not provide assurance on the achievability of this prospective information. Greenhouse gas emissions quantification is subject to significant measurement uncertainty, which arises because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases. The comparability of sustainability information between entities and over time may be affected by inconsistencies in the methods to estimate or measure those emissions, due to different, but acceptable, methods applied. Auditor’s responsibilities Our objectives are to plan and perform the review to obtain limited assurance about whether the selective sustainability information, defined in the Conclusion section of our report, is free from material misstatement, whether due to fraud or error, and to issue a review report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the selective sustainability information. As part of a review in accordance with ASSA 5000, we exercise professional judgement and maintain professional scepticism throughout the engagement. We also: ▪ Perform risk assessment procedures, including obtaining an understanding of internal control relevant to the engagement, to identify and assess the risks of material misstatements, whether due to fraud or error, at the disclosure level but not for the purpose of providing a conclusion on the effectiveness of the entity’s internal control. ▪ Design and perform procedures responsive to assessed risks of material misstatement at the disclosure level. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Summary of the work performed A review is a limited assurance engagement and involves performing procedures to obtain evidence about the selective sustainability information. The nature, timing and extent of procedures selected depend on professional judgement, including the assessed risks of material misstatement at the disclosure level, whether due to fraud or error. In conducting our review, the procedures we performed included, but were not limited to: ▪ Considered the completeness of Monadelphous Group Limited’s assessment of climate-related risks and opportunities ▪ Conducted interviews with key personnel to understand the process for collecting, collating and reporting the selective sustainability information during the reporting period ▪ Read minutes of relevant committees to understand matters discussed and decisions made with respect to climate-related disclosures ▪ Assessed the appropriateness of the reporting boundaries applied ▪ Undertook analytical review procedures to support the reasonableness of the selective sustainability information ▪ Evaluated the appropriateness of emission factors applied in the greenhouse gas emission processes ▪ Agreed the selective sustainability information disclosures made in the report with the underlying records ▪ Evaluated the presentation and disclosure of the selective sustainability information against the requirements of AASB S2. Ernst & Young Pierre Dreyer Partner Perth 24 August 2026
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 60 The information on pages 60 to 88 forms part of the Directors’ Report for the year ended 30 June 2026 and is to be read in conjunction with the following information. DIRECTORS The names and details of the directors of the Company in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Names, qualifications, experience and special responsibilities Robert Velletri Chair Appointed as Director 26 August 1992 Appointed as Managing Director on 30 May 2003 and ceased as Managing Director following his appointment as Chair on 22 November 2022 Mechanical Engineer, Member of Engineers Australia 47 years of experience in the construction and engineering services industry Zoran Bebic Managing Director Appointed as Managing Director 22 November 2022 Certified Practising Accountant, Fellow Member of CPA Australia 35 years of experience in the construction and engineering services industry Susan Lee Murphy AO Deputy Chair and Lead Independent Non-Executive Director Appointed 11 June 2019 Civil Engineer, Honorary Fellow of Engineers Australia 47 years of experience in the resources and infrastructure industries Also a non -executive director of the following other publicly listed entities: Austal Limited (ASX: ASB) – appointed 1 September 2025 MMA Offshore Limited (ASX: MRM) – appointed 30 April 2021 , resigned 26 July 2024 RemSense Technologies Limited (ASX: REM) – appointed 17 May 2023, resigned 21 February 2024 Helen Jane Gillies Independent Non-Executive Director Appointed 5 September 2016 Solicitor, Master of Business Administration and Construction Law, Fellow of the Australian Institute of Company Directors 30 years of experience in the construction and engineering services industry Also a non -executive director of the following other publicly listed entities: Yancoal Australia Limited (ASX: YAL) – appointed 30 January 2018, resigned 9 February 2024 Aurelia Metals Limited (ASX: AMI) – appointed 21 January 2021 , resigned 31 January 2024 Enrico Buratto Independent Non-Executive Director Appointed 11 October 2021 Civil Engineer, Fellow of Engineers Australia 51 years of experience in the construction and engineering services industry
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 61 Dietmar Robert Voss Independent Non-Executive Director Appointed 10 March 2014 Chemical Engineer, Member of the Australian Institute of Company Directors 52 years of experience in the energy, and mining and minerals industries COMPANY SECRETARIES Philip Trueman Company Secretary and Chief Financial Officer Appointed 21 December 2007 Chartered Accountant, Member of Chartered Accountants Australia and New Zealand 26 years of experience in the construction and engineering services industry Kristy Glasgow Company Secretary Appointed 8 December 2014 Chartered Accountant, Member of Chartered Accountants Australia and New Zealand 21 years of experience in the construction and engineering services industry INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES CORPORATE As at the date of this report, the interests of the directors in the shares, rights and options of Monadelphous Group Limited were: Ordinary Shares Performance Rights over Ordinary Shares R. Velletri 2,302,026 Nil Z. Bebic 181,966 127,749 D. R. Voss 72,659 Nil H. J. Gillies 10,857 Nil S. L. Murphy 14,652 Nil E. P. Buratto 7,330 Nil EARNINGS PER SHARE Cents Basic Earnings Per Share 127.56 Diluted Earnings Per Share 126.09 DIVIDENDS Cents $’000 Final dividends declared ▪ on ordinary shares 59.00 59,308 Dividends paid during the year: Current year interim ▪ on ordinary shares 49.00 49,013 Final for 2025 ▪ on ordinary shares 39.00 38,719
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 62 CORPORATE INFORMATION Corporate structure Monadelphous Group Limited is a company limited by shares that is incorporated and domiciled in Australia. Monadelphous Group Limited has prepared a consolidated financial report incorporating the entities that it controlled during the financial year (refer note 20 in the financial report). The registered office of Monadelphous Group Limited is located at: 59 Albany Highway Victoria Park Western Australia 6100 Nature of operations and principal activities Services Monadelphous is a diversified services company operating in the resources, energy and infrastructure industry sector. Services provided include: ▪ Large-scale, multidisciplinary and vertically integrated project management and construction services ▪ Earthworks ▪ Structural concrete and inground services ▪ Fabrication ▪ Modularisation ▪ Structural, mechanical and piping ▪ Heavy lift ▪ Electrical and instrumentation ▪ Commissioning ▪ Demolition ▪ Design and construction of non-process infrastructure ▪ Balance-of-plant design and construction of renewable energy developments ▪ High-voltage electrical construction and maintenance services ▪ Mechanical and electrical maintenance ▪ Shutdowns ▪ Sustaining capital works ▪ Fixed plant maintenance services ▪ Access solutions ▪ Specialist coatings ▪ Rail maintenance services General Monadelphous operates from major offices in Perth and Brisbane, with regional offices in Newcastle, Beijing (China), Ulaanbaatar (Mongolia ) and Manila (Philippines) , and a network of workshop facilities in Kalgoorlie, Karratha, Port Hedland, Newman, Tom Price, Darwin, Roxby Downs, Gladstone, Mount Thorley, Mackay, Bibra Lake, Bunbury, Capel, Chinchilla, Morwell, Wangara, Osborne Park, Applecross, Kwinana, Blackwater and Vung Tau City (Vietnam). The consolidated entity’s revenue is earned predominantly from the resources, energy and infrastructure industry sector. There have been no significant changes in the nature of those activities during the year. Employees The consolidated entity employed 7,482 employees as of 30 June 2026 (2025: 7,375 employees).
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 63 OPERATING AND FINANCIAL REVIEW Review A review of operations of the consolidated entity during the financial year, the results of those operations, the changes in the state of affairs and the likely developments in the operations of the consolidated entity are set out in the Operating and Financial Review section of this report. Operating results for the year 2026 2025 $’000 $’000 Revenue from contracts with customers 2,786,805 2,153,156 Profit after income tax expense attributable to equity holders of the parent 127,300 83,721 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There have been no significant changes in the state of affairs of the parent entity or the consolidated entity during the financial year. SIGNIFICANT EVENTS AFTER REPORTING PERIOD Dividends declared On 24 August 2026, the directors of Monadelphous Group Limited declared a final dividend on ordinary shares in respect of the 2026 financial year. The total amount of the dividend is $59,308,343 which represents a fully franked final dividend of 59 cents per share. This dividend has not been provided for in the 30 June 2026 financial statements. The Monadelphous Group Limited Dividend Reinvestment Plan will apply to the dividend. LIKELY DEVELOPMENTS AND EXPECTED RESULTS Refer to the Chair’s Report for information regarding the likely developments and future results. ENVIRONMENTAL REGULATION AND PERFORMANCE Monadelphous Group Limited is subject to a range of environmental regulations. During the financial year, Monadelphous Group Limited met all reporting requirements under any relevant legislation. There were no incidents which required reporting. The Company strives to continually improve its environmental performance.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 64 SHARE OPTIONS Unissued shares As at the date of this report, there were 1,346,320 performance rights on issue as follows: ▪ 299,698 performance rights to take up one ordinary share in Monadelphous Group Limited. The performance rights have a vesting date 1 July 2027 ▪ 207,538 long-term performance rights to take up one ordinary share in Monadelphous Group Limited. The performance rights have a vesting date 20 December 2026 ▪ 292,363 long-term performance rights to take up one ordinary share in Monadelphous Group Limited. The performance rights have a vesting date 1 November 2027. ▪ 141,699 performance rights to take up one ordinary share in Monadelphous Group Limited. The performance rights have a vesting date 1 July 2028 ▪ 405,022 long-term performance rights to take up one ordinary share in Monadelphous Group Limited. The performance rights have a vesting date 3 November 2028 Performance rights and option holders do not have any right, by virtue of the performance right or option, to participate in any share issue of the Company or any related body corporate or in the interest of any other registered Scheme. Shares issued as a result of the exercise of performance rights On 1 July 2026, 429,648 ordinary shares in Monadelphous Group Limited were issued upon the vesting and exercise of performance rights. On 1 July 2025, 444,273 ordinary shares in Monadelphous Group Limited were issued upon the vesting and exercise of performance rights. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During the financial year, the Company has paid premiums in respect of a contract insuring all the directors and officers of Monadelphous Group Limited against a liability incurred in their role as directors of the Company, except where: (a) the liability arises out of conduct involving a wilful breach of duty; or (b) there has been a contravention of Sections 182 or 183 of the Corporations Act 2001.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 65 INDEMNIFICATION OF AUDITORS The Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against certain liabilities to third parties arising from the audit to the extent permitted by law. The indemnity does not extend to any liability resulting from a negligent, wrongful or wilful act or omission by Ernst & Young. No payment has been made to indemnify Ernst & Young during or since the audit. INTERESTS IN CONTRACTS OR PROPOSED CONTRACTS WITH THE COMPANY During or since the end of the financial year, no director has had any interest in a contract or proposed contract with the Company being an interest the nature of which has been declared by the director in accordance with Section 300(11)(d) of the Corporations Act 2001. DIRECTORS’ MEETINGS The number of meetings of directors (including meetings of committees of directors) held during the year and the number of meetings attended by each director are shown in the table below. Meetings of Committees Directors’ Meetings Audit Remuneration Nomination Number of meetings held: 13 6 4 1 Number of meetings attended: R. Velletri 13 - - 1 Z. Bebic 13 - - - D. R. Voss 13 6 4 1 H. J. Gillies 13 6 4 1 S. L. Murphy 13 6 4 1 E. Buratto 13 6 4 1 COMMITTEE MEMBERSHIP As at the date of this report, the Company had an audit committee, a remuneration committee and a nomination committee. Members acting on the committees of the Board during the year were: Audit Remuneration Nomination H. J. Gillies (c) S. L. Murphy (c) R. Velletri (c) D. R. Voss D. R. Voss H. J. Gillies S. L. Murphy H. J. Gillies D. R. Voss E. P. Buratto E. P. Buratto S. L. Murphy E. P. Buratto Note: (c) Designates the chair of the committee. ROUNDING The amounts contained in this report and in the financial report have been rounded to the nearest thousand dollars ($’000) (where rounding is applicable) under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183. The Company is an entity to which the legislative instrument applies.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 66 AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES The directors have received an independence declaration from the auditor of Monadelphous Group Limited, as shown on page 89. The following non -audit services were provided by the entity’s auditor, Ernst & Young. The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The nature and scope of each type of non -audit service provided means that auditor independence was not compromised. Ernst & Young received or are due to receive the following amounts for the provision of non-audit services: $ Tax compliance services 48,875 Other 80,000 128,875
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 67 REMUNERATION REPORT (AUDITED) 1. Remuneration Report Overview The Remuneration Report for the year ended 30 June 2026 outlines the remuneration arrangements for Key Management Personnel (KMP) of the Group (consolidated entity comprising the parent entity Monadelphous Group Limited and its subsidiaries) in accordance with the requirements of the Corporations Act 2001. The Remuneration Report forms part of the Directors’ Report and has been audited in accordance with the Corporations Act 2001. 2. Remuneration Philosophy The performance of the Group depends predominantly and primarily upon the quality of its employees. To prosper, the Group must attract, motivate and retain highly skilled employees, which includes the directors and executives of the Group. To this end, the Group embodies the principles of providing competitive rewards to attract and retain high calibre executives, and the linking of executive rewards to the creation of shareholder value. 3. Remuneration Governance 3.1 Overview The Remuneration Committee of the Board of Directors of Monadelphous is responsible for reviewing and recommending to the Board for approval, compensation arrangements for directors and the executive management team. The composition of the Remuneration Committee is set out on page 65 of this report. Further information about the Remuneration Committee’s role and responsibilities is available on the Group’s website at www.monadelphous.com.au. The Remuneration Committee utilises remuneration survey data compiled by recognised remuneration research organisations across a range of industries and geographic regions. The remuneration survey data is updated every 6 months and is used to assess the appropriateness of the nature and amount of remuneration of directors and the executive management team. This assessment is made with reference to relevant employment market conditions, with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executive team. In recommending the remuneration levels of directors and executives, the Remuneration Committee takes into consideration the performance of the Group, divisions and business units, as well as that of the individual. 3.2 Remuneration Structure In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration is separate and distinct. 3.3 Employment Contracts All executives have non -fixed term employment contracts. The Group or the executive may terminate the employment contract by providing the required notice (3 months for the Chief Financial Officer or 6 months for the Managing Director and Executive General Managers) . The Group may terminate the contract at any time without notice if serious misconduct has occurred.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 68 REMUNERATION REPORT (AUDITED) (CONTINUED) 3. Remuneration Governance (continued) 3.4 Hedging of Equity Awards The Group prohibits executives from entering into arrangements to protect the value of unvested equity-based awards. The prohibition includes entering into contracts to hedge their exposure to options awarded as part of their remuneration package. 3.5 Share Trading Policy Under the Group’s Share Trading Policy, Key Management Personnel and other employees may only trade in securities of Monadelphous during specific periods, and then only if they do not possess any unpublished, price-sensitive information in relation to those securities. The trading periods in which buying and selling of Monadelphous securities, either directly or indirectly, by a Key Management Personnel or other employee is allowed, spans the periods between 24 hours and 30 working days after each of the following events: ▪ release of the annual and half-yearly results to the ASX; ▪ the close of the Annual General Meeting; or ▪ any other time as the Board permits. All other periods are ‘closed periods’ during which Key Management Personnel and other employees are prohibited from dealing in Monadelphous securities, except with the explicit approval of the Executive Chair. From time to time, the Board may also declare that Key Management Personnel and other employees are prohibited from dealing in Monadelphous securities during trading periods even though those trading periods are not closed periods. Before commencing to trade, a Key Management Personnel or other employee must first notify the Company Secretary of their intention to do so. The notification must state that the proposed purchase or sale is not as a result of access to, or being in posses sion of, price sensitive information that is not currently in the public domain. As required by the ASX Listing Rules, the Company notifies the ASX of any transaction conducted by the directors in the securities of the Company. For a copy of the Share Trading Policy, please refer to the Monadelphous website. 4. Key Management Personnel For the purposes of this report Key Management Personnel of the Group are defined as those persons having the authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent entity. For the purposes of this report, the term ‘executive’ encompasses the Executive Chair, Managing Director (MD), Chief Financial Officer (CFO) and Executive General Managers (EGM) of the Group.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 69 REMUNERATION REPORT (AUDITED) (CONTINUED) 4. Key Management Personnel (continued) The following persons were classified as Key Management Personnel during the financial year ended 30 June 2026: Directors R. Velletri Executive Chair Z. Bebic Managing Director S. L. Murphy Deputy Chair and Lead Independent Non-Executive Director D. R. Voss Independent Non-Executive Director H. J. Gillies Independent Non-Executive Director E. P. Buratto Independent Non-Executive Director Senior Executives P. Trueman Chief Financial Officer and Company Secretary A. Reid Executive General Manager, Maintenance & Industrial Services A. Cook Executive General Manager, Engineering Construction 5. Executive Remuneration 5.1 Overview Objective The Group aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Group to: ▪ Reward executives for Group, divisional, business unit and individual performance; ▪ Align the interests of executives with those of shareholders; and ▪ Ensure total remuneration is competitive by market standards. Structure In determining the level and make -up of executive remuneration, the Remuneration Committee receives external survey data from recognised remuneration research organisations and considers market levels for comparable executive roles when making its recommendations to the Board. The Executive Chair receives only fixed remuneration and is not eligible to participate in the variable remuneration plans. Executive remuneration consists of fixed and variable remuneration elements comprising short and long-term reward plans. The proportion of fixed and variable remuneration is established for each executive by the Remuneration Committee and Board. From time to time, the Group reviews the structure and composition of variable remuneration to ensure it remains relevant and market competitive.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 70 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) Below is a diagram of the composition of Executive Remuneration provided during the financial year ended 30 June 2026: Fixed Remuneration Variable Remuneration Short-Term Incentive – Combined Reward Plan Long-Term Incentive – Long-Term Senior Leadership Performance Reward Plan The following table provides an overview of the various elements of Executive Remuneration for the financial year ended 30 June 2026. Further details of each element are provided in subsequent sections of this report. Remuneration Element Individual Components Purpose Link to Performance Fixed Remuneration Comprises base salary, superannuation and other benefits. To provide market competitive fixed remuneration appropriate to the position and competitive in the market, taking into account the individual’s skills, experience and qualifications. Assessed at an individual level based on performance of responsibilities and cultural alignment with the Group’s values. Variable Remuneration – Short-Term Incentive (STI) – Combined Reward Plan Comprises cash and/or performance rights under the Monadelphous Group Limited Performance Rights Plan Rules. To recognise and reward senior leaders of the business who contribute to the Group’s performance and ensure employee retention and the creation of shareholder wealth through deferred equity ownership. Awards are made following an annual performance assessment against financial, safety, people, customer satisfaction and strategic progress targets set by the Board. Vesting of performance rights is dependent on continuity of employment. Variable Remuneration – Long-Term Incentive (LTI) – Long-Term Senior Leadership Performance Reward Plan Comprises performance rights issued under the Monadelphous Group Limited Performance Rights Plan Rules. To retain and reward key employees in a manner aligned to the creation of shareholder wealth. Vesting of awards is dependent on exceeding Earnings Per Share (EPS) growth targets and continuity of employment. Cash Base Salary + Superannuation + Other Benefits Performance Rights (1 and 2 years) Performance Rights (3 years)
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 71 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) Certain awards made in prior years under the Employee Option Plan and the one -off Employee Retention Plan, vested during the prior year ended 30 June 2025. The following table provides an overview of these plans. Remuneration Element Individual Components Purpose Link to Performance Variable Remuneration – LTI – Employee Option Plan Comprises options issued under the Monadelphous Group Limited Employee Option Plan. To retain and reward key employees in a manner aligned to the creation of shareholder wealth. Vesting of awards is dependent on exceeding EPS growth targets and continuity of employment. Variable Remuneration – One-off Retention Incentive – Employee Retention Plan Comprises a one-off issue of Retention Rights granted in the form of performance rights subject to the Monadelphous Group Limited Performance Rights Plan Rules. Specifically developed to mitigate the effects of the extremely tight labour market. To retain and recognise key employees whose contribution is of critical strategic and operational importance to Monadelphous, enabling them to share in the long-term performance of the Company in a manner which is aligned to the creation of shareholder wealth. Vesting of awards is dependent on continuity of employment. 5.2 Fixed Remuneration Objective Monadelphous has a structured approach aimed at delivering fixed remuneration which is market competitive and rewards performance. The Group participates in a number of respected remuneration surveys, receiving six-monthly market and forecast data, and its remuneration system is designed to analyse detailed market and sector information at various levels. The level of fixed remuneration is set to provide a base level of remuneration which is both appropriate to the position and competitive in the market, taking into account the individual’s skills, experience and qualifications. Fixed remuneration levels are considered annually by the Remuneration Committee having reviewed an individual’s performance, alignment with the Group’s values and comparative remuneration levels in the market. Structure Executives are given the opportunity to receive their fixed remuneration in a variety of forms including base salary, superannuation and other benefits. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost for the Group.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 72 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) 5.3 Variable Remuneration – STI – Combined Reward Plan Objective The objective of the Combined Reward Plan (CR Plan) is to recognise and reward the senior leaders of the business who contribute and are key to the Group’s success. The CR Plan is a short -term incentive plan, rewarding the annual performance of both the Group and the employee. A deferred equity component in the award, which is subject to continued employment and disposal restrictions, encourages employee retention and the creation of shareholder value through long -term share ownership, with employee and shareholder alike benefitting from the long-term growth in the share price. Structure Under the CR Plan, the Board has the discretion to make awards on an annual basis subject to Group and individual performance. Awards may be delivered in the form of a combination of cash and/or performance rights. The number of performance rights offered is calculated using the arithmetic average of the ten -day daily volume weighted average market price of the Company’s ordinary shares commencing on the second trading day after the record date in respect of the final dividend. This calculation is the same as that used to determine the undiscounted share price for the Dividend Reinvestment Plan. During the year, a review was undertaken of the structure of the CR Plan to ensure it remains an appropriate short-term incentive for the Group. Market data and peer analysis were considered. In prior years, 75% of the CR Plan award was deferred equity (25% paid upfront in cash), with vesting occurring in equal instalments, one, two and three years after award. The review indicated that equity deferral continues to be an important element of short -term incentives for Australian listed entities . On average this typically represents around 50% of the award with a deferral period of two years. As a result, the Group has adjusted the proportion of the award offered as equity, increased the target and maximum opportunity and reduced the deferral period to more closely align with market practice. For awards under the CR Plan for the year ended 30 June 2026, the cash component comprises 33%, with deferred equity representing 67%. The performance rights vest into Monadelphous ordinary shares in equal instalments, one and two years after award, subject to the employee remaining continuously employed by the Group between grant and vest date. No exercise price is payable at the time of grant or vesting of performance rights. Any shares acquired upon vest of performance rights are restricted from disposal until the opening of the Monadelphous share trading window following release of the Group’s financial results, two years following award. Unvested performance rights remain subject to Monadelphous’ clawback policy. The Board has the discretion as to the circumstances that would result in a clawback of unvested performance rights and may give consideration to factors including where the employee acts fraudulently or dishonestly or otherwise acts in a manner that causes damage to the Group’s reputation, material financial misstatement, significant Group financial underperformance, or there is negligence, lack of compliance or significant personal underperformance on the employee’s part. Performance Requirements At the beginning of each financial year, the Board sets quantified, challenging, short-term performance targets for the key performance areas of the business, taking into account the prevailing economic conditions for the year ahead, the Group’s strategic objectives and the key risk factors facing the business at that time. The targets are designed to focus the activities of the business on the key areas of performance that deliver long- term sustainable growth for shareholders.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 73 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) For the year ended 30 June 2026, the Managing Director had a target opportunity of 50% (2025: 40%) of fixed remuneration, and a maximum opportunity of 75% (2025: 60%). Executives had a target opportunity of 40% (2025: 30%) of fixed remuneration, and a maximum opportunity of 60% (2025: 45%). The target opportunity is awarded for achieving the objectives set by the Board at the beginning of each financial year. In order for the maximum opportunity to be awarded, performance must be a clear margin above the planned targets that were set. At the end of each financial year, the Board assesses the Group’s net profit before tax performance against the budgeted target prior to any awards being considered under the CR Plan. Once the Board has approved that an award can be made under the CR Plan, executive performance is assessed against the relevant targets set at the beginning of the financial year at a Group, division, business unit and individual level. This assessment is taken into account when determining the amount, if any, of the award to be made to each individual under the CR Plan, with annual awards being subject to approval by the Remuneration Committee and Board. The following key performance areas are considered in the assessment process, covering a number of financial and non-financial, Group and divisional measures of performance. The table below provides an overview of these key performance areas and the weighting applied when assessing performance. Earnings Performance Other Key Performance Areas Group Net Profit After Tax1 Divisional Earnings Contribution Group Divisional MD 60% - 40% - CFO 60% - - 40% EGM 30% 30% - 40% 1 Following the review of the CR Plan during the period, this measure was changed from earnings per share to net profit after tax. Other key performance areas include: ▪ Working capital management ▪ Safety performance ▪ People performance ▪ Customer satisfaction ▪ Strategic progress Other key performance areas are weighted evenly (i.e. 20% weighting). The Group regards the performance targets and the actual result as confidential and commercially sensitive in nature and if disclosed, would provide an unfair advantage to competitors. Awards made under the CR Plan for the year ended 30 June 2026 are outlined in section 7.2.1. 5.4 Variable Remuneration – LTI – Long-Term Senior Leadership Performance Reward Plan Objective The objective of the Long-Term Senior Leadership Performance Reward (LTPR) Plan is to retain and reward members of the senior leadership team in a manner aligned with the creation of long-term shareholder wealth by rewarding sustained earnings delivery. The LTPR Plan is the Group’s primary long-term employee equity plan, with the Employee Option Plan available for future use as appropriate.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 74 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) Structure Awards under the LTPR Plan are in the form of performance rights and will be considered on an annual basis, with the timing of the awards and the vesting criteria, determined by the Remuneration Committee and Board. Participation in the LTPR Plan is limited to the senior leadership of the business, being those responsible for the development and management of the strategic direction of the Group. The quantum of the awards made under the LTPR Plan for 2025 and issued during the year ended 30 June 2026 are 60% (2025: 50%) of fixed annual remuneration for the Managing Director and 50% (2025: 40%) of fixed annual remuneration for senior executives. Performance rights vest three years after grant, subject to the satisfaction of a single Earnings Per Share growth performance hurdle and a continued employment vesting condition for the period from grant to vest. No exercise price is payable at the time of grant or vesting of performance rights. One share will be issued for each vested performance right. Performance is not re-tested and any rights which do not vest will lapse. Unless otherwise determined by the Board, unvested performance rights will be forfeited if an employee ceases employment with the Group or if the Board determines (acting reasonably and in good faith) that any applicable performance hurdles or vesting conditions have not been met or cannot be met by the relevant date. Unvested performance rights remain subject to Monadelphous’ clawback policy. The Board has the discretion as to the circumstances that would result in a clawback of unvested performance rights and may give consideration to factors including where the employee acts fraudulently or dishonestly or otherwise acts in a manner that causes damage to the Group’s reputation, material financial misstatement, significant Group financial underperformance, or there is negligence, lack of compliance or significant personal underperformance on the employee’s part. Performance Requirements As noted above, performance rights vest three years after grant, subject to the satisfaction of an Earnings Per Share growth performance hurdle and a continued employment vesting condition for the period from grant to vest (measurement period). The Board has determined that Earnings Per Share growth over the measurement period is the most appropriate and transparent measure of executive effectiveness given Monadelphous’ business model and capital structure. This is based on the following: • The Company’s policy is to deliver a dividend payout ratio in the range of 80 to 100 per cent of annual net profit after tax , such that long -term shareholder value is primarily delivered through sustainable earnings. • Earnings Per Share growth directly underpins dividend capacity and therefore shareholder outcomes. • Management has a clear line-of-sight to the operational and financial decisions that drive earnings performance. • Monadelphous has a strong balance sheet, and retention of capital beyond business requirements would not be expected to enhance long-term shareholder value. Earnings Per Share growth targets are set on an absolute, multi -year basis and are calibrated to be appropriately stretching.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 75 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) Although Earnings Per Share growth is the sole performance hurdle, the LTPR Plan is delivered entirely through equity in the form of performance rights, ensuring strong alignment with shareholder experience. There are no cash outcomes under the LTPR Plan and performance rights have no value unless the Earnings Per Share growth target is met and the share price performs. Earnings Per Share growth determines whether performance rights vest, while the share price at vesting determines the value ultimately realised, ensuring executives remain exposed to both earnings delivery and shareholder outcomes. While total shareholder return ( TSR) remains an important indicator of shareholder experience, the Board does not consider TSR to be an effective measure of executive performance at this time as TSR outcomes are materially influenced by external factors such as interest rates, valuations cycles and market sentiment. In a high-payout business, TSR is largely driven by dividend yield and market valuation, rather than incremental management performance over finite measurement periods. The Board considers that the inclusion of TSR as a vesting hurdle would introduce volatility without improving accountability or alignment. Awards made under the LTPR Plan during the year ended 30 June 2026 and the specific performance requirements for the award are outlined in section 7.3.1. 5.5 Prior Year Plan – Variable Remuneration – LTI – Employee Option Plan Objective The objective of the Employee Option Plan is to retain and reward key employees in a manner aligned with the creation of shareholder wealth. As noted above, the LTPR Plan has replaced the Employee Option Plan as the Group’s primary long-term employee equity plan. Structure Awards under the Employee Option Plan to executives are at the discretion of the Remuneration Committee and Board and are delivered in the form of options. Should any issue of options be considered, the performance rating of each executive and the annual cost to the Group, on an individual basis, is taken into account when determining the amount, if any, of options granted. In accordance with the terms of the offer and the rules of the Monadelphous Group Limited Employee Option Plan, options can only be exercised in specified window periods (or at the discretion of the Board in particular circumstances) and are subject to the financial performance of the Group during the option vesting period (measurement period). Earnings Per Share growth is used to measure the performance of the Group over the measurement period, as in the opinion of the Board this metric provides the best representation of Group performance on an annual basis and is influenced by executive performance. In subsequent window periods, performance will be re-tested and any options that were incapable of exercise in earlier window periods will become available for exercise to the extent that EPS performance has ‘caught up’ and the EPS growth hurdle is met over the longer measurement period. At the end of the final window period, any options remaining that are not capable of exercise, as a result of the performance hurdle not being achieved, will lapse. There were no awards granted under the Employee Option Plan during the year ended 30 June 2026. The final tranche of the award made under the 2020 Employee Option Plan vested in September 2024.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 76 REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive Remuneration (continued) 5.6 Prior Year Plan – Variable Remuneration – One-off Retention Incentive – Employee Retention Plan Objective In response to significantly high industry activity levels which extensively impacted the Group’s ability to source and retain talent , the Group implemented the one-off Monadelphous Employee Retention Plan (ER Plan) in December 2021. The objective of the ER Plan was to act as a retention incentive and to recognise key employees whose sustained contribution was of critical strategic and operational importance to the success of the business, in a manner aligned to the creation of shareholder wealth through equity ownership. Structure The ER Plan provided a one-off issue of retention rights to key employees, with vesting subject to continued employment between grant and vest, as well as disposal restrictions attached to resulting shares. It enabled employees critical to the achievement of the Company’s strategic objectives to share in the long -term performance of the Company. Retention rights were allocated under the terms of the Monadelphous Group Limited Employee Retention Plan and were granted in the form of performance rights subject to the Monadelphous Group Limited Performance Rights Plan Rules. The retention rights vested into Monadelphous ordinary shares in equal instalments, one, two and three years after grant (i.e. 20 December 2022, 20 December 2023 and 20 December 2024) , subject to the vesting condition of the employee remaining continuously employed by the Company between grant and vest dates, with one share issued for each vested retention right. S hares acquired upon vesting of retention rights were restricted from disposal until three years from grant on 20 December 2024. No awards were granted under the ER Plan during the year ended 30 June 202 6. The final tranche of the award made in 2021 under the ER Plan vested in December 2024.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 77 REMUNERATION REPORT (AUDITED) (CONTINUED) 6. Group Performance The table below sets out the earnings and movements in shareholder wealth for the Group for the last five years. Further information has also been provided on page 16 of this report. Change 2025 to 2026 2026 2025 2024 2023 2022 Profit after income tax expense attributable to equity holders of the parent ($’000) +52.1% 127,300 83,721 62,203 53,543 52,219 Basic earnings per share (cents) +50.1% 127.56 85.01 64.08 55.85 54.90 Share price as at 30 June ($) +76.5% 30.99 17.56 12.84 11.72 9.95 Total dividends (cents per share) +50.0% 108.00 72.00 58.00 49.00 49.00 7. 2026 Executive Remuneration Outcomes 7.1 Fixed Remuneration Refer to Tables at 7.4.1 and 7.4.2 for the fixed remuneration for Executive Key Management Personnel for the financial years ended 30 June 2026 and 30 June 2025. The fixed remuneration component comprises salary and fees, leave (annual and long service leave accrual less annual and long service leave taken), superannuation and non-monetary benefits (life and salary continuance insurance premiums). 7.2 Combined Reward Plan 7.2.1 Performance rights awarded under the Combined Reward Plan for the year ended 30 June 2026 Based on the financial performance of the Group for the year ended 30 June 2026, the Board determined that an award would be made under the 2026 CR Plan with approximately 250 employees eligible for an award, comprising cash and performance rights. Key elements of the award made under the 2026 CR Plan are outlined in the table below: 2026 CR Plan Award Performance Period 1 July 2025 to 30 June 2026 Performance Requirements Refer to section 5.3. Performance Outcomes Refer to table on page 78. Award Components ▪ 33% cash payment to be paid in August 2026 ▪ 67% to be offered as performance rights in or around October 2026 ▪ The number of performance rights to be offered will be calculated using the arithmetic average of the ten -day daily volume weighted average market price of the Company’s ordinary shares commencing on the second trading day after the record date in respect of the FY26 final dividend. This calculation is the same as that used to determine the undiscounted share price for the Dividend Reinvestment Plan. Vesting Condition The employee must remain in the employ of the Group between the grant and vesting date (unless the Board determines otherwise). Vesting Date It is intended that the performance rights component will vest into shares in equal instalments, on 1 July 2027 and 1 July 2028, with one share issued for each vested performance right. Disposal Restriction Resulting shares will be restricted from disposal until the opening of the Monadelphous share trading window following the release of the 30 June 2028 financial results, in or around August 2028.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 78 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) The following table provides an overview of the Group and divisional performance for the year ended 30 June 2026 against the key performance areas: Key Performance Area FY26 Performance Threshold Target Maximum Commentary Earnings Performance Group Engineering Construction Maintenance & Industrial Services Strong operational performance and economies of scale resulting from growth during the period drove a significant lift in earnings. Net Profit After Tax was $127.3 million, an increase of 52.1 per cent compared to the prior year. EBITDA margin increased to 7.58 per cent, up from 6.98 per cent in the prior year. Working Capital Management Group Engineering Construction Maintenance & Industrial Services The cash balance at year end was a strong $293.6 million. Monadelphous generated a healthy cash flow from operations for the period of $245.1 million and a strong cashflow conversion rate of 147.4 per cent. Safety Group Engineering Construction Maintenance & Industrial Services Monadelphous’ 12-month Total Recordable Injury Frequency Rate at 30 June 2026 improved 19 per cent to 3.57 incidents per million hours worked, following successful campaigns to ensure the safety and wellbeing of its employees during a period of rapid growth. The Group’s High Potential Incident Frequency Rate also continued to improve, reaching a historically low level, reflecting a relentless focus on the prevention of fatal risks. People Group Engineering Construction Maintenance & Industrial Services Monadelphous’ workforce (including subcontractors) at 30 June 2026 totalled a record 9,365 people, a 3 per cent increase on the prior year. An ongoing focus on employee development supported strong key talent retention of 97 per cent. Customer Satisfaction Group Engineering Construction Maintenance & Industrial Services Customer satisfaction levels are measured through customer surveys. Customer expectations and performance against competitors were above target. For the year, the survey data consistently showed a high level of customer satisfaction with the quality of services delivered by Monadelphous. Strategy Group Engineering Construction Maintenance & Industrial Services Monadelphous secured more than $2.7 billion in new contracts and contract extensions since the beginning of the financial year, and enters the 2027 financial year with a solid pipeline of committed work, an expanded customer base and a broadening capability aligned with long-term industry growth prospects. Monadelphous continues to grow its market position supporting Australia’s energy transition. The Company secured a major contract for the construction of the Brigalow Peaking Power Plant which is intended to supply energy to more than 150,000 homes during peak demand, supporting grid reliability and complement ing renewable energy. The Company also continued to support Fortescue’s decarbonisation activities with battery energy storage system and wind projects. Zenviron, the Company’s renewable energy joint venture, experienced high levels of activity strengthening its market position. The Company completed several strategic acquisitions during the year, progressing its markets and growth strategy and enhancing its capability. The Company acquired Kerman Contracting, a Western Australian-based design and construction business specialising in non -process infrastructure, and Australian Power Industry Partners (APIP), a high -voltage electrical contractor servicing utilities, resources and renewable energy customers across multiple states of Australian . In addition to the acquisition of Perth-based high-voltage services business, High Energy Service (HES), completed early in the year.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 79 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) The following table sets out the awards under the CR Plan for each executive for the financial years ended 30 June 2026 and 30 June 2025: Executive 2026 Total Award $ 2025 Total Award $ 2026 % of Maximum Opportunity Earned 2025 % of Maximum Opportunity Earned Z. Bebic 767,400 534,300 97% 87% P. Trueman 404,400 276,400 98% 92% A. Cook 440,100 264,300 99% 82% A. Reid 414,700 300,600 93% 93% The performance right component of the award relating to the year ended 30 June 2026, which is to be offered in or around October 2026, is amortised over three years. It is estimated, based on the share price at 30 June 2026, that approximately 43,598 performance rights will be offered to Key Management Personnel under the terms of the 2026 CR Plan (2025: 48,007 performance rights – refer to 7.2.2). 7.2.2 Performance rights granted during the year under the 2025 Combined Reward Plan Key elements of the award made under the 2025 CR Plan and granted during the year ended 30 June 2026 are outlined in the table below: 2025 CR Plan Award Performance Period 1 July 2024 to 30 June 2025 Performance Requirements and Outcomes Performance requirements for the year ended 30 June 2025 were satisfied, resulting in an award during the year ended 30 June 2026. Award Components ▪ 25% cash payment paid in August 2025 ▪ 75% performance rights issued in November 2025 ▪ The number of performance rights issued were calculated using the arithmetic average of the ten -day daily volume weighted average market price of the Company’s ordinary shares commencing on the second trading day after the record date in respect of the FY25 final dividend, equivalent to the Dividend Reinvestment Plan price which was $21.49. Vesting Condition The employee must remain in the employ of the Group between the grant and vesting date (unless the Board determines otherwise). Vesting Date The performance rights component for the 2025 award vests into shares in equal instalments, on 1 July 202 6, 1 July 202 7 and 1 July 202 8, with one share issued for each vested performance right. Disposal Restriction Resulting shares will be restricted from disposal until the opening of the Monadelphous share trading window following the release of the 30 June 202 8 financial results, in or around August 2028.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 80 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) Performance rights granted to Key Management Personnel under the 2025 CR Plan during the year ended 30 June 2026 are outlined in the following table. Terms and Conditions for Each Grant Granted Number Grant Date Fair Value per Right at Grant Date $ Exercise Price per Right $ Expiry Date First Exercise Date Last Exercise Date Executive Directors R. Velletri - - - - - - - Z. Bebic 18,647 25/11/2025 24.45 Nil 1/7/2028 1/7/2026 1/7/2028 Other Key Management Personnel P. Trueman 9,646 15/08/2025 15.35 Nil 1/7/2028 1/7/2026 1/7/2028 A. Cook 9,224 15/08/2025 15.35 Nil 1/7/2028 1/7/2026 1/7/2028 A. Reid 10,490 15/08/2025 15.35 Nil 1/7/2028 1/7/2026 1/7/2028 Total 48,007 7.2.3 Performance rights exercised during the year under the Combined Reward Plan Shares issued during the year ended 30 June 2026 to Key Management Personnel on vesting and exercise of performance rights representing the third tranche of the award under the terms of the 2022 CR Plan, the second tranche of the award under the terms of the 2023 CR Plan and the first tranche of the award under the terms of the 2024 CR Plan are outlined in the following table. Performance Rights Vested Performance Rights Exercised Shares Issued Paid per Share $ Executive Directors R. Velletri1, 2 9,674 9,674 9,674 Nil Z. Bebic1 20,346 20,346 20,346 Nil Senior Executives P. Trueman1 12,166 12,166 12,166 Nil A. Cook1 7,214 7,214 7,214 Nil A. Reid1 10,796 10,796 10,796 Nil Total 60,196 60,196 60,196 1 On 1 July 2025, the date of exercise of the above performance rights, the closing share price was $17.19. 2 Vesting of performance rights granted to R. Velletri in his previous role as Managing Director.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 81 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) Subsequent to year end on 1 July 2026, 55,160 shares were issued to Key Management Personnel on vesting and exercise of performance rights representing the third tranche of the award under the terms of the 2023 CR Plan, the second tranche of the award under the terms of the 2024 CR Plan and the first tranche of the award under the terms of the 2025 CR Plan. 7.3 Long-Term Senior Leadership Performance Reward Plan 7.3.1 Performance rights granted during the year under the Long -Term Senior Leadership Performance Reward Plan On 3 November 2025, 385,254 performance rights were issued under the LTPR Plan for 2025 to approximately 110 employees, including 50,636 performance rights to Key Management Personnel , with a further 29,538 performance rights issued to the Managing Director on 25 November 2025 following shareholder approval at the Company’s AGM. Key elements of the award made under the LTPR Plan in November 2025 are outlined in the table below: 2025 LTPR Plan Award Award Components 100% granted as performance rights on 3 and 25 November 2025 Performance Period Performance is assessed over a three year period between the financial years ending 30 June 2026 and 30 June 2028 (measurement period). Performance Requirement ▪ EPS growth is used to measure the financial performance of the Group over the measurement period. ▪ For 100 per cent of the performance rights to vest, EPS growth of at least 8 per cent per annum (compounded over the measurement period) is required. ▪ If EPS growth is 4 per cent per annum (compounded over the measurement period), 50 per cent of the performance rights will vest. ▪ If EPS growth is between 4 and 8 per cent per annum (compounded over the measurement period), a pro-rata number of performance rights will vest. ▪ No performance rights will vest if EPS growth is less than 4 per cent per annum (compounded over the measurement period). ▪ Unless the Board determines otherwise, any performance rights that do not vest as a result of the performance hurdle not being satisfied will be forfeited. Vesting Condition The employee must remain in the employ of the Group between the grant and vesting date (unless the Board determines otherwise). Vesting Date Performance rights will vest three years after grant on 3 November 2028, subject to the financial performance of the Group over the measurement period and continued employment vesting condition. 7.3.2 Performance rights exercised during the year under the Long -Term Senior Leadership Performance Reward Plan There were no performance rights exercised under the Long-Term Senior Leadership Performance Reward Plan during the year ended 30 June 2026.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 82 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) Performance rights granted to Key Management Personnel under the Long -Term Senior Leadership Performance Reward Plan during the year ended 30 June 2026 are outlined in the following table. Terms and Conditions for Each Grant Granted Number Grant Date Fair Value per Right at Grant Date $ Exercise Price per Right $ Expiry Date First Exercise Date Last Exercise Date Executive Directors R. Velletri - - - - - - - Z. Bebic 29,538 25/11/2025 24.79 Nil 3/11/2028 3/11/2028 3/11/2028 Other Key Management Personnel P. Trueman 16,048 2/10/2025 20.81 Nil 3/11/2028 3/11/2028 3/11/2028 A. Cook 17,294 2/10/2025 20.81 Nil 3/11/2028 3/11/2028 3/11/2028 A. Reid 17,294 2/10/2025 20.81 Nil 3/11/2028 3/11/2028 3/11/2028 Total 80,174 The performance rights are being amortised over three years.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 83 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) 7.4 Executive Statutory Remuneration Disclosures 7.4.1 Remuneration for the year ended 30 June 2026 Short-Term Benefits Post Employment Long- Term Benefits Share- Based Payments 3 Total Total Perform- ance Related Total Rights Related Salary & Fees $ Leave 1 $ Non- Monetary 2 $ Cash Award $ Super- annuation $ Leave1 $ Rights $ $ % % Executive Directors R. Velletri 713,000 23,898 - - 30,000 (134,198) - 632,700 - - Z. Bebic 1,008,500 (5,546) 19,470 255,800 30,000 43,264 885,847 2,237,335 51.03 39.59 Subtotal Executive Directors 1,721,500 18,352 19,470 255,800 60,000 (90,934) 885,847 2,870,035 39.78 30.87 Other Key Management Personnel P. Trueman 647,500 (19,126) 12,250 134,800 30,000 16,815 419,147 1,241,386 44.62 33.76 A. Cook 700,000 (21,331) 13,300 146,700 30,000 15,534 438,440 1,322,643 44.24 33.15 A. Reid 700,000 22,544 13,300 138,233 30,000 (39,305) 446,688 1,311,460 44.60 34.06 Subtotal Other Key Management Personnel 2,047,500 (17,913) 38,850 419,733 90,000 (6,956) 1,304,275 3,875,489 44.48 33.65 Total Executive Key Management Personnel 3,769,000 439 58,320 675,533 150,000 (97,890) 2,190,122 6,745,524 42.48 32.47 1 Leave reflects annual and long service leave accrual less annual and long service leave taken. 2 Non-monetary benefits consist of Life and Salary Continuance insurance premiums. 3 Relates to the 2023, 2024, 2025 and 2026 awards under the CR Plan and 2023, 2024 and 2025 awards under the LTPR Plan.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 84 REMUNERATION REPORT (AUDITED) (CONTINUED) 7. 2026 Executive Remuneration Outcomes (continued) 7.4.2 Remuneration for the year ended 30 June 2025 Short-Term Benefits Post Employment Long- Term Benefits Share- Based Payments 3 Total Total Perform- ance Related Total Rights and Options Related Salary & Fees $ Leave 1 $ Non- Monetary 2 $ Cash Award $ Super- annuation $ Leave1 $ Rights and Options $ $ % % Executive Directors R. Velletri 688,068 30,498 - - 29,932 (245,546) 80,648 583,600 13.82 13.82 Z. Bebic 975,000 (13,442) 18,800 133,575 29,932 51,370 582,616 1,777,851 40.28 32.76 Subtotal Executive Directors 1,663,068 17,056 18,800 133,575 59,864 (194,176) 663,264 2,361,451 33.74 28.09 Other Key Management Personnel P. Trueman 625,000 10,537 11,800 69,100 29,932 (24,826) 312,288 1,033,831 36.89 30.21 A. Cook 677,500 4,670 12,850 66,075 29,932 14,784 278,810 1,084,621 31.80 25.71 A. Reid 677,500 1,296 12,850 75,150 29,932 19,096 320,492 1,136,315 34.82 28.20 Subtotal Other Key Management Personnel 1,980,000 16,503 37,500 210,325 89,796 9,054 911,590 3,254,767 34.47 28.01 Total Executive Key Management Personnel 3,643,068 33,559 56,300 343,900 149,660 (185,122) 1,574,854 5,616,218 34.16 28.04 1 Leave reflects annual and long service leave accrual less annual and long service leave taken. 2 Non-monetary benefits consist of Life and Salary Continuance insurance premiums. 3 Relates to the 2022, 2023, 2024 and 2025 awards under the CR Plan, 2020 award under the Option Plan, 2021 award under the ER Plan, and 2023 and 20 24 awards under the LTPR Plan.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 85 REMUNERATION REPORT (AUDITED) (CONTINUED) 8. Non-Executive Director Remuneration 8.1 Overview Objective The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders. Structure The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non -executive directors shall be determined from time to time by a general meeting. The most recent determination was at the Annual General Meeting held on 19 November 20 19 when shareholders approved an aggregate remuneration of $850,000 in the ‘not to exceed sum’ paid to non-executive directors. The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually. The Remuneration Committee and Board consider the fees paid to non-executive directors of comparable companies when undertaking the annual review process. Non-executive director fees consist of base fees and committee chair fees. The Deputy Chair/Lead Independent Non-executive Director also receives an additional fee. The payment of committee chair fees recognises the additional time commitment required by n on-executive directors to chair the Board committees. Committee members do not receive a separate fee for sitting on a committee. 8.2 Fees and Other Benefits The table below summarises Board and Committee fees payable to non-executive directors for the financial year ended 30 June 2026 (inclusive of superannuation): Board / Committee Chair Fees $ Non-executive Director fee 144,500 Board Deputy Chair/Lead Independent Non-executive Director & Chair of Remuneration Committee additional fee 22,500 Chair of Audit Committee additional fee 17,500 Note, the Nomination Committee is chaired by the Executive Chair and there is no additional fee.
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 86 REMUNERATION REPORT (AUDITED) (CONTINUED) 8. Non-Executive Director Remuneration (continued) 8.3 Non-Executive Director Statutory Remuneration Disclosures 8.3.1 Remuneration for the year ended 30 June 2026 Short-Term Benefits Salary & Fees $ Superannuation $ Total $ Non- Executive Directors S. L. Murphy 149,107 17,893 167,000 D. R. Voss 129,018 15,482 144,500 H. J. Gillies 144,643 17,357 162,000 E. P. Buratto 129,018 15,482 144,500 Total Non-Executive Directors 551,786 66,214 618,000 8.3.2 Remuneration for the year ended 30 June 2025 Short-Term Benefits Salary & Fees $ Superannuation $ Total $ Non- Executive Directors S. L. Murphy 143,049 16,451 159,500 D. R. Voss 125,112 14,388 139,500 H. J. Gillies 138,565 15,935 154,500 E. P. Buratto 125,112 14,388 139,500 Total Non-Executive Directors 531,838 61,162 593,000
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 87 REMUNERATION REPORT (AUDITED) (CONTINUED) 9. Additional Statutory Disclosures 9.1 Additional disclosures relating to rights and shares 9.1.1 Combined Reward Plan Performance Rights holdings of Key Management Personnel CR Plan Performance Rights held in Monadelphous Group Limited Balance at Beginning of Period 1 July 2025 Granted as Remuneration 1 Rights Exercised and Lapsed 2 Net Change Other Balance at End of Period 30 June 2026 Executive Directors R. Velletri3 9,674 - (9,674) - - Z. Bebic 45,555 18,647 (20,346) - 43,856 Senior Executives P. Trueman 25,095 9,646 (12,166) - 22,575 A. Cook 18,515 9,224 (7,214) - 20,525 A. Reid 24,164 10,490 (10,796) - 23,858 Total 123,003 48,007 (60,196) - 110,814 1 Performance rights under the 2025 CR Plan granted during the year ended 30 June 2026. 2 Performance rights vested and exercised under the terms of the 2022, 2023 and 2024 CR Plans. 3 Performance rights granted to R. Velletri in his previous role as Managing Director. 9.1.2 Long-Term Senior Leadership Performance Reward Plan Performance Rights holdings of Key Management Personnel LTPR Plan Performance Rights held in Monadelphous Group Limited Balance at Beginning of Period 1 July 2025 Granted as Remuneration Rights Exercised and Lapsed Net Change Other Balance at End of Period 30 June 2026 Executive Directors R. Velletri - - - - - Z. Bebic 76,156 29,538 - - 105,694 Senior Executives P. Trueman 39,778 16,048 - - 55,826 A. Cook 43,037 17,294 - - 60,331 A. Reid 43,037 17,294 - - 60,331 Total 202,008 80,174 - - 282,182
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MONADELPHOUS GROUP LIMITED DIRECTORS’ REPORT 88 REMUNERATION REPORT (AUDITED) (CONTINUED) 9. Additional Statutory Disclosures (continued) 9.1.3 Shareholdings of Key Management Personnel Shares held in Monadelphous Group Limited Balance at Beginning of Period 1 July 2025 Granted as Remuneration On Exercise of Performance Rights Net Change Other Balance at End of Period 30 June 2026 Non-Executive Directors S. L. Murphy 14,137 - - 515 14,652 D. R. Voss 72,659 - - - 72,659 H. J. Gillies 10,476 - - 381 10,857 E. P. Buratto 7,330 - - - 7,330 Executive Directors R. Velletri 2,292,352 - 9,674 - 2,302,026 Z. Bebic 139,819 - 20,346 - 160,165 Senior Executives P. Trueman 56,400 - 12,166 (41,828) 26,738 A. Cook 3,279 - 7,214 113 10,606 A. Reid 9,103 - 10,796 (8,853) 11,046 Total 2,605,555 - 60,196 (49,672) 2,616,079 9.2 Other Statutory Disclosures 9.2.1 Loans to Key Management Personnel and their related parties No directors or senior executives, or their related parties, had any loans during the reporting period. 9.2.2 Other transactions and balances with Key Management Personnel and their related parties During the year, a key management personnel entered into an arm’s length transaction in a personal capacity with a wholly owned subsidiary of the Company, to the value of $19,550. There is no outstanding balance on this transaction at 30 June 2026. The transaction was pre-approved in line with the Company’s policy. END OF REMUNERATION REPORT Signed in accordance with a resolution of the directors. Robert Velletri Chair Perth, 24 August 2026
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 9 The Esplanade Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Auditor’s independence declaration to the directors of Monadelphous Group Limited As lead auditor for the audit of the financial report of Monadelphous Group Limited and for the review of the selective sustainability information in the sustainability report for the financial year ended 30 June 2026, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit and review; b. No contraventions of any applicable code of professional conduct in relation to the audit and review; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit and review. This declaration is in respect of Monadelphous Group Limited and the entities it controlled during the financial year. Ernst & Young Pierre Dreyer Partner 24 August 2026
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 9 The Esplanade Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Independent auditor’s report to the members of Monadelphous Group Limited Report on the audit of the financial report Opinion We have audited the financial report of Monadelphous Group Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2026 and of its consolidated financial performance for the year ended on that date; and b. Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addressed the matter is provided in that context.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to this matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying financial report. Recognition of revenues and profits on long-term contracts Why significant How our audit addressed the key audit matter The Group’s business involves entering into contractual relationships with customers to provide a range of services. A significant proportion of the Group’s revenues and profits are derived from long-term contracts. Revenue recognition involves a significant degree of judgement, with estimates being made to: ▪ Determine the transaction price under the customer contract ▪ Assess the total contract costs ▪ Measure the Group’s progress towards the complete satisfaction of the performance obligations under the customer contract ▪ Appropriately provide for onerous contracts. The Group’s accounting policies and disclosures for revenue are detailed in the financial report as follows: General Information – Key Judgements and Estimates – Accounting for contracts with customers and, Revenue and Contract claims and disputes. The Group’s significant contract related balances that involve significant judgement are disclosed in the financial report as follows: ▪ Note 1 – Revenue and Other Income – Revenue from contracts with customers ▪ Note 6 – Trade and Other Receivables - Other debtors) ▪ Note 7 – Contract Assets, and ▪ Note 12 – Trade and Other Payables - Contract liabilities Given the significance of revenue and profits from long term contracts to the Group’s financial results as well as the high degree of judgement and estimation involved in determining these amounts, we consider this a key audit matter. We examined a sample of key contracts and held discussions with Group executives to understand the specific terms and risks of those contracts in order to assess the revenue recognition policies adopted by the Group. We assessed the operating effectiveness of controls over revenue recognised in the financial report, including controls relating to: ▪ Contract reviews performed by the Group that included estimating total contract revenue and costs, the stage of completion of contracts and contract profitability, including consideration of historical estimation accuracy ▪ Revenue recording and billing processes ▪ Contract cost recording processes including the purchases, payments and payroll processes. For a sample of contracts in progress at 30 June 2026, we performed the following additional procedures: ▪ Understood the performance and status of the contracts through enquiries with the key executives with oversight over the various contract portfolios ▪ Assessed the contract status through the examination of external evidence, such as approved variations, approved customer claims for work performed and customer correspondence ▪ Assessed contract liabilities through the examination of customer advances and customer correspondence ▪ For projects with known disputes, we sighted claim documentation, met with the Group’s internal or external General Counsel and reviewed supporting documentation in relation to the status, entitlement, obligations and disclosure of these matters.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Why significant How our audit addressed the key audit matter We assessed the provisions for onerous contracts and whether these appropriately reflected the expected contractual positions. We assessed the Group’s accounting policies and the adequacy of its related disclosures in the financial report. Information other than the financial report and auditor’s report thereon The directors are responsible for the other information. The other information comprises the information included in the Company’s 2026 annual report other than the financial report and our auditor’s report thereon. We obtained the Directors’ Report, Chair’s Report, Company Performance, Governance and Risk Management and Sustainability Report that are to be included in the annual report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and we do not and will not express any form of assurance conclusion thereon in this auditor’s report, with the exception of the Remuneration Report and our related assurance opinion. We have issued a separate auditor’s report on selective sustainability information included in the Sustainability Report. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of: ▪ The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and ▪ The consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001; and for such internal control as the directors determine is necessary to enable the preparation of: ▪ The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ▪ The consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor ’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ▪ Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. ▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. ▪ Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. ▪ Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. ▪ Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial report. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the Group audit. We remain solely responsible for our audit opinion.
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors’ report for the year ended 30 June 2026. In our opinion, the Remuneration Report of Monadelphous Group Limited for the year ended 30 June 2026, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Ernst & Young Pierre Dreyer Partner Perth 24 August 2026
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MONADELPHOUS GROUP LIMITED DIRECTORS’ DECLARATION 95 In accordance with a resolution of the Directors of Monadelphous Group Limited, I state that: 1) In the opinion of the directors: (a) the financial statements, notes and the additional disclosures included in the Directors’ Report designated as audited, of the consolidated entity are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2026 and of its performance for the year ended on that date; and (ii) complying with Accounting Standards and Corporations Regulations 2001; (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; (c) the financial statements and notes also comply with International Financial Reporting Standards as disclosed on page 102; and (d) the consolidated entity disclosure statement required by section 295 (3A) of the Corporations Act 2001 is true and correct. 2) This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the Corporations Act 2001 for the year ended 30 June 2026. 3) In the opinion of the directors, as at the date of this declaration, there are reasonable grounds to believe that the members of the closed group identified in note 20 will be able to meet any obligations or liabilities to which they are or may become subject to, by virtue of the Deed of Cross Guarantee. On behalf of the Board Robert Velletri Chair Perth, 24 August 2026
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MONADELPHOUS GROUP LIMITED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2026 96 Notes 2026 $’000 2025 $’000 Continuing Operations REVENUE 1 2,796,117 2,162,571 Cost of services rendered (2,565,920) (1,999,440) GROSS PROFIT 230,197 163,131 Other income 1 8,721 12,359 Business development and tender expenses (21,389) (18,886) Occupancy expenses (3,409) (3,555) Administrative expenses (46,708) (37,452) Finance costs 2 (3,536) (3,792) Share of profit from joint ventures 11 16,036 7,335 PROFIT BEFORE INCOME TAX 179,912 119,140 Income tax expense 3 (52,612) (35,393) PROFIT AFTER INCOME TAX 127,300 83,747 ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 127,300 83,721 NON-CONTROLLING INTERESTS - 26 127,300 83,747 Basic earnings per share (cents per share) 4 127.56 85.01 Diluted earnings per share (cents per share) 4 126.09 84.10
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MONADELPHOUS GROUP LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2026 97 2026 $’000 2025 $’000 NET PROFIT FOR THE YEAR 127,300 83,747 OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss: Foreign currency translation (2,114) (1,017) Items that have been reclassified to profit or loss: Foreign currency translation - 34 OTHER COMPREHENSIVE (LOSS) FOR THE YEAR, NET OF TAX (2,114) (983) TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 125,186 82,764 ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 125,186 82,738 NON-CONTROLLING INTERESTS - 26 125,186 82,764
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MONADELPHOUS GROUP LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2026 98 Notes 2026 $’000 2025 $’000 ASSETS Current assets Cash and cash equivalents 5 293,642 205,829 Trade and other receivables 6 554,899 481,445 Contract assets 7 7,803 8,962 Inventories 8 2,037 1,998 Total current assets 858,381 698,234 Non-current assets Other receivables 6 917 - Contract assets 7 13,927 14,077 Property, plant and equipment 9 241,498 215,717 Intangible assets and goodwill 10 39,941 17,423 Investment in joint ventures 11 26,097 17,311 Deferred tax assets 3 50,688 42,468 Total non-current assets 373,068 306,996 TOTAL ASSETS 1,231,449 1,005,230 LIABILITIES Current liabilities Trade and other payables 12 419,867 289,262 Interest bearing loans and borrowings 13 - 4,272 Lease liabilities 14 25,024 21,084 Income tax payable 3 17,504 23,052 Provisions 15 141,309 105,732 Total current liabilities 603,704 443,402 Non-current liabilities Interest bearing loans and borrowings 13 - 2,093 Lease liabilities 14 46,970 52,849 Provisions 15 9,629 9,050 Other payables 2,097 - Total non-current liabilities 58,696 63,992 TOTAL LIABILITIES 662,400 507,394 NET ASSETS 569,049 497,836 EQUITY Contributed equity 18 168,829 150,120 Reserves 19 80,081 67,126 Retained earnings 19 320,139 280,590 TOTAL EQUITY 569,049 497,836
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MONADELPHOUS GROUP LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2026 99 Attributable to equity holders Issued Capital Share- Based Payment Reserve Foreign Currency Translation Reserve Retained Earnings Non- Controlling Interests Fair Value Reserve for Financial Assets Equity Reserve Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 At 1 July 2025 150,120 74,615 (5,873) 280,590 - 2,856 (4,472) 497,836 Other comprehensive loss - - (2,114) - - - - (2,114) Profit for the period - - - 127,300 - - - 127,300 Total comprehensive income for the period - - (2,114) 127,300 - - - 125,186 Transactions with owners in their capacity as owners Shares issued on acquisition of subsidiary 14,657 - - - - - - 14,657 Share-based payments - 10,063 - - - - - 10,063 Adjustment to deferred tax asset recognised on share based payments - 5,006 - - - - - 5,006 Dividend reinvestment plan 4,052 - - - - - - 4,052 Dividends paid - - - (87,732) - - - (87,732) Other - - - (19) - - - (19) At 30 June 2026 168,829 89,684 (7,987) 320,139 - 2,856 (4,472) 569,049
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MONADELPHOUS GROUP LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2026 100 Attributable to equity holders Issued Capital Share- Based Payment Reserve Foreign Currency Translation Reserve Retained Earnings Non- controlling Interests Fair Value Reserve for Financial Assets Equity Reserve Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 At 1 July 2024 145,781 64,630 (4,890) 261,866 - 2,856 (4,649) 465,594 Other comprehensive loss - - (983) - - - - (983) Profit for the period - - - 83,721 26 - - 83,747 Total comprehensive income for the period - - (983) 83,721 26 - - 82,764 Transactions with owners in their capacity as owners Reclassification of non-controlling interest to liabilities - - - - (26) - 26 - Remeasurement of financial liability - - - - - - 151 151 Exercise of employee options 465 - - - - - - 465 Share-based payments - 8,311 - - - - - 8,311 Adjustment to deferred tax asset recognised on share based payment - 1,674 - - - - - 1,674 Dividend reinvestment plan 3,874 - - - - - - 3,874 Dividends paid - - - (64,997) - - - (64,997) At 30 June 2025 150,120 74,615 (5,873) 280,590 - 2,856 (4,472) 497,836
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MONADELPHOUS GROUP LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2026 101 Notes 2026 $’000 2025 $’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of GST) 3,102,139 2,226,858 Payments to suppliers and employees (inclusive of GST) (2,810,845) (2,124,108) Interest received 9,312 9,415 Finance costs paid (3,536) (3,792) Other income 3,684 9,403 Income tax paid (62,913) (39,102) Dividends received 7,250 2,365 NET CASH FLOWS FROM OPERATING ACTIVITIES 5 245,091 81,039 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 6,068 3,807 Purchase of property, plant and equipment (38,547) (13,879) Proceeds from sale of controlled entities - 667 Acquisition of controlled entities, net of cash acquired (6,765) - NET CASH FLOWS USED IN INVESTING ACTIVITIES (39,244) (9,405) CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (83,680) (61,122) Proceeds from issue of shares on exercise of options - 465 Repayment of borrowings (6,365) (4,530) Payment of principal portion of hire purchase liabilities (14,651) (15,397) Payment of principal portion of other lease liabilities (9,494) (9,288) NET CASH FLOWS USED IN FINANCING ACTIVITIES (114,190) (89,872) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 91,657 (18,238) Net foreign exchange differences (3,844) (1,797) Cash and cash equivalents at beginning of year 205,829 225,864 CASH AND CASH EQUIVALENTS AT END OF YEAR 5 293,642 205,829
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GENERAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2026 102 GENERAL INFORMATION The consolidated financial report of Monadelphous Group Limited (the Group) and its subsidiaries for the year ended 30 June 2026 was authorised for issue in accordance with a resolution of directors on 24 August 2026. Monadelphous Group Limited is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The Group’s registered office is 59 Albany Highway, Victoria Park, Western Australia. The nature of the operations and principal activities of the Group are described in the Directors’ Report. Basis of preparation The financial report is a general purpose financial report, which: • has been prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board as applicable to a for-profit entity. • has also been prepared on a historical cost basis except for certain financial assets that have been measured at fair value. • is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183. The Company is an entity to which the legislative instrument applies. • adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to the operations of the Group and effective for reporting periods beginning on or before 1 July 2025 (refer to note 32). • does not early adopt any Accounting Standards and Interpretations that have been issued or amended but are not yet effective. Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2026. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. A list of controlled entities (subsidiaries) at year end is contained in note 20. Consolidation of the subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated. Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group and to the non -controlling interests, even if this results in the non -controlling interests having a debit balance.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GENERAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2026 103 GENERAL INFORMATION (continued) Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination shall be measured at fair value, which shall be calculated as the sum of the acquisition date fair values of the assets transferre d by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree and the equity issued by the acquirer. Acquisition -related costs are expensed as incurred. Foreign currency translation Functional and presentation currency Each entity in the Group determines its own functional currency. Both the functional and presentation currencies of Monadelphous Group Limited are Australian dollars (A$). For each entity , the Group determines the functional currency and items included are measured using the functional currency. Transactions and balances Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Translation of Group companies’ functional currency to presentation currency As at the reporting date the assets and liabilities of the foreign operations are translated into the presentation currency of Monadelphous Group Limited at the rate of exchange ruling at the reporting date and the income statements are translated at the weighted average exchange rates for the year. Exchange variations arising from the translation are recognised in the foreign currency translation reserve in equity. Other accounting policies Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements or at note 32.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GENERAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2026 104 GENERAL INFORMATION (continued) Key judgements and estimates The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. Management have identified the following critical accounting policies for which significant judgements, estimates and assumptions are made: Accounting for contracts with customers The Group accounts for construction contracts in accordance with AASB 15 Revenue from Contracts with Customers. Accounting for construction contracts involves the continuous use of estimates based on a number of detailed assumptions. Construction contracts can span accounting periods, requiring estimates and assumptions to be updated on a regular basis. Accounting estimates resulting from judgements in relation to individual projects may be materially different to actual results due to the size, scale and complexity of projects. Revenue Where performance obligations are satisfied over time, revenue is recognised in the consolidated income statement by reference to the progress towards complete satisfaction of each performance obligation. For construction contracts, revenue is recognised using an output method based on work certified to date which the Group believes depicts the transfer of goods and services as it is based on completed work as agreed by our customers. Fundamental to this calculation is a reliable estimate of the transaction price (total contract revenue). In determining the transaction price, variable consideration including claims and certain contract variations are only included to the extent it is highly probable that a significant reversal in revenue will not occur in the future. Where a variation in scope has been agreed with the customer but the corresponding change in the transaction price has not been agreed the variation is accounted for as variable consideration. The estimate of variable consideration is determined using the expected value approach taking into account the facts and circumstances of each individual contract and the historical experience of the Group and is reassessed throughout the life of the contract. There are a number of factors considered in assessing variable consideration including status of negotiations with the customer, outcomes of previous negotiations and legal evidence that provides a basis for entitlement. Forecast Costs Forecast costs to complete construction contracts are regularly updated and are based on costs expected to be incurred when the related activity is undertaken. Key assumptions regarding costs to complete contracts include estimation of labour costs, technical costs, impact of delays and productivity. Construction contracts may incur additional costs in excess of original cost estimates. Liability for such costs may rest with the customer if considered to be a change to the original scope of works. Any additional contractual obligations, including liquidated damages, are also assessed to the extent these are due and payable under the contract. When it is considered probable that total contract costs will exceed total contract revenue, the contract is considered onerous and the present obligation under the contract is recognised immediately as a provision.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GENERAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2026 105 GENERAL INFORMATION (continued) Key judgements and estimates (continued) Contract claims and disputes Claims arising out of construction contracts may be made by or against the Group in the ordinary course of business, some of which may involve litigation or arbitration. Estimates and assumptions regarding the likely outcome of these claims are made and recognised in the carrying value of contract assets and liabilities. In making these estimates and assumptions, legal opinions are obtained as appropriate. The Directors do not consider the outcome of these claims to have a material adverse effect on the financial position of the Group, however uncertainty remains until the final outcome is determined. Taxation Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised in the consolidated statement of financial position. Deferred tax assets, including those arising from unrecouped tax losses, capital losses and temporary differences, are recognised only where it is considered probable that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. Judgements are also required about the application of income tax legislation. These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognised in the statement of financial position and the amount of other tax losses a nd temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of recognised deferred tax assets and liabilities may require adjustments, resulting in a corresponding credit or charge to the income statement. Impairment Refer to notes 9 and 10 for details. Workers’ Compensation Refer note 15 for details. Determination of the lease term of contracts with renewal options Refer to note 14 for details.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 106 2026 $’000 2025 $’000 1. REVENUE AND OTHER INCOME Revenue from contracts with customers Services revenue 1,615,047 1,346,402 Construction revenue 1,171,758 806,754 2,786,805 2,153,156 Finance revenue 9,312 9,415 2,796,117 2,162,571 Net gains on disposal of property, plant and equipment 5,037 2,956 Other income 3,684 9,403 8,721 12,359 Disaggregation of revenue from contracts with customers by end customer industry: Energy and renewable energy 1,305,523 854,683 Iron ore 943,821 577,357 Energy transition metals and other minerals 579,722 742,766 Infrastructure 151,008 91,069 2,980,074 2,265,875 Less share of revenue from joint ventures accounted for using the equity method (193,269) (112,719) 2,786,805 2,153,156 The following amounts are included in revenue from contracts with customers: Revenue recognised as a contract liability in the prior period 22,128 41,359 Revenue from performance obligations satisfied in prior periods 8,871 - Unsatisfied Performance Obligations Transaction price expected to be recognised in future years for unsatisfied performance obligations at 30 June 2026: Services revenue 2,197,388 2,085,758 Construction revenue 1,166,260 570,947 Total 3,363,648 2,656,705 In line with the Group’s accounting policy described following, the transaction price expected to be recognised in future years excludes variable consideration that is constrained. The average duration of contracts is given below, however some contracts will vary from these typical lengths. Revenue is typically earned over these varying timeframes. Services 1 to 5 years Construction 1 to 2 years
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 107 1. REVENUE AND OTHER INCOME (continued) Recognition and measurement Revenue from contracts with customers The Group is in the business of providing construction and maintenance services. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods and services before transferring them to the customer. Construction services Construction contracts are assessed to identify the performance obligations contained in the contract. The total transaction price is allocated to each individual performance obligation. Typically, the Group’s construction contracts contain a single performance obligation. Work is performed on assets that are controlled by the customer or on assets that have no alternative use to the Group, with the Group having right to payment for performance to date. As performance obligations are satisfied over time, revenue is recognised over time using an output method based on work certified to date. Customers are typically invoiced on a monthly basis and invoices are paid on normal commercial terms. Services contracts Contracts for performance of maintenance activities cover servicing of assets and involve various activities. These activities tend to be substantially the same with the same pattern of consumption by the customer. Where this is the case, which is the majority of the services contracts, these services are taken to be one performance obligation and the total transaction price is allocated to the performance obligation identified. Performance obligations are fulfilled over time as the Group largely performs maintenance over the assets which the customer controls. Customers are typically invoiced monthly for an amount that is calculated on either a schedule of rates or a cost plus basis. For these contracts, the transaction price is determined as an estimate of this variable consideration. Variable consideration If the consideration in the contract includes a variable amount, the Group estimates the amount of the consideration to which it is entitled in exchange for transferring the goods and services to the customer. The Group includes some or all of this variable consideration in the transaction price only to the extent it is highly probable that a significant reversal of the cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Certain contracts are subject to claims which are enforceable under the contract. If the claim does not result in any additional goods or services, the transaction price is updated and the claim accounted for as variable consideration. Significant financing component Using the practical expedient in AASB 15, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less. Interest income Revenue is recognised as interest accrues using the effective interest method.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 108 2026 $’000 2025 $’000 2. EXPENSES Finance costs Finance charges 2,257 2,570 Interest on other lease liabilities 1,279 1,222 3,536 3,792 Depreciation and amortisation Depreciation expense of owned property, plant and equipment 26,805 24,048 Depreciation expense of right of use hire purchase assets 9,781 10,186 Depreciation expense of right of use assets 8,347 8,097 Amortisation of intangibles 2,047 820 46,980 43,151 Employee benefits expense Employee benefits expense 1,385,243 1,115,930 Defined contribution superannuation expense 136,542 103,080 1,521,785 1,219,010 Lease payments and other expenses Expense relating to short-term leases and low value leases (included in cost of sales) 3,944 3,076 Recognition and measurement Finance costs The Group does not currently hold qualifying assets but, if it did, the borrowing costs directly associated with the qualifying assets would be capitalised. All other finance costs are expensed as incurred. Depreciation and amortisation Refer to notes 9 and 10 for details on depreciation and amortisation. Employee benefits expense Refer to note 15 for employee benefits expense and note 27 for share-based payments expense. Contributions to defined contribution superannuation plans are recognised as an expense as they become payable. Lease payments Refer to note 14 for details on lease payments.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 109 2026 $’000 2025 $’000 3. INCOME TAX The major components of income tax expense are: Income statement Current income tax Current income tax charge 57,610 43,331 Adjustments in respect of previous years 205 250 Deferred income tax Temporary differences (5,203) (8,188) Income tax expense reported in the income statement 52,612 35,393 Amounts credited directly to equity Share based payment (5,006) (1,674) Income tax expense reported in equity (5,006) (1,674) Tax reconciliation A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the Group’s applicable income tax rate is as follows: Accounting profit before income tax 179,912 119,140 Income tax rate of 30% (2025: 30%) 53,974 35,742 - Withholding tax - 452 - Impact of share of profit from joint ventures (4,811) (2,200) - Other 3,449 1,399 Aggregate income tax expense 52,612 35,393
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 110 2026 $’000 Current Income Tax 2026 $’000 Deferred Income Tax 2025 $’000 Current Income Tax 2025 $’000 Deferred Income Tax 3. INCOME TAX (continued) Recognised deferred tax assets and liabilities Opening balance (23,052) 42,468 (18,613) 32,364 Charged to income (57,815) 5,203 (43,581) 8,188 Charged to equity - 5,006 - 1,674 Acquisitions 329 (2,102) - 303 Other / payments 63,034 113 39,142 (61) Closing balance (17,504) 50,688 (23,052) 42,468 Amounts recognised on the consolidated statement of financial position: Deferred tax assets 50,688 42,468 50,688 42,468 2026 $’000 2025 $’000 Deferred income tax at 30 June relates to the following: Deferred tax assets Employee provisions 50,645 38,475 Provisions for doubtful debts 1,365 1,118 Other provisions 9,587 9,216 Lease liabilities 9,318 11,501 Tax losses - 519 Other 121 34 Gross deferred tax assets 71,036 60,863 Set-off of deferred tax liabilities (20,348) (18,395) Net deferred tax assets 50,688 42,468 Deferred tax liabilities Accelerated depreciation (10,638) (9,590) Right of use assets (6,796) (8,635) Intangibles (2,494) - Other (420) (170) Gross deferred tax liabilities (20,348) (18,395) Set-off against deferred tax assets 20,348 18,395 Net deferred tax liabilities - - Unrecognised temporary differences At 30 June 2026, there are no unrecognised temporary differences associated with the Group’s investments in subsidiaries (2025: no unrecognised temporary differences).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 111 3. INCOME TAX (continued) Tax consolidation Monadelphous Group Limited and its 100% owned Australian resident subsidiaries formed a tax consolidated group with effect from 1 July 2003. Members of the tax consolidated group have entered into a tax funding agreement. The head entity, Monadelphous Group Limited and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The Group has applied the Group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. In addition to its own current and deferred tax amounts, Monadelphous Group Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the Group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities. Pillar Two legislation The Group is within the scope of the OECD Pillar Two model rules, and it applies the AASB 112 Income Taxes exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. The Australian Pill ar Two legislation was effective for the Group’s financial year ended 30 June 2026 and the Group is satisfied it meets the transitional safe harbour measures in all jurisdictions in which it operates. On this basis, the Group has not recognised any Pillar Two tax expense for the year ended 30 June 2026. Recognition and measurement Current taxes Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Deferred taxes Deferred income tax is provided for using the full liability balance sheet approach. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists and they relate to the same taxable entity and the same taxation authority.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2026 112 2026 $’000 2025 $’000 4. EARNINGS PER SHARE The following reflects the income and share data used in the calculation of basic and diluted earnings per share: Net profit attributable to ordinary equity holders of the parent 127,300 83,721 Earnings used in calculation of basic and diluted earnings per share 127,300 83,721 Number Number Number of shares Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share 99,794,983 98,482,956 Effect of dilutive securities Rights and options 1,167,656 1,064,432 Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share 100,962,639 99,547,388 Conversions, calls, subscriptions or issues after 30 June 2026: On 1 July 2026, 429,648 performance rights vested and were exercised. Calculation of earnings per share Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted EPS is calculated as net profit attributable to members of the parent, adjusted for: • costs of servicing equity (other than dividends); • the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and • other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 113 2026 $’000 2025 $’000 5. CASH AND CASH EQUIVALENTS For the purposes of the statement of cash flows, cash and cash equivalents comprise the following at 30 June: Cash balances comprise: Cash at bank 273,413 199,864 Short-term deposits 20,229 5,965 293,642 205,829 Reconciliation of net profit after tax to the net cash flows from operating activities Net profit 127,300 83,747 Adjustments for Depreciation of non-current assets 44,933 42,331 Amortisation of intangibles 2,047 820 Net profit on sale of property, plant and equipment (5,037) (2,956) Share-based payment expense 10,063 8,311 Share of profits from joint ventures (16,036) (7,335) Dividends from joint ventures 7,250 2,365 Other 1,837 2,190 Changes in assets and liabilities (Increase) in receivables (60,937) (141,319) (Increase) in inventories (38) (68) Decrease in contract assets 1,309 789 (Increase) in deferred tax assets (5,316) (8,127) Increase in payables 110,251 78,431 Increase in provisions 33,013 17,464 (Decrease)/increase in income tax payable (5,548) 4,396 Net cash flows from operating activities 245,091 81,039 Non-cash financing and investing activities Hire purchase transactions: During the year, the consolidated entity acquired right of use plant and equipment assets by means of hire purchase agreements with an aggregate fair market value of $19,565,313 (2025: $8,483,680). Dividend reinvestment plan During the year, the participation in the dividend reinvestment plan totalled $4,052,181(2025: $3,873,742).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 114 5. CASH AND CASH EQUIVALENTS (continued) Reconciliation of liabilities arising from financing activities Recognition and measurement Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and on hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, net of outstanding bank overdrafts. 2025 Cash flows Non-cash changes new leases/ terminations Other 2026 $’000 $’000 $’000 $’000 $’000 Hire purchase liabilities 35,513 (14,651) 19,565 457 40,884 Other lease liabilities 38,420 (9,494) 806 1,378 31,110 Loan 6,365 (6,365) - - - 80,298 (30,510) 20,371 1,835 71,994 2024 Cash flows Non-cash changes new leases/ terminations Other 2025 $’000 $’000 $’000 $’000 $’000 Hire purchase liabilities 43,499 (15,397) 8,484 (1,073) 35,513 Other lease liabilities 39,846 (9,288) 7,872 (10) 38,420 Loan 10,895 (4,530) - - 6,365 94,240 (29,215) 16,356 (1,083) 80,298
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 115 2026 $’000 2025 $’000 6. TRADE AND OTHER RECEIVABLES CURRENT Trade receivables 367,235 319,847 Less allowance account for expected credit losses (3,080) (2,539) 364,155 317,308 Sales accruals and other debtors 192,225 165,389 Less allowance account for expected credit losses (1,481) (1,252) 190,744 164,137 554,899 481,445 Trade receivables generally have 30 to 60 days terms. NON-CURRENT Other debtors 917 - Allowance account for trade receivables impairment losses Movements in loss allowance based on lifetime ECL: Balance at the beginning of the year 2,539 2,080 Increase in loss allowance 541 459 Balance at the end of the year 3,080 2,539 Recognition and measurement Trade receivables Refer to accounting policies of financial assets in note 32. Other debtors Other debtors include contract assets that are unconditional (refer to note 7). These assets are reclassified to trade receivables when invoiced.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 116 2026 $’000 2025 $’000 7. CONTRACT ASSETS CURRENT Contract assets 7,803 8,962 NON-CURRENT Contract assets 13,927 14,077 Contract assets are net of expected credit losses of $175,107 (2025: $275,803). Recognition and measurement Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group transfers goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recogn ised for the earned consideration. If the Group’s right to an amount of consideration is unconditional (other than the passage of time), the contract asset is classified as a receivable. Refer to accounting policies of revenue from contracts with customers in note 1. 2026 $’000 2025 $’000 8. INVENTORIES Raw materials and consumables 2,037 1,998 Recognition and measurement Raw materials and consumables Raw materials and consumables are stated at the lower of cost and net realisable value.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 117 9. PROPERTY, PLANT AND EQUIPMENT Reconciliation of carrying amounts at the beginning and end of the period Right of Use Assets Freehold Land and Buildings $’000 Assets Under Construction $’000 Plant and Equipment $’000 Plant and Equipment Under Hire Purchase $’000 Land and Buildings $’000 Total $’000 Year ended 30 June 2026 Net carrying amount at 1 July 2025 46,964 1,005 94,314 44,570 28,864 215,717 Additions 5,713 11,271 21,563 19,565 806 58,918 Additions from business combination 197 - 10,660 694 1,380 12,931 Assets transferred 190 (8,422) 10,992 (2,760) - - Disposals (192) - (841) - - (1,033) Depreciation charge (1,655) - (25,150) (9,781) (8,347) (44,933) Other (6) - (91) (3) (2) (102) Net carrying amount at 30 June 2026 51,211 3,854 111,447 52,285 22,701 241,498 At 30 June 2026 Gross carrying amount – at cost 67,106 3,854 286,741 83,659 73,667 515,027 Accumulated depreciation (15,895) - (175,294) (31,374) (50,966) (273,529) Net carrying amount 51,211 3,854 111,447 52,285 22,701 241,498
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 118 9. PROPERTY, PLANT AND EQUIPMENT (continued) Reconciliation of carrying amounts at the beginning and end of the period (continued) Recognition and measurement Property, plant and equipment All classes of property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing t he parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and maintenance are recognised in the income statement as incurred. Assets under construction is stated at cost, net of accumulated impairment losses, if any. Depreciation is calculated on a straight line basis on all classes of property, plant and equipment other than freehold land. The estimated useful life of buildings is 40 years; plant and equipment is between 3 and 20 years. The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. An item of property, plant and equipment is de-recognised upon disposal or when no further future economic benefits are expected from its use or disposal. Right of Use Assets Freehold Land and Buildings $’000 Assets Under Construction $’000 Plant and Equipment $’000 Plant and Equipment Under Hire Purchase $’000 Land and Buildings $’000 Plant and Equipment $’000 Total $’000 Year ended 30 June 2025 Net carrying amount at 1 July 2024 47,670 1,690 98,901 55,321 29,057 29 232,668 Additions 844 1,005 12,030 8,484 7,872 - 30,235 Assets transferred 330 (1,690) 7,507 (6,147) - - - Disposals - - (856) - - - (856) Assets derecognised from loss of control of subsidiary - - (648) (3,256) - - (3,904) Depreciation charge (1,880) - (22,168) (10,186) (8,068) (29) (42,331) Other - - (452) 354 3 - (95) Net carrying amount at 30 June 2025 46,964 1,005 94,314 44,570 28,864 - 215,717 At 30 June 2025 Gross carrying amount – at cost 61,640 1,005 249,838 72,497 70,095 1,400 456,475 Accumulated depreciation (14,676) - (155,524) (27,927) (41,231) (1,400) (240,758) Net carrying amount 46,964 1,005 94,314 44,570 28,864 - 215,717
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 119 9. PROPERTY, PLANT AND EQUIPMENT (continued) Recognition and measurement (continued) Right of use assets The Group recognises lease assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Lease assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of lease assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Impairment of non-financial assets other than goodwill We have performed an impairment assessment based on the policy below . No impairment indicators were noted. At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists or when annual impairment testing for an asset is required, the Group makes a formal estimate of the recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value. An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its re coverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the income statement. Intangible Asset with Finite Useful Life $’000 Goodwill $’000 Total $’000 10. INTANGIBLE ASSETS AND GOODWILL Year ended 30 June 2026 At 1 July 2025 2,533 14,890 17,423 Arising on business combination 7,826 16,739 24,565 Amortisation (2,047) - (2,047) At 30 June 2026 8,312 31,629 39,941 Year ended 30 June 2025 At 1 July 2024 3,353 14,890 18,243 Amortisation (820) - (820) At 30 June 2025 2,533 14,890 17,423
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 120 10. INTANGIBLE ASSETS AND GOODWILL (continued) Impairment testing of the Group’s goodwill Goodwill acquired through business combination s has been allocated to cash generating units (CGU ) for impairment testing purposes. Carrying amount of goodwill allocated to each CGU: 2026 $’000 2025 $’000 M&IS East 8,821 8,821 High Energy Service Pty Ltd 6,962 - Kerman Contracting Pty Ltd 8,663 - Other 7,183 6,069 31,629 14,890 The recoverable amount of each CGU has been determined based on a value in use calculation using cash flow projections based on financial budgets approved by management covering a five-year period extrapolated using growth rate of 2.5% (2025: 0% to 2.5%) and applying a pre-tax discount rate to the cash flow projections of 14.9% (2025: 14.7%). Key assumptions in the CGUs cash flow projections take into consideration historic performance and forecast macroeconomic conditions. Discount rates used are based on the weighted average cost of capital determined by prevailing market inputs, risk adjusted where necessary. No reasonably possible changes in key assumptions would result in the carrying amount of the individual CGUs exceeding their recoverable amount. Recognition and measurement Goodwill Goodwill acquired in a business combination is initially measured at cost being the excess of the consideration over the fair value of the Group’s identifiable assets acquired and liabilities assumed. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. During the year, the Group acquired High Energy Service Pty Ltd , Kerman Contracting Pty Ltd and Australian Power Industry Partners Pty Ltd which resulted in goodwill of $6,962,000, $8,663,000 and $1,114,000 respectively. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. For the purpose of impairment testing, goodwill acquired in a business combination, is, from the acquisition date, allocated to each of the Group’s CGUs or groups of CGUs that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the CGU (group of CGUs) to which the goodwill relates. If the recoverable amount of the CGU (group of CGUs) is less than the carrying amount, an impairment loss is recognised. Impairment losses recognised for goodwill are not subsequently reversed. Intangible assets Intangible assets relate to the fair value of customer relationships and contracts acquired. Intangibles assets have been assessed as having a finite life and are amortised using the straight-line method over a period of 5 years. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and any impairment losses. Intangible assets are tested for impairment whenever there is an indication that the intangible asset may be impaired.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 121 11. INVESTMENT IN JOINT VENTURES Mondium Pty Ltd On 21 October 2016, a n Australian joint venture company, Mondium Pty Ltd was formed between Monadelphous and Lycopodium Ltd. The Group has a 60% interest in the joint venture. The principal activity of Mondium is to deliver engineering, procurement and construction services in the minerals processing sector. The Group considers that it has joint control with its respective joint venture partner over Mondium Pty Ltd as relevant decisions at a Board and Shareholder level require unanimous agreement. The Group’s interest in Mondium Pty Ltd is not material. Zenviron Pty Ltd On 26 July 2016, a joint venture company, Zenviron Pty Ltd was formed between Monadelphous and ZEM Energy Investments Pty Ltd. The Group has a 55% ownership interest in the joint venture and a 50% interest in the voting rights. The principal activity of Zenviron is to deliver multi -disciplinary construction services in the renewable energy market in Australia and New Zealand. The Group considers that it has joint control with its respective joint venture partner over Zenviron Pty Ltd as relevant decisions at a Board and Shareholder level require unanimous agreement. Zenviron Pty Ltd results, assets and liabilities are as follows: 2026 $’000 2025 $’000 Summarised statement of financial position Cash and cash equivalents 98,467 148,120 Current assets 146,420 178,663 Non-current assets 3,052 3,007 Current liabilities (105,115) (150,636) Non-current liabilities (3,251) (2,092) Equity 41,106 28,942 Group’s share of Zenviron Pty Ltd net assets 22,608 15,918 Summarised statement of financial performance Revenue from contracts with customers 329,661 181,239 Cost of sales (284,041) (154,456) Profit before tax 33,126 16,241 Income tax expense (9,961) (4,902) Profit after tax 23,164 11,338 Profit and total comprehensive income for the year 23,164 11,338 Depreciation expense (1,174) (991) Interest income 5,002 4,029 Interest expense (88) (117) Group’s share of profit for the year 12,740 6,236
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 122 11. INVESTMENT IN JOINT VENTURES (continued) Commitments and contingent liabilities relating to Joint Ventures The Group’s share of insurance bond guarantees issued by Joint Ventures at 30 June 2026 was $19,804,629 (2025: $34,052,981). Joint ventures had no capital commitments at 30 June 2026 (2025: $nil). Recognition and measurement A joint venture is a type of arrangement whereby the parties that have joint control of the arrangement have the rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Group’s investments in its joint venture s are accounted for using the equity method. Under the equity method, the investment is initially recognised at cost. The carrying value of the investment i s adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisition date. The income statement reflects the Group’s share of the results of the joint venture. 2026 $’000 2025 $’000 12. TRADE AND OTHER PAYABLES CURRENT Trade payables 177,178 162,533 Contract liabilities 158,531 53,201 Sundry creditors and accruals 84,158 73,528 419,867 289,262 Recognition and measurement Trade and other payables Trade and other payables are carried at amortised cost and are not discounted due to their short-term nature. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, non-interest bearing and are usually paid within 30 to 45 days of recognition. Sundry creditors and accruals are non-interest bearing and generally have terms of 7 to 30 days. Contract liability A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 123 2026 $’000 2025 $’000 13. INTEREST BEARING LOANS AND BORROWINGS CURRENT Loan – secured - 4,272 NON- NON-CURRENT Loan – secured - 2,093 Terms and conditions Interest bearing loans and borrowings predominantly relates to variable rate property loan. This loan was repaid during 2026. Defaults and breaches During the current and prior year, there were no defaults and breaches on any of the loans. Recognition and measurement Interest bearing loans and borrowings Interest bearing loans and borrowings are initially recognised at fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group has a right to defer settlement of the liability for at least twelve months after the reporting date. Gains or losses are recognised in the income statement when the liabilities are derecognised. 2026 $’000 2025 $’000 14. LEASE LIABILITIES CURRENT Hire purchase lease liabilities 15,498 11,969 Other lease liabilities 9,526 9,115 25,024 21,084 NON-CURRENT Hire purchase lease liabilities 25,386 23,544 Other lease liabilities 21,584 29,305 46,970 52,849 Carrying amount at the beginning of the financial year 73,933 83,345 Additions 20,371 16,356 Additions through business combination 1,812 - Accretion of interest 3,352 3,287 Payments (27,497) (27,972) Other 23 (1,083) Carrying amount at the end of the financial year 71,994 73,933
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 124 14. LEASE LIABILITIES (continued) Terms and conditions Hire purchase agreements have an average term of three years. The average discount rate implicit in the hire purchase liability is 5.5% (2025: 5.5%). Other lease liabilities have an average term of 1.8 years. The average discount rate implicit in the other lease liability is 5.5% (2025: 5.4%). The Group has total cash outflows for other lease liabilities (including short-term leases) during 30 June 2026 of $14,717,000 (2025: $13,586,000). The maturity analysis of lease liabilities is set out in note 23. Recognition and measurement The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as a lessee The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and lease assets representing the right to use the underlying assets. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised lease assets are depreciated on a straight -line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: • Property 1 to 8 years • Plant and equipment 1 to 5 years If ownership of lease assets transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. Lease assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in- substance fixed payments) less any lease i ncentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short -term lease recognition exemption for those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of plant and equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight- line basis over the lease term.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 125 14. LEASE LIABILITIES (continued) Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non -cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has the option, under some of its leases to lease the assets for additional terms of one to five years. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew and considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew. 2026 $’000 2025 $’000 15. PROVISIONS CURRENT Employee benefits 103,755 84,774 Workers’ compensation 29,696 18,555 Other 7,858 2,403 141,309 105,732 NON-CURRENT Employee benefits – long service leave 9,629 9,050 9,629 9,050 Movements in provisions Workers’ compensation Carrying amount at the beginning of the year 18,555 15,109 Additional provision 25,879 19,062 Amounts utilised during the year (14,738) (15,616) Carrying amount at the end of the financial year 29,696 18,555 Recognition and measurement Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligations. When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. Provisions are measured at the present value of management’s best estimate of the expenditure to settle the present obligation at the reporting date using a discounted cash flow methodology. The risks specific to the provision are factored into the cash fl ows and as such a risk -free government bond rate relevant to the expected life of the provision is used as a discount rate. The increase in the provision resulting from the passage of time is recognised as a finance cost.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OPERATING ASSETS AND LIABILITIES FOR THE YEAR ENDED 30 JUNE 2026 126 15. PROVISIONS (continued) Recognition and measurement (continued) Employee benefits Employee benefits includes liabilities for wages and salaries, rostered days off, vesting sick leave, project incentives and project redundancies. It is customary within the engineering and construction industry for incentive payments and redundancies to be paid to employees at the completion of a project. The provision has been created to cover the expected costs associated with these statutory and project employee benefits. Liabilities for short-term benefits expected to be wholly settled within twelve months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liability is settled. Expenses for non-vesting sick leave are recognised when the leave is taken and are measured at the rates paid or payable. The liability for long-term benefits is recognised and measured as the present value of the expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds, which have terms to maturity approximating the estimated future cash outflows. Workers’ compensation It is customary for all entities within the engineering and construction industry to be covered by workers’ compensation insurance. Payments under these policies are calculated differently depending on which state of Australia the entity is operating in. Premiums are generally calculated based on actual wages paid and claims experience. Wages are estimated at the beginning of each reporting period. Final payments are made when each policy is closed out based on the difference between actual wages and the original estimated amount. The amount of each payment varies depending on the number of incidents recorded during each period and the severity thereof. The policies are closed out within a five year period through negotiation with the relevant insurance company. The provision has been created to cover the expected costs associated with closing out each insurance policy and is adjusted accordingly based on the actual payroll incurred and the severity of incidents that have occurred during each period. 16. CAPITAL MANAGEMENT Capital is managed by the Group’s Chief Financial Officer in conjunction with the Group’s Finance and Accounting department. Management continually monitor the Group’s net cash/debt position and the gearing levels to ensure efficiency and compliance with the Group’s banking facility covenants, including the gearing ratio, operating leverage ratio and fixed charge coverage ratio. At 30 June 202 6, the Group is in a net cash position of $252,758,000 (2025: $163,951,000) and has a debt to equity ratio of 7.2% (2025: 8.4%) which is within the Group’s net cash and debt to equity target levels. During the year ended 30 June 2026, management paid dividends of $87,751,000 (2025: $64,997,000). The policy is to payout dividends of 80% to 100% of annual net profit after tax, subject to the working capital requirements of the business, potential investment opportunities and business and economic conditions generally. The capital of the Company is considered to be contributed equity.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 127 2026 $’000 2025 $’000 17. DIVIDENDS PAID AND PROPOSED Declared and paid during the year Current year interim Interim franked dividend for 2026 (49 cents per share) (2025: 33 cents per share) 49,013 32,586 Previous year final Final franked dividend for 2025 (39 cents per share) (2024: 33 cents per share) 38,719 32,411 Unrecognised amounts Current year final Final franked dividend for 2026 (59 cents per share) (2025: 39 cents per share) 59,308 38,719 Franking credit balance Franking credits available for future reporting years at 30% adjusted for franking credits that will arise from the payment of income tax payable as at the end of the financial year 102,799 61,913 Impact on the franking account of dividends proposed or declared before the financial report was authorised for issue but not recognised as a distribution to equity holders during the period (25,418) (16,594) 77,381 45,319 Tax rates The tax rate at which paid dividends have been franked is 30% (2025: 30%). Dividends payable will be franked at the rate of 30% (2025: 30%). Recognition and measurement A provision for dividends is not recognised as a liability unless the dividends are declared on or before the reporting date.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 128 Ordinary shares Ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. 2026 2025 Number of Shares $’000 Number of Shares $’000 Beginning of the financial year 98,834,115 150,120 97,463,244 145,781 Dividend reinvestment plan 169,313 4,052 294,064 3,874 Shares issued on acquisition of subsidiary 645,267 14,657 - - Exercise of performance rights and retention rights 444,273 - 619,691 - Exercise of options - - 457,116 465 End of the financial year 100,092,968 168,829 98,834,115 150,120 Recognition and measurement Contributed equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are recognised directly in equity as a deduction, net of tax, from the proceeds. 2026 2025 $’000 $’000 18. CONTRIBUTED EQUITY Ordinary shares – Issued and fully paid 168,829 150,120
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: CAPITAL STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 129 2026 $’000 2025 $’000 19. RESERVES AND RETAINED EARNINGS Foreign currency translation reserve (7,987) (5,873) Share-based payment reserve 89,684 74,615 Fair value reserve for financial asset at FVOCI 2,856 2,856 Equity reserve (4,472) (4,472) 80,081 67,126 Retained earnings 320,139 280,590 Nature and purpose of reserves Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from translation of the financial statements of foreign subsidiaries. Share-based payment reserve The share-based payment reserve is used to record the value of equity benefits provided to employees and directors as part of their remuneration. Refer to note 27 for further details of these plans. Fair value reserve financial assets The fair value reserve for financial assets is used to record the movement in fair value of financial assets.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GROUP STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 130 20. SUBSIDIARIES The consolidated financial statements include the financial statements of Monadelphous Group Limited and subsidiaries: Name Percentage Held by Consolidated Entity Country of Incorporation 2026 2025 Parent: Monadelphous Group Limited Australia Controlled entities of Monadelphous Group Limited: #Monadelphous Engineering Associates Pty Ltd Australia 100 100 #Monadelphous Properties Pty Ltd Australia 100 100 #Monadelphous Engineering Pty Ltd Australia 100 100 #Genco Pty Ltd Australia 100 100 #Monadelphous Workforce Pty Ltd Australia 100 100 #Monadelphous Electrical & Instrumentation Pty Ltd Australia 100 100 #Monadelphous KT Pty Ltd Australia 100 100 #Monadelphous Energy Services Pty Ltd Australia 100 100 #M Workforce Pty Ltd Australia 100 100 #M Maintenance Services Pty Ltd Australia 100 100 M&ISS Pty Ltd Australia 100 100 Inteforge Pty Ltd Australia 100 100 Monadelphous Group Limited Employee Share Trust Australia 100 100 Monadelphous Holdings Pty Ltd Australia 100 100 Monadelphous NPI Pty Ltd Australia 100 80 Evo Access Pty Ltd Australia - 100 Monadelphous Investments Pty Ltd Australia 100 100 MWOG Pty Ltd Australia 100 100 MOAG Pty Ltd Australia 100 100 Monadelphous International Holdings Pty Ltd Australia 100 100 Arc West Group Pty Ltd Australia 100 100 R.I.G. Installations (Newcastle) Pty Ltd Australia 100 100 RE&M Services Pty Ltd Australia 100 100 Pilbara Rail Services Pty Ltd Australia 100 100 EC Projects Pty Ltd Australia 100 100 Monadelphous RTW Pty Ltd Australia 100 100 MMW Projects Pty Ltd Australia 100 100 Monadelphous PNG Ltd Papua New Guinea 100 100 Moway International Limited Hong Kong 100 100 Moway AustAsia Steel Structures Trading (Beijing) Company Limited China 100 100 Inteforge Engineering & Fabrication (Tianjin) Co. Ltd China 100 100 Monadelphous Mongolia LLC Mongolia 100 100 Monadelphous Chile SpA Chile - 100 #BMC Holdings (Vic) Pty Ltd Australia 100 100 BMC Welding & Construction Pty Ltd Australia 100 100 BMC HV Electrical & Instrumentation Pty Ltd Australia 100 100 BMC Civil Pty Ltd Australia - 100 #Melchor Contracting Pty Ltd Australia 100 100 High Energy Service Pty Ltd Australia 100 - High Energy Service Group Pty Ltd Australia 100 - Kerman Contracting Pty Ltd Australia 100 - Australian Power Industry Partners Pty Ltd Australia 100 - # Controlled entities subject to the Class Order (refer to note 31) Ultimate parent Monadelphous Group Limited is the ultimate holding company. Material partly-owned subsidiaries There were no subsidiaries that have a material non-controlling interest during the year (2025: none).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GROUP STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 131 21. BUSINESS COMBINATION Acquisition of High Energy Service Pty Ltd On 1 July 2025, Monadelphous Group Limited acquired 100% of the share capital of a Perth -based high voltage services business High Energy Service Pty Ltd and High Energy Service Group Pty Ltd (‘HES’). The acquisition of HES supports Monadelphous' strategic efforts to expand its capabilities and support the development and ongoing maintenance of the essential electricity generation, storage and infrastructure needed for Australia's energy transition. The fair values of the identifiable assets and liabilities acquired from HES as of date of acquisition were: Fair value at acquisition date $’000 Cash 4,887 Trade and other receivables 3,942 Property, plant and equipment and right of use assets 8,778 Other 276 Total assets 17,883 Trade and other payables 1,151 Lease liabilities 823 Provisions 2,129 Total liabilities 4,103 Fair value of identifiable net assets 13,780 Identifiable intangible assets 2,898 Goodwill arising on acquisition 6,962 Purchase consideration 23,640 Acquisition-date fair-value of consideration transferred: Amount due to vendors 2,150 Cash paid 21,490 Total consideration 23,640 Cash acquired with the business (4,887) Cash paid 21,490 Net consolidated cash outflow 16,603 The goodwill recognised is primarily attributed to the expected synergies and other benefits from the acquisition. None of the goodwill recognised is expected to be deductible for income tax purposes.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GROUP STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 132 21. BUSINESS COMBINATIONS (continued) Acquisition of Kerman Contracting Pty Ltd On 5 November 2025, Monadelphous Group Limited acquired 100% of the share capital of Western Australia based Kerman Contracting Pty Ltd (‘Kerman’), a design and construction business specialising in non - process infrastructure, bulk storage and materials handling facilities. The acquisition of Kerman supports Monadelphous' growth strategy, strengthening its non -process infrastructure capability for th e delivery of large-scale projects with resources sector customers, and growing its service offering in other sectors. The provisional fair values of the identifiable assets and liabilities acquired from Kerman as of date of acquisition were: Provisional fair value at acquisition date $’000 Cash 71,451 Trade and other receivables 2,658 Property, plant and equipment and right of use assets 2,347 Other 6,391 Total assets 82,847 Trade and other payables 7,128 Contract liabilities 9,390 Lease liabilities 989 Provisions 683 Other 1,296 Total liabilities 19,486 Fair value of identifiable net assets 63,361 Identifiable intangible assets 4,321 Goodwill arising on acquisition 8,663 Purchase consideration 76,345 Acquisition-date fair-value of consideration transferred: Amount due to vendors 3,000 Shares issued, at fair value 14,657 Cash paid 58,688 Total consideration 76,345 Net cash acquired with the business (71,451) Cash paid 58,688 Net consolidated cash (inflow) (12,763) The goodwill recognised is primarily attributed to the expected synergies and other benefits from the acquisition. None of the goodwill recognised is expected to be deductible for income tax purposes. Sales revenue of $47,562,000 has been recognised from Kerman for the period since acquisition. The net profit before tax for the period was $3,062,000. If the combination had taken place at the beginning of the financial year, Kerman’s revenue from continuing operations would have been $56,496,755 and the profit before tax from continuing operations would have been $4,898,795.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GROUP STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 133 21. BUSINESS COMBINATIONS (continued) Acquisition of Australian Power Industry Partners Pty Ltd On 5 December 2025, Monadelphous Group Limited acquired 100% of the share capital of Australian Power Industry Partners Pty Ltd (‘APIP’), a high-voltage electrical contractor based in Milton, Queensland for a cash consideration of $3,276,000. The acquisition of APIP further expands our capability and supports our entry into the transmission and distribution sector. The provisional fair values of identifiable net assets were $2,161,000 resulting in a goodwill of $1,114,000. APIP’s results for the period are not considered to be material. 22. INTEREST IN JOINT OPERATIONS Joint operations interests The Group’s interests in joint operations are as follows: Principal Group Interest place of 2026 2025 Joint Arrangement Principal Activity business % % Monadelphous Worley JV PNG Engineering, Procurement and Construction & Maintenance Support Work in PNG PNG 65 65 Monadelphous Worley JV Engineering, Procurement and Construction & Maintenance Support Work Brisbane, QLD 65 65 During 2022, Monadelphous established an unincorporated joint venture, Alevro JV, to provide turnkey heavy lift solutions. The Group’s interest in the JV is dependent on each party’s contribution on a contract by contract basis. In November 2024, Monadelphous entered into a consortium agreement with Ansaldo Energia S.p.A. The principal place of business of this unincorporated consortium is Brisbane, Queensland. The Group’s interest in the consortium is dependent on each party’s contribution. Commitments and contingent liabilities relating to joint operations There were no capital commitments or contingent liabilities relating to the joint operations at 30 June 2026 (2025: $nil).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: GROUP STRUCTURE FOR THE YEAR ENDED 30 JUNE 2026 134 22. INTEREST IN JOINT OPERATIONS (continued) Recognition and measurement Joint arrangements are arrangements of which two or more parties have joint control. Joint control is the contractual agreed sharing of control of the arrangement which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. Joint arrangements are classified as either a joint operation or joint venture, based on the rights and obligations arising from the contractual obligations between the parties to the arrangement. To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint arrangement, the arrangement is classified as a joint operation and as such, the Group recognises its: • Assets, including its share of any assets held jointly; • Liabilities, including its share of any liabilities incurred jointly; • Revenue from the sale of its share of the output arising from the joint operation; and • Expenses, including its share of any expenses incurred jointly. To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the investment is classified as a joint venture and accounted for using the equity method. Under the equity method, the cost of the investment is adjusted by the post-acquisition changes in the Group’s share of the net assets of the venture.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 135 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s principal financial instruments comprise receivables, payables, loans, leases and hire purchase contracts, cash and short-term deposits. The Group is exposed to financial risks which arise directly from its operations. The Group has policies and measures in place to manage financial risks encountered by the business. Primary responsibility for the identification of financial risks rests with the Board. The Board determines policies for the management of financial risks. It is the responsibility of the Chief Financial Officer and senior management to implement the policies set by the Board and for the constant day to day management of the Group’s financial risks. The Board reviews these policies on a regular basis to ensure that they continue to address the risks faced by the Group. The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, credit risk and liquidity risk. The Group’s policy to minimise risk from fluctuations in interest rates is to utilise fixed interest rates in its loans, leases and hire purchase contracts where appropriate. Cash and short- term deposits are exposed to floating interest rate risks. The Group manages its foreign currency risk arising from significant supplier contracts in foreign currencies by holding foreign currency or taking out forward exchange contracts. Analysis is performed on a customer’s credit rating prior to signing contracts and analysis is performed regularly of credit exposures and aged debt to manage credit and liquidity risk. The policies in place for managing the financial risks encountered by the Group are summarised below. Risk exposures and responses Interest rate risk The Group’s exposure to variable interest rates is as follows: Notes 2026 $’000 2025 $’000 Financial assets/liabilities Cash and cash equivalents 5 293,642 205,829 Loan – secured 13 - (6,365) Net exposure 293,642 199,464 The Group utilises a number of financial institutions to obtain the best interest rate possible and to manage its risk. The Group does not enter into interest rate hedges. At 30 June 2026, reasonably possible movements in variable interest rates, based on a review of historical movements and forward rate curves for forward rates would not have had a material impact on the Group.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 136 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Risk exposures and responses (continued) Foreign currency risk As a result of operations in Papua New Guinea, China and Mongolia, the Group’s statement of financial position can be affected by movements in the US$/A$, PGK/A$, RMB/A$ and MNT/A$ exchange rates. The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in currencies other than the functional currency. Where possible, Monadelphous does not take on foreign exchange risk. At 30 June 2026, the Group has no foreign exchange forward contracts for future capital commitments (2025: none). Conversion of PGK balances to AUD is subject to receipt of tax clearances from the relevant taxation authority resulting in normal administrative delay. The Group mitigates its exposure to foreign currency risk by minimising excess foreign currency balances in overseas jurisdictions not required for working capital. At 30 June 2026, the Group had the following exposure to foreign currency: PGK AUD$’000 USD AUD$’000 Year ended 30 June 2026 Financial assets Cash and cash equivalents 21,536 19,457 Trade and other receivables 13,787 14,324 Financial liabilities Trade and other payables (2,512) (9,754) Net Exposure 32,811 24,027 Year ended 30 June 2025 Financial assets Cash and cash equivalents 32,233 18,499 Trade and other receivables 14,642 6,934 Financial liabilities Trade and other payables (2,379) (5,545) Net Exposure 44,496 19,888 At 30 June 2026, reasonably possible movements in USD foreign exchange rates, based on a review of historical movements, would not have had a material impact on the Group (2025: no material impact).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 137 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Risk exposures and responses (continued) Foreign currency risk (continued) At 30 June 2026, if the PGK foreign exchange rates had moved, as illustrated in the table below, with all other variables held constant, post tax profit and equity would have been affected as follows: Post Tax Profit Higher/(Lower) Other Comprehensive Income Higher/(Lower) Judgements of reasonably possible movements relating to financial assets and liabilities denominated in PGK: 2026 $’000 2025 $’000 2026 $’000 2025 $’000 +5% (2025: +10%) (1,148) (3,115) - - -5% (2025: -10%) 1,148 3,115 - - The reasonably possible movements have been based on review of historical movements. Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Group’s maximum exposure to credit risk is its cash, trade and other receivables and contract assets representing $871,188,000 at 30 June 2026 (2025: $710,313,000). The Group considers the probability of default upon initial recognition of a financial asset and whether there has been a significant increase in credit risk on an ongoing basis throughout the reporting period. Except for trade receivables, contract assets and other short -term receivables (see below), expected credit losses (ECL’s) are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of t he timing of the default (a lifetime ECL). To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. In making this assessment, the Group c onsiders information that is reasonable and supportable, including historical experience and forward -looking information. Forward -looking information considered includes consideration of external sources of economic information. In particular, the Group takes into account the counterparties external credit rating (as far as available), actual or expected significant changes in the operating results of the counterparty and macroeconomic indicators when assessing significant movements in credit risk. Trade receivables and contract assets The Group trades with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. Publicly available credit information from recognised providers is utilised for this purpose where available. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts has not been significant.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 138 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Risk exposures and responses (continued) Credit risk (continued) Trade receivables and contract assets (continued) The Group minimises concentrations of credit risk in relation to accounts receivable and contract assets by undertaking transactions with a number of customers within the resources, energy and infrastructure industry sector. There are multiple contracts with our significant customers, across a number of their subsidiaries, divisions within those subsidiaries and locations. For transactions that are not denominated in the functional currency of the relevant operating unit, the Group does not offer credit terms without the specific approval of the Chair, Managing Director or Chief Financial Officer. Since the Group trades with recognised third parties, there is no requirement for collateral. The Group applies a simplified approach in calculating ECLs for trade receivables and contract assets. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due ageing for groupings of various customer segments with similar loss patterns . The calculation reflects the probability - weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. A receivable is considered to be credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows have occurred. Evidence that a receivable is credit -impaired includes observable data about significant financial difficulty of the debtor or a breach of contract, such as a default or past due event. Set out below is the information about the credit risk exposure on the Group’s trade receivables and contract assets, for which lifetime expected credit losses are recognised, using a provision matrix: Trade receivables Days past due Contract 31-60 61-90 >91 assets Current <31 days days days days Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 30 June 2026 Expected credit loss rate 0.8% 0.8% 0.8% 0.8% 0.8% 12.02% Total estimated gross carrying amount at default 21,905 303,205 58,850 3,349 641 1,190 367,235 Expected credit loss 175 2,432 473 27 5 143 3,080 30 June 2025 Expected credit loss rate 1.2% 0.8% 0.8% 0.8% 0.8% 8.07% Total estimated gross carrying amount at default 23,315 263,050 43,336 10,276 1,141 2,044 319,847 Expected credit loss 276 1,961 326 78 9 165 2,539 Other balances within trade and other receivables did not contain impaired assets and were not past due. It was expected that these other balances would be received when due.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 139 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Risk exposures and responses (continued) Credit risk (continued) Financial instruments and cash deposits With respect to credit risk arising from the other financial assets of the Group, which comprises cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. The Group minimises its exposure to credit risk for cash and cash equivalents, by investing funds with counter parties rated A+ or higher by Standard & Poor’s where possible. Term deposits typically have an original maturity of three months or less and other bank deposits are on call. Write off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the counterparty has been placed under liquidation or entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss. Liquidity risk 2026 $’000 2025 $’000 Financing facilities available At balance date the following financing facilities had been negotiated and were available Total facilities: - Bank guarantee and performance bonds 460,000 390,000 - Revolving credit 102,660 118,866 562,660 508,866 Facilities used at balance date: - Bank guarantee and performance bonds 330,872 187,694 - Revolving credit 40,884 41,879 371,756 229,573 Facilities unused at balance date: - Bank guarantee and performance bonds 129,128 202,306 - Revolving credit 61,776 76,987 190,904 279,293
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: FINANCIAL RISK MANAGEMENT FOR THE YEAR ENDED 30 JUNE 2026 140 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Risk exposures and responses (continued) Liquidity risk (continued) Nature of bank guarantees and performance bonds The contractual term of the bank guarantees and performance bonds match the underlying obligation to which it relates. Nature of revolving credit The revolving credit includes hire purchase/leasing facilities. Refer to note 14 for terms and conditions. The Group’s objective is to manage the liquidity of the business by monitoring project cash flows and through the use of financing facilities. The Group currently has financing facilities in the form of hire purchase liabilities, secured loans and a receivable facility. The liquidity of the group is managed by the Group’s Finance and Accounting department. The table below reflects all contractually fixed pay-offs, repayments and interest resulting from financial liabilities as of 30 June 2026. Maturity analysis of financial liabilities: 6 months or less $’000 6 months to 1 year $’000 1 year to 5 years $’000 5 years or more $’000 Total Contractual Cash Flows $’000 Total Carrying Amount $’000 Year ended 30 June 2026 Financial liabilities Trade and other payables 419,867 - 2,097 - 421,964 421,964 Hire purchase liability 10,015 7,160 27,256 - 44,431 40,884 Other lease liabilities 5,356 4,673 22,872 473 33,374 31,110 Net maturity 435,238 11,833 52,225 473 499,769 493,958 Year ended 30 June 2025 Financial liabilities Trade and other payables 289,262 - - - 289,262 289,262 Hire purchase liability 7,218 6,337 25,165 - 38,720 35,513 Other lease liabilities 5,136 5,002 29,682 1,979 41,799 38,420 Bank loans 2,346 2,198 2,139 - 6,683 6,365 Net maturity 303,962 13,537 56,986 1,979 376,464 369,560 Net fair values of financial assets and liabilities The carrying amounts and estimated fair values of financial assets and financial liabilities at balance date are materially the same.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 141 23. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Net fair values of financial assets and liabilities (continued) Interest bearing liabilities with fixed interest rates: The fair value includes the value of contracted cash flows, discounted at market rates. Cash and cash equivalent: The carrying amount approximates fair value because of their short-term maturity. Receivables and payables: The carrying amount approximates fair value due to short-term maturity. Listed equity investments measured at fair value through other comprehensive income. The carrying amount is equal to the fair value calculated using quoted prices in active markets (level 1 – see below). The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise: Level 1: The fair value is calculated using quoted prices in active markets. Level 2: The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3: The fair value is estimated using inputs for the asset or liability that are not based on observable market data. There were no material financial assets or liabilities measured at fair value at 30 June 2026 or 30 June 2025. 24. COMMITMENTS AND CONTINGENCIES Capital commitments The consolidated group has capital commitments of $10,694,975 at 30 June 2026 (2025: $6,573,589). 2026 $’000 2025 $’000 Guarantees Guarantees given to various clients for satisfactory contract performance 330,872 187,694 Monadelphous Group Limited and all controlled entities marked # in note 20 have entered into a deed of cross guarantee. Refer to note 31 for details. Contingent liabilities On 26 July 2023, the Company announced that Northern SEQ Distributor – Retailer Authority, trading as Unitywater (Unitywater), had served a Claim and Statement of Claim in the Supreme Court of Queensland against one of Monadelphous’ wholly owned subsidiaries, Monadelphous Engineering Pty Ltd (ME). On 20 October 2023, Unitywater filed a further amendment to that Statement of Claim in the Supreme Court Registry, amending the value of the claim to approximately $200 million. On 26 June 2025, Unitywater filed a Second Further Amended Statement of Claim in the Supreme Court Registry, joining Acciona Agua Australia Pty Ltd to the proceedings. The claims made by Unity water relate to a contract entered into by Unitywater and ME in 2016 for the design and construction of an upgrade to the Kawana Sewage Treatment Plant on the Sunshine Coast in Queensland. Monadelphous denies the allegations and claimed losses and will vigorously defend the claims, as well as pursuing available counterclaims. The Group is subject to various other actual and pending claims arising in the normal course of business. The Group has regular claims reviews to assess the need for accounting recognition or disclosure. The Directors are of the opinion that based on infor mation currently available there is no material exposure to the Group arising from these other actual and pending claims at balance date.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 142 25. SUBSEQUENT EVENTS Dividends declared On 24 August 2026, the directors of Monadelphous Group Limited declared a final dividend on ordinary shares in respect of the 2026 financial year. The total amount of the dividend is $59,308,343 which represents a fully franked final dividend of 59 cents per share. This dividend has not been provided for in the 30 June 2026 financial statements. The Monadelphous Group Limited Dividend Reinvestment Plan will apply to the dividend. Notes 2026 $’000 2025 $’000 26. PARENT ENTITY INFORMATION Information relating to Monadelphous Group Limited parent entity Current assets 153,016 134,465 Total assets 389,430 331,009 Current liabilities (71,719) (66,434) Total liabilities (71,947) (66,871) Net assets 317,483 264,138 Contributed equity 168,829 150,120 Share-based payment reserve 89,257 74,333 Fair value reserve for financial asset at FVOCI 2,856 2,856 Retained earnings 56,541 36,829 Total equity 317,483 264,138 Profit after tax 107,025 68,629 Total comprehensive income of the parent entity 107,025 68,629 Contingent liabilities Guarantees 24 330,872 187,694 Guarantees entered into by the Group are via the parent entity. Details are contained in note 24. Capital commitments The parent entity has $nil capital commitments at 30 June 2026 (2025: $nil).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 143 27. SHARE-BASED PAYMENT EXPENSE The share-based payment expense for the year ended 30 June 2026 was $10,063,269 (2025: $8,311,717) for the consolidated entity. Performance Rights During the year 845,839 performance rights were granted by Monadelphous Group Limited under the 2025 Combined Reward Plan (CR Plan) and 2025 Long-Term Senior Leadership Performance Reward Plan (LTPR Plan). The performance rights granted under the CR Plan vest into shares in equal instalments, one, two and three years subsequent to award, subject to the employee remaining in the employ of the Company at those particular dates. Any performance rights that do not vest as a result of the vesting condition of continual employment not being satisfied will (unless the Board determines otherwise) lapse. Performance rights granted under the LTPR Plan will vest three years after grant subject to the financial performance of the Company and continued employment, for the period from grant to vest (measurement period). An EPS growth performance hurdle is used to measure the financial performance of the Company over the measurement period. For 100 per cent of the performance rights to vest, EPS growth of at least 8 per cent per annum (compounded over the measurement period) is required. If EPS growth of 4 per cent per annum (compounded over the measurement period) is achieved, 50 per cent of the performance rights will vest and if EPS growth of between 4 per cent and 8 per cent per annum (compounded over the measurement period) is achieved, a pro-rata number of performance rights will vest. No performance rights will vest if an EPS growth rate of less than 4 per cent per annum (compounded) is achieved. The fair value of each performance right issued during the period was estimated on the date of grant using a discounted cash flow calculation. Specifically, the Monadelphous Group Limited share price has been discounted at the dividend yield in order to ac count for the dividends that the rights holder forgoes over the life of the rights. The weighted average fair value of performance rights granted in the period was $18.36. The following table illustrates the number and weighted average exercise prices of and movements in performance rights granted, exercised and forfeited during the year. 2026 2025 Number of Performance Rights Weighted Average Exercise Price $ Number of Performance Rights Weighted Average Exercise Price $ Balance at the beginning of the year 1,402,593 nil 926,913 nil Issued during the year 845,839 nil 826,628 nil Exercised during the year (444,273) nil (295,443) nil Forfeited during the year (27,493) nil (55,505) nil Balance at the end of the year 1,776,666 nil 1,402,593 nil Exercisable during the next year 429,648 nil 444,273 nil
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 144 27. SHARE-BASED PAYMENT EXPENSE (continued) Retention Rights The retention rights were issued in the form of performance rights and vested into shares in equal instalments, one, two and three years subsequent to award, subject to the employee remaining in the employ ment of the Company at those particular dates. The fair value of each retention right issued was estimated on the date of grant using a discounted cash flow calculation. The following table illustrates the number and weighted average exercise prices of and movements in retention rights granted, exercised and forfeited during the year. 2026 2025 Number of Retention Rights Weighted Average Exercise Price $ Number of Retention Rights Weighted Average Exercise Price $ Balance at the beginning of the year - nil 330,050 nil Issued during the year - nil - nil Exercised during the year - nil (324,248) nil Forfeited during the year - nil (5,802) nil Balance at the end of the year - nil - nil Exercisable during the next year - nil - nil Options The exercise price of the options granted under the Employee Option Plan was calculated as the average closing market price of the shares for the five trading days prior to the invitation date to apply for the options of 5 November 2020. The fair value of each option issued during the year was estimated on the date of grant using a Binomial option-pricing model. The following weighted average assumptions were used for grants during the year: Dividend yield 5.44% Volatility 44.0% Risk-free interest rate 0.21% - 0.95% Expected life of option 25% - 1 years 25% - 2 years 50% - 3 years The dividend yield reflects an analysis of past dividends and future dividend expectations. The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which also may not necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair value.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 145 27. SHARE-BASED PAYMENT EXPENSE (continued) The following table illustrates the number and weighted average exercise prices of and movements in options granted, exercised and forfeited during the year. 2026 2025 Number of Options Weighted Average Exercise Price $ Number of Options Weighted Average Exercise Price $ Balance at the beginning of the year - - 1,525,000 9.30 Exercised during the year - - (1,475,000) 9.30 Forfeited during the year - - (50,000) 9.30 Balance at the end of the year - - - - Exercisable during the next year - - - - Recognition and measurement The Group provides benefits to employees (including Key Management Personnel) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date on which they are granted. The fair value is determined by an external valuer. In valuing equity -settled transacti ons, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Monadelphous Group Limited (market conditions), if applicable. The cost of equity -settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the directors of the Group, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The income statement charge or credit for a period represents the movement in cumulative expen se recognised as at the beginning and end of that period. Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest than were originally anticipated to do so. Any award subject to market condition is considered to vest irrespective of whether or not that market condition is fulfilled, provided that all other conditions are satisfied. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 146 2026 2025 $ $ 28. AUDITOR’S REMUNERATION The auditor of Monadelphous Group Limited is Ernst & Young. Amounts received or due and receivable by Ernst & Young Australia for: • An audit or review of the financial report of the entity and any other entity in the consolidated entity 424,440 385,000 • Fees for assurance services required by legislation 55,000 - • Other non-audit services in relation to the entity and any other entity in the consolidated entity • tax compliance 48,875 42,125 • other 80,000 - Total fees to Ernst & Young (Australia) 608,315 427,125 Amounts received or due and receivable by overseas member firms of Ernst & Young for: • An audit or review of the financial report of the entity and any other entity in the consolidated entity 8,432 8,564 • Other services in relation to the entity and any other entity in the consolidated entity • tax compliance 1,511 27,017 • other 4,054 2,033 Total fees to overseas member firms of Ernst & Young 13,997 37,614 Total auditor’s remuneration 622,312 464,739 Ernst & Young has provided an auditor’s independence declaration to the Directors of Monadelphous Group Limited confirming that the provision of the other services has not impaired their independence as auditors. 2026 2025 $ $ 29. RELATED PARTY DISCLOSURES Compensation of key management personnel Short-term benefits 5,055,078 4,608,665 Post-employment 216,214 210,822 Long-term benefits (97,890) (185,122) Share-based payments 2,190,122 1,574,854 Total compensation 7,363,524 6,209,219 During the year, a key management personnel entered into an arm’s length transaction in a personal capacity with a wholly owned subsidiary of the Company, to the value of $19,550. There is no outstanding balance on this transaction at 30 June 2026. The transaction was pre-approved in line with the Company’s policy. Zenviron The Group had sales to the joint venture during the year totalling $7,914,226 (2025: $2,308,204). Mondium The Group had sales to the joint venture during the year totalling $35,013,366 (2025: $16,841,141).
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 147 30. OPERATING SEGMENTS Revenue is derived by the consolidated entity from the provision of engineering services to the resources, energy and infrastructure industry sector. For the year ended 30 June 2026, the Engineering Construction division contributed revenue of $1,374.0 million (2025: $925.3 million) and the Maintenance and Industrial Services division contributed revenue of $1,615.0 million (2025: $1,346.4 million). Included in these amounts is $8.9 million (2025: $5.8 million) of inter -entity revenue and $193.3 million (2025: $112.7 million) of revenue of joint ventures , which is eliminated. The operating divisions are exposed to similar risks and rewards from operations and are only segmented to facilitate appropriate management structures. The Executive Management Committee is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. The CODM believe that the aggregation of the operating divisions is appropriate for segment reporting purposes as they: • have similar economic characteristics in that they have similar gross margins; • perform similar services for the same industry sector; • have similar operational business processes; • provide a diversified range of similar engineering services to a large number of common clients; • utilise a centralised pool of engineering assets and shared services in their service delivery models, and the services provided to customers allow for the effective migration of employees between divisions; and • operate predominately in one geographical area, namely Australia. Accordingly, all services divisions have been aggregated to form one segment. The Group has a number of customers to which it provides services. The largest customer represented 17% (2025: 15%) of the Group’s revenue. One other customer individually contributed 15% (2025: 14%) of the Group’s revenue. There are multiple contracts with these customers, across a number of their subsidiaries and divisions within those subsidiaries and locations.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 148 2026 2025 $’000 $’000 30. OPERATING SEGMENTS (continued) Geographical Information Revenue from external customers Australia 2,729,326 2,093,022 Papua New Guinea 55,397 53,801 Mongolia 2,082 4,218 Other overseas locations - 2,115 2,786,805 2,153,156 Total non-current assets Australia 365,605 303,153 Papua New Guinea 7,288 3,583 Mongolia - 60 Other overseas locations 175 200 373,068 306,996 31. DEED OF CROSS GUARANTEE Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, relief has been granted to these controlled entities of Monadelphous Group Limited from the Corporations Act 2001 requirements for preparation, audit and publication of accounts. As a condition of the Class Order, Monadelphous Group Limited and the controlled entities subject to the Class Order, entered into a deed of indemnity on 9 June 2011, 1 June 2012, 9 June 2014, 8 June 2016 and 9 May 2024. The effect of the deed is that Monadelphous Group Limited has guaranteed to pay any deficiency in the event of winding up of these controlled entities. The controlled entities have also given a similar guarantee in the event that Monadelphous Group Limited is wound up. The consolidated income statement and statement of financial position of the entities that are members of the ‘Deed’ are as follows: 2026 2025 $’000 $’000 Consolidated Income Statement and Comprehensive Income Profit before income tax 140,190 106,393 Income tax expense (44,564) (33,432) Net profit after tax for the period 95,626 72,961 Reconciliation of Retained Earnings Retained earnings at the beginning of the period 213,153 205,188 Dividends paid (87,752) (64,997) Net profit after tax for the period 95,626 72,962 Retained earnings at the end of the period 221,027 213,153
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 149 31. DEED OF CROSS GUARANTEE (continued) 2026 2025 $’000 $’000 Consolidated Statement of Financial Position ASSETS Current assets Cash and cash equivalents 211,620 144,884 Trade and other receivables 455,873 452,806 Contract assets 9,744 11,098 Total current assets 677,237 608,788 Non-current assets Contract assets 13,927 14,073 Investments in subsidiaries 108,603 7,492 Property, plant and equipment 221,580 210,523 Deferred tax assets 31,886 24,929 Intangible assets and goodwill 39,941 17,423 Total non-current assets 415,937 274,440 TOTAL ASSETS 1,093,174 883,228 LIABILITIES Current liabilities Trade and other payables 438,067 285,559 Interest bearing loans and borrowings - 4,272 Lease liabilities 24,002 20,390 Income tax payable 17,231 21,955 Provisions 76,918 50,109 Total current liabilities 556,218 382,285 Non-current liabilities Lease liabilities 46,266 52,239 Provisions 8,720 8,242 Total non-current liabilities 54,986 60,481 TOTAL LIABILITIES 611,204 442,766 NET ASSETS 481,970 440,462 EQUITY Contributed equity 168,829 150,120 Reserves 92,114 77,189 Retained earnings 221,027 213,153 TOTAL EQUITY 481,970 440,462
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 150 32. OTHER ACCOUNTING STANDARDS Other accounting policies Financial assets Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through OCI, and fair value through profit or loss. With the exception of trade receivables, that do not have a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component are measured at the transaction price determined under AASB 15. Financial assets at amortised cost The Group measures financial assets at amortised cost where the objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely pay ments of principal and interest on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost includes trade receivables. Financial assets at fair value For financial assets at fair value, gains and losses will either be reported in profit or loss or other comprehensive income. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity instruments at fair value through OCI. Gains and losses on financial assets designated at fair value through OCI are not recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established. Equity instruments des ignated at fair value through OCI are not subject to impairment assessment. Impairment of financial assets The Group recognises an allowance for ECLs for trade receivables, contract assets and other debt financial assets not held at fair value through profit or loss. ECLs are based on the difference between the contracted cash flows due in accordance with the contract and all the cash flows the Group expects to receive, discounted at an approximation of the original effective interest rate. For trade receivables and contract assets, the Group applies a simplified approach in calculating expected credit losses and recognises a loss allowance based on lifetime expected credit losses at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Definition of default The Group considers a financial asset to be in default when contractual payments are 90 days past due or when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 151 32. OTHER ACCOUNTING STANDARDS (continued) Other accounting policies (continued) Financial assets (continued) Write off policy A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except: • when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. New and amended Accounting Standards and Interpretations Monadelphous Group Limited and its subsidiaries has adopted all new and amended Australian Standards and Interpretations mandatory for reporting periods beginning on or before 1 July 2025. Revised Standards and Interpretations which apply from 1 July 2025 did not have any material effect on the financial position or performance of the Group.
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MONADELPHOUS GROUP LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS: OTHER FOR THE YEAR ENDED 30 JUNE 2026 152 32. OTHER ACCOUNTING STANDARDS (continued) New accounting standards and interpretations issued but not yet effective Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective (including those below) have not been adopted by the Group for the annual reporting period ended 30 June 2026. The impact of these standards are still being assessed. Reference Summary Application date of standard Application date for Group Amendments to Australian Accounting Standards – Annual improvements Volume 11 Amendments to the following standards: • AASB 1 First time Adoption of Australian Accounting Standards • AASB 7 Financial Instruments; Disclosures • AASB 9 Financial Instruments • AASB 10 Consolidated Financial Statements • AASB 107 Statement of Cash Flows The amendments aim to improve clarity and internal consistency. 1 January 2026 1 July 2026 AASB 18 Presentation and Disclosure in Financial Statements The key presentation and disclosure requirements established by AASB 18 are: • the presentation of newly defined subtotals in the statement of profit or loss; • the disclosure of management-defined performance measures; and • enhanced requirements for grouping information (i.e. aggregation and disaggregation). These new requirements will enable investors and other financial statement users to make more informed decisions, including better allocations of capital, that will contribute to long-term financial stability. AASB 18 will replace AASB 101 Presentation of Financial Statements. 1 January 2027 1 July 2027
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MONADELPHOUS GROUP LIMITED CONSOLIDATED ENTITY DISCLOSURE STATMENT FOR THE YEAR ENDED 30 JUNE 2026 153 Name of entity Entity type Country of incorporation Country of tax residence % of share capital Monadelphous Group Limited Body corporate Australia Australia Controlled entities of Monadelphous Group Limited: Monadelphous Engineering Associates Pty Ltd Body corporate Australia Australia 100 Monadelphous Properties Pty Ltd Body corporate Australia Australia 100 Monadelphous Engineering Pty Ltd Body corporate Australia Australia 100 Genco Pty Ltd Body corporate Australia Australia 100 Monadelphous Workforce Pty Ltd Body corporate Australia Australia 100 Monadelphous Electrical & Instrumentation Pty Ltd Body corporate Australia Australia 100 Monadelphous KT Pty Ltd Body corporate Australia Australia 100 Monadelphous Energy Services Pty Ltd Body corporate Australia Australia 100 M Workforce Pty Ltd Body corporate Australia Australia 100 M Maintenance Services Pty Ltd Body corporate Australia Australia 100 M&ISS Pty Ltd Body corporate Australia Australia 100 Inteforge Pty Ltd Body corporate Australia Australia 100 Monadelphous Group Limited Employee Share Trust Trust Australia Australia 100 Monadelphous Holdings Pty Ltd Body corporate Australia Australia 100 Monadelphous Investments Pty Ltd Body corporate Australia Australia 100 MWOG Pty Ltd Body corporate Australia Australia 100 MOAG Pty Ltd Body corporate Australia Australia 100 Monadelphous International Holdings Pty Ltd Body corporate Australia Australia 100 Arc West Group Pty Ltd Body corporate Australia Australia 100 R.I.G. Installations (Newcastle) Pty Ltd Body corporate Australia Australia 100 RE&M Services Pty Ltd Body corporate Australia Australia 100 Pilbara Rail Services Pty Ltd Body corporate Australia Australia 100 EC Projects Pty Ltd Body corporate Australia Australia 100 Monadelphous RTW Pty Ltd Body corporate Australia Australia 100 MMW Projects Pty Ltd Body corporate Australia Australia 100 Monadelphous PNG Ltd Body corporate Papua New Guinea Papua New Guinea 100 Moway International Limited Body corporate Hong Kong Australia and Hong Kong(1) 100 Moway AustAsia Steel Structures Trading (Beijing) Company Limited Body corporate China China 100 Inteforge Engineering & Fabrication (Tianjin) Co. Ltd Body corporate China China 100 Monadelphous Mongolia LLC Body corporate Mongolia Mongolia 100 BMC Holdings (Vic) Pty Ltd Body corporate Australia Australia 100 BMC Welding & Construction Pty Ltd Body corporate Australia Australia 100 BMC HV Electrical & Instrumentation Pty Ltd Body corporate Australia Australia 100 Melchor Contracting Pty Ltd Body corporate Australia Australia 100 Monadelphous NPI Pty Ltd Body corporate Australia Australia 100 High Energy Service Pty Ltd Body corporate Australia Australia 100 Kerman Contracting Pty Ltd Body corporate Australia Australia 100 Australian Power Industry Partners Pty Ltd Body corporate Australia Australia 100 (1) Moway International Limited is a dual tax resident of Australia and Hong Kong.