Engineering Giant Monadelphous Projects Major Revenue Growth
Perth-based engineering contractor Monadelphous Group Limited has sent shockwaves through the Australian Stock Exchange, with its share price experiencing a dramatic surge following an optimistic revenue forecast. The company's stock jumped more than 10 per cent to $24.87 in afternoon trading on Monday, cementing a staggering near 100 per cent increase over the past twelve months.
Record Contract Wins Fuel Financial Surge
This impressive investor confidence stems from the company's guidance projecting a substantial revenue increase for the current financial year. Monadelphous announced it is on track for a revenue bump of between 20 and 25 per cent compared to the previous year's $2.27 billion. This follows a period of sustained growth, as the prior year's figure was itself a 12 per cent lift on the year before that.
The company informed the Australian Securities Exchange that operational revenue for the first half, ending December 31, is expected to reach approximately $1.5 billion. It attributed this performance to strong operating conditions throughout the first four months of the 2026 financial year, with elevated activity levels across its business divisions.
Major Contract Extensions with Mining Titans
Adding to the positive momentum, Monadelphous used the same announcement to reveal a series of significant contract wins and extensions with mining giants BHP and Rio Tinto, valued at approximately $140 million. This builds upon a total of $570 million in work already secured for the financial year to date.
The newly announced work includes:
- A three-year extension to an existing master services agreement at BHP's Pilbara iron ore operations.
- Construction works on berths at BHP's Finucane Island port facilities in Port Hedland.
- Construction and installation of cooling towers at BHP's Olympic Dam.
- Maintenance works at Rio Tinto's Cape Lambert and Dampier port operations.
The company also confirmed its recent strategic acquisition, having entered an agreement in late October to purchase WA group Kerman Contracting for $15 million. This deal is anticipated to be finalised before the end of the calendar year, further expanding Monadelphous's operational capacity.
While the first half of the financial year shows remarkable strength, the company noted that operating activity is expected to lull towards the second half, a typical pattern in large-scale project cycles.
