Monadelphous Shares Hit Record High, Extend Two-Day Rally Past 20% After Blowout Guidance and Broker Upgrades

SYDNEY — Shares of Monadelphous Group Ltd. rose more than 7% to a record high on Wednesday, extending a rally that has lifted the stock more than 20% in two days after the engineering contractor gave first-half guidance well above analysts' forecasts.

Monadelphous shares climbed A$2.36, or 7.23%, to A$34.99 after reaching an all-time high of A$35.30. About 545,000 shares traded, and the Perth-based company was valued at about A$3.5 billion. The stock is up about 36% over the past year.

The gain followed a 15.3% jump on Tuesday, when Monadelphous was the best performer on the S&P/ASX 200.

Guidance surprise

In a trading update on Tuesday, Monadelphous said strong conditions in the first four months of fiscal 2027 support first-half revenue of about A$1.7 billion. That compares with A$1.53 billion a year earlier, about 11% growth, and is roughly 13% above analysts' estimates.

The company forecast first-half net profit after tax of A$80 million to A$85 million, up from A$64.8 million a year earlier.

It said activity across the business remains high because of the large number of new contracts and extensions won over the past few years. Monadelphous has secured about A$830 million in new contracts since July 1.

Brokers lift targets

Analysts responded quickly. Macquarie raised its price target to A$35.00 from A$32.70 and kept its Outperform rating, after lifting its fiscal 2027 to 2029 earnings-per-share forecasts by 11% to 13%. Macquarie said the upgrade was a reminder that conditions in mining services and engineering construction remain strong, despite a tough few months for contractors.

Bell Potter upgraded the stock to Buy with a price target of A$36.50, The Australian reported.

Wednesday's close put the shares just below Bell Potter's target and roughly at Macquarie's.

A contractor on a run

Monadelphous, led by Managing Director Zoran Bebic, provides construction, maintenance and engineering services to major mining and energy companies, including BHP, Rio Tinto and Fortescue. Its maintenance work is tied to the day-to-day operation of mines and energy facilities rather than new project approvals, which analysts say makes its earnings steadier than those of many other contractors.

The company has historically carried little debt, which has helped it make acquisitions and fund growth.

Monadelphous shares rose about 180% between August 2024 and March 2026, driven by fast earnings growth, contract wins in resources and energy, and acquisitions. The stock then pulled back with other contractors before this week's rally.

The update also lifted other mining services stocks. NRW Holdings rose more than 6% on Wednesday after a gain of more than 5% on Tuesday.

What to watch

Investors will look for more contract wins and whether margins hold up as wage costs and labor shortages affect the industry. Monadelphous is due to report its first-half results in February.