Monadelphous Shares Soar 14% After Reaffirming $1.7 Billion Revenue Guidance and $830 Million in New Contracts

SYDNEY — Shares of Monadelphous Group Ltd. soared nearly 14% on Tuesday, leading the Australian market, after the engineering and maintenance services company reaffirmed strong first-half guidance and reported hundreds of millions of dollars in new contracts.

Monadelphous shares rose A$3.89, or 13.75%, to A$32.19 in afternoon trading, after reaching as high as A$32.89. About 490,000 shares changed hands, and the gain lifted the company's market value to about A$3.2 billion. The stock is up about 29% over the past year.

Monadelphous was the biggest gainer on the ASX 200, on the back of first-half revenue of $1.7 billion and a strong expected result.

Guidance reaffirmed

The company confirmed its outlook at a time of strong demand. Monadelphous reaffirmed half-year revenue guidance of approximately $1.7 billion for the six months ending Dec. 31, amid strong operating conditions in the first four months of FY27.

It also gave a profit forecast. Monadelphous projects net profit after tax for the half year to be between $80 million and $85 million.

That implies healthy margins. According to Finimize, $80 million to $85 million of net profit on about $1.7 billion of revenue works out to a profit margin of roughly 4.7% to 5.0%.

The guidance effectively gives investors an earnings floor for the half and spells out the margin the company thinks it can defend.

New contracts

Contract wins continue to underpin growth. The company has secured a further $830 million in new contracts since July 1.

Demand for engineering construction services remains strong and has been the key driver of total revenue, the company said, alongside substantial new contracts and extensions over the past year.

Strong growth trajectory

The new guidance continues a run of rapid growth. In the first half of FY26, Monadelphous reported record revenue of $1.53 billion, up 45.6% on the prior period, while EBITDA rose 45.6% to $116.2 million and net profit after tax increased 52.6% to $64.9 million.

The latest guidance points to further gains. The forecast first-half FY27 revenue of $1.7 billion would be roughly 11% higher than the prior year's record half, while the profit forecast of $80 million to $85 million would exceed the $64.9 million reported in the first half of FY26.

Sector backdrop

Monadelphous serves Australia's resources and energy industries. Managing Director Zoran Bebic said earlier this year that long-term demand in the resources and energy sectors is expected to continue.

Its Maintenance and Industrial Services division has benefited from increased energy sector activity together with sustained strong demand from iron ore customers.

Market context

The rally came on a strong day for Australian shares. The ASX 200 rose about 1.3% on Tuesday afternoon, reaching its highest level since August. Other mining services companies also gained, with SRG Global and NRW Holdings each rising more than 5%.

What's next

Investors will watch whether Monadelphous can deliver on its half-year guidance when it reports results in February, and whether margins hold as the company takes on more work. Continued contract wins will also be key to sustaining growth into the second half.

This article is for informational purposes only and is not investment advice.