Shares in Monadelphous are rallying after the engineering firm advised its anticipating a stronger full-year revenue result on bumper demand, while also booking extra work with BHP and Rio Tinto.
Shares in Monadelphous are rallying after the engineering firm advised its anticipating a stronger full-year revenue result on bumper demand, while also booking extra work with BHP and Rio Tinto.
Monadelphous' shares were trading up more than 9 per cent to $24.62 on Monday morning, almost double its share price 12 months prior.
The firm told the market it was now anticipating its full-year revenue result to come in 20 to 25 per cent higher than the previous financial year's result $2.27 billion.
It is also expecting to generate revenue of $1.5 billion for the half year ending in December, with operating activity tipped to moderate in the second half of the year,
It put the lifted full-year forecast down to strong operating conditions and activity levels in the early months of this financial year, which it said built on the record work pipeline secured in FY25.
“Operating activity is expected to moderate in the second half of the financial year, with full year revenue currently forecast to be around 20 to 25 per cent higher than the previous year,” Monadelphous said.
Zoran Bebic-led Monadelphous brought in revenue of $2.27 billion in FY25, up from $2.02 billion in FY24, to deliver profit after tax of $83.7 million.
The lifted revenue expectations comes also comes off the back of Monadelphous acquiring Kerman Contracting – a move it said would aid its growth strategy moving forward.
Monadelphous also cited strong demand, and greater revenue contribution, from vertically integrated construction projects on which its Melchor and Inteforge divisions are engaged.
It told the market its Zenviron joint venture and Mondium arms were also seeing an increased demand from energy costumers, particular brownfields developers and turnaround services.
Monadelphous also announced a series of contract wins with BHP and Rio Tinto, to the value of around $140 million.
Leading the way is a three-year maintenance master services extension, in relation to BHP’s iron ore assets in the Pilbara.
Along with this, Monadelphous will also remain on WA Iron Ore's site engineering panel for another two years, where it will continue to provide a diverse range of BHP’s assets, along with a deal for berth-based works at the company’s port facilities on Finucane Island.
It will also work closely with Rio Tinto in relation to its Cape Lambert and Dampier ports, where it will replace a section of road, along with infrastructure-based maintenance.
Meanwhile in South Australia, Monadelphous will facilitate construction and installation works in relation acid plant cooling towers at BHP’s Olympic Dam asset, located 560km north of Adelaide.
