With the reporting season in full swing, we continue to see stock prices rise on the back of positive earnings results. One such company is ASX industrials share Monadelphous Group Ltd (ASX: MND).
Monadelphous is an engineering company providing construction, maintenance, and industrial services to the mining, energy, and infrastructure sectors.
Its share price has already risen more than 50% year to date.
The company released FY25 earnings results on Tuesday, and this helped push the stock price even higher.
Despite this rapid rise in 2025, one broker has increased its price target on this ASX industrials stock.
Let's see what is behind the optimism.
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Earnings results
On Tuesday, the company reported:
- Revenue of $2.27 billion for the 12 months ended 30 June 2025, up 12% on the previous year
- Net profit after tax (NPAT) up 34.6% to $83.7 million, EPS 85c
- Earnings before interest, tax, depreciation and amortisation (EBITDA) was $158.2 million (up 24.2%)
- Full year dividend 72cps, up 24%
- Secured record $2.5 billion in new contracts and extensions
This news resulted in a 3% jump for this ASX industrials stock on Tuesday.
Speaking on the results, Monadelphous Managing Director Zoran Bebic said:
Robust longer-term demand is forecast across the resources and energy markets, with significant prospects in both construction and maintenance. Demand for energy transition metals and Australia's Net Zero emissions objective is also driving a significant pipeline of opportunities, as well as from customer decarbonisation and electrification activities. Monadelphous' customer relationships, proven capabilities and reputation for delivery means we are well-positioned for growth.
What did Morgans have to say?
Brokerage house Morgans increased its price target guidance on this ASX industrials stock largely thanks to its growth potential.
The upgrade cycle for MND is in full swing. Although the shares have re-rated materially, we continue to like MND given significant growth potential in both FY26 and FY27 driven by Rio's multi-year iron ore replacement program (underpinning strong demand in E&C) and heightened oil & gas turnaround activity in FY26 and FY27 (increasing volumes in Maintenance).
Morgans noted that although the headline valuation looks stretched, it's important to note that MND reached ~$20 pre-COVID in anticipation of Rio's initial iron ore replacement program.
Not only does Rio's replacement program appear more significant this time around, but the higher value Maintenance business is now +30% larger (FY25 vs FY19).
The broker now has a price target of $24.50 (previously $19.50).
Based on Wednesday's closing price of $21.19, this indicates there is still upside potential of 15.62%.
