Engineering company Monadelphous Group Ltd (ASX: MND) has announced new contracts worth about $220 million, continuing its strong run of new business wins.
The $2.2 billion company's shares are trading near their 12-month highs, changing hands for $22.19, compared with the high over the period of $22.30.
The stock has gained slightly more than 80% off its 12-month low of $12.26, and Monadelphous also paid a 39-cent per share dividend in September.
On Thursday, Monadelphous said it had been awarded new construction contracts in the resources sector, filling out its forward order book with about $220 million of new work.
The company has secured a major multidisciplinary construction contract with BHP associated with the Jimblebar Train Loadout Replacement Project, located near Newman in the Pilbara region of Western Australia. The vertically integrated scope includes earthworks and civils performed by Melchor, the company's civil business, structural, mechanical, piping, electrical and instrumentation works, as well as offsite fabrication and procurement provided by Inteforge, the company's fabrication business. Work under the contract is expected to be completed in late 2027.
Monadelphous has also won the contract to construct a battery energy storage system for Fortescue Ltd (ASX: FMG) in the Pilbara, with that project expected to be completed in the first half of 2026.
Building on a solid base
The contract wins follow Monadelphous reporting strong full-year results in August, with the company generating revenue of $2.27 billion for FY25, up 12%, and a net profit of $83.7 million, up 34.6%.
The company secured approximately $2.5 billion in new contracts and extensions since the beginning of the 2025 financial year, representing a record total value of awards in a period, and enters the new financial year with a strong pipeline of committed work.
The engineering company bought Perth-based high-voltage services business High Energy Service last financial year in a bid to gain more exposure to energy transition work, such as the new Fortescue contract just announced.
The company's managing director, Zoran Bebic, said in August that they expected "robust longer-term demand" across the resources and energy markets.
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.
