Shares in Monadelphous Group Ltd (ASX: MND) have hit a record for the past 12 months following a strong trading update announced on Monday.
The company also announced new contract wins in a separate update posted to the ASX on Monday, saying it had won work in the resources sector worth $140 million.
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Strong order book
On the trading front, Monadelphous said it had "experienced strong operating conditions throughout the first four months of the 2026 financial year, with activity levels elevated across the business''.
It went on to say:
The strong momentum experienced in the last quarter of FY25 has continued, underpinned by the record level of work secured during the 2025 financial year. Demand for engineering construction services has been strong, with a larger revenue contribution from vertically integrated construction projects, especially those incorporating Melchor's civil capability and Inteforge's fabrication services. This reflects the success of the company's strategy to enhance the overall delivery capability to customers and broaden its service offering.
Monadelphous had also experienced higher levels of major project activity, "as well as a significant increase in demand from energy customers, particularly in brownfields developments and turnaround services''.
The company's committed work pipeline remains strong, with more than $570 million in new contracts secured since the beginning of the financial year, with further contract awards expected over coming months.
Monadelphous said it was currently forecasting revenue for the first half of the year to come in at about $1.5 billion, and while operating activity was expected to moderate in the second half of FY26, "full year revenue (is) currently forecast to be around 20 to 25 per cent higher than the previous year''.
Diverse range of new work
The new contracts announced on Monday included a three-year extension to a master services agreement with BHP across its iron ore operations in the Pilbara region of Western Australia.
The company said:
The company has also been reappointed to the Western Australia Iron Ore (WAIO) Site Engineering Panel for a further two years, providing multidisciplinary services to BHP's Pilbara iron ore mines, ports and rail facilities.
The company also won work at BHP's Olympic Dam mine in South Australia and various works with Rio Tinto.
Monadelphous shares hit a new 12-month high of $25.08 on the news, before settling back to be 8.2% higher at $24.36.
The value of the shares has more than doubled from lows of $12.26 over the past year.
