Monadelphous Shares Surge 15%: Why the stock remains on my watchlist

Monadelphous surged by 15% today, as the company has provided guidance and secured new contracts, strengthening its long term investment case.

 Best Performing Stocks

Monadelphous Group Limited (ASX: MND) is one of the top industrial stocks which is currently trading at a market capitalisation of $2.84 billion and has a current annual fully franked dividend yield of 3.81%.

H1 FY27 guidance

MND has announced on 10 November 2026 its guidance for the financial results for the half year ending 31 December 2026. Monadelphous Group has further secured $830 million in new contracts since 1 July 2026.

It is expected to generate a revenue of approximately $1.7 billion and a net profit after tax of $80-$85 million for the period ended on 31 December 2026.

New Contracts

Monadelphous Group had announced on 28 October 2026 that it had received a number of new contracts in the resources sector valued at approximately $150 million. It includes a four year contract to continue to provide maintenance services and minor projects on Rio Tinto’s marine infrastructure at the Dampier and Cape Lambert Ports in Western Australia.

MND also received a contract with BHP associated with the Ministers North Project, which includes the establishment and maintenance of temporary non process infrastructure facilities and associated services. It is expected to be completed by mid-2028.

Annual Report 2026

Monadelphous Group Limited had released its 2026 annual report to shareholders on 19 October 2026. Total revenue surged by 31.5% year on year to $2.98 billion, led by massive growth in construction revenue. Maintenance revenue is up 20%, and construction revenue is up 48.5% year on year, respectively.

MND has secured more than $2.7 billion in new contracts and extensions. The operating condition remains strong across all sectors. It has reported an EBITDA margin of 7.58% for FY26.

Net profit after tax increased by 52.1% year on year to $127.3 million and reported earnings per share to 127.6 cents. The strong earnings are the result of impressive operational performance and economies of scale.

It has distributed a fully franked dividend of 108 cents per share and has a net tangible asset backing per share of 528.62 cents.

Cash flow from operations reached $245.1 million, making a cash conversion ratio of 147.4% for FY26. MND has reported a cash balance of $293.6 million for FY26 and net assets of $569.05 million.

Conclusion

Monadelphous Group Limited has huge upside potential supported by constant earnings growth, impressive pipeline and balance sheet strength. It has delivered a massive earnings growth over the period, resulting in high return generation. The return on equity increased from 16.8% in FY25 to 22.4% in FY26. MND has an impressive balance sheet strengthen with reduced debt and high quality assets. It has decreased the debt to equity ratio from 8.4% in FY25 to 7.2% in FY26. MND has maintained a consistent dividend distribution history, and investors will benefit from its current annual fully franked dividend yield of 3.81%.  

(Source: Company Announcements)