Monadelphous’ almost 10% pullback from its February high was more about extreme enthusiasm following its strong 1H result Here and the outbreak of the Iran war, as opposed to any issues with the company operationally. Their order book remains very strong, with revenue forecast to hit $3bn in FY27, up from $1.9bn in FY22, a similar story to NRW. They already delivered a record 1H FY26 result, with revenue up ~46% to $1.53bn and profit rising ~53% to $64.9m, importantly supported by ~$1.4bn in new contract awards during the half.
Momentum has continued into the second half, with a further ~$145m in contracts announced in April, including work with Rio Tinto and a maintenance extension at BHP’s Olympic Dam. We like MND, although at this stage, NRW is the sector’s shining light, with MND making fresh 8-week highs on Wednesday. Technically, the stock looks good while it can hold above $29.
- We can see MND pushing at least 10% higher through 2026.
MM is cautiously bullish towards MND around $30.
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