Monadelphous rallies after delivering a 53% jump in half-year profit
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More news: Shares in Monadelphous rallied in morning trade and is set to be the best performer across the ASX 200 after the company delivered stronger-than-expected half-year profit and revenue results.
Shares rallied 13.62% to $34.79 at 1:22pm AEDT.
Analysts at Jarden maintained an overweight rating on the stock and have set a price target of $31.70, citing strong beat in first-half and expectations for material upgrades to FY26 consensus forecasts.
Monadelphous reports 53% jump in profit on record 1H revenue
The news: Engineering group Monadelphous recorded a 52.6% rise in first-half net profit after tax (NPAT) after delivering record revenue of $1.53 billion for the period.
The numbers: NPAT of $64.9 million beat market estimates of $55.8 million, according to Visible Alpha data.
The group declared an interim dividend of 49 cents per share, up from 33 cents last year. Analysts were expecting a payout of 46 cents per share.
The context: Monadelphous said its engineering construction division accounted for $677.8 million of its half-year revenue, an increase of around 67% year on year. The result was supported by service expansion and growing capability in its end-to-end delivery, the company said.
Zenviron, the group’s renewable energy business, also experienced increased activity from larger wind and battery energy storage projects, it said.
Monadelphous broadened its capabilities and service offering during the period through the acquisitions of Kerman Contracting, Australian Power Industry Partners and High Energy Service.
Managing director Zoran Bebic said full-year revenue is expected to be around 30% higher than the prior period.
What they said: “Long-term demand in the resources and energy sectors is expected to continue, supported by an improved global economic growth outlook,” said Bebic.
“Continued investment in new and existing operations in Western Australia’s iron ore sector is driving demand for both maintenance and construction services, with the energy sector to offer substantial prospects.”
The source: ASX
