Monadelphous shares gain on upbeat outlook
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The news: Shares in Monadelphous climbed after the engineering group said it expects first-half and full-year revenue growth.
The numbers: Monadelphous shares were up 3% to $12.88 at 3:10pm AEDT, having shed more than 10% since January.
The context: Citi analysts said, Monadelphous handed down a more upbeat outlook for FY25 compared to three months ago at today's annual general meeting.
The company expects first-half revenue to be "slightly up" on the prior corresponding period, with momentum accelerating in the second half to reach "high single digit revenue growth" for FY25.
What they said: "We are particularly encouraged by favourable mix shift in segmental contract awards," said Citi's analysts.
"In FY24, [engineering and construction] has constituted 30% of the group contract awards, but this has stepped up to 48%. Thus, it is not surprising [Monadelphous] is guiding to margin improvement in FY25," they said.
The sources: ASX announcement, Citi research
