Monadelphous Rides a Contract Wave as Managers Debate the Cycle Peak

Fund managers say strong resources sector demand keeps driving contract wins, even as some take profits after a sustained run

31 May 2026 · 4 min read

Mining services contractor Monadelphous Group has ridden a wave of new contract wins tied to the resources boom through 2025 and 2026, with fund managers split on whether the run still has room left or whether it is time to bank profits.

A strong contract pipeline drives consistent gains

Clime Investment Management's July 2025 update pointed to more than $210 million in new contracts awarded that month alone, spanning construction, maintenance and energy work with Rio Tinto, Newmont, Shell and Origin Energy. Clime used the strength to trim its position while maintaining exposure to what it called a high-quality contract pipeline, a pattern of profit-taking into strength that recurred through the following year. By November 2025, an AGM trading update showed revenue guided to grow 20 to 25 per cent in the first half of FY26, well above analyst estimates, sending shares up 15 per cent.

A booming mining sector lifts an under-appreciated corner of the market

Plato Investment Management's March 2026 case framed mining services as a generally under-appreciated, if risky, part of the market, prone to project mismanagement and cost blowouts, but singled out Monadelphous as a standout among well-managed operators benefiting from a booming mining sector. Plato pointed to a 30 to 40 per cent increase in profit and a near 50 per cent dividend increase in the company's latest result, arguing that despite the run in the share price, the stock still looked good value.

We think the mining services area of the market is one that's generally under-appreciated at the moment. But we think in the current market, there's a bunch of mining service companies that are really well managed, that are doing really well. The one I'll pick in particular is Monadelphous at the moment. It just reported, had about a 30-40% increase in profit, increased its dividends almost 50%, so it was really strong.

— Plato Investment Management, Article, March 2026

Continued profit-taking, even amid strong operating conditions

Yarra Capital Management's January 2026 update maintained a small overweight position, citing continued strong new contract wins and extensions, and structural and cyclical growth in both engineering and construction activity alongside defensive growth in maintenance services. Clime Investment Management, however, reduced its position again in March 2026, taking the opportunity to lock in further profits and reduce portfolio risk even as it described the operating environment as remaining supportive and management continuing to execute well, with growth underpinned by a strong order backlog and an improving mix toward higher-margin work.

A risk some managers weren't willing to hold through

Not every manager stayed the course. Alliance Bernstein exited its Monadelphous position in April 2026, citing the company's exposure in a potential fuel-rationing scenario as a specific risk it wanted to avoid. Centennial Asset Management's May 2026 view remained more constructive, describing Monadelphous as having done really quite well over the prior 12 months, with an outlook for contractual wins and maintenance work still looking attractive, and expressing uncertainty over whether the broader mining services cycle had yet reached its peak.