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Stock of the day
Monadelphous
Monadelphous secures a $175 million BHP contract at Port Hedland, boosting its project pipeline and reinforcing its position as a leading mining engineering services provider.
(AI video summary)
This video was created on 6 January 2026 for IG audiences by ausbiz.
ASX code: MND
Monadelphous secures BHP contract amid strong commodity tailwinds
Monadelphous has won a $175 million contract with BHP at Port Hedland, Western Australia (WA), covering civil, structural, mechanical, piping, and electrical works. This marks the company’s third BHP project at Nelson Point in as many years and has lifted the share price following a strong 2025.
Strong fundamentals, cyclical exposure
The company has a project pipeline exceeding $2.5 billion. Analysts note it consistently wins major contracts, but growth is closely tied to the commodity cycle. Demand for engineering services remains robust, yet new projects depend on mining activity and broader economic conditions.
Monadelphous has delivered stable sales growth of around 6% per annum, high earnings consistency, and low debt levels. Analysts highlight its strong return on equity and capital, marking it as a high-quality business.
Investment outlook
The stock trades at 32 times price-to-earnings, which is high for a mining services company exposed to commodity volatility. While it may continue to perform, future gains are expected to be more modest.
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