Monadelphous Faces Execution Risks on $110M Contract Win

Monadelphous Expands Contract Portfolio

Engineering powerhouse Monadelphous Group Limited (ASX – MND) has kicked off 2026 with a robust contract update, announcing new work valued at approximately $110 million. These contracts span the resources, energy, and renewable energy sectors, underscoring the company’s diversified capabilities and strategic positioning in key Australian and regional markets.

The largest of these is a four-year multidisciplinary maintenance contract awarded by BW Offshore Australia Management. Monadelphous will service the BW Opal Floating Production Storage and Offloading (FPSO) facility, located some 300 kilometres north-northwest of Darwin in the Northern Territory. This contract, set to commence in the first quarter of 2026, highlights the company’s ongoing strength in offshore maintenance services.

Strategic Projects Across Australia and PNG

In Western Australia’s Pilbara region, Monadelphous has secured a contract with mining giant Rio Tinto to undertake modifications at the Hope Downs 2 process plant. Scheduled for completion in the latter half of 2026, this project reinforces Monadelphous’s longstanding presence in the mining sector and its ability to deliver complex plant upgrades.

Further afield, the company has won a contract with Santos in Papua New Guinea to demolish and dispose of the Hegigio Pipeline Bridge, a significant 500-metre suspended wire bridge in the Southern Highlands. This project, also targeted for completion in the second half of 2026, demonstrates Monadelphous’s expanding footprint in the Pacific region and its versatility in handling diverse engineering challenges.

Renewable Energy Ventures Gain Momentum

Monadelphous’s renewable energy joint venture, Zenviron, has secured a contract with Flow Power to deliver the Bennetts Creek Battery Energy Storage System in Victoria’s Latrobe Valley. This project, involving balance-of-plant design, construction, installation, and commissioning of a 100/223 MWh battery system, is expected to be completed by late 2027. It signals Monadelphous’s growing commitment to the renewable energy transition and its capability to deliver large-scale energy storage solutions.

Collectively, these contracts not only provide Monadelphous with a solid revenue pipeline but also reflect its strategic diversification across traditional resources and emerging clean energy markets. While the company has not updated financial guidance, the scale and scope of these projects suggest positive momentum heading into the year.