Construction sector propels Mincon back to growth trajectory
Mincon, an Irish engineering group, is experiencing a strong recovery and significant growth in the construction sector, according to recent reports. The company's construction revenue surged by 47% in the first half of 2025, contributing significantly to the group's overall 9% revenue growth to €74.1 million and a swing to a €2.4 million pretax profit from a €867,000 loss a year earlier.
The growth in the construction segment has been driven by increased large construction activity, particularly in the Americas, Europe, Middle East (EME), Africa, and Asia Pacific (APAC) regions. There has been a notable shift towards numerous smaller projects rather than a few large contracts.
This resurgence in the construction sector has also led to a significant margin recovery for Mincon. The company's superior engineered product offering and onsite service support, as stated by CEO Joseph Purcell, have played a crucial role in this recovery. Higher revenues from large construction projects in Africa and APAC improved profit margins despite some currency exchange losses.
The improved financial performance and profitability of Mincon during the first half of 2025 have been key drivers of the company's overall growth. Davy analysts have stated that Mincon's operating profit level was 9% ahead of their expectations. The company's gross profit was €22 million, a 27% increase and in line with analyst forecasts.
However, the macroeconomic uncertainty due to the emerging global tariff situation has given pause for thought. Mincon's global spread allows it to try and mitigate tariffs, but the slow water well/geothermal market in the first half of 2025 is a concern. The requirement of reducing emissions is directly related to increasing drilling efficiency, a focus that remains a cornerstone in Mincon's push to win profitable market share.
In other sectors, mining revenue was down 13% on a year earlier, with a decline in Africa. However, major project wins in Australia and Africa have contributed to the growth in the construction sector. Geothermal revenues were 9% lower.
Looking ahead, Mr. Purcell has expressed concern about certain climate commitments being rolled back, which could impact the company's future growth. Despite these concerns, Mincon has returned to growth in the first half of 2025, a promising sign for the company's future.
- Mincon's Finance department, driven by the growth in the construction sector and higher revenues from large construction projects in Africa and APAC, has witnessed a significant margin recovery.
- The company's Business Development strategy, focusing on superior engineered products and onsite service support, has been instrumental in Mincon's strong recovery and growth in the construction sector.
