Press release

Grant Thornton report shows stronger balance sheets reshape mining contractor growth strategies while AI can improve supply chain integrity

09 Nov 2026 4 min read

Australian mining contractors are entering a new phase of growth, supported by stronger balance sheets and AI-led supply chain efficiencies, according to a new report from Grant Thornton Australia.

Mining contractors report: Turning financial strength into growth analyses the FY26 results of a sample of five ASX-listed mining contractors. It finds that contractors are moving beyond balance sheet repair and increasingly pursuing growth, diversification and longer-term value creation.

The report identifies supportive gold and copper markets, resilient iron ore activity and an improving coal outlook as key drivers of demand for their services. Contractors are also expanding into engineering, processing, maintenance, civil infrastructure and technology as they seek to capture more of the mining value chain and improve earnings quality.

Financial performance was positive but mixed. Capital efficiency increased to 4.1 times in FY26 from 3.5 times in FY25, while the sampled companies reduced aggregate net debt by $411 million during the year.

At the same time, profitability softened. Return on equity eased to 9.7 per cent from 10.2 per cent and work-in-hand relative to revenue declined by 14 per cent, highlighting the importance of disciplined capital deployment and converting growth opportunities into sustainable returns.

The report also looks at Supply chain integrity. Strong integrity frameworks are increasingly becoming a competitive advantage. AI-enabled forensic analysis can review large volumes of contracts, invoices, payments and supplier data to identify unusual transactions, potential overbilling, undisclosed relationships and other integrity risks. Combined with experienced forensic judgement, this can give mining clients greater confidence in a contractor’s integrity controls, strengthen bids and ultimately help win work.

Will Kendall, Principal and National Head of Mining and Mining Services at Grant Thornton Australia, said stronger financial positions were creating meaningful opportunities for contractors, but capital allocation would be critical.

“Mining contractors have greater financial capacity to pursue acquisitions, expand their capabilities and participate more directly in project development. The challenge now is to deploy that capital selectively and convert growth into stronger, sustainable returns.

“The strongest contractors will be those that balance growth with disciplined capital allocation, portfolio quality and credible oversight of increasingly complex supply chains.”

The report builds on Grant Thornton Australia’s mining contractor analysis published in November 2025 and April 2026.

Mining contractors report: turning financial strength into growth
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