Investors eye Mayfield Group (ASX: MYG) after A$20m Brigalow project — is the small-cap infrastructure play undervalued?

Mayfield Group Holdings Limited (ASX: MYG) has announced a AUD 20 million contract for Queensland’s Brigalow Gas Peaking Plant, marking a pivotal addition to its FY26 pipeline. The deal with GE Power Australia Pty Ltd reinforces the Adelaide-based company’s growing influence in Australia’s energy-transition infrastructure market and lifts its total confirmed FY26 contract value to about AUD 37 million.

The project will see Mayfield Industries design, engineer, and manufacture prefabricated Balance-of-Plant (BOP) electrical modules — a critical layer of technology that allows dispatchable gas generation to stabilise the grid as renewable energy uptake surges.

How does the Brigalow project strengthen Mayfield’s FY26 momentum and reinforce its strategic role in grid reliability?

The Brigalow contract provides full turnkey delivery of mission-critical electrical systems that include six integrated switchrooms, dry-type transformers, low-voltage switchboards, UPS systems, DC chargers, HVAC units, fire protection, and control mechanisms. Each module will be built to Australian standards with an expected 25-year service life, a clear signal of the project’s technical sophistication and long-term reliability focus.

Managing Director Andrew Rowe said the Brigalow deal encapsulates what defines Mayfield’s niche — delivering the unseen infrastructure that keeps power systems resilient. He described the company as building the “electrical backbone” of Australia’s transition, not generating power itself but enabling every modern source of energy to connect, distribute, and operate safely.

Industry analysts view Brigalow as emblematic of Mayfield’s competitive edge: an Australian manufacturer able to offer end-to-end design and rapid delivery at a time when imported solutions are challenged by supply-chain risk and compliance requirements. That domestic capability, they note, continues to differentiate Mayfield from global competitors and align it closely with national energy-security priorities.

Why are gas peaking plants still critical to Australia’s decarbonising grid, and how does Mayfield fit in?

While renewable capacity is expanding rapidly, Australia still relies on flexible generation to balance supply and demand during peak periods or when wind and solar output dips. Gas peaking plants, such as Brigalow, fill that reliability gap. They can start within minutes and provide immediate stability to the grid, especially in regions like Queensland with high renewable penetration.

Mayfield’s electrical and control modules will enable Brigalow’s turbines to integrate seamlessly with the grid. These systems represent the “digital nervous system” of the plant, managing voltage, safety, and data communications that make dispatchable power possible.

By supporting projects like Brigalow, Mayfield indirectly advances renewable integration — ensuring that clean-energy systems operate within a grid architecture capable of handling fluctuating loads. This operational reliability has become a cornerstone of Australia’s energy-transition blueprint, and Mayfield’s role within it is increasingly recognised by both utilities and policymakers.

How diversified is Mayfield’s FY26 contract book, and what does it reveal about its positioning in the energy-transition supply chain?

The Brigalow project is only one of several major contracts underpinning Mayfield’s momentum heading into FY26. The company has secured roughly AUD 37 million in new orders since July 2025, spanning energy generation, renewables integration, storage, and network infrastructure.

In New South Wales, Mayfield is delivering switchrooms, control rooms, and protection panels to Endeavour Energy for Western Sydney’s grid-expansion program — a critical piece of infrastructure supporting industrial and residential growth in the state’s fastest-developing corridor.

In Western Australia, the company is supplying protection and control systems for UGL’s Neerabup Substations, part of Western Power’s transmission investment to strengthen the network for renewable integration and distributed-energy resources.

Mayfield is also providing switchrooms and protection systems for the Merredin Battery Energy Storage System, the largest standalone battery project in Western Australia. Each of these wins demonstrates Mayfield’s ability to operate across the energy-transition spectrum — from conventional generation to storage and smart-grid architecture — giving it resilience across market cycles.

What do recent financial results suggest about Mayfield’s operational scale and earnings trajectory?

Mayfield closed FY25 with 38 percent revenue growth to AUD 118.1 million and 73 percent EBITDA growth, reflecting stronger project execution and improved factory utilisation across its 26,500 m² Adelaide facility and 7,900 m² Perth site. Following the latest awards, total work in hand stands at about AUD 116 million, offering revenue visibility well into FY26 and FY27.

The company plans to recognise contract revenue progressively as project milestones are met, a structure that supports predictable cash flow while mitigating working-capital strain. Analysts believe the current backlog underlines both Mayfield’s disciplined tendering and its expanding reputation for reliability among tier-one contractors.

Institutional sentiment has turned modestly bullish, with investors pointing to the company’s diversified exposure — spanning energy, data-centre infrastructure, defence, and industrial power systems — as a hedge against volatility in any single sector.

Why are Australian manufacturers like Mayfield gaining renewed attention from policymakers and investors alike?

Mayfield’s emphasis on local manufacturing dovetails neatly with Canberra’s and state governments’ push to rebuild domestic capability in critical-infrastructure supply chains. With global disruptions and geopolitical risk reshaping procurement priorities, utilities and contractors increasingly prefer partners who can deliver Australian-made, standards-compliant systems.

The company’s 80-year heritage and integrated manufacturing-to-service model provide both supply-chain security and lifecycle accountability. Mayfield’s in-house expertise allows it to customise designs for each client while maintaining rapid turnaround — an advantage that offshore suppliers often struggle to match under Australia’s stringent electrical-safety codes.

Institutional investors are starting to frame Mayfield as a “picks-and-shovels” play in the clean-energy and digital-infrastructure boom. As AI-powered data centres, EV charging networks, and renewable hubs multiply, each requires intelligent power distribution — precisely the space Mayfield occupies.

How is the company positioned to capture the next wave of infrastructure investment across AI, data, and renewables?

The energy-transition narrative is broadening beyond generation to encompass the enabling layers of technology that make electrification viable. Mayfield’s leadership expects rising demand from AI data-centre construction, battery-storage facilities, and hydrogen pilot projects, all of which rely on mission-critical electrical and control systems.

The company’s modular-assembly model is inherently scalable; it allows for parallel production of identical or customised switchrooms that can be deployed rapidly across different projects. Analysts believe this operational structure will become a competitive differentiator as infrastructure timelines compress and clients prioritise speed-to-market.

Furthermore, Mayfield’s three operating units — Mayfield Industries, BE Switchcraft, and Power Parameters — collectively provide a cradle-to-commissioning solution, encompassing manufacturing, commercial electrical systems, and critical-power testing. This integration not only broadens its revenue base but also creates stickier client relationships and cross-selling potential.

What are the latest market signals and investor sentiment around ASX: MYG stock?

As of October 2025, Mayfield Group Holdings’ share price has exhibited steady upward movement, reflecting optimism around its contract wins and recurring earnings visibility. The market reaction to the Brigalow announcement was positive, with moderate volume spikes on the ASX indicating renewed retail and institutional interest.

Investor forums describe MYG as a “steady compounder” rather than a speculative small-cap, citing its debt-light balance sheet and growing exposure to critical-infrastructure projects. While broader market volatility remains a risk, sentiment toward Mayfield is broadly neutral-to-positive, with analysts leaning toward accumulate ratings based on order-book strength and consistent cash generation.

For long-term investors, the firm is increasingly seen as a low-beta proxy for Australia’s electrification drive — less cyclical than construction contractors, yet directly tied to national spending on transmission, storage, and data-centre power networks.

What lies ahead for Mayfield as the infrastructure investment cycle accelerates into 2026?

Looking forward, Mayfield’s challenge will be scaling efficiently while preserving its manufacturing quality and delivery reliability. Management is expected to evaluate selective automation upgrades and potential workforce expansion to keep pace with demand.

Analysts believe that if execution discipline continues and supply-chain stability holds, Mayfield could maintain double-digit revenue growth through FY27. The company’s positioning across energy generation, renewable integration, and industrial electrification gives it a structural advantage as Australia enters a decade of heavy grid and energy-storage investment.

Ultimately, the Brigalow contract is more than a single project win; it reflects a broader validation of Mayfield’s strategy — using modular electrical engineering to enable the infrastructure behind Australia’s low-carbon economy.