Australia’s Service Stream rallies to near 5-yr high on $1 bln defence contract

Published 11/09/2025, 05:08
© Reuters.

Investing.com-- Shares of Service Stream Ltd (ASX:SSM) rose sharply on Thursday after the network services provider said it secured a major long-term base services contract with the Australian Department of Defence. 

Service Stream surged 16% to $2.320 in Sydney trade, outpacing a 0.4% drop in the ASX 200 index. Shares of the firm were at their highest since late-2020. 

The network firm said it had secured a contract worth A$1.6 billion ($1 billion) to become the property and asset services provider for South Australia and the Northern Territory, which covers 113 defense sites and training facilities. 

The contract is for an initial term of 6 years with two extension options to extend to a maximum term of 10 years. The A$1.6 billion fee is for the initial term. 

The contract will commence from February 1, 2026, with Service Stream stating that it will entail about 350 new employees. 

But the contract will provide “minimal earnings contribution” in 2026 due to the commencement timing, Service Stream said.

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