SRG Global (ASX:SRG) Is Up 10.1% After Securing A$650m in Multi-Sector Contracts Has the Bull Case Changed?

• SRG Global announced it has secured approximately A$650 million in new and repeat contracts with major clients across Australia and New Zealand spanning sectors such as water, defence, transport, energy, industrials, resources, health, and education.
• This significant contract portfolio highlights the company's continued momentum in diversifying its service offerings and expanding its presence among blue-chip clients in multiple industries.
• We'll explore how SRG Global's broad sector wins with major clients could further shape its investment narrative and growth outlook.

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SRG Global Investment Narrative Recap

For investors considering SRG Global, the core belief is in the company’s ability to capitalise on Australia and New Zealand’s ongoing infrastructure investment and leverage a defensible position with blue-chip clients across multiple sectors. The recent win of approximately A$650 million in new and repeat contracts reinforces momentum, but also highlights that the largest short-term catalyst remains the pace and continuity of government and private sector capital projects, while the biggest risk is delayed or reduced public sector spending, impact for now appears positive but not transformative.

Of the recent company news, SRG Global’s full-year earnings report from August 2025 stands out. The company increased both sales (A$1,323.31 million) and net income (A$47.48 million), demonstrating that growth in work secured, like the new contract wins, directly supports their upward revenue and profit trajectory and underpins earnings momentum, which could continue to influence market sentiment around the business.

However, investors should keep in mind that while short-term contract momentum is strong, any prolonged reduction in government budgets could...

Read the full narrative on SRG Global (it's free!)

SRG Global's narrative projects A$1.6 billion revenue and A$70.7 million earnings by 2028. This requires 7.0% yearly revenue growth and a A$23.2 million earnings increase from A$47.5 million currently.

Uncover how SRG Global's forecasts yield a A$3.02 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have submitted four independent fair value estimates for SRG Global, from as low as A$1.03 to A$3.52 per share. With public sector funding a key risk, your view on contract pipeline stability will shape your expectations for SRG Global’s future performance, see how other investors’ perspectives compare.

Explore 4 other fair value estimates on SRG Global - why the stock might be worth as much as 24% more than the current price!

Build Your Own SRG Global Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SRG Global research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free SRG Global research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SRG Global's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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