The ASX small-cap stock SRG Global Ltd (ASX: SRG) could be one business to watch, according to the investment team at Wilson Asset Management (WAM).
Haven't heard of this company before? WAM describes SRG as a diversified infrastructure services contractor with exposure across engineering, construction, and maintenance sectors.
The fund manager noted that the SRG Global share price increased 15% in June after announcing pleasing business progress, helping the performance of the listed investment company (LIC) WAM Capital Ltd (ASX: WAM). WAM Capital looks for the most compelling undervalued growth opportunities in the Australian market.
Let's take a look at why SRG's success is so promising.
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Significant contract progress by the ASX small-cap stock
WAM noted that SRG Global announced $850 million contracts with blue-chip repeat clients across water, energy, resources, defence, and data centre projects.
For example, it won a five-year term contract for asset integrity and reliability services with Origin Energy Ltd (ASX: ORG) at its Darling Downs, Eraring, and Shoalhaven power assets across Queensland and New South Wales.
It has also won asset integrity and reliability services term contracts with the BHP Group Ltd (ASX: BHP) iron ore division in the Pilbara region of Western Australia, the BHP copper South Australia assets, the Alcoa Corporation CDI (ASX: AAI) refineries in the southwest of WA, and Anglo American's assets across Australia.
Another ASX share it won a contract with was South32 Ltd (ASX: S32), to provide specialist major shutdown maintenance services across its Worsley operations in southwest WA.
On the infrastructure side of things, the ASX small-cap stock won an engineered products contract for the supply of specialist structural products for the Western Sydney Airport stations project for Sydney Metro.
The final contract I'll point out is a structures contract with Multiplex for the Nextdc Ltd (ASX: NXT) Malaga data centre in Perth.
These wins raised the total contract value (TCV) secured in FY25 to approximately $1.8 billion, more than double the prior year, and support further growth into FY26.
What does WAM like about these contract wins?
Wilson Asset Management said the breadth of the awarded contracts highlighted the ASX small-cap stock's cross-selling capability and client relationships, reinforcing the thesis that the company can compound earnings as governments and corporates continue to invest in critical infrastructure.
