ASX 200 stock rises 4% on $2.7 billion defence contract

Ventia Services shares have soared 43% for the year to date.

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The Ventia Services Group Ltd (ASX: VNT) share price is in focus after the company announced it has secured two major Base Services Transformation contracts from the Department of Defence, worth approximately $2.7 billion over an initial six-year term.

What did Ventia Services report?

  • Awarded two Defence Base Services Transformation packages totaling around $2.7 billion over six years
  • Packages include Living and Working Services in the NT, Victoria and Tasmania, and Property and Asset Services in WA, Victoria and Tasmania
  • Extension options could take the packages to a maximum of 10 years in total
  • Ventia previously won the national Firefighting Services package in July 2024
  • BST packages expected to commence operation from 1 February 2026

What else do investors need to know?

These package wins represent a significant share—about one third—of the available Living and Working Services and Property and Asset Services offered by Defence. The contracts will further embed Ventia as a pillar of Australia's Defence infrastructure support network.

Ventia has received industry recognition, being named Base Services Contractor of the Year 2024 and Veteran Employer of Choice, underlining its long-standing commitment to support Defence capability and personnel.

What did Ventia Services management say?

Commenting on the transaction, Managing Director and Group Chief Executive Officer Dean Banks said:

Ventia has supported Defence capability for over 36 years. This outcome highlights our role as a trusted sovereign partner and leading employer, enabling subcontractors and suppliers across remote, regional and suburban communities.

What's next for Ventia Services?

The newly awarded BST contracts are expected to commence in February 2026, positioning Ventia to strengthen its Defence segment earnings over the next decade. The company continues to pursue its strategy to redefine service excellence and expand across multiple infrastructure segments in Australia and New Zealand.

Ongoing execution and integration of these contracts is likely to increase Ventia's exposure to government infrastructure spending, supporting its growth plans and workplace commitments.

Ventia Services share price snapshot

Ventia Services shares have soared 43% for the year to date, far outpacing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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