The All Ordinaries Index (ASX: XAO) has gained 10.2% over the past 12 months, but this ASX All Ords defence stock has delivered more than triple those gains.
The outperforming company in question is Duratec Ltd (ASX: DUR).
The Australian engineering, construction, and remediation contractor's four main operating segments are Defence, Mining and Industrial, Building and Facades, and Energy. Duratec generates the most revenue from its Defence segment.
During the Friday lunch hour today, Duratec shares are up 3.7%, changing hands for $1.84 apiece.
That sees shares in the ASX All Ords defence stock up an impressive 31.1% since this time last year. And that's not including the 4.3 cents a share in fully franked dividends the company has paid out to eligible shareholders over this time.
At the current share price, Duratec trades on a fully franked 2.3% dividend yield (partly trailing, partly pending).
If you wish to bank the final dividend of 2.5 cents per share, there's still time. Duratec stock trades ex-dividend on 16 September. So you'll need to own shares at market close this Monday, 15 September, to score that passive income.
Which brings us back to our headline question.
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Broker tips ASX All Ords defence stock to keep outperforming
Duratec reported its full-year FY 2025 results on 27 August.
Highlights included record revenue of $573 million, up 3.1% on FY 2024.
Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $53 million were up 11.3%.
And on the bottom line, net profit after tax (NPAT) of $22.8 million was up 6.5% year on year.
Following on the FY 2025 earnings release, Taylor Collison retained its outperform rating on the ASX All Ords defence stock.
"We believe the investment case for DUR is underpinned by a combination of favourable macro conditions and its differentiated value proposition," the broker noted.
The first reason Duratec can keep outpacing the benchmark in FY 2026 is its remediation expertise.
According to Taylor Collison:
Through its MEnD business, DUR combines engineering capability with contracting strength, enabling it to deliver full service solutions for asset owners – covering defect identification, cost estimation and project completion. The integrated offering sets DUR apart from most competitors and is highly valued by customers.
The second reason you may want to add Duratec stock to your investment portfolio is its defence sector positioning.
Taylor Collison said:
The bulk of DUR's construction work is in defence, with a strong track record and established presence at HMAS Stirling. This positions the company well for future upgrades particularly the planned AUKUS nuclear submarine program.
And the third reason the broker is bullish on the outlook for the ASX All Ords defence stock is its currently attractive valuation.
The broker concluded:
At 11.7x our FY27 EPS [earnings per share] estimates, we see the current valuation as attractive given the pipeline of opportunities, including HMAS Stirling, iron ore maintenance opportunities and work in the oil and gas sector.
