The Downer EDI Ltd (ASX: DOW) share price is in focus today after the company announced it has secured a new $750 million maintenance services contract with Chevron Australia over a maximum 15-year term. The agreement, starting January 2026, covers maintenance, asset management, and small capital projects at Chevron's Wheatstone and Gorgon sites in WA.
What did Downer report?
- Contract value: Estimated at $750 million over 15 years, subject to work orders
- Contract commencement: January 2026, initial term of 10 years plus one five-year extension option
- Scope: Maintenance, asset management, and capital projects for non-process infrastructure
- Client: Chevron Australia, at Wheatstone and Gorgon facilities in Western Australia
What else do investors need to know?
Downer highlighted this contract as a major win in its energy sector operations and a testament to its strong relationship with Chevron. The company will focus on creating jobs and opportunities for local and Indigenous communities during the contract's lifespan, continuing its commitment to inclusive employment.
This agreement further cements Downer's presence in the Australian energy and industrial services market, building on its track record of delivering essential infrastructure support for major resource customers.
What did Downer management say?
Chief Executive Officer Peter Tompkins said:
Downer is a leader in the delivery of major maintenance services to customers in the Australian energy and industrial sectors…This contract builds on a strong, long-standing relationship with Chevron and reinforces our shared focus on keeping our people safe, driving performance, and collaboration. Together with Chevron, Downer is committed to creating meaningful opportunities for local and Indigenous communities throughout the life of this contract.
What's next for Downer?
The company will prepare to mobilise its teams and resources for a smooth contract start in early 2026, with a focus on delivering efficient and safe services at Chevron's facilities. Downer says it will continue prioritising performance improvements and local community outcomes.
Looking ahead, Downer's strategy remains anchored in securing long-term infrastructure and maintenance contracts across the energy and industrial sectors, supporting Australia's growing resource base and drive for local industry participation.
Downer share price snapshot
Downer shares have risen 38% over the past 12 months, running well ahead of the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
