ASX All Ords share Duratec Ltd (ASX: DUR) has raced ahead of the All Ordinaries Index (ASX: XAO) over the past year.
Duratec shares closed up 1.69% on Wednesday, trading for $1.81 apiece. That sees the Duratec share price up 27% in 12 months, smashing the 1.59% gains posted by the benchmark index over this same period.
Atop those outsized share price gains, the ASX All Ords share trades on a fully franked dividend yield of 2.35%.
If you're not familiar with Duratec, the Australian engineering, construction, and remediation contractor's four main operating segments are defence, mining & industrial, building & facades, and energy
And according to the analysts at Taylor Collison, Duratec is well-placed to deliver another year of outperformance and solid dividends.
Here's why.
ASX All Ords share on the growth path
Duratec held its annual general meeting (AGM) on 20 November.
Looking back on FY 2025, the ASX All Ords share highlighted a 3.1% year-on-year increase in revenue to $573 million. Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 11.3% to $53 million. And on the bottom line, net profit after tax (NPAT) rose to $22.8 million.
"Our portfolio approach, spanning Defence, Energy, Mining & Industrial, Building & Facade, and Emerging sectors, continues to provide resilience and growth opportunities, and remains a key differentiator," Duratec non-executive chair Martin Brydon said on the day.
Commenting on the outlook for Duratec's defence segment following the AGM, Taylor Collison said:
DUR continues to see a strong medium-term outlook in defence. Beyond Garden Island [where the company has been contracted for work on HMAS Stirling], there are potential projects valued at more than $15bn scheduled for delivery between 2028 and 2032.
In addition, work at Henderson in WA sits near the top of a large pipeline of prospective opportunities. The scale and longevity of these programs provide meaningful visibility across the decade.
The broker also sounded a positive note on the ASX All Ords share's mining & industrial segment.
According to Taylor Collison:
Management continues to execute on its strategy of expanding Managed Service Agreements with major Australian miners, including Newmont Corp (ASX: NEM), BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG).
The addressable opportunity is substantial and supported by favourable commodity prices. However, as DUR continues to grow within the sector, we remain mindful that margins in mining services are typically lower and may trend down as the business scales.
Connecting the dots, the broker concluded:
At 14.6x our FY27 EPS estimates, we view the current valuation as attractive given the breadth of the opportunity set, including HMAS Stirling, iron ore maintenance, and activity across the oil and gas sector (maintenance and decommissioning).
Taylor Collison maintained its outperform recommendation on Duratec shares, with a $2.09 target price.
That's more than 15% above Wednesday's closing price for the ASX All Ords share. And it doesn't include those upcoming dividends.
