Guess which ASX All Ords share is leaping higher on BHP and Fortescue contract news

Investors are bidding up the ASX All Ords share amid $400 million contract news linked to BHP and Fortescue.

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Key points

  •  Civmec's shares jumped higher following announcements of new contracts and extensions with BHP and Fortescue.
  • Civmec secured major contracts, including work on BHP’s Port Debottlenecking Project and construction projects for Fortescue's mine sites.
  • CEO Patrick Tallon expressed delight in securing these contracts, emphasising long-standing relationships with BHP.

The All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade today, with one ASX All Ords share leaping ahead of those gains.

The outperforming stock in question is Civmec Ltd (ASX: CVL).

Shares in the construction and engineering services provider closed on Friday trading for $1.465. At the time of writing on Monday, shares are changing hands for $1.55 apiece, up 5.8%.

This follows an ASX release this morning detailing a number of new contracts and extensions Civmec has inked with companies, including industry heavyweights BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).

Here's what we know.

ASX All Ords share jumps on BHP and Fortescue contracts

Investors are bidding up Civmec shares after the company revealed a series of new contracts and extensions it has recently signed with Tier-1 clients worth a combined value of more than $400 million.

As mentioned above, those companies include BHP.

The ASX All Ords share said it has secured a "significant contract" with BHP for the Port Debottlenecking Project 2 (PDP2) at Nelson Point, Port Hedland.

BHP awarded Civmec the contract to deliver the concrete and earthworks for the installation of a sixth car dumper. The car dumper is also being manufactured by Civmec at its Henderson fabrication facility.

Separately, Fortescue inked a contract with Civmec for the construction of Light Mobile Equipment and Support Mobile Equipment charger facilities and pit power infrastructure at Fortescue's Eliwana and Flying Fish mine sites.

The ASX All Ords shares stated that the deal encompasses the construction, installation, verification, and commissioning of multiple charger facilities, along with civil works and electrical integration for transportable pit power substations.

The substations are designed for modular deployment and will support the rollout of electric excavators and drills as part of Fortescue's decarbonisation goals.

What did management say?

Commenting on the PDP2 civils package with BHP that's helping boost the ASX All Ords share today, Civmec CEO Patrick Tallon said, "We are absolutely delighted to be entrusted with this significant package of work."

Tallon added:

We are honoured to be trusted to deliver, particularly given the location and complexity of the scope, which plays to Civmec's strengths.

BHP were among our earliest clients and sustaining this healthy relationship makes this award especially meaningful, a further demonstration of our capabilities, and our proven, proactive and collaborative delivery model.

Civmec expects the $400 million of new contracts and extensions to be delivered across the second half of FY 2026 and FY 2027. The company said this will build on an uplift in activity heading into the second half of the financial year.

Motley Fool contributor Bernd Struben 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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