The All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade on Thursday, with ASX All Ords stock Duratec Ltd (ASX: DUR) racing ahead of those gains.
Shares in the engineering, construction, and remediation contractor closed yesterday trading for $1.865. At the time of writing, shares are changing hands for $2.030 apiece, up 8.9%.
This outperformance follows an update on the Duratec Ertech Joint Venture (DEJV), Duratec's 50:50 joint venture with Ertech.
Here's what's piquing ASX investor interest.
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ASX All Ords stock lifts off on contract news
Duratec shares are leaping higher after the company reported DEJV has been instructed to proceed with early procurement of some $5 million worth of long lead items.
These items will assist the program and project timing as part of the Early Contractor Involvement (ECI) for the planning phase of infrastructure upgrades to support future submarine capability at the HMAS Stirling naval base, located in Western Australia.
The ASX All Ords stock noted that additional early on-site contract works could occur as the contract design nears 100% completion and design approval is granted.
Duratec expects the award and commencement of the project in the third quarter of FY 2026.
The company said that it now expects the second contract award for the delivery of the "fit-for-purpose, nuclear regulatory compliant facilities" in the fourth quarter of FY 2026. This will help support the expansion and enhancement requirements of the Department of Defence's infrastructure upgrade at HMAS Stirling. The ASX All Ords stock added that there is the potential to undertake early works via the current planning phase contract.
The infrastructure upgrades and projects are being carried out ahead of the expected arrival of the rotational force from the United States and the United Kingdom under the AUKUS partnership. Those forces are anticipated to arrive in late calendar year 2027.
What did management say?
Commenting on the early procurement news that's sending the ASX All Ords stock flying higher today, Duratec managing director Chris Oates said, "Duratec is proud to play a key role in supporting Australia's future submarine capability through these critical infrastructure upgrades at HMAS Stirling."
Oates added:
The early procurement of long lead items is strong validation of Duratec's critical involvement at HMAS Stirling and its broader partnership with the Department of Defence. We look forward to continuing our long-standing relationship with Defence to ensure the timely and compliant delivery of these strategically important facilities.
With today's intraday boost factored in, the Duratec share price is up more than 49% since this time last year.
