ASX industrials stock Ventia Services Group Ltd (ASX: VNT) has been charging ahead over the last 12 months.
The company is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions.
In the last year, its share price has risen almost 33%.
For context, the S&P/ASX 200 Industrials (ASX: XNJ) index is up 6.8% in that same span.
Its rise has been driven by key contract wins and positive sentiment in defence shares over the past year.
However, the stock has had a slower start to 2026, down 5.3% year to date, which could be an opportunity for investors to gain exposure at an attractive price.
The company released its FY25 result last week.
Here is what the company reported.
Image source: Getty Images
Record order book
Last Thursday, this ASX industrials stock reported:
- Revenue: $6.1 billion, up 0.6% from FY24
- NPATA: $257.6 million, up 13.0%
- EBITDA: $532.1 million, up 6.6% (margin of 8.7%)
- Work in Hand: $22.1 billion, up 14.4%
- Operating cash flow conversion: 93.6%, up 2.2pp
- Final dividend: 12.54 cps, 90% franked (full year: 23.25 cps)
Its share price shot 5% higher on Thursday following the results, before retreating slightly on Friday.
Updated outlook
Following the result, the team at Morgans provided fresh guidance on this ASX industrials stock.
It said the company reported an in-line FY25 with NPATA +13% YoY as revenue growth faded to just +1%.
We find it noteworthy that VNT, a headcount business, was able to deliver earnings growth almost entirely through margin expansion. Indeed, FY25 was the first period when revenue costs growth and operating costs growth decoupled materially.
Morgans said while the company sounded a confident tone around continued margin expansion, this may be difficult to replicate following a heavy re-contracting cycle, which would ordinarily see margin pressure.
The broker highlighted the bright spot from earnings results was a record order book of $22.1bn (+14% YoY).
Morgans increases price target
Based on this guidance, the team at Morgans increased its share price target to $5.85.
From yesterday's closing price of $5.69, this indicates an upside of 2.81%.
However, Morgans isn't the only broker with a positive view of this ASX industrials stock.
Earlier this month, UBS placed a buy recommendation and share price target of $6.23 on Ventia Services Group shares.
That indicates an upside of 9.49%.
UBS believes that rising infrastructure investment is creating an expanding market opportunity for the company.
Together with ongoing balance sheet deleveraging, this supports its expectation that earnings per share could increase at a compound annual growth rate of 9% over the next three years.
