The All Ordinaries Index (ASX: XAO) has declined 2.5% in 2026 despite the best lifting efforts of this ASX All Ords defence stock.
The outperforming company in question is engineering, construction, and remediation contractor Duratec Ltd (ASX: DUR).
During the Monday lunch hour, Duratec shares are up 1.3%, changing hands for $2.38 apiece.
That sees the Duratec share price up 29.4% since the opening bell sounded on 2 January.
Taking a step back, shares in the ASX All Ords defence stock are up an impressive 45.1% since this time last year. And that doesn't include the 4.3 cents a share in fully franked dividends the company has paid (or shortly will pay) eligible stockholders over the year.
The stock currently trades on a fully franked dividend yield of 1.8%.
And according to the team at Taylor Collison, the company is well positioned to deliver another year of o strong performance and dividends in the year ahead.
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What's the latest from Duratec?
Duratec's main operating segments are defence, mining, and energy.
The ASX All Ords defence stock reported its half year results (H1 FY 2026) on 25 February.
The company earned the most revenue from its defence segment, with half year revenue coming in at $82.2 million. H1 mining revenue was reported to be $57.7 million while the company's energy segment achieved revenue of $27.3 million for the six-month period.
Total revenue of $273.3 million was down 4.9% year-on-year. However, the company posted a 2% lift in normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) to $27.5 million.
And on the bottom line, Duratec reported a net profit after tax (NPAT) for the half year of $13.4 million, up 3.5% year on year.
Commenting on the results on the day, Duratec managing director Chris Oates said:
It has been encouraging to see an uplift in recent wins, and although revenue remained flat in the first half, we delivered a record EBITDA margin [of 10%]. This performance has positioned the business extremely well for the second half and for the years ahead.
Why Taylor Collison is bullish on the ASX All Ords defence stock
Commenting on its buy recommendation and outperform rating on Duratec shares, Taylor Collison said, "We believe the investment case for DUR is supported by a combination of favourable macro settings and the company's clearly differentiated value proposition."
The broker pointed to Duratec's remediation expertise as one reason its bullish on the stock, noting:
Through its MEnD business, DUR integrates engineering capability with contracting execution, enabling delivery of full-service solutions for asset owners – spanning defect identification, cost estimation and end-to-end project delivery. This vertically integrated model differentiates DUR from most peers and is consistently valued by customers.
Then there's the ASX All Ords defence stock's strong track record in the defence space.
According to Taylor Collison:
DUR's construction exposure is heavily weighted toward defence, underpinned by a long-standing presence at HMAS Stirling and a strong execution track record. This ensures the company is well positioned for the upcoming upgrade cycle, particularly opportunities linked to the planned AUKUS nuclear submarine program.
The broker has a $2.45 price target on Duratec shares.
That represents a potential upside of around 3% from the current price. And it doesn't include those upcoming dividends.
