The Duratec Ltd (ASX: DUR) share price is closing in on its record high on Wednesday, with the contractor again drawing strong buying interest from the market.
In late morning trade, the Duratec share price is up 5.99% to $2.83. This comes after the stock opened as high as $2.86, leaving it just shy of the stock's all-time peak of $2.90.
The move adds to what has already been a powerful run in 2026, with the shares now up 47% since the start of the year.
Here's what was announced.
Image source: Getty Images
A major defence project moves into its next phase
According to its release, Duratec's 50:50 joint venture with Ertech has been awarded a $281 million contract tied to infrastructure upgrades at HMAS Stirling in Western Australia.
The project supports future submarine capability works at Diamantina Wharf on Garden Island.
The site is closely linked to the AUKUS pathway and Australia's long-term naval infrastructure buildout.
This follows an earlier $5.2 million early contractor award in January 2026, which covered initial procurement of long lead items.
With contract design now nearly complete and final approvals close, the latest award moves the joint venture into full delivery. This takes the total contract value of the works to just under $300 million.
The main works contract is expected to run for around 24 months.
Managing Director Chris Oates said the award marked a significant milestone and reflected the successful completion of the early contractor involvement planning phase.
He added that the result reinforced the strength of the joint venture's strategic approach and Duratec's long-standing relationship with the Department of Defence.
What today's contract could mean longer term
This contract says a lot about how Duratec's earnings mix may keep changing.
Winning a contract of this size in a strategically sensitive defence project strengthens its credentials in government and defence infrastructure.
That could help build momentum when bidding for future major works.
It also shifts more revenue toward longer-duration, higher-visibility projects, a mix the market often values more highly than shorter-cycle remediation work.
With the shares already trading close to record highs, investors appear to be watching how that business mix continues evolving.
Foolish Takeaway
Duratec continues to build its position in one of the ASX's more attractive industrial growth stocks.
The shift from planning into delivery on a near-$300 million defence project gives the earnings outlook more weight.
It also strengthens revenue visibility over the next two years.
With the stock now sitting only a few cents below its all-time high, the focus turns to whether this leads to further defence-related contract momentum through FY27.
