ASX 200 stock Ventia Services Group Ltd (ASX: VNT) is getting plenty of attention on Tuesday.
The infrastructure services stock is climbing again, even as the broader market sits under pressure.
At the time of writing, the Ventia share price is up 6.55% to $5.935. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.59% to 8,646 points.
That puts the stock up around 13% over the past week and roughly 36% over the past year.
The latest move follows a fresh contract win, and investors seem to like what landed.
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New Victorian road contracts
Ventia announced today that it has been awarded road maintenance contracts by the Victorian Department of Transport and Planning.
The work covers the Grampians and Eastern Metropolitan regions under the Victorian Road Maintenance Contract model.
Ventia estimates the contracts have a combined value of about $340 million over the 4-year base term. That figure includes routine maintenance, as well as high-level estimates for planned maintenance programs and minor capital works.
Those planned works remain subject to state government budget approvals and road network priorities.
The contracts also include extension options. The Grampians contract can be extended by 2 years, while the Eastern Metropolitan contract has two separate 2-year extension options.
Contract commencement is expected from 1 July 2026.
What Ventia will do
Under the contracts, Ventia will provide road network maintenance, inspections, hazard and defect rectification, emergency response, and minor capital works.
The work will cover both rural and metropolitan arterial roads.
Managing Director and Group CEO Dean Banks said the award reflects "Ventia's growing role as a partner of choice" for long-term road network management.
He also pointed to the company's experience across transport operations and maintenance.
Ventia already works across essential infrastructure services, including transport, defence, social infrastructure, water, energy, telecommunications, and resources.
Momentum already in place
The latest win also lands after a strong full-year result from the company.
Ventia reported FY25 revenue of $6.1 billion, while underlying NPATA rose 13% to $257.6 million.
Work in hand reached a record $22.1 billion, up 14.4% on FY24.
That gives the company a large base of contracted work heading into the new financial year.
The company also guided to FY26 NPATA growth of 7% to 10%.
Foolish takeaway
This is a big win for Ventia. A $340 million contract package is not small, and it fits neatly with the company's existing transport maintenance work.
The market seems to be rewarding the extra visibility this adds to future revenue, especially with the stock already having a strong week.
I would not be chasing the ASX 200 stock blindly after a move like this, but Ventia is doing what investors want to see. It is winning long-term work, building its contract base, and backing that up with earnings growth.
