Service Stream Ltd (ASX: SSM) shares are pushing higher on Monday after the company locked in a fresh batch of infrastructure contracts.
At the time of writing, the Service Stream share price is up 4.91% to $2.245.
The gain adds to a solid recent run, with the stock now up around 13% over the past month. However, it remains broadly flat since the start of 2026.
Let's take a look at the announcement.
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$455 million in new contracts
According to the release, Service Stream has secured new agreements worth $455 million across two major customers.
The biggest part of the update is a new 9-year contract with Yarra Valley Water under its Maintenance Services Delivery Partners program.
The agreement is worth about $405 million over the term and covers work across one of Victoria's largest water utilities.
Yarra Valley Water services more than 2 million people across Melbourne's northern and eastern suburbs.
Under its refreshed delivery model, the utility has split its operational areas into North and South, with Service Stream selected as the delivery partner for the Northern Region.
The work will cover mechanical, electrical, and civil maintenance services across water and sewerage networks and treatment facilities. Service Stream will also handle responsive maintenance and selected programmed activities.
Mobilisation is expected to start immediately, with operations due to begin in October 2026.
More work in Queensland
Service Stream has also picked up two key contracts with Millmerran Operating Company at its power station in Millmerran, Queensland.
The contracts are worth a combined $50 million over the next 3 years and cover a range of outage and maintenance work. This includes major and forced outage works, mechanical inspections, testing, overhaul, and repair activities.
Service Stream said it will support the boiler and balance of plant across the 425MW units.
Why the size of the deal stands out
The market appears to be responding to the size and length of the newly announced work.
A 9-year contract with a large utility customer gives Service Stream a longer revenue runway, and the work sits in a part of the economy that doesn't really switch off.
Water networks still need to be maintained, treatment facilities still need servicing, and sewerage systems still need to keep running. This means demand for this type of infrastructure work should remain fairly steady.
The Millmerran contracts also give Service Stream more secured work in energy infrastructure.
With Service Stream valued at about $1.36 billion, the $455 million in contract wins is large enough to explain why investors are taking a closer look today.
