SRG Global Ltd (ASX: SRG) shares are having a strong session on Tuesday despite the market weakness.
At the time of writing, the ASX 200 share is up 17% to a record high of $3.68.
This compares favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which is down 0.5% in early trade.
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Why is this ASX 200 share outperforming?
Investors have been bidding the diversified infrastructure services company's shares higher today after it announced material contract wins.
According to the release, the ASX 200 share has secured $1.85 billion of contracts with blue-chip clients across a diverse range of sectors.
One of those is an eight-year term contract with Gympie Regional Council in Queensland to deliver program management services under an alliance contract model.
It notes that the scope covers the planning, design, and delivery of key water infrastructure, including a new water treatment plant, trunk water and wastewater networks, and the renewal and upgrade of ageing regional assets. The contract has commenced and will complete in January 2034.
Another contract is a seven-year term contract with Origin Energy Ltd (ASX: ORG) to provide asset integrity and advanced inspection services across its operations in central Queensland. The contract has commenced and will complete in December 2033.
In the industrial and resources sector, the ASX 200 share has secured an eight-year term contract with Fortescue Ltd (ASX: FMG). This will see it provide multi-disciplinary maintenance services across its operations in the Pilbara region of Western Australia.
There is also a two-year term contract with the BHP Group Ltd (ASX: BHP) and Mitsubishi Alliance to provide asset integrity and reliability services across its central Queensland operations.
Lastly, another contract is for the Maddington Data Centre (Stage 1) with CTC in Perth.
Guidance upgrade
In light of this success, the ASX 200 share has upgraded its FY 2026 EBITDA guidance to the top end of its previously provided range of $164 million to $168 million.
It has also initiated its FY 2027 EBITDA guidance in the range of $190 million to $200 million, which it notes is above current consensus estimates.
Commenting on the update, the company's CEO, David Macgeorge, said:
We are pleased to have secured these significant contracts across Australia in a broad range of sectors with blue-chip repeat clients. These contract awards are a further demonstration of our market-leading capabilities as a truly diversified infrastructure services company.
I am also pleased to advise that we have upgraded our FY26 guidance to the top end of the previously provided EBITDA range of $164m to $168m, and that our FY27 EBITDA guidance will be a range of $190m to $200m, which is above current market consensus. This reflects the strength of our diversified operating model, the quality of our client base and our strong track record of delivering and exceeding market expectations. The Company is exceptionally well positioned to continue to deliver long-term sustainable growth.
