ASX industrials stock SRG Global Ltd (ASX: SRG) is making headlines this week after its share price soared on full-year results.
The company is a diversified industrial services group that provides multidisciplinary construction, maintenance, drilling, and geotechnical services to clients in sectors including mining, industrial processing, infrastructure, and renewable energy.
In the last 12 months, this ASX industrials stock has risen an impressive 145%.
A new report from Bell Potter suggests there could still be more growth to come.
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What did the company report?
SRG released FY26 results and FY27 guidance on Tuesday.
Results included:
- Revenue up 27% to $1,675.5 million (FY25: $1,323.3 million)
- Underlying EBITDA rose 34% to $170.1 million
- Net profit after tax (NPAT) up 51% to $71.9 million
- Earnings per share increased 44% to 11.6 cents
- Final dividend of 4 cents per share (fully franked), bringing total FY26 dividend to 7 cents (up 27%).
Speaking on the results, Managing Director David Macgeorge commented:
SRG Global has continued to deliver strongly, reflected in a significant +34% increase in EPS(A) to 13.8 cents. This result demonstrates our focus on delivering long-term value for shareholders, underpinned by continued organic growth across the business alongside the successful execution of our acquisition strategy. Our transformation into a diversified infrastructure services business is driving record performance, with strong foundations now in place to support the continued delivery of long-term, sustainable returns to shareholders.
Bell Potter's updated view
Following the announcement, Bell Potter released updated guidance on this ASX industrials stock.
The broker saw the result as largely positive, with underlying EBITDA ahead of expectations.
The result was supported by stronger-than-expected engineering and construction revenue and a strong contribution from the company's Total Asset Management Services business, which exceeded its original earnings target by 10%.
For fiscal 2027, management upgraded its earnings guidance to $195 to $205 million, supported by a record $5.1 billion of work already secured, stronger maintenance activity, and an improved outlook for Total Asset Management Services.
Price target upgraded
Following the results, the team at Bell Potter retained its buy recommendation on SRG shares and increased its price target to $4.50 (previously $4.25).
From yesterday's closing price, this indicates an upside potential of nearly 14%.
We see SRG's 24% valuation premium to the peer group (FY27 PE(A)) as justified and reflective of management's strong track record of organic and inorganic growth and a business delivering >80% of its earnings from recurring streams.
