What did Service Stream report?

• Secured two Intelligent Transport Systems (ITS) maintenance contracts with Transport for Victoria
• Total contract value is $144 million over initial terms
• Each contract has a five-year initial term, with two possible two-year extensions
• Contracts cover maintenance, program management, and network operations support

What else do investors need to know?

The new contracts—the Victoria West ITS Maintenance Contract and the Motorway Communications Network Contract—expand Service Stream's work in the Victorian transport sector. Work under both contracts is expected to commence in the fourth quarter of 2026.

The agreements further strengthen Service Stream's annuity-style revenue base, boosting the company's maintenance portfolio and providing improved visibility on future cash flows. This builds on Service Stream's long-term customer relationships and capabilities in critical network management.

What did Service Stream management say?

Managing Director Leigh Mackender said:

The award of these two long-term maintenance agreements reinforces Service Stream's position as a leading provider of transport technology and network maintenance services. The award further strengthens the Group's maintenance portfolio and bolsters annuity-style work-in-hand revenues.

What's next for Service Stream?

Service Stream expects work on these new contracts to commence in late 2026. The company will focus on seamless delivery and operational excellence while seeking additional growth opportunities in transport and network services.

Investors may watch for further contract wins or updates on integration and performance, as Service Stream aims to solidify its role in supporting Victoria's critical infrastructure.

Service Stream share price snapshot

Over the past 12 months, Service Stream shares have risen 22%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Service Stream Limited wins two $144m Transport for Victoria contracts appeared first on The Motley Fool Australia.

In this situation, it pays to check in with the experts and see which results have piqued their interest.

I've selected three reports from UBS analysts who have rated these companies a buy.

Let's see who they like.

Superloop Ltd (ASX: SLC)

UBS said Superloop's EBITDA of $123 million for the full year came in ahead of guidance, which was a positive.

The broker said "there is a lot to like here", including good margins on the business and wholesale front, momentum in adding new consumer customers, and disciplined cost management.

They added:

We think these will feature yet again in FY27 and beyond and establish a solid foundation for SLC to deliver on its Supercharge29 ambitions. We forecast progressive margin improvement for both Business and Wholesale, and expect EBITDA margins to exceed 20% by FY29.

UBS said the company also reported good momentum for the first six weeks of FY27, which was not surprising "given SLC's extensive marketing efforts to increase brand awareness, network quality and relatively attractive pricing''.

UBS has a price target of $4.15 on Superloop shares compared to $3.08 currently.

Service Stream Ltd (ASX: SSM)

UBS said this company also delivered a full-year result that was better than expected, with good margins contributing.

The broker noted that Service Stream continues to see 5% to 10% year-on-year earnings growth as sustainable.

They also suggested the company could be active in the M&A space, saying:

With $81mn net cash and strong track record of cash generation, we think SSM is well placed to supplement its organic growth profile. SSM has successfully integrated Lendlease Services and has exceeded expectations when it comes to mobilisation and ramp up of Defence work. These experiences should bode well especially when it comes to M&A opportunities, in our view. Focus is likely to be on Power and Industrial, but we think SSM is likely to consider opportunities to diversify its capabilities and capacity beyond these areas.

UBS has a price target of $2.95 on Service Stream compared to $2.51 currently.

Breville Group Ltd (ASX: BRG)

This company also beat FY26 consensus estimates on a number of fronts, and while revenue growth was lower than expected, margins were better.

UBS said the company remained attractive as it had a long-term track record of double-digit EBIT growth.

The broker has a $37 price target on Breville shares compared to $31.26 currently.

The post 3 ASX stocks UBS rates as a buy after recent results appeared first on The Motley Fool Australia.

What did Service Stream report?

• Group revenue of $2.48 billion
• EBITDA from operations of $163.4 million, up 11.8% on last year
• NPAT-A of $81.1 million, up 18.4% from FY25
• EBITDA-A margin improved to 6.6%
• Net cash balance increased to $80.7 million
• Final fully franked dividend of 3.5 cents, taking FY26 dividend to 6.5 cents (up 18.2%)

What else do investors need to know?

Service Stream successfully mobilised several new contracts in Defence, Water, and Industrial sectors, helping boost its contracted work-in-hand to $8.2 billion (excluding extension options). Cash generation remained strong, with a 24.9% increase in operating cash flow and an EBITDA-to-cash conversion rate above 113%.

Availability of skilled staff supported new contract launches and ongoing growth, while inflationary pressures were managed effectively via operational improvements and contract terms.

What did Service Stream management say?

Managing Director Leigh Mackender said:

Financial year 2026 was another period of strong and positive performance with Service Stream delivering improved financial results, headlined by enhanced group margins, double-digit growth in EBITDA-A and NPAT-A, generation of exceptional cashflows and a strengthening of the Group's net cash balance sheet. The business expanded its total addressable markets, successfully securing and mobilising several new contractual agreements across the defence, water and industrial sectors as it continues to diligently execute its value creation strategy.

What's next for Service Stream?

Management expects earnings growth in FY27 on the back of improved quality of earnings, benefits from mobilising new contracts, and strong demand for infrastructure upgrades. The group says its scalable platform positions it well to capture further opportunities as clients invest in essential networks.

The board remains confident the company can take advantage of increased infrastructure spending and sees a robust pipeline of projects in critical sectors.

Service Stream share price snapshot

Over the past 12 months, Service Stream shares have risen 25%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Service Stream: Profit jumps and dividend lifted in FY26 results appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 6% to $5.68. Investors have been buying the rare earths developer's shares after it announced the spin-off of its aluminium business. Brazilian Rare Earths plans to demerge its Amargosa bauxite and gallium project into a new company through an initial public offering worth up to $50 million. It said: "The proposed demerger affords Amargosa the focus and flexibility it needs to be progressed rapidly, and reflects a disciplined portfolio strategy that separates two large-scale, strategically important mineral platforms with different development pathways."

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is up 2.5% to $125.35. This morning, the health imaging technology company announced a seven-year, A$90 million contract with Boston-based Beth Israel Lahey Health. The contract will see the company's cloud-based Visage 7 Enterprise Imaging Platform implemented throughout Beth Israel Lahey Health providing a unified diagnostic imaging platform. Pro Medicus' CEO, Dr Sam Hupert, said: "Our pipeline remains strong and spans all market segments. This deal is for our 'full stack' comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing."

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 1.5% to $2.17. This has been driven by the release of an announcement from the essential network services provider. Service Stream has secured new agreements worth $455 million across two major customers. This includes a new nine-year contract with Yarra Valley Water under its Maintenance Services Delivery Partners program. The company's managing director, Leigh Mackender, said: "Service Stream is delighted to be selected as a delivery partner for this long-term program. We look forward to working closely with Yarra Valley Water and supporting the maintenance of its critical infrastructure across Melbourne."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 3% to $32.16. Investors have been buying the energy giant's shares following a strong rise in oil prices on Friday night. Traders were bidding oil prices higher after Donald Trump suggested that he was losing patience with Iran in relation to peace talks. This has sparked fears of an escalation in the conflict.

The post Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher appeared first on The Motley Fool Australia.

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.

$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.

The post Investors are buying this ASX stock after a $455 million update appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

If you've had your eye on an ASX share for a while, and you're ready to buy, the ex-dividend date can provide a deadline to act.

Might as well buy and pick up the next dividend payment if the stock is trading at an acceptable price, right?

Alternatively, you could play a longer game, and wait for the ex-dividend date to arrive before buying the stock.

This can be a good strategy because share prices tend to fall on the ex-dividend date.

This happens because the stock is fundamentally worth less without the next dividend payment attached.

Many companies offer dividend reinvestment plans (DRPs).

DRPs allow investors to instruct the company to use their dividends to buy more shares on their behalf, instead of paying cash.

After lodging your DRP form, this process becomes automatic.

It's an easy, passive way for investors increase their shareholdings in a company over time.

And every now and then, a company will offer a discount to shareholders participating in the DRP.

Bonus!

ASX shares with ex-dividend dates next week

The post 14 ASX shares about to go ex-dividend appeared first on The Motley Fool Australia.

Here's what the broker is recommending to clients:

Energy One Ltd (ASX: EOL)

Ord Minnett thinks that Energy One could be an ASX All Ords share to buy.

It is a provider of software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in Australia and Europe.

In addition, the company provides a power plant management system that manages daily market communication, intraday and day-ahead trading, and nominations for power plants.

The broker has put a buy rating and $21.58 price target on its shares. This implies potential upside of over 50% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

A key pillar of our investment case has been margin expansion potential as Europe margins converge with the more mature Australian and the latest result confirmed this, but EBITDA margins in its Australian business also expanded by 200bp on a year. ‍ We incorporate a minor (~1%) downgrade to revenue in FY26 due to lower-than-anticipated installations in the first half but have upgraded our net profit estimates due to stronger margins in both regions.

Energy One remains a profitable, free-cashflow-generative, and highly defensible business growing its top line at more than 20% per annum. In addition, the stock offers defensive appeal in the face of threats to the software sector from AI. We reiterate our Buy recommendation.

Service Stream Ltd (ASX: SSM)

Another ASX All Ords share that Ord Minnett is positive on is Service Stream.

It is an infrastructure network specialist across the telecommunications, utilities, and transport sectors in Australia.

The broker recently put a buy rating and $2.50 price target on its shares. Based on its current share price of $1.94, this suggests that upside of almost 30% is possible between now and this time next year.

Ord Minnett believes the company is well-placed to increase in return on equity and generate significant free cash flow. It also feels that "Service Stream's trading multiple of ~18x FY26 earnings represents compelling relative value." Commenting on its buy recommendation, the broker said:

The long-term strategy to raise the revenue skew to O&M [operations and maintenance] style contracts is now largely complete. We see returns on equity rising to 15–16% in FY27, aided by a full-year contribution of the Defence Department contract. We see free cashflows of more than $80 million in FY27 and balance-sheet capacity to support a mix of M&A, a higher dividend payout ratio and organic growth initiatives. We reiterate our Buy recommendation.

The post Ord Minnett tips these ASX All Ords shares to rise 30% to 50% appeared first on The Motley Fool Australia.

A business can make a profit in a whole manner of different ways and that can be translated into passive income dollars in just the same way.

I own two of these businesses in my portfolio and I'm optimistic their dividends can continue to be pleasing in the coming years.

Rivco Australia Ltd (ASX: RIV)

Rivco Australia (previously known as Duxton Water) owns a portfolio of water entitlements, which can then be leased to irrigators on short-term or long-term contracts. The company can benefit from both the lease income and the potential increase in value of water entitlements.

Impressively, the little-known ASX dividend share has increased its half-yearly dividend every year since 2017, which is a longer dividend growth streak than most ASX blue-chip share.

The last two dividends translate into grossed-up dividend yield of around 7%, including franking credits, at the time of writing. I'm expecting further dividend growth for the foreseeable future, particularly if water entitlement prices increase.

WAM Microcap Ltd (ASX: WMI)

WAM Microcap is a listed investment company (LIC) that invests in small businesses with strong growth potential.

A fund manager can make investment returns from small shares or big shares. Arguably, it's easier to make larger returns from smaller stocks because they are earlier on in their growth journeys and they are less followed investments (so the price/earnings (P/E) ratio is lower than it could be).

The WAM Microcap portfolio returned an average of 17.3% per year between June 2017 and September 2025, before fees, taxes and expenses.

This strong return has funded large and rising dividends. Its FY25 dividends per share translate into a grossed-up dividend yield of around 9%, including franking credits, at the time of writing.

Service Stream Ltd (ASX: SSM)

This little-known ASX dividend share describes itself as a provider of essential network services, operating across all states and territories.

It works across a number of industries including power grids, the industrial and resources sector, telecommunications, gas, potable water and wastewater, defence, health, renewable, new energy, maritime, social housing, rail, roads and more.

Service Stream delivered a strong FY25, with revenue growth of 1.2%, operating profit (EBITDA) from operations growth of 13.1% and underlying net profit (NPAT-A) growth of 36.7%.

The growth helped them fund an annual dividend per share of 5.5 cents, which represented a year-over-year increase of 22.2%.

At the time of writing, that translates into a grossed-up dividend yield of 3.5%, including franking credits.

The company is expecting to achieve further growth in FY26, with an improvement in the quality of earnings across utility operations and strong levels of infrastructure investment. I think this bodes well for further dividend growth.

The post 3 little-known ASX dividend shares to buy for income appeared first on The Motley Fool Australia.

Service Stream provides telecommunications and network services. 

Also, it focuses on design, construction, operation, and maintenance services for infrastructure assets across the telecommunications, utilities, transport and defence sectors in Australia.

On Thursday, Ord Minnett upgraded its price target on the company. This was largely thanks to new contracts signed with the Australia Department of Defence which are set to run for the next 6 years.

What are the new contracts?

Service Stream has been awarded two Base Services Contracts with the Australia Department of Defence. 

The company has been appointed the provider of Property and Asset Services for South Australia and the Northern Territory. This encompasses 113 Defence sites and training facilities, including 8 major bases.

The Contract will operate for an initial 6-year term, with two extension options of between 1-3 years. Additionally, the combined value of the works for both regions is approximately $1.6 billion over the initial term.

Ord Minnett said the contract further diversifies the company's earnings mix away from the traditional skew to telecommunications.

Once the contract is fully deployed, and overlaying margin and capital expenditure assumptions, our FY27 EBITDA forecasts are upgraded by 8% and EPS forecasts upgraded by 11%.

Supported by a strong balance sheet, and the capacity to fund new contract mobilisation through internal cash flows, the latest contract highlights the latent operating leverage in Service Stream from organic growth.

Price target upgrade for Service Stream

It has already been a strong year for this ASX industrials stock which is up more than 47% YTD. 

As a result of the news of the Australian Defence contract, Ord Minnett has upgraded its price target to $2.57 per share. It has lifted from $2.35 and raised its recommendation to Buy from Accumulate.

Based on Friday's closing price of $2.33, this indicates an upside of 10.3%. 

Importantly, Ord Minnett isn't the only broker looking favourably on the news. 

After the announcement of the deal on September 11, Macquarie updated their price target for the company from $2.42 to $2.70.

This indicates almost 16% upside from its current price. 

The post This ASX industrials stock just got a price target upgrade from Ord Minnett appeared first on The Motley Fool Australia.

The Department last week awarded several billion dollars in contracts for base transformation and maintenance works over the next six years for the initial contract terms. Service Stream was awarded contracts worth $1.6 billion, Downer contracts worth $3.05 billion, and Ventia Services Group Limited (ASX: VNT) contracts worth $2.7 billion.

RBC Capital Markets analysts said in a note to clients that while Ventia won work under the new contracts, it would now operate in fewer regions.

Downer, on the other hand, would book more revenue compared with its previous Defence contracts, "with an improved mix of work now weighted entirely to Hard Facilities Management which we see favourably''.

Service Stream as a non-incumbent operator achieved an outcome in excess of our and market expectations with estimates of about $240 million per annum top-line contribution during its first full 12 months. Whilst being disappointed by missing out on contracts where it is the incumbent operator, Ventia retains Western Australia, amongst other states – particularly relevant given the investment expected at WA's Henderson Defence Precinct.

RBC has a target price of $7.75 for Downer stock, compared with the current price of $7.21, and a target price of $2.50 for Service Stream, compared with $2.31. Its target for Ventia is $5.50, down from $5.75, compared with the current price of $5.12.

Wins could lead to more work

RBC analysts said winning the tenders positions the companies well for new works that might be needed across the bases. Defence "as a thematic remains attractive" with the Australian Government looking to ramp up spending in the area.

Service Stream's wins in the Northern Territory and South Australia were particularly positive, as the company was not previously a Defence supplier.

On top of winning new work with a highly sought after customer – Defence, the significance of this in our view is that in its key publication – Integrated Investment Program (2024), Defence highlighted its Northern Bases as being a priority for further development & investment; specifically, NT located bases. Additionally, Osborne Park in SA must be expanded to enable Defence to construct Australia's AUKUS submarines. With that, we believe NT and SA should present further, incremental project work opportunities which Service Stream will be geographically well-positioned to participate in.

The post Which defence stocks are good buying after recent tender wins? appeared first on The Motley Fool Australia.

With the August reporting season in the rearview mirror, dozens of companies have ex-dividend dates next week.

Here's a sample of the ASX shares going ex-dividend soon.

23 ASX shares going ex-dividend next week

How to make ex-div dates work for you

To receive an ASX company's next dividend, you must buy or already own the shares before the ex-dividend date.

If you're interested in buying a stock trading cum dividend, you have two options.

Buy it before the ex-dividend date, and earn a quick return with the upcoming dividend payment.

Alternatively, buy the stock on its ex-dividend date, when it will likely trade lower because the dividend entitlement is no longer attached.

We've seen examples of this recently, with CSL Ltd (ASX: CSL) shares dropping 2.15% on their ex-dividend date.

TV network owner Nine Entertainment Co Holdings Ltd (ASX: NEC) plummeted 36% yesterday after going ex-dividend, too.

Sometimes there are exceptions, like we are seeing with WiseTech Global Ltd (ASX: WTC) shares today.

The post 23 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

The services company secured $1.6 billion worth of contracts to provide property and asset services across 113 defence sites in South Australia and the Northern Territory, with the contract to run for an initial six years, with two possible extensions of up to three years each.

Macquarie analysts said that after the multi-year tendering process, Service Stream was awarded more regions and more revenue than they had expected.

It was a "very positive" contract win, Macquarie said, and they updated their price target for the company from $2.42 to $2.70.

Like its other segments, Service Stream will continue to improve margins over the contract term. Additionally, once mobilised with about 350 staff, Service Stream will be well-placed to secure additional works (e.g. minor capital works), that should drive incremental revenue growth beyond the initial circa-$1.6 billion contract value.

The property and asset services contract starts in February next year. Service Stream said this week they would employ about 350 new staff to deliver the contracts as well as a range of specialist contractors.

"This contract marks an exciting new chapter for Service Stream as the business continues to execute against its strategy, expand service offerings and enter new and growing markets,'' managing director Leigh Mackender said.

The post Macquarie tips 20% returns for this ASX All Ords stock after securing major defence contract appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Downer EDI Ltd (ASX: DOW)

The Downer EDI share price is up 2.5% to $7.09. This follows news that it has been awarded a new contract to deliver base and estate services to the Australian Department of Defence valued at approximately $3.05 billion over an initial term of six years. It notes that the Property and Asset Services (PAS) contract, part of Defence's Base Services Transformation program, commences in February 2026 and runs until 2032. However, there are two extension options of between one to three years each. A maximum term contract could see Downer delivering PAS for a total of 10 years. CEO of Downer, Peter Tompkins, said: "Downer is a long-standing Defence partner, and has been providing sustainment, infrastructure, and estate services for more than 80 years. We are proud of the role we play as the custodian of Defence estates, supporting the working environments that enable an agile and capable Defence force."

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 5% to $9.62. It is one of a number of ASX gold stocks charging higher on Thursday. So much so, the S&P/ASX All Ordinaries Gold index is up over 3% at the time of writing. In addition, it is worth noting that Bell Potter upgraded Evolution's shares to a buy rating with an improved price target of $10.55 on Wednesday.

Perenti Ltd (ASX: PRN)

The Perenti share price is up 5% to $2.52. This morning, this underground mining services company announced a new contract win. It has been awarded a four-year contract for underground mining services at the Dalgaranga Gold Project, which is now owned by Ramelius Resources Limited (ASX: RMS) following completion of its acquisition of Spartan Resources. The contract is estimated to be worth $300 million over the four years. Perenti's CEO, Mark Norwell, said, "Securing a four-year contract for underground mining at the Dalgaranga Gold Project is another strong result for Barminco. Several recent regional contract wins have built additional scale for the Barminco Australia business, which ultimately delivers benefits for both our clients and shareholders."

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 16% to $2.32. This follows the announcement of a $1.6 billion Base Services Contract from the Department of Defence. Managing director, Leigh Mackender, said: "Service Stream is extremely proud to be awarded this significant agreement with the Australian Department of Defence. As an Australian owned and operated company, we are honoured to earn the trust of Defence and believe this is an ideal strategic fit for Service Stream and its ongoing support of critical essential infrastructure throughout Australia."

The post Why Downer, Evolution Mining, Perenti, and Service Stream shares are charging higher today appeared first on The Motley Fool Australia.

And Service Stream Limited (ASX: SSM) shares have piled on double-digit gains after it announced it had also had a major tender win from Defence under the same bidding process.  

Downer said on Thursday the new property and asset services (PAS) contract would start in February next year and would initially run until 2032.

However, there are two extension options in the contract, which could see Downer delivering the contract for up to 10 years.

PAS was the next generation of Defence's base and estate services contract, Downer said in a statement to the ASX.

Under the new contract, Downer will provide base and estate facilities maintenance operations, aerodrome operations, land management, training area and range management, and integration services across the combined New South Wales and Australian Capital Territory region, and Queensland region. This represents an increase in Downer's geographical footprint from the current estate maintenance and operations services contract to cover two of Defence's largest regions.  

Service Stream stock surging

Meanwhile, Service Stream said it had secured $1.6 billion worth of work to provide property and asset services across 113 Defence sites across South Australia and the Northern Territory.

"The business will perform and support estate upkeep, land management, aerodrome operations, and training area and range management services,'' the company said.

Macquarie is forecasting a 12-month total shareholder return of 14% for Downer EDI and 26% for Service Stream. 

Service Stream shares piled on 13% to be trading at $2.26 on Thursday, while Downer stock was up 1.2% at $7.

The post Shares flying after billions in new Defence contracts announced appeared first on The Motley Fool Australia.

Key themes across the sector include strong iron ore activity and renewables demand, with companies generally forecasting ongoing profit growth in the year ahead.

Macquarie also said balance sheets were in good shape, with a number of buybacks on foot, and Downer EDI Limited (ASX: DOW) announcing a new buyback.

Macquarie has upgraded Downer EDI to outperform from neutral and is predicting a total shareholder return of 14% over the next 12 months.

The analysts at Macquarie say there are a number of potential near-term catalysts for the stock, including defence estate renewals, with decisions on that expected by the end of this month, and power and transmission contract wins.

At MAAS Group Holdings (ASX: MGH), Macquarie says the outlook is improving, with growth expected in civil construction and hire, while there would also be tailwinds from residential land sales.

Macquarie is expecting 17% total shareholder returns from MAAS.

Meanwhile, Macquarie is expecting 15% returns from the $7.3 billion Worley Limited (ASX: WOR), where analysts said the growth guidance was "better than feared and (the) stock is screening well on a valuation basis, trading at double digit discount on price/earnings basis''.

Top pick in the sector

Macquarie's most bullish forecast was for a 26% total shareholder return over the next year from the $1.2 billion Service Stream Limited (ASX: SSM).

"Strategic M&A remains a focus, and outcome of Defence tender expected by end of September,'' Macquarie said.  

The post Macquarie predicts 17% and 26% upside for these ASX All Ords professional services stocks appeared first on The Motley Fool Australia.

The ASX All Ords company has enjoyed strong revenue and profit growth over the past year, improved margins and cash flow, and a strong pipeline of infrastructure work. 

Investor confidence in the essential network services company has continued to climb. Macquarie Group Ltd (ASX: MQG) is also bullish on the stock. Here's what the broker has to say.

Target price raised

In a recent note to investors, the broker confirmed its outperform rating on Service Stream shares. It also increased its 12-month target price to $2.22, up from $1.86 earlier this year. The new target price represents a potential 14.1% upside for investors from Wednesday's closing price of $1.955.

"Our TP increases +19% to $2.22ps (from $1.86ps prior), based on our 8.0x FY26E EV/ EBITDA valuation," the broker said.

The key drivers are a roll forward valuation to FY 2026, higher net cash with roll forward to FY 2026, and an increased EV/EBITDA valuation multiple to 8.0x from 7.0x prior (a 14% uplift). 

"SSM and closest industry peer VNT-ASX have re-rated over the last ~12 months to consistently trade in the range of 7.0x-8.5x EV/EBITDA NTM. The rerate has been driven by SSM's execution against its organic growth strategy, increasing recognition from investors of the defensive and lower-risk nature of SSM's revenues, expected update on Defence tender award, and the potential for strategic M&A coming back on the agenda," the note said.

Macquarie added that Service Stream's balance sheet has returned to a strong net cash position, derisking the business and creating potential capital management opportunities and funding power to execute strategic M&A.

"TP +19% to $2.22ps (from $1.86ps) reflects earnings revisions, val roll fwd, and increase in valuation multiple to 8.0x NTM EV/EBITDA (7.0x prior) given strong re-rating in peer group over last 12 months," the broker said.

The telco is well-positioned for growth

Macquarie also noted that in February this year, Service Stream announced a long-term agreement with NBN worth $1.9 billion over an initial 5 years, with extension options.

The broker expects that the telco provided some favourable pricing which could be a slight headwind in FY 2026 before normalising in FY 2027-2028 due to productivity improvements. 

"SSM typically delivers extra works over and above initial contract value, providing another offset to the minor margin headwind," the note said.

The company also recently announced a $440 million 3.5-year contract with NBN FTTP upgrade works and a $360 million 3.5-year contract with NBN FTTP upgrade in the ACT.

The post Broker says this ASX All Ords industrials stock could rise 14% appeared first on The Motley Fool Australia.

Three ASX shares that brokers have named as buys this week are listed below. Here's why their analysts are feeling bullish on them right now:

Perpetual Ltd (ASX: PPT)

According to a note out of Bell Potter, its analysts have retained their buy rating and $22.80 price target on this asset management company's shares. Bell Potter was pleased with its quarterly update, highlighting that its funds under management (FUM) was ahead by 2.5% to $226.8 billion. This was underpinned by strong market moves. Looking ahead, the broker believes that Perpetual's outlook is positive, particularly given there are signs that cost controls are starting to bear fruit. All in all, the broker sees value in its shares at current levels and the potential for 6%+ dividend yields through to at least 2027. The Perpetual share price is trading at $20.66 on Wednesday afternoon.

Service Stream Ltd (ASX: SSM)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this essential network services company's shares with an improved price target of $2.22. Macquarie is feeling bullish ahead of the release of its FY 2025 results next month. In fact, it suspects that Service Stream will deliver EBITDA a touch ahead of consensus expectations. Outside this, the broker feels that Service Streams' outlook remains positive thanks to its focus on driving growth and margin expansion in Utilities, where it has low market share. The Service Stream share price is fetching $1.96 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this logistics solutions company's shares with an improved price target of $135.00. Bell Potter is expecting WiseTech Global to deliver a result in line with its guidance next month. In addition, it believes there is limited risk of the company disappointing with its guidance for FY 2026. Outside this, the broker highlights that its shares deserve to trade on higher FY26 EV/EBITDA multiples and PE ratios than peers due to its superior growth outlook. The WiseTech Global share price is trading at $119.91 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

In my mind, it's easier for a small business to double in size than it is for a large business to double in scale. There is only so much of an addressable market for companies to grow into. Eventually, they'll hit a market share growth ceiling.

The fund manager Wilson Asset Management (WAM) has picked out two compelling small ASX shares in the WAM Research Ltd (ASX: WAX) portfolio that could deliver good returns. Let's get into what the WAM investment team think of these two stocks.

Service Stream Ltd (ASX: SSM)

WAM describes Service Stream as a provider of essential network services to the telecommunications and utility sectors.

The investment team pointed out that the small ASX share delivered a strong FY25 half-year result, with revenue rising 7.9% year over year to $1.27 billion.

The fund manager noted that earnings growth was driven by "solid operational performance" across all divisions, with operating profit (EBITDA) up 16.4% and adjusted net profit after tax (NPAT) up nearly 50%.

WAM pointed out that the Service Stream share price performed well during April – it rose 6.9% compared to the 3.6% rise of the S&P/ASX 200 Index (ASX: XJO). This occurred amid broader market volatility because companies exposed to evolving tariff policies came under pressure.

The investment team then explained why they still like the business:

Service Stream's defensive earnings profile and long-term contracts reaffirms its position as a resilient, cash-generative operator.  

Maas Group Holdings Ltd (ASX: MGH)

The other small ASX share Wilson Asset Management highlighted in the WAM Research portfolio was Maas Group, a diversified construction materials, equipment, and services provider with exposure to civil infrastructure, mining, and real estate markets.

WAM said that the company continues to execute its growth strategy strongly, with construction materials remaining its key engine for organic expansion and strategic mergers and acquisitions.

In late March, the Maas Group founder and CEO, Wes Maas, increased his personal stake in the business, which demonstrates his confidence in the company's outlook.

The Maas share price rose by 9.1% in April 2025, which WAM believes reflected renewed investor interest in companies exposed to the domestic economy, benefiting from lower interest rates.

The investment team explained:            

We remain constructive on Maas Group Holding's outlook, underpinned by continued portfolio optimisation, a disciplined approach to growth and strong execution.

The post 2 small ASX shares to buy that have big potential appeared first on The Motley Fool Australia.

The definition of a market correction is a major index falling 10% from the most recent peak.

The ASX All Ords' most recent closing high was 8,825.1 points on 14 February.

Today, the All Ords is at 8,005.4 points, up 0.49% for the day and down 9.31% since the peak just one month ago.

The fall can be largely attributed to market uncertainty over how the US tariffs will impact global trade, economic growth, and inflation.

So, with capital growth prospects looking pretty grim right now, dividends may be at the forefront of investors' minds.

Following last month's earning season, a bunch of ASX shares will begin trading ex-dividend next week.

If you want to catch any of these dividend payments, you have to buy the relevant stock before it goes ex-dividend.

The Fool does not advocate buying ASX shares purely for their next dividend.

But if you've been watching any of these stocks for a while, and they pass your fundamental analysis test, then perhaps you might like to take advantage of market weakness and pick them up for a bit less while also qualifying for the next dividend payment.

So, here is a sample of ASX shares going ex-dividend next week.

21 ASX shares going ex-dividend next week

The post 21 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

The second is an infrastructure maintenance services provider.

The third provides telecommunications and network services.

And the fourth ASX stock getting a broker upgrade produces fertilisers, explosives and chemicals.

A nicely diversified mix!

Here's what we know.

(Broker data courtesy of The Australian.)

Four ASX All Ords shares with upgraded outlooks

The first ASX All Ords share that just got a broker upgrade is Bank of Queensland Ltd (ASX: BOQ).

The Bank of Queensland share price is up 3.6% today at $6.92 and up more than 25% over the past 12 months. Bank of Queensland shares also trade on a fully franked trailing dividend yield of 4.9%.

While Macquarie believes shares may be overvalued at current levels, the broker raised its target price for the Bank of Queensland share price by 10% to $5.50.

The second ASX All Ords share that just got a broker upgrade is Incitec Pivot Ltd (ASX: IPL).

The Incitec Pivot share price is up 4.4% today at $3.10. That puts shares back in the green for the full year, up 1%. Incitec Pivot shares also trade on a 4.7% unfranked trailing dividend yield.

And according to RBC, the stock could have a strong run ahead of it. The broker raised Incitec to an outperform rating with a $3.60 price target. That represents a potential upside of more than 16% from current levels.

This brings us to Ventia Services Group Ltd (ASX: VNT), the third ASX All Ords share getting a broker upgrade.

The Venetia share price is up 0.9% at the time of writing at $4.66 a share. That puts the Ventia share price up 67% over 12 months. Ventia shares also trade on a partly franked 4.0% trailing dividend yield.

And RBC believes there are more outsized gains to be had. The broker started Ventia Services at an outperform rating with a $5.25 price target. That represents a potential upside of almost 13% from current levels.

Service Stream Ltd (ASX: SSM) rounds off our list of ASX All Ords shares earning a broker upgrade.

The Service Stream share price is up 2.6% in early afternoon trade today at $1.58. This sees the Service Stream share price up 73% since this time last year. Service Stream shares also trade on a fully franked 2.9% trailing dividend yield.

And RBC thinks this company can deliver another year of strong performance. The broker started Service Stream at an outperform rating with a $1.75 price target. That's almost 11% above the current share price.

The post 4 ASX All Ords shares just upgraded by top brokers appeared first on The Motley Fool Australia.