Service Stream Ltd

Fund managers have repeatedly pointed to defence contract wins as the standout catalyst for Service Stream. Centennial Asset Management (September 2025, $2.31) highlighted a new Department of Defence Base Service Contract covering 113 sites in SA and the NT worth approximately $1.6 billion over its initial six-year term (extendable to ten years). Oracle Advisory Group (December 2025, $2.24) forecast strong EPS growth over the following three years from the company's broader essential-infrastructure contracting exposure (energy, telecommunications). QVG Capital (May 2026, $2.35) noted a smaller electrical contractor acquisition plus $450 million of new contract awards and good progress ramping the defence contract. Ausbil Investment Management (June 2026, two comments around $2.47-$2.53) described defence as a new 'fourth pillar' that could become a billion-dollar revenue line within a few years, alongside a $9 billion pipeline in telcos and utilities, calling the stock 'undiscovered, under-researched and under-owned' and trading below market multiples. Centennial (May 2026, $2.35) initiated a new position, and Prime Value Asset Management (May 2026, $2.35) called out margin improvement and resilience built over a decade of ownership, though it still viewed the stock as relatively undiscovered. Ophir Asset Management gave the most detailed bull case (June 2026, $2.55 and $2.65): utilities EBITDA margins stepped up to 5.5% in 1H26 with a path to 6.5%; the new Tier 1 Defence Property & Asset Services contract could generate over $250 million of annual revenue at margins above 5%; the telco segment secured new NBN Field Services coverage, a five-year Telstra partnership, and an Optus HFC decommissioning program; work in hand grew 55% to $9.2 billion with average contract tenure of 17.5 years; and the stock traded on roughly 18x consensus FY27 earnings versus what Ophir viewed as an appropriate ~14x, with net cash providing scope for accretive bolt-on M&A.