Azzet reports on three stocks with price moving updates today.
SRG Global rallies on major contract wins ~
Shares in SRG Global (ASX: SRG) were trading around 5.2% higher by 2:10 pm AEDT (3:10 am GMT) after the diversified infrastructure services contractor told the market it had secured $650 million worth of work from blue-chip clients across a diverse range of sectors in Australia and NZ.
Locking in 13 new and repeat contracts spanning water, defence, transport, energy, industrials, resources, health and education, the deals include concrete tank construction for the Alkimos desalination project in Western Australia, flood-resilience works in Byron Bay, bridge rehabilitation in Victoria, and ongoing defence infrastructure works in WA.
In energy, Fortescue has tapped SRG for civil works at its Bonney Downs Wind Farm, while major shutdown and maintenance contracts were signed with Wesfarmers’ CSBP Kwinana operations in WA, South32 (ASX: S32), Roy Hill (via the Bugarrba JV), Tianqi Lithium, Alcoa (ASX: AAI) and Rio Tinto (ASX: RIO).
While additional Pilbara mine-site infrastructure work has also commenced, SRG has also picked up facade packages for major health and education builds, including Melton Hospital, Bunbury Hospital, UWA student accommodation and the new Dunedin Hospital in NZ.
Commenting on today’s update, managing director David Macgeorge told the market that contract strength is being underpinned by strong demand for the group’s specialist capabilities and an annuity earnings profile in line with its strategy to deliver sustainable growth across the diverse sectors and geographies in which it operates.
“I am particularly pleased that the combined specialist bridge strengthening and improvement capabilities of our Asset Remediation team, together with the marine infrastructure services capabilities of our TAMS business, have enabled SRG Global to secure new contracts through collaborative arrangements with our clients,” he said.
The stock’s share price jumped from $2.09 on 9 October to $2.93 on 27 October after the company announced a binding bid to acquire Total AMS (TAMS), a leading marine infrastructure services business, for $85 million.
Given the given the complementary marine capability and potential for higher recurring revenue, the market was quick to give the acquisition the thumbs up.
Longer term, analysts see the enlarged platform broadening SRG Global's addressable market and strengthening the opportunity for growth across resources, energy and public infrastructure.
SRG Global is paying out an acceptable 68% of its profit, a common payout level among most companies.
At FY25, the group reported underlying earnings of $127.1 million, up 29%, on revenue of $1.323.3 billion, up 24% from FY24.
The 2H fully franked dividend of 3.0cps was up 20%, with the total FY25 dividend of 5.5 cents per share, up 22% on FY24.
Management guided to 10% FY26 earnings growth on FY25.
SRG Global has a market cap of $1,7 billion; the share price is up 113% in one year and down around 2% in the last month.
The stock is in a strong bullish trend, confirmed by multiple indicators.
Consensus is Strong Buy.
Web Travel soars on strong 1H FY26 update
Long-suffering shareholders in Web Travel Group (ASX: WEB) received some rare air this morning with the travel booking platform’s share price up 9.8% following a strong first half result with proof of profitable growth at scale in the B2B accommodation sector, renewing the market’s expectations.
In line with analyst expectations, 1H FY26 total transaction value (TTV) was up 22% to $3.2 billion – on margins maintained at 6.5% - while underlying earnings were up 17% to $81.7 million.
Commenting on today’s update, managing director John Guscic championed the group’s ability to grow by winning market share as opposed to simply riding the travel boom.
“WebBeds continues to win global share, which is amplifying the network effect and making us even more relevant to our hotel supply and travel buyer partners,” said Guscic.
With trading remaining strong during 2H FY26, the group expects FY26 underlying earnings to be between $147 million and $155 million – which implies a lower 2H profit than the $81.7 million recorded in the first six months.
The first 7 weeks of 2H26 have been strong with TTV up 23% compared to the same period last year.
eToro market analysts were impressed that a business operating behind the scenes has found genuine operating leverage in a fragmented market.
While Web Travel’s first-half result was broadly in line with expectations, Morgans research flagged rising corporate costs and net profit pressures.
What concerned the broker was strong top-line growth and continued market share gains, which were offset by a 7.4% decline in underlying net profit, with the first-half impacted by the Middle East war.
Other key numbers announced today:
- Net cash of $238.1 million
- WebBeds bookings rose 18% to 5.07 million
- WebBeds underlying earnings rose 21% to $94 million
- Expenses were up 19%
- WebBeds earnings margin was 45.9%
Back in August management told the market that the WebBeds business was on track for a record year.
For the financial year ending 31 March 2025, the company reported a TTV increase of 22% to $4.9 billion, while earnings declined by 14% to $138.8 million due to a drop in revenue and a 15% rise in expenses as part of its planned reinvestment.
Net profits softened to $79.2 million from $101.1 million.
Web Travel Group has a market cap of $1.5 billion; the share price is up 3.4% in one year and up around 5% in the last week.
The stock’s shares appear to be weak with little demand from investors.
Consensus is Moderate Buy.
Octava Minerals rallies after confirming high-grade indium at Sweeney’s
Shares in Octava Minerals (ASX: OCT) gave back early gains of 6.5% to trade flat this afternoon after the explorer specialising in critical minerals confirmed very high indium grades, up to 860ppm, from re-assayed rock chips taken at the Sweeney’s prospect within its Federation Project in Tasmania.
Federation sits just 12 kilometres west of the mining hub of Zeehan, in Tasmania’s mineral-rich northwest - home to the world-class Renison tin mine, Australia’s largest tin producer.
On the strength of a successful fixed-loop EM survey, indicating strong conductance and connectivity of sulphide minerals, the company is preparing to commence drilling, with a rig now mobilising for the first drilling at Sweeney’s since the 1970s.
To the uninitiated, indium has a strategic role across electronics, solar, AI data centres and defence technologies.
The largest driver of indium’s demand comes from Indium Tin Oxide (ITO) coatings, which allow glass to be both transparent and electrically conductive, an essential property for everything from smartphones, tablets and TV screens to automotive dashboards and smart windows.
The West Australian explorer is also engaged in projects involving copper, zinc, silver, rare earth elements, lithium, antimony, gold, nickel, and platinum group metals across various locations including Federation, Byro, Yallalong, and East Kimberley.
Commenting on today’s update, Octava’s managing director, Bevan Wakelam, told the market the results from the re-assay of grab samples for indium are extremely encouraging and confirm the multi-element value of the mineralisation at Sweeney’s.
“The survey has shown a strong conductive response indicating good connectivity between the sulphide minerals,” he said.
“This survey result only builds on the exploration story that has been growing at the Sweeney’s prospect.”
The Company remains well capitalised to get drilling underway at Sweeney’s with over $2 million in cash following its recent placement.
Back in August, the miner told the market it was ready to advance to the next stage of bioleaching test work after receiving positive extraction results from its Byro rare earth element (REE) and critical minerals project in WA.
The REE, lithium, and vanadium recoveries came from Octava’s recent diamond drilling at Byro and follow promising results from Stage 1 of a CSIRO bioleaching test program to determine the potential for extracting metals from Byro samples.
Octava Minerals has a market cap of $5 million; the share price is down 63% in one year and down 16% in the last week.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
