SRG Global Shares Rise 6% as Mining Services Stocks Rally With Record $5.1 Billion Work in Hand in Focus

SYDNEY — Shares of SRG Global Ltd. rose almost 6% on Tuesday, joining a rally in Australian mining services and engineering stocks as the broader market climbed to a two-month high.

SRG Global shares gained 19.5 cents, or 5.91%, to A$3.495 in afternoon trading, after touching a high of A$3.51. About 2 million shares changed hands, valuing the company at about A$2.2 billion. The stock is up about 26% over the past year.

The company did not release market-sensitive news on Tuesday.

Sector rally

SRG's gain came alongside sharp moves in peers. Monadelphous jumped almost 14% after reaffirming strong half-year guidance, while NRW Holdings and mining technology firm IMDEX also rose more than 5%.

The broader market was also strong. Smaller companies led a broad-based ASX rally, with the Small Ordinaries rising 1.6% to 3,282.7.

Record results

SRG enters the rally on a strong financial footing. SRG Global announced record FY26 results, with revenue up 27% to $1,675.5 million and underlying EBITDA up 34% to $170.1 million.

EBIT(A) rose 41% to $131.8 million, both figures surpassing the top end of guidance provided in June.

Margins improved as well. The EBITDA margin expanded to 10.2% from 9.6% in FY25, while the EBIT(A) margin improved to 7.9% from 7.1%.

Upgraded outlook

Management raised its forecasts for this year. SRG Global upgraded its FY27 guidance to EBITDA of $195 million to $205 million and EBIT of $150 million to $160 million, up from the June forecast of $190 million to $200 million for EBITDA.

Management said FY27 will benefit from a full 12 months of TAMS contribution versus eight months in FY26, along with continued organic growth across both operating segments.

Work in hand

The company has a large backlog. Work in hand reached $5.1 billion at June 2026, with an opportunity pipeline of $11.5 billion.

SRG also returned to a net cash position of $6.2 million from prior net debt, and free cash flow reached just under $93 million.

Business mix

Most revenue comes from recurring maintenance work. Maintenance and Industrial Services contributed $1,149.8 million in revenue and $164.7 million in EBITDA, while Engineering and Construction generated $525.7 million in revenue and $40.6 million in EBITDA.

Risks

Analysts have flagged some caveats. On the earnings call, observers noted organic growth in FY26 was modest at 7% to 8% EBITA growth, with heavier reliance on M&A for overall earnings expansion. Defense sector opportunities are expected to be a medium-term play, with material uplift not anticipated until FY29 or FY30.

Valuation is also a consideration. One analysis estimated the forward price-to-earnings ratio at around 24 times, based on the midpoint of FY27 guidance.

What's next

Subsequent disclosures will show progress against guidance, work-in-hand conversion and cash generation, with attention on TAMS performance, maintenance contract renewals and the margin mix between recurring services and project-based construction.

This article is for informational purposes only and is not investment advice.