Why is this ASX stock jumping 10% to a decade-high today?

It has been a great day for shareholders of SRG Global Ltd (ASX: SRG).

In morning trade, the ASX stock is up 10% to a decade-high of $1.32.

Why is this ASX stock jumping?

Investors have been fighting to get hold of the diversified infrastructure services company's shares after it announced a series of major contract wins.

According to the release, SRG Global has been awarded multiple contracts with existing clients in the Water, Transport, Health, Resources, and Dairy sectors across Australia and New Zealand. The value of the new works secured is $700 million.

This includes a four-year term contract with a further four-year extension option with SA Water to provide Pipeline Delivery Services, including the installation of pipelines and other associated water infrastructure in South Australia.

Another contract win is a Water Infrastructure contract with the Department of Climate Change, Energy, the Environment and Water (DCCEEW). The company notes that these works involve upgrading the existing water pipeline and pumping infrastructure between Nyngan to Cobar in New South Wales. The contract will commence immediately and is expected to be completed in July 2026.

A third notable contract is an infrastructure contract for the construction of a tailings dam at the Pilgangoora mining operation with Pilbara Minerals Ltd (ASX: PLS) in Western Australia. The contract commences in November 2024 and is expected to be completed mid-2025.

A final contract of note is with South32 Ltd (ASX: S32). It is a five-year term contract for maintenance services associated with the continuous enhancement of Bauxite Residue Disposal Area embankments as well as other civil services at the Worsley Alumina bauxite and alumina refinery operations in the southwest region of Western Australia.

The ASX stock's managing director, David Macgeorge, was pleased with the contract wins. He commented:

We are pleased to continue to secure a diverse range of contract awards across Australia and New Zealand in a broad range of sectors with key repeat clients. These contract awards are a further demonstration of our transformation to a truly diversified infrastructure services company.

SRG Global is in a period of significant momentum and our overall Company continues to go from strength to strength. This is underpinned by a strong growth profile and an 80% recurring earnings base which is in line with SRG Global's long-term strategy. Our success in securing contracts in markets including water, transport, dairy, resources and health continues to position the company strongly for sustainable growth in the diverse sectors and geographies in which we operate.

The post Why is this ASX stock jumping 10% to a decade-high today? appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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