Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The latest announcement is out from Service Stream Limited ( (AU:SSM) ).
Service Stream reported first-half FY26 results showing modest earnings growth and stronger margins despite a decline in top-line revenue. EBITDA from operations rose 2.3% to $75.3 million, with the group EBITDA-A margin improving by 50 basis points to 6.3%, while total revenue fell 5.8% to $1.194 billion.
Net profit after tax (adjusted) increased 4.6% to $36.6 million, backed by exceptional cash conversion of 148.4% and a reinforced balance sheet with net cash climbing to $87.6 million. The company secured more than $2.2 billion in new contracted work, lifting work-in-hand to $9.2 billion, and announced a 20% higher interim dividend of 3.0 cents per share.
A key strategic development was Service Stream’s successful expansion into the Defence sector as a Tier 1 provider of property and asset services in the Northern Territory and South Australia, which deepens its role in critical national infrastructure. Management signalled confidence that improved earnings quality, contributions from recently won contracts and ongoing operational efficiencies will underpin earnings growth for the full year, supporting a stronger outlook for shareholders and stakeholders.
The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.
More about Service Stream Limited
Service Stream Limited is an Australian-listed provider of essential network services, specialising in property and asset maintenance, infrastructure support and related operational services. The company operates across sectors including telecommunications, utilities and, increasingly, government-linked infrastructure, and is now expanding its footprint into the Defence sector as a Tier 1 partner in northern and southern Australia.
Average Trading Volume: 1,312,928
Technical Sentiment Signal: Buy
Current Market Cap: A$1.36B
For a thorough assessment of SSM stock, go to TipRanks’ Stock Analysis page.