A major contract renewal is giving investors another reason to buy this infrastructure services stock on Friday.
Ventia Services Group Ltd (ASX: VNT) shares are up 2.03% to $6.02 at the time of writing.
The move adds to a strong recent run for shareholders. Ventia shares are now up around 20% over the past month and 30% over the past year.
The stock is also back above $6, leaving it closer to its January highs of $6.41 after a choppy few months.
So, what was announced?
$405 million contract renewal
In its ASX release, Ventia announced the renewal of its maintenance services contract with Yarra Valley Water.
The 9-year contract is worth $405 million and covers a range of essential water infrastructure services.
This includes consolidated sewerage service contracts, sewerage and water network reactive maintenance, and mechanical and electrical planned and reactive maintenance.
Under Yarra Valley Water's new delivery model, two strategic partners will manage maintenance services across the north and south regions.
Ventia has secured the south region, which keeps the company involved in a key part of Yarra Valley Water's network.
The new partnership arrangements are expected to begin in October 2026.
Another long-term deal locked in
The sizeable contract gives Ventia another reliable stream of contracted work in an essential services market.
The work also sits in water and sewerage maintenance, where spending is not easy to delay or cut.
The customer relationship is also worth noting. Ventia has been working with Yarra Valley Water since 2015, so this renewal keeps an existing contract running for many more years.
Managing Director and Group CEO Dean Banks said the renewal reflected the company's proven record as a strategic partner.
He also pointed to asset management and service delivery as areas where Ventia has built experience.
Momentum has been building
The contract renewal lands at a good time for Ventia.
The share price has already been moving higher, with the stock up around 20% in a month and 30% over the past year.
That tells us investors were already warming to the business before today's announcement.
Ventia provides services across defence, social infrastructure, water, electricity and gas, resources, telecommunications, and transport.
That gives the company exposure to several large end markets across Australia and New Zealand.
Many of those areas are tied to essential infrastructure, which is part of the reason the stock has been getting more attention.
The post A long-term contract win is lifting this ASX 200 stock today appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. 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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