GR Engineering Services Ltd (ASX: GNG) shares are pushing higher on Thursday after the engineering group locked in a major new contract.
At the time of writing, the GR Engineering share price is up 4.15% to $5.02. By comparison, the S&P/ASX All Ords Index (ASX: XAO) is 1.70% higher to 8,862 points.
It has already been a strong year for shareholders, with the GR Engineering stock up around 12% in 2026.
When looking further out, the gain is closer to 75% over the past 12 months.
Here's what investors are looking at today.
A $229 million deal is now locked in
According to the release, GR Engineering has executed an EPC contract with Genesis Minerals (Leonora) Pty Ltd, a wholly owned subsidiary of Genesis Minerals Ltd (ASX: GMD).
The $229 million contract relates to the Tower Hill Gold Project in Western Australia. EPC stands for engineering, procurement and construction, which means GR Engineering will help take the project from design through to construction.
GR Engineering was appointed the preferred contractor in February, so the award was already on the market's radar.
The company did not provide an earnings upgrade with the update. But a $229 million contract is still significant for a company with a market capitalisation of about $845 million.
Why the deal adds confidence
New project awards are a key driver for GR Engineering because its work is tied closely to the resources sector.
The company provides engineering, design, construction, operations, maintenance, and advisory services. When miners approve new projects or expand existing sites, GR Engineering can pick up the work attached to that spending.
Managing Director Tony Patrizi said the company has a long track record of delivery in Australia's minerals sector.
He said GR Engineering looks forward to continuing its work with Genesis at Tower Hill.
Can the share price run continue?
Today's gain adds to a strong run for GR Engineering shares, which are now trading near the top of their 52-week range of $2.76 to $5.28.
The stock also has a dividend yield of about 4.8%, which may help explain some of the interest from income-focused investors.
The contract win gives GR Engineering another sizeable project and adds more visibility to its work pipeline.
But with the stock up 75% over the past year, expectations are higher now.
From here, attention will turn to project margins, delivery costs, and whether more contract wins can keep the run going.
The post Up 75% in a year, this ASX stock just landed a $229 million contract 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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