SRG Global (SRG) – Stellar year

SRG Global (SRG) provides engineering-led maintenance and industrial services, and engineering and construction services in Australia, New Zealand, and internationally. It operates through Maintenance and Industrial Services; and Engineering and Construction segments. In addition, the company offers Orbix, a mining production management software used to plan, track, report, and analyze the front end of mining production; HAIstack, an asset reliability and integrity software that provides a snapshot condition overview of site assets; drones for non-destructive testing; dam anchoring and monitoring; and AI modeling technology services. The company was previously known as Structural Systems before a name change in 2014. SRG Global was founded in 1961and is headquartered in Subiaco.

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SRG Global has retained its strong momentum in FY25 to date. We estimate its work-in-hand (WIH) has risen ~10% (vs Aug-24), with this momentum reflected in SRG’s stellar share price outperformance vs the S&P/ASX300 Index in FY25 to date – +91% versus +9% for the index. In our view, SRG has retained strong momentum and is supported by a high-quality management team, but our forecasts imply more limited near-term valuation upside. We lower our rating to Accumulate from Buy on valuation grounds, but our price target increases to $1.32 from 1.13.

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