Service Stream Secures Contracts with Transport for Victoria
Key points
- Secured two contracts worth $144 million
- Contracts cover Intelligent Transport Systems maintenance
- Each contract has an initial five-year term with extension options
- Expected to commence in Q4 2026
- Strengthens Service Stream's maintenance portfolio
Full summary
Service Stream Limited (ASX: SSM) has announced the securing of two significant contracts with Transport for Victoria, each valued at $72 million. These contracts cover Intelligent Transport Systems maintenance, including the Victoria West ITS Maintenance Contract and the Motorway Communications Network Contract. Each contract has an initial term of five years, with options for two additional two-year extensions. The contracts will commence in Q4 2026 and will involve Service Stream providing routine and reactive maintenance services. This development underscores Service Stream's role as a leading provider of transport technology and network maintenance services.
Guidance
Service Stream expects to generate $144 million in revenue from the contracts over their initial terms.
Outlook
The new contracts are expected to strengthen Service Stream's maintenance portfolio and provide annuity-style work-in-hand revenues.
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