Downer EDI (ASX:DOW) has been chosen as the preferred contractor to carry out maintenance on state highways under four New Zealand Transport Agency Waka Kotahi contracts.
Scheduled to begin in May 2026, the contracts—pending finalisation of terms—cover Central Waikato and Coastal Otago for 10 years each, and Taranaki and Tairawhiti for three years each.
Downer estimates that revenue from the Taranaki and Tairawhiti contracts, combined with the first five years of Central Waikato and Coastal Otago work, will reach approximately NZ$870 million.
The contracts encompass routine and non-routine network inspections, pavement and surfacing renewals, drainage and environmental maintenance, traffic services, structural repairs, and emergency response services.
Downer CEO Peter Tompkins said the awards reinforce the company's status as a leading road services provider in New Zealand.
"These contracts extend our long-standing partnership with NZTA," he said.
"Together, we aim to maximise value from network assets while ensuring safe, reliable, and accessible journeys for road users, keeping New Zealand people and economies moving."
At the time of reporting, Downer EDI's share price was $7.90.