Synertec secures $45.5M government engineering contract

• Synertec secured an engineering services contract valued at $45.5 million with an undisclosed Australian government agency.
• Following the announcement, the company's stock rose to $0.075 per share.
• The agreement provides multi-year revenue visibility through to FY35, with minimal capital expenditure requirements.

Synertec (ASX:SOP) executed an agreement valued at $45.5 million with an undisclosed Australian government agency to provide comprehensive infrastructure engineering services over an eight-year programme.

The eight-year deal contrasts with typical short-term project assignments, as it locks in standard engineering deliverables while requiring no material project-related capital expenditure from the business.

Synertec’s Managing Director Michael Carroll said, "This award is testament to the skill, ingenuity and professionalism of our engineering team and reflects the confidence our government sector clients continue to place in Synertec to deliver mission-critical, complex infrastructure projects that will benefit all Australians for generations to come."

Under the scope of work, the company will deliver design development, detailed design, and construction support, with the majority of operational activities concentrated in the first 26 months.

The transaction provides extended operational activity and stable income visibility through to FY35.

Following the announcement, the Synertec share price was up at $0.075.

The Melbourne-based company operates across energy and critical infrastructure, offering technology design and engineering solutions for public and private sector clients.