Service Stream Locks in $455M Across Water and Energy to Lift Revenue Certainty
$455 million in new contracts strengthens SSM’s annuity revenue base
Service Stream Limited (ASX: SSM) has announced $455 million in new contract wins spanning two sectors, with agreements secured across water utility and energy infrastructure. The dual-sector announcement adds directly to the company’s secured work-in-hand and reinforces its operations and maintenance portfolio strategy.
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Yarra Valley Water: a nine-year, $405 million partnership in Melbourne’s north
The headline deal is a nine-year contract with Yarra Valley Water, Victoria’s largest water utility, servicing more than two million people across Melbourne’s northern and eastern suburbs. The contract is estimated to be worth $405 million over its term.
Under a refreshed commercial model, Yarra Valley Water has divided its operational delivery areas into two regions, North and South. Service Stream has been selected as the Delivery Partner for the Northern Region.
The contract scope covers a broad range of maintenance activities across water and sewerage networks and treatment facilities:
- Mechanical, electrical and civil maintenance services
- Responsive maintenance
- Selected programmed activities across water and sewerage networks and treatment facilities
Mobilisation will commence immediately, with operations due to start in October 2026.
Leigh Mackender, Managing Director
“Service Stream is delighted to be selected as a delivery partner for this long-term program. We look forward to working closely with Yarra Valley Water and supporting the maintenance of its critical infrastructure across Melbourne. In alignment with our Group’s strategy, this award further strengthens and diversifies Service Stream’s operations and maintenance portfolio, providing additional annuity‑style revenue and further expanding our secured work‑in‑hand profile.”
Millmerran Operating Company: $50 million in Queensland energy outage contracts
Service Stream has also been awarded two contracts with Millmerran Operating Company (MOC) at its Power Station in Millmerran, Queensland. The agreements carry a combined estimated value of $50 million over a three-year term.
The contracts are focused on the delivery of Major and Forced Outage Works, with scope including:
- Provision of access
- Mechanical inspections and testing
- Overhaul and repair activities on the Boiler and Balance of Plant for the 425MW units
Leigh Mackender, Managing Director
“We are pleased to be awarded these new agreements supporting the Millmerran Operating Company’s power station infrastructure. The securing of these agreements strengthens Service Stream’s major outage footprint in Queensland while reinforcing our role as a trusted partner across critical energy infrastructure assets.”
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What these contracts mean for Service Stream investors
Understanding annuity-style revenue in infrastructure services
Long-duration maintenance contracts provide multi-year revenue certainty, reducing the earnings volatility that can affect project-based businesses. For a listed services company, the key metric is secured work-in-hand — the forward pipeline of contracted revenue that underpins future earnings visibility.
The Yarra Valley Water deal’s nine-year term is strategically meaningful precisely because of this dynamic. Rather than requiring re-contracting every few years, the agreement locks in a predictable revenue stream through to the mid-2030s. The MOC contracts, while shorter in duration at three years, add complementary exposure to the Queensland energy sector and deepen the company’s major outage footprint in that market.
Taken together, the two wins also reflect Service Stream’s stated strategy to diversify its operations and maintenance portfolio across sectors. Dual exposure to water utility and energy infrastructure reduces the company’s reliance on any single client segment, which in turn supports a more stable earnings profile over time.
Contract snapshot at a glance
| Contract | Client | Value | Term | Sector |
|---|---|---|---|---|
| Northern Region Maintenance | Yarra Valley Water | $405M | 9 years | Water utility |
| Major/Forced Outage Works (x2) | Millmerran Operating Company | $50M | 3 years | Energy |
| Total | $455M |
What to watch next
Investors tracking the impact of these contracts on SSM’s financial profile should monitor the following milestones:
- Mobilisation commencement — underway immediately for the Yarra Valley Water Northern Region contract
- Operations launch — Yarra Valley Water Northern Region scheduled for October 2026
- MOC outage works commencement — per contract schedule (specific commencement date not disclosed in the announcement)
- Next financial update — watch for SSM’s forthcoming financial report for a work-in-hand figure that reflects these additions to the forward pipeline
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