Kalkine: $570 Million Fibre Upgrade Boosts Service Stream and Genus Plus: Impact on ASX200 Landscape

June 11, 2025 01:38 PM AEST | By Team Kalkine Media

Kalkine: $570 Million Fibre Upgrade Boosts Service Stream and Genus Plus: Impact on ASX200 Landscape — Image source: Shutterstock

Contract Details and Scope

Service Stream has been awarded the lion's share of the contracts, securing a deal valued at $440 million over an initial period of three and a half years, with an option to extend for a further two years. The company is tasked with providing comprehensive design and construction services to support NBN Co’s fibre technology upgrades. This work primarily covers Queensland, New South Wales, and Victoria—regions where ongoing projects were previously expected to conclude by Q3 2025. Under the new contract, these projects will now continue seamlessly, incorporating broader network enhancements.

Genus Plus, on the other hand, will be responsible for delivering similar services in Western Australia under a $130 million contract, also spanning three and a half years. The company’s focus will include engineering and civil works to transition premises to the new FTTP infrastructure, enhancing connectivity across the region.

Market Performance Snapshot

Following the contract announcements, share performance saw modest movements. At 12:08 PM AEST, Service Stream’s stock was priced at $1.94, reflecting a 0.26% dip. Genus Plus experienced a 2.4% uptick, trading at $3.42. While short-term fluctuations are natural, such large-scale infrastructure agreements often serve as long-term value drivers, particularly in the context of national digital transformation.

Strategic Importance in Broader ASX Context

The timing of these contracts is notable given the current investor focus on infrastructure and connectivity within the ASX200 index. As digital infrastructure becomes increasingly essential for economic growth and resilience, companies like Service Stream and Genus Plus are well-positioned within the evolving market landscape.

Furthermore, infrastructure-related companies are gaining attention among those exploring ASX dividend stocks, as recurring government-backed projects can provide predictable cash flow over extended periods. While yields vary, the stability and contract-backed revenue streams offered by such firms contribute to their appeal among income-focused portfolios.

This dual-contract milestone strengthens the operational pipelines for both Service Stream and Genus Plus, underlining their roles in Australia’s critical telecommunications infrastructure. As NBN Co accelerates its upgrade agenda, these companies are set to play a central role in shaping the country’s digital future, with broader implications for their positioning in the ASX landscape.

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