Southern Cross Electrical Engineering (ASX:SXE) Shares Jump 13% on $125 Million in New Contracts

2 min read | December 11, 2024 04:19 PM AEDT | By Team Kalkine Media

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Southern Cross Electrical Engineering (ASX:SXE) Shares Jump 13% on $125 Million in New Contracts — Image source: Shutterstock

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Highlights

SXE shares rise 13% to $1.57 following announcement of new contracts worth $125 million.

New projects span multiple sectors, including data centres, commercial, resources, and water.

CEO highlights strong exposure to Australian infrastructure with new desalination and transport projects.

Shares of Southern Cross Electrical Engineering Ltd (ASX:SXE) are soaring today, up 13% to AU$1.57, after the company announced it has secured a significant range of contracts valued at $125 million. The contracts span a diverse range of industries, showcasing Southern Cross Electrical Engineering’s strong position in the Australian infrastructure sector.

Why Are Southern Cross Electrical Engineering Shares Rising?

The sharp rise in SXE's share price is driven by the news that the company has been awarded new projects across several key sectors, including data centres, commercial infrastructure, manufacturing, resources, and water. Among the notable projects are works on a new desalination plant in Western Australia (WA) and major transport infrastructure projects in Victoria and New South Wales (NSW).

In a statement, Southern Cross Electrical Engineering's Group Managing Director, Graeme Dunn, emphasized the significance of these contracts, noting that they reflect the company’s strong exposure to Australian infrastructure spending. With a total value of $125 million, these new contracts provide a solid revenue boost for SXE and help diversify its project pipeline across several high-demand sectors.

Strong Infrastructure Exposure

The company’s new projects, including the desalination plant and transport initiatives, position Southern Cross Electrical Engineering as a key player in Australia's growing infrastructure sector. With increasing investment in essential services such as water and transport, SXE stands to benefit from ongoing demand for electrical engineering services.

Southern Cross Electrical Engineering’s ability to secure work across multiple industries further highlights the breadth of its capabilities and the resilience of its business model. The company’s ability to win projects in sectors such as resources, manufacturing, and water, alongside high-profile commercial and transport projects, bodes well for its future growth prospects.

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