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Australian infrastructure services company building and maintaining telecom (NBN) and utilities networks under long-term contracts.
Australian infrastructure services company building and maintaining telecom (NBN) and utilities networks under long-term contracts.
Paid under multi-year service contracts and work orders, mostly from NBN Co (Australia's government-owned broadband network) and Telstra, with a utilities arm doing similar maintenance and construction work for water and energy networks. Dependence on a few large customers makes contract renewals the key event.
In one line: An Australian telecom/utility field-services contractor.
Moat: narrow (customer qualification, switching costs). Long-term panel contracts with NBN Co and telcos create recurring, sticky revenue.
Headquarters: Melbourne, Australia · Founded: 1994 · Employees: 6,500
Size Service Stream (SSM.AX) is an Australia Industrials company (Miscellaneous Commercial Services) with a market value of $943M, the 184th largest of 316 Australia companies the cockpit tracks. Shares closed at A$2.20 on 6 Nov 2026.
Performance Over six months the shares gained 6.8%, against -10.3% for the median peer and +4.1% for the Australia market (cap-weighted) — 4th highest of 21 in its peer set.
Growth Revenue grew 1.0% over the last twelve months (peer median +6.1%); the operating margin is 2.8% (peer median 11.3%).
Valuation It trades at 17.6× forward earnings against a peer median of 17.3× (9th most expensive of 19).
Price implies For today's price to make sense, revenue must grow about 12% a year for seven years (Req g). Recent delivered growth is +24%, so the hurdle is -12 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 0.4 points above its cost of capital (7.9% WACC).
Next results Next results expected around 24 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | A$2.35B | A$2.35B | A$2.33B | A$2.29B | A$2.05B |
| Revenue growth | — | +1% | +2% | +12% | — |
| Gross profit | A$194M | A$194M | A$182M | A$158M | A$96.1M |
| EBITDA | A$125M | A$125M | A$132M | A$111M | A$101M |
| Net income | A$56.9M | A$56.9M | A$59.2M | A$32.3M | A$4.46M |
| Free cash flow | A$84.9M | A$84.9M | A$127M | A$88.6M | A$89.5M |
| Capital expenditure | A$29.7M | A$29.7M | A$13.1M | A$10.5M | A$7.98M |
| Total debt | n/a | A$110M | A$77.2M | A$117M | A$172M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Service Stream SSM.AX | $943M | +7% | +1% | 3% | 17.6× | 11.7% |
| Ventia Services VNT.AX | $3.24B | -2% | -1% | 7% | 16.1× | -1.4% |
| Downer EDI DOW.AX | $3.21B | -6% | -7% | 4% | 15.8× | 11.1% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | SSM.AX | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -3.1% | +0.7% | 7th lowest of 21 |
| 6-month return | +6.8% | -10.3% | 4th highest of 21 |
| Distance from 52-week high | -19.1% | -25.5% | 8th highest of 21 |
| Revenue growth (TTM) | +1.0% | +6.1% | 6th lowest of 21 |
| Operating margin | 2.8% | 11.3% | 6th lowest of 21 |
| Forward P/E | 17.6× | 17.3× | 9th most expensive of 19 |
| Growth the price implies (Req g, 7 yrs) | 11.7% | -0.5% | 7th most demanding of 16 |
| Growth delivered (Del g) | +24.0% | +12.2% | 3rd highest of 16 |
| Hurdle (Req g minus delivered) | -12.3 pp | -13.9 pp | 8th most demanding of 16 |
| ROIC minus cost of capital | +0.4 pp | +3.2 pp | 9th lowest of 19 |
| EV / EBITDA | 11.1× | 8.5× | 5th most expensive of 13 |
| Net debt / EBITDA | 0.2× | 0.6× | 7th least indebted of 14 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Service Stream SSM.AX | Australia | $943M | +7% | +1% | 3% | 17.6× | 11.7% | +24.0% |
| B2 Impact B2I.OL | Norway | $947M | +1% | +9% | 48% | 10.2× | -8.3% | +3.1% |
| W.A.G. Payment Solutions EWG.L | United Kingdom | $935M | -4% | +16% | 3% | 17.5× | -1.7% | +12.2% |
| Wavestone WAVE.PA | France | $931M | -22% | +1% | 12% | 10.0× | -5.3% | +18.0% |
| Shaanxi Fenghuo Electronics 000561.SZ | China | $929M | -24% | +8% | -26% | n/a | n/a | n/a |
| Embedway Technologies (Shanghai) 603496.SS | China | $910M | -37% | +4% | 1% | 137.0× | 54.3% | +14.5% |
| Rites RITES.NS | India | $990M | -15% | +11% | 20% | 19.7× | 19.8% | +5.3% |
| Shanghai Action Education Tehnology 605098.SS | China | $991M | -10% | +15% | 40% | 16.3× | -3.0% | +16.4% |
| GL events GLO.PA | France | $991M | -14% | +6% | 10% | 8.7× | 3.1% | +29.1% |
| Zhejiang Meorient Commerce & Exhibition 300795.SZ | China | $890M | -1% | -3% | 18% | 29.6× | n/a | n/a |
| Xi'an High Voltage Apparatus Research Institute 688334.SS | China | $889M | -10% | +4% | 29% | 21.3× | -2.4% | +20.3% |
| Shenzhen Boshijie Technology 301608.SZ | China | $1.00B | -20% | +15% | 14% | 20.9× | n/a | n/a |
| Willdan WLDN | United States | $1.01B | -25% | +18% | 7% | 14.5× | 15.4% | +11.8% |
| IP Group plc IPO.L | United Kingdom | $879M | +13% | -37% | 51% | 11.9× | n/a | n/a |
| Aimed Bio 0009K0.KS | South Korea | $875M | -61% | +223% | 36% | n/a | 13.2% | +652.2% |
| Graincorp GNC.AX | Australia | $1.02B | +9% | -2% | 0% | 46.7× | n/a | n/a |
| DOOSAN TESNA 131970.KS | South Korea | $861M | -53% | +3% | 11% | 36.9× | 17.8% | +18.1% |
| NOMURA 9716.T | Japan | $861M | +4% | -10% | 7% | 14.1× | -8.4% | +8.6% |
| Funshine Culture 300860.SZ | China | $858M | +21% | -49% | -35% | 28.1× | 27.8% | -24.6% |
| Neurones NRO.PA | France | $1.04B | +5% | +7% | 9% | 17.1× | -8.3% | +10.3% |
| Smartgroup SIQ.AX | Australia | $1.06B | +1% | +10% | 37% | 16.8× | -0.5% | +8.8% |