It’s proving a good day so far for ASX All ordinaries share Wagners Holding Co Ltd (ASX: WGN), with its share price surging in early afternoon trade.
At the time of writing, the Australian construction materials provider’s shares are swapping hands at $1.38, up 15.97%.
What did the ASX All Ordinaries share announce?
Investors are fighting to get a hold of Wagners shares after the company announced it has secured a significant contract.
In its statement, the ASX All Ordinaries share advised it has won a material contract for the Sydney Metro – Western Sydney Airport Project.
This will see the supply of more than 67,000 precast concrete tunnel segments, manufactured from the company’s facility in Wacol, Brisbane.
Production of the segments will commence in late 2022 with the final segments scheduled for completion in early 2024.
The project is being delivered by the CPB Contractors Ghella (CPBG) joint venture, and involves the construction of 9.8 kilometres of twin metro rail tunnels.
Following the project’s completion, this will provide a public transport service to the new Western Sydney International (Nancy-Bird Walton) Airport.
Subject to timing parameters, Wagners is expected to reap around $140 million over the 20-month period of the contract.
Speaking on the news fuelling this ASX All Ordinaries share today, Wagners CEO Cameron Coleman commented:
The Sydney Metro-WSA-SBT is a significant project providing important transport infrastructure for the people of Sydney.
Wagners are extremely proud to work with the CPBG joint venture on this critical scope of works for the project which will also deliver significant job opportunities. The segments will be manufactured locally at our Wacol precast facility, before being transported to Sydney for installation into the project.
Wagners have been involved in the construction of the last three significant tunnel projects in Queensland, and is looking forward to being able to utilise this expertise in the manufacture and delivery of these segments for the Sydney Metro-WSA-SBT project.
About the Wagners share price
Despite its strong gains today, the Wagners share price has tumbled 42% over the past 12 months.
When looking at the year to date, its shares are down 15%.
Based on today’s price, this ASX All Ordinaries share has a market capitalisation of $212.01 million and a price-to-earnings (P/E) ratio of 16.7.
The post Guess which ASX All Ordinaries share is soaring 16% on a new $140 million contract win appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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