NRW Holdings Ltd's stock surged 5.10% during intraday trading on Thursday, driven by a series of positive developments for the Australian contract services provider.
The company announced it has been awarded a significant contract valued at approximately A$200 million, with construction scheduled to commence in the fourth quarter of 2026. This news follows additional contract awards related to the Tonkin Highway, including a grade separations contract and a project to upgrade the highway from Roe Highway to Kelvin Road.
Adding to the positive sentiment, a separate market analysis highlighted NRW Holdings as one of the top undervalued stocks on the ASX, trading at a 49.3% discount to its estimated fair value based on cash flows. The analysis noted the company's forecasted revenue growth of 7% annually and earnings growth of 23.64%, both exceeding Australian market averages.