SKS’s Work on Hand Hits $304M with New $130M Data Centre Contract
SKS Technologies has landed its largest data centre contract yet, a $130 million project in Melbourne, lifting its total work on hand to $304 million and prompting an upward revision of its FY26 revenue guidance.
- Awarded $130 million contract for MEL02A hyperscale data centre in Melbourne
- Project involves design and construction of critical electrical systems for 90MW capacity
- Total work on hand rises to approximately $304 million
- FY26 revenue guidance increased to $320 million
- Recent acquisition of Delta Elcom to support expansion into NSW
A Landmark Win in Data Centre Infrastructure
SKS Technologies Group Limited (ASX – SKS) has announced a significant milestone with the award of a $130 million contract for a new hyperscale data centre facility, MEL02A, located in Melbourne's western corridor. This project marks the largest contract SKS has secured in the data centre sector to date, underscoring the company’s growing prominence in the digital infrastructure space.
The contract, awarded in partnership with Hickory Construction DC, involves the comprehensive design and construction of critical electrical systems supporting 90 megawatts of capacity. This includes low and medium voltage cabling, installation and testing of transformers, generators, main switchboards, and the supply and installation of cable support systems and structured cabling. The project is expected to reach completion by the third quarter of 2027.
Strengthening Market Position and Financial Outlook
With this latest contract, SKS’s total work on hand has surged to approximately $304 million, a new record for the company. CEO Matthew Jinks highlighted that this achievement builds on previous wins, including contracts worth $90 million and $100 million announced in the past year. The consistency of these wins reflects SKS’s established reputation for delivering sophisticated, large-scale digital infrastructure projects to a high standard.
In light of the new contract, SKS has revised its FY26 revenue guidance upwards to $320 million. This adjustment factors in the anticipated revenue recognition from the MEL02A project, which will span both FY26 and FY27, as well as the expected contribution from other new work already included in the original forecast.
Strategic Expansion and Future Prospects
Beyond the immediate financial impact, SKS is leveraging its recent acquisition of Delta Elcom to deepen its expertise and broaden its footprint, particularly targeting opportunities in New South Wales. This strategic move signals SKS’s ambition to consolidate its position as a leading provider of electrical and digital infrastructure solutions across Australia’s key data centre markets.
As data centre demand continues to accelerate, driven by cloud computing and digital transformation trends, SKS’s expanded capabilities and strong project pipeline position it well to capitalize on future growth opportunities.
Bottom Line?
SKS’s record contract and upgraded guidance set the stage for continued growth, but execution on this large-scale project will be critical to sustaining momentum.
Questions in the middle?
- How will SKS manage project execution risks on this large-scale MEL02A contract?
- What synergies and new opportunities will the Delta Elcom acquisition unlock in NSW?
- How might rising demand for data centres influence SKS’s future contract pipeline and margins?
