Today, Duratec shares closed up 8.8% on no company announcements. I’m guessing this might be a reaction to President Trump’s “full steam ahead” comment on the major nuclear-powered submarine pact, ending months of uncertainty over whether his administration would keep the alliance with Australia and the U.K.

The Australian Government made an initial investment of A$127 million ($84 million) last year to upgrade facilities at the Henderson shipyard near Perth, saying billions of dollars would be spent over the next 20 years to transform it into the maintenance hub for its AUKUS submarine fleet.

Last month it said it would spend A$12 billion ($8 billion) to establish defence facilities in Western Australia to help deliver submarines under the AUKUS nuclear submarine deal. At that stage AUKUS deal was still “under review” by the Trump administration. Now it seems the doubt over the AUKUS deal is over.

Duratec is in an ideal position to benefit from AUKUS, as explained in this Duratec news article from January 2025:

“Following the successful delivery of the Parkes Wharf restoration project, Duratec, in a joint venture with Ertech (DEJV), has been awarded two more Defence contracts at HMAS Stirling. Both are for the early contractor involvement (ECI) phase of projects that are part of the base’s preparation for the Submarine Rotational Force – West (SRF-West).

SRF-West refers to the rotational presence of AUKUS partners at HMAS Stirling, beginning 2027. The base will host one UK and up to four US conventionally armed, nuclear-powered submarines on a rotational basis.

The first contract is for the planning phase of maritime infrastructure upgrades to accommodate visiting submarines. The works will involve piling and dredging. It is the fourth such project secured by the DEJV at HMAS Stirling over the last five years and a continuation of works for local teams that have been on site since 2017.

The second contract is for the planning phase of a new, fit-for purpose controlled industrial facility to support the maintenance of submarines.

These contracts demonstrate Duratec’s marine infrastructure capabilities and recognise its ability to deliver large-scale Defence projects. Duratec looks forward to collaborating with all stakeholders on these and other upcoming projects at HMAS Stirling.

https://www.duratec.com.au/news/duratec-completes-remediation-works-to-wharf-at-hmas-stirling/

https://www.politico.com/news/2025/10/20/trump-support-aukus-submarine-deal-00615306?utm_source=chatgpt.com

Held IRL