GenusPlus Group (ASX: GNP) has secured a significant engineering, procurement, and construction (EPC) contract worth approximately $110 million for the Koolunga Battery Energy Storage System project in South Australia.
The contract involves the Balance of Plant and BESS installation for the 200MW/800MWh Koolunga project.
Owned by Equis Development, the project will see the battery energy storage system connect to the grid via an approximately 1.2 kilometre HV cable to the 275kV Brinkworth Substation.
Works are scheduled to commence shortly, with an estimated completion by September 2027.
Crucially, all planning and environmental approvals, alongside community impact assessments, have already been completed.
Strong H1 FY2026 Financials
This contract award follows a period of strong financial performance for GenusPlus.
The company reported record HY2026 results in February 2026, with revenue increasing 61% to $535.4 million and statutory net profit after tax (NPAT) up 82% to $24.9 million.
Normalised HY EBITDA reached $46.3 million, representing a 69% increase on the prior corresponding period, along with strong operating cash inflows of $73.7 million.
Reflecting this robust performance, GenusPlus declared a maiden interim dividend of 2.0 cents per share.
Robust Orderbook and Pipeline
GenusPlus's growth is underpinned by a substantial pipeline of work.
The company's orderbook stands at a significant $2.4 billion, excluding recurring revenue, marking a 23% increase from June 2025.
The tendered pipeline is also considerable, valued at $2.6 billion.
This robust forward visibility supports the company's FY2026 outlook, which forecasts circa 35% normalised EBITDA growth.
Furthermore, recurring revenue is expected to grow by approximately 20% in FY2026, enhancing earnings resilience.
Railtrain Acquisition Integration
Adding to its strategic expansion, GenusPlus recently entered a binding agreement to acquire 100% of Railtrain Holdings.
The deal is valued at up to $55 million, comprising upfront cash and contingent earn-out payments.
This acquisition is set to significantly enhance GenusPlus's rail services capabilities, providing critical scale and diversification.
Railtrain offers a range of services, including overhead wiring solutions and rail maintenance.
The acquisition is expected to be immediately earnings accretive, though Railtrain anticipates a weaker FY26 due to project delays.
Outlook and Risks
GenusPlus's approximately $110 million BESS contract award for the Koolunga project highlights its continued momentum in Australia's energy transition sector.
This complements the company's strong H1 FY2026 financial results and a robust orderbook, which provide clear earnings visibility for the coming periods.
However, investors will be monitoring the integration of recent acquisitions such as Railtrain Holdings to ensure smooth operational transitions.
The inherent risks in large-scale infrastructure projects, including potential for execution challenges and fluctuations in costs, also warrant close attention.
The realisation of forecast recurring revenues and the conversion of the substantial pipeline into booked work remain key factors for future performance.
