Parkway Corporate (ASX: PWN, FSE: 4IP, WKN: A1JH27) pleased investors on Friday with an encouraging update on the company’s recent performance. The shares ended Australian trading up 10% after the company was recently awarded several contracts for the supply of certain water infrastructure services with a total value of over 13.50 million Australian dollars (AUD).
A significant contract won by a wholly owned subsidiary of Parkway from a major Tier 1 engineering and construction company is largely responsible for the encouraging sales performance. It alone has a volume of AUD 12.85 million. This contract is likely to have a signal effect for the future, as the client, an industry leader in Australia, plays a central role in shaping the construction and infrastructure landscape across the country.
Parkway’s client has excellent expertise in transportation, urban development and major projects, including those in the water and wastewater sector. The main elements of the contract include the supply of structural and mechanical piping works. They range from fabrication to on-site installation and include specialized services. As another key part of the contract, Parkway will also be responsible for project management to support the development of a high-profile wastewater treatment complex with innovative resource recovery features.
A Successful Partnership Yields Initial Results for Parkway
The award of the contract follows a successful collaboration between Parkway and the engineering and construction company in the earlier stages of the project, as well as working together on other similar water infrastructure projects. Parkway is therefore no stranger to the client or the region, having previously carried out similar work at the same site for one of Australia’s largest utility companies.
The recent contract awards not only demonstrate Parkway’s capacity to deliver large water infrastructure projects but will also contribute to the improved financial performance of the company. At the same time, it is clear that Parkway’s successful work over the last few years has given it a strong foothold in the sector. Work is due to start immediately and Parkway currently expects to complete and book more than 85% of the contract in 2026, as the terms of the payments to be made by the client are based on monthly invoices for the work completed in the relevant period.
The final completion date for the overall project is currently scheduled for September 2028. To ensure that Parkway’s subsidiary can meet all of its obligations in full, the parent company has provided a guarantee of support. This small detail makes it clear how important not only this major order is to Parkway, but also how crucial the successful completion of the order is for the entire company, as it is the key to further orders in the future. It is now firmly in the hands of Parkway and the company is determined to use it to open this and other doors.
Parkway expects to be awarded further contracts
In the near future, Parkway expects to be awarded further material contracts and new major orders. The latter are a logical development of the successful cooperation with several players in the water sector. These include engineering and construction companies as well as utilities. The company is currently receiving a lot of encouraging feedback from them.
But, as we all know, even small cattle make manure and strengthen turnover and the balance sheet. Parkway has recently received a number of smaller orders from various customers. They have a total value of AUD 0.66 million and come from a regional municipal water company, among others. The company has also been informed by several parties that it is the preferred contractor for certain project areas and can expect to receive the corresponding work orders or purchase orders shortly.
Momentum is Increasing in the Queensland Brine Solutions Business
The Queensland Brine Solutions business is also making progress in securing a small number of strategic project sites for the development of key brine management and processing infrastructure. QBS has not only been shortlisted for a strategic project site as part of an ongoing and still ongoing tender process, but is also in promising discussions with a number of other parties.
The Queensland Brine Solutions business is also making progress in securing a small number of strategic project sites for the development of important brine management and processing infrastructure. QBS has not only been shortlisted for a strategic project site as part of an ongoing and still unclosed tender process, but is also holding promising discussions with a number of other parties.
While activities relating to the acquisition of sites are progressing, internal feasibility studies are being carried out in parallel. They continue to confirm the merits of the roadmap advanced by QBS. Parkway has conducted several pilot activities with concentrated brines from an international critical minerals project for a global mining company based on a proprietary aMES®-based flowsheet.
Representatives from the global mining company recently visited Parkway and also toured the Parkway Center for Brine Technologies to observe the pilot activities. The pilot testing was recently completed with all objectives of the test series and associated assessments successfully achieved. Parktway has summarized the results in a final report, which was recently submitted to the customer. In the current quarter, Parkway will therefore record a turnover of 0.2 million dollars for this project.
Further prospects are promising
In recent years, Parkway has systematically laid the foundations for a scalable industrial business and a valuable technology business. Now both areas, which are becoming increasingly intertwined, are starting to grow. This process is already so far advanced that Parkway now has the critical mass required to tackle and successfully execute projects with important, large industry partners.
Recently, Parkway has been approached several times by potential clients interested in using elements of the proprietary salt solution technology portfolio currently being commercialized in Queensland in other jurisdictions. The impetus for these discussions came from the interested parties. This demonstrates the level of interest that now exists in the technical solutions developed by Parkway and is a strong confirmation that Parkway has numerous opportunities to create significant value.
The path to profitable production has been mapped out and is now being consistently pursued by the company. For the investors, this is a continuing reason for joy, because the company they have acquired is becoming better known, better and more valuable every day.
