GenusPlus Hits High on Battery Win
GenusPlus Group (ASX: GNP) closed 4.6% higher on Friday at A$9.20 after touching a fresh 52-week high of A$9.35 intraday, following the announcement of a A$110 million contract to build the Koolunga Battery Energy Storage System in South Australia. The project is a large 200MW/800MWh battery, big enough to power around 26,000 homes for four hours. GenusPlus will handle the full build, from design to commissioning, and expects to finish the job by September 2027. For investors, this is another sign that GenusPlus is quietly becoming the go-to ASX name for Australia’s energy transition story.
Why the Koolunga Battery Contract Matters More Than It Looks
At first glance, it’s just another contract. But look closer, and the signal is stronger. GenusPlus took this job on a “lump sum and turn-key” basis, also known as an EPC contract (engineering, procurement, and construction). That may sound technical, but it simply means GenusPlus agreed to a fixed price and takes full responsibility for delivering the project from start to finish. Done well, these contracts can be very profitable. Done poorly, they can hurt earnings. The fact that a major developer is trusting GenusPlus with a project this size tells us the market sees it as a reliable builder moving up the value chain.
Big batteries are becoming a core part of Australia’s power grid. They store renewable energy when it’s plentiful and release it when demand is high. With wind and solar growing fast, and data centres adding new electricity demand, grid-scale batteries are in serious demand. GenusPlus already built the Kwinana battery in Western Australia and is helping build the huge Melbourne Renewable Energy Hub. Koolunga adds to that track record and puts the company in a strong position to win more work.
A Record Order Book Is Driving the Growth Story
GenusPlus is growing fast. In its H1 FY26 result released in February, revenue jumped 61% to A$535 million, and normalised operating profit (EBITDA) rose 69% to A$46.3 million. What we like most is that a big part of this growth is coming from the core business itself, not just acquisitions. That suggests the business is genuinely strong.
As of the latest half-year update, GenusPlus has expanded its secured order book to a record A$2.4 billion, backed by a A$2.6 billion tender pipeline. The balance sheet also looks healthy, with around A$127 million in net cash, giving the company plenty of firepower to fund large projects like Koolunga without needing to raise money from shareholders. Earlier this year, management upgraded its FY26 EBITDA growth target to around 35%, up from the original 20% to 25%. With the Koolunga win now added, that higher target looks very achievable.
The Investor’s Takeaway for GenusPlus
The share price has rallied about 150% over the past year, lifting GenusPlus to a market value of A$1.67 billion. That’s a lot of good news already priced in, and the stock now trades at around 36 times earnings. Not cheap.
The good news is the growth story is clean and easy to understand. Australia needs more power lines, substations, and batteries, and GenusPlus is one of the few listed companies that builds all three. A strong net cash position adds a safety cushion. The risk is that contract businesses run on thin margins, and any delay or cost blowout can quickly hit profits.
For growth-focused investors, we believe GenusPlus remains a high-quality way to play Australia’s energy build-out. Existing holders have little reason to sell. New investors may want to wait for a pullback closer to A$8.00 before stepping in, given how far the stock has already run.
