SciDev Shares Surge 38% After Securing A$19.5M Rum Jungle Contract

SciDev Jumps 38% on Major A$19.5M Environmental Rehabilitation Deal

SciDev Limited (ASX: SDV) was the standout mover on the ASX today, surging 38% after securing a major A$19.5M contract for the Rum Jungle rehabilitation project in the Northern Territory. The deal involves constructing a 30-litre-per-second multi-stage groundwater treatment plant, scheduled for completion by September 2026, with potential for a two-year extension and a 15-year lifecycle role in maintenance and operations.

To put the scale in perspective, the contract represents nearly a quarter of SciDev’s FY24 revenue base of A$84M, making it one of the company’s most significant wins to date. Beyond the size of the order, this project stands out because of its higher engineering and technology component, including design and chemical supply, which should lift overall gross margins compared to standard commodity chemical sales.

This award also reinforces SciDev’s credibility with Tier 1 contractor McMahon Services and its growing role in government-backed environmental rehabilitation programs.

What are the Best ASX Stocks to invest in right now?

Check our buy/sell tips

 An Asset-Light Play on Water Sustainability and Industrial Efficiency

For investors unfamiliar with the company, SciDev Limited (ASX: SDV) is an Australian industrial technology firm specialising in advanced water treatment and chemical solutions for heavy industries. Its core focus is solving complex water management challenges by improving operational efficiency, promoting sustainability, and reducing environmental impact.

What makes SciDev stand out is its asset-light business model, which differs from traditional capital-intensive construction or mining companies. The company generates economic value through:

• Recurring revenue from the ongoing supply of consumables and long-term service contracts.
• High customer retention, as once SciDev’s chemistry and process designs are embedded into a client’s operations, switching suppliers becomes costly and disruptive.
• Favourable ESG and regulatory tailwinds, with both government and industry increasingly focused on water sustainability and rehabilitation standards.

A$19.5M Deal Enhances Earnings Quality and Long-Term Growth Outlook.

For investors, this announcement is clearly accretive. The A$19.5M contract enhances earnings visibility heading into FY26 and improves the overall quality of SciDev’s revenue mix. Given the size and duration of the project, it strengthens both near-term cash flow stability and long-term operating leverage.

More importantly, this win highlights SciDev’s ongoing transformation from a niche specialty chemicals supplier into a fully integrated water treatment and environmental remediation partner. It reflects growing recognition of the company’s technical capability and strategic value in Australia’s expanding environmental infrastructure market.