Kier Group PLC (LSE:KIE) has secured a contract extension worth about £140 million with South West Water, part of Pennon Group PLC (LSE:PNN, OTC:PEGRY), to continue delivering maintenance and improvement works across the utility's network until March 2028.
The infrastructure services and construction group said it had been appointed as the sole contractor on the extended 'network services alliance' framework.
The agreement continues a 20-year relationship between Kier and South West Water to support water network operations.
Under the extension, Kier will continue carrying out repair and maintenance work, leakage reduction activities, network reliability schemes, metering services and developer support.
Over the past year, Kier's teams completed more than 25,000 repair and maintenance jobs and carried out more than 32,000 metering activities across the network.
The contract builds on Kier's existing role in the water sector during the 2025-2030 asset management period, with appointments across water companies including Severn Trent, United Utilities, Anglian, Southern and Yorkshire Water.
