Service Stream powers up energy transition push with $8m acquisition of Queensland's RIE Group. By Business News Australia 25 May 2026 Essential infrastructure services group Service Stream (ASX: SSM) has agreed to acquire Queensland-based RIE Group, a specialist high-voltage electrical and instrumentation business, for up to $8 million as it deepens its footprint in the energy sector. The deal comprises an initial cash payment of $6.5 million plus an earn-out of up to $1.5 million tied to RIE Group's financial performance in FY27. RIE Group, with offices in Chinchilla and Roma, operates across the Surat Basin, Darling Downs, and Gladstone regions, providing high-voltage electrical and instrumentation services to clients in oil and gas, power generation, and renewables. The business generates about $13 million in annual revenue and employs between 60 and 120 people at peak capacity. The acquisition comes just a week after Service Stream disclosed $455 million in new utility contracts, including a nine-year, $405 million maintenance agreement with Yarra Valley Water and $50 million in outage services contracts at the Millmerran power station in Queensland. The trio of announcements builds on a strong first half for the group, which reported EBITDA of $75.3 million, adjusted net profit after tax of $36.6 million, and net cash of $87.6 million in its H1 FY26 results. Work-in-hand stood at $9.2 billion at the half-year mark. Service Stream managing director Leigh Mackender says the RIE Group acquisition adds specialist high-voltage capabilities that complement the company's existing energy services offering. "The acquisition reflects a strategic addition to our growing utility operations at a time when the energy transition is providing increasing opportunities," says Mackender. "The expansion of capabilities across the industrial services sector reflects one of many growth areas being targeted as we look to continually expand the group's total addressable markets." RIE Group's client base spans gas-fired and coal-fired power generation, upstream oil and gas operations, and a growing pipeline of renewables work. The business provides services including high-voltage cable installation, termination and testing, substation maintenance, and control and instrumentation works. Service Stream says the acquisition of RIE aligns with its strategy to grow and diversify the total addressable market across its business. "The acquisition will enhance Service Stream's capabilities, expand the group's geographical presence across adjacent markets and establish a strong relationship with blue-chip asset owners," says the company. The Queensland energy sector is experiencing heightened activity, with the Queensland Audit Office noting that the state's major project pipeline is driving significant demand for skilled construction workers, with the workforce expected to peak at about 50,000 in 2026-27. Service Stream says RIE Group will operate within its energy division following completion, with the acquisition to be funded from existing cash reserves. The deal is not subject to any regulatory approvals. The company's net cash position of $87.6 million at the half-year provides ample headroom for the acquisition, which at up to $8 million represents a modest outlay relative to the group's balance sheet. Service Stream has been progressively expanding its energy services capabilities as part of a broader strategy to capture a larger share of infrastructure spending tied to Australia's energy transition. The Millmerran outage contracts announced last week marked the company's entry into large-scale power station maintenance in Queensland, a position now reinforced by RIE Group's regional presence. Completion of the REI Group acquisition is expected in August this year. Business News Australia Australia's business news. Free. Always. Join thousands of founders, investors and executives who read Business News Australia every morning. No paid subscriptions, just free. Unsubscribe anytime. Partner Content

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