Tasmea Shares Hit Fresh Highs: RSI Flashing Overbought as Price Discovery Continues

Tasmea shares (ASX: TEA) have continued to put up impressive numbers this year, climbing 6.87% to a new high of A$9.65 today. The move comes as bullish sentiment continues to grow, and after announcing the acquisition of integrated energy services provider JPS Group, a deal that diversifies the industrial services consolidator into LNG and gas infrastructure markets while delivering immediate earnings accretion.

The Tasmea share price has been one of the top performers this year, up 130% year-to-date, reflecting growing market confidence in management’s disciplined acquisition strategy and the quality of its expanding portfolio of essential services businesses. Today’s move came as Tasmea unveiled its third major acquisition in recent months, following the WorkPac and Maxim Group transactions that have reshaped the company’s scale and sector exposure.

The deal driving Tasmea shares higher today

Under the terms announced, Tasmea will pay up to A$75 million in total consideration for JPS Group, structured as A$50 million upfront (comprising A$24.5 million in cash and A$25.6 million in scrip through the issue of 3,011,750 new shares at A$8.50) plus an earn-out of up to A$25 million in cash across FY27 to FY30. The earn-out is contingent on JPS achieving a maintainable EBIT target of at least A$12 million per year, a structure that aligns seller incentives with ongoing performance while managing Tasmea’s upfront capital outlay.

The acquisition multiple appears attractive relative to Tasmea’s own trading valuation.

Management has framed the deal at approximately 5 times JPS’s FY26 estimated underlying EBIT of around A$10 million, a notable discount to typical private-market multiples for infrastructure and energy services assets at this stage of the cycle. Settlement is targeted for around 1 August, subject to approval from the Australian Competition and Consumer Commission, with JPS earnings expected to contribute from FY27 onward.

JPS brings immediate strategic value through its exposure to Tier-1 clients including Chevron, Woodside Energy, Shell and Santos, servicing these operators under more than 10 long-term master service agreements. This customer base positions Tasmea deeper into Australia’s LNG and gas infrastructure value chain, a sector characterised by long-duration contracts and high barriers to entry. The deal extends Tasmea’s model of aggregating specialist maintenance and asset services businesses with strong recurring or contracted revenue streams across essential infrastructure.

Management has updated its FY26 guidance to reflect the combined impact of the Maxim Group acquisition completed earlier this year and the newly announced JPS transaction.

Guidance upgrade

On a pro forma basis including both deals, Tasmea now expects FY26 underlying EBIT of A$185 million, up from A$175 million when only Maxim was included, and pro forma underlying net profit after tax of A$113 million, up from A$107 million. Importantly, the company has reconfirmed its standalone FY26 guidance, with underlying EBIT of A$117 million, up 26% on FY25’s pro forma A$93.2 million, and underlying NPAT of A$72.5 million, up 16% on FY25’s A$62.5 million.

The JPS acquisition is forecast to deliver approximately 5% pro forma EPS accretion in FY26, incremental to the Maxim contribution.

The guidance layering provides transparency around the sources of Tasmea’s earnings growth. The standalone numbers affirm healthy organic trends across the existing portfolio of more than 25 specialist trade businesses, while the pro forma figures illustrate the additive impact of recent M&A activity. This approach addresses a common concern among observers of acquisition-driven growth stories: whether deals are masking weakness in the underlying platform or genuinely building on a solid foundation.

Tasmea’s February half-year result for H1 FY26 showed underlying EBIT of A$44.3 million, up approximately 36% year-on-year from A$32.6 million in the prior corresponding period, with statutory EBIT margin around 10%. Net debt to pro forma EBITDA stood at roughly 0.45 times, providing substantial balance sheet capacity for further acquisitions while maintaining prudent gearing levels. Post the Maxim transaction, management had flagged pro forma leverage of around 0.8 times net debt to FY26 EBITDA, still modest by the standards of acquisitive industrials.

Strategic growth by acquisition

The sequential nature of Tasmea’s M&A activity; first WorkPac in labour hire, then Maxim in high-voltage electrical and infrastructure services, and now JPS in LNG and gas, suggests a deliberate strategy of building adjacencies around fixed-plant maintenance and essential services rather than opportunistic deal-making.

Each transaction has targeted businesses with long-term customer relationships, often under multi-year contracts, and exposure to critical national infrastructure in resources, utilities and energy.

Markets have clearly rewarded this approach, with Tasmea’s share price more than doubling since the start of the year as the company has demonstrated both organic momentum and disciplined capital allocation. The gain today reflects immediate investor approval of the JPS deal economics and the incremental guidance uplift, but also underscores the elevated expectations now embedded in the valuation.

What To Watch

With Tasmea shares firmly in a state of price discovery, there are no historical levels of resistance on the chart to test, and as such markets could look to psychologically relevant round numbers, such as A$10 as a test point for buying appetite.

The rally has been mighty, and sentiment is firmly with the bulls here, yet after such a run up, it is no surprise to also see Tasmea amongst the most technically overbought names on the ASX, with an RSI of 85.62 usually preceding a period of slowing. When fundamentals are shifting dramatically however under M&A, these technical indicators can run hot for extended periods, before eventually seeking to cool off.

Bull Case: