Duratec's (ASX:DUR) joint venture's early start of works for an Australian naval base upgrade is welcome news for investors, providing more certainty over the contract and potential scope of works worth over AU$500 million, Euroz Hartleys said in a note on Thursday.

Duratec's joint venture with Ertech has been directed to start the early procurement of around AU$5 million in long-lead items to support infrastructure upgrades at the HMAS Stirling Australian Naval base in Western Australia under the early contractor involvement head contract, according to a Thursday Australian bourse filing.

The investment firm said the instruction for early procurement is "supportive" of contract award and marks progress toward the start of the two contracts, expected in third quarter and fourth quarter of fiscal 2026.

The headstart also strengthens prospects for 2027 and 2028, it added.

Euroz Hartleys maintained buy rating on Duratec and raised its price target to AU$2.33 from AU$2.09.

Duratec's shares were down nearly 2% in recent Friday trade.