EVZ Limited (ASX:EVZ) , a diversified industrial group operating in energy and resources and building products, said in its quarterly activities and Appendix 4C report that its contract backlog stood at $80 million, stable compared with the prior report. The report, released on 29 October 2026 for the quarter ended 30 September 2026, did not state the security type or the currency.

Cash flow for the quarter

Cash receipts from customers were $32.5 million, up 12 per cent on the previous quarter. Net operating cash flow was an outflow of $0.4 million ($392,000), which the company attributed mainly to working capital needed for new contracts at its Brockman Engineering business. Investing outflows were $232,000 on property, plant and equipment, and there were no financing cash flows. Cash at quarter end was $17.7 million, compared with $18.3 million at the start of the period.

Interest and finance costs paid were $228,000, and related parties received $95,000 in consulting fees for non-executive director duties.

Facilities and funding

The company's liquidity rests on both cash and undrawn facilities, with cash held falling by $0.6 million over the quarter. EVZ reported unused facilities of $7.33 million, giving total available funding of about $25.0 million when combined with cash. The report states that the company has no drawn debt, although its facilities table shows $8.17 million drawn across a bank guarantee facility and a credit standby arrangement. The report does not reconcile the two statements, so the position is flagged here as unclear.

Legacy guarantees with the Commonwealth Bank carry a 3.5 per cent rate and are moving to a new HSBC facility with a $10 million limit, a 0.50 per cent line fee and 2.25 per cent on drawn amounts. The transition of those guarantees is one of the milestones the company flagged.

Operating businesses

Brockman Engineering is working on defence projects worth about $25 million combined. These are the Woomera water tank, which is in progress, and jet fuel tanks at RAAF Learmonth, which are in design and procurement. The business has also completed major tank works for the Rio Tinto Coastal Water Supply project, where stages one and two were worth about $46 million.

TSF Power has a growing service and parts business and is developing proposals for gas-fired power to serve data centres in the eastern states. Syfon Systems reports a substantial backlog and steady tenders, while Tank Industries reported a material revenue increase driven by a Melbourne data centre project for Stack Infrastructure. These are described as business activity and tender pipelines, and not all will necessarily convert to revenue.

Fuel security program and risks

A significant potential opportunity is Australia's Fuel Security Reserve program, estimated at more than $1 billion. Industry submissions were lodged on 15 September 2026, and the company expects the implementation phase to start in the fourth quarter of the 2027 financial year. EVZ said the program is still moving through the federal government process and that it has no certainty of participating.

The company also cautioned that merger and acquisition opportunities under discussion may not proceed, and that operating cash flow was negative in the quarter because of the working capital build.

Next steps

The report ties much of the near-term picture to contracts already in hand. The $80 million backlog is a measure of work contracted but not yet delivered, and is not the same as revenue or profit, which will depend on project execution, timing and costs.

Beyond the fuel security program and the facility transition, the milestones named in the report are progress on the Learmonth design and procurement and the Woomera tank, and tender bids and acquisition activity for FY27 and beyond. Investors will be able to track further progress through the company's next quarterly report.