EVZ (ASX:EVZ) Holds A$80 Million Contract Backlog and A$17.7 Million Cash While Bidding for Australia's Fuel Security Reserve

Aditi Sarkar

29 October 2026 02:08 PM AEDT

EVZ (ASX:EVZ) Holds A$80 Million Contract Backlog and A$17.7 Million Cash While Bidding for Australia's Fuel Security Reserve

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

EVZ held an A$80 million contract backlog at September quarter-end, unchanged from the prior report, with closing cash of A$17.664 million and no drawn debt on its main loan facility.
Customer receipts were A$32.465 million, 12% above the prior quarter, with underlying trading described as comparable to the prior period on a margin-expanding trend.
Brockman Engineering completed all tank works on Rio Tinto's Dampier seawater desalination plant and progressed defence contracts at RAAF Base Learmonth and Woomera.
EVZ lodged submissions on 15 September 2026 for the Australian Fuel Security Reserve, which the company estimates at more than A$1 billion for design and construction, with implementation from Q4 FY27.

An unchanged backlog, rising customer receipts and a cash balance providing significant financial flexibility — EVZ (ASX:EVZ) delivered a steady September quarter while positioning its Brockman Engineering subsidiary for larger opportunities in Australia's planned fuel infrastructure build-out. The federal government's A$14.8 billion fuel resilience package, for which EVZ lodged formal submissions in September, is a horizon-level opportunity rather than a confirmed contract, but it illustrates the scale of potential work available to a business that has been growing margins consistently while completing defence and resources projects across Australia.

Cash and Quarterly Trading

Closing cash at 30 September 2026 was A$17.664 million, modestly lower than A$18.288 million at the start of the quarter, after A$232,000 of capital spending. Customer receipts were A$32.465 million, 12% above the June quarter. Payments included A$18.307 million for products and operating costs and A$12.260 million for staff. Net operating cash outflow was A$392,000, which the company attributes to working capital committed to materials for new Brockman Engineering contracts beginning in the quarter.

EVZ's credit facilities include an undrawn A$5 million loan facility, a A$500,000 credit standby with A$100,000 drawn, and a A$10 million bank guarantee facility with A$8.07 million in use, leaving A$7.33 million of unused bank guarantee capacity. The company is migrating its bank guarantee facility to HSBC. No numerical financial guidance was provided. The company said underlying trading was comparable to the prior quarter with continued margin expansion, and that it has been assessing acquisition opportunities complementary to existing capabilities, though no transaction has been announced.

Brockman Engineering: Defence and Resources

Brockman Engineering designs, builds and maintains bulk fuel storage tanks and associated distribution assets. Two active defence contracts together are valued at approximately A$25 million: water storage tanks at Woomera, South Australia, are in progress, and two jet fuel storage tanks at RAAF Base Learmonth, Western Australia, are in initial design and procurement — a site where fuel storage supports aircraft operations in Australia's northwest. A contract value represents work contracted for delivery, not revenue already recognised.

During the quarter, Brockman completed major tank works at Rio Tinto's Dampier seawater desalination plant at Parker Point, Western Australia, under stages one and two of the project, which are valued in aggregate at approximately A$46 million. The plant is designed to produce 8 gigalitres of desalinated water per year, supporting Rio Tinto's Pilbara mining operations. TSF Power, another EVZ business unit, services and maintains gas engine and standby power assets across Australia and New Zealand and is working on proposals for gas-fired power generation at new data centres in the eastern states.

Building Products and Fuel Security Pipeline

Syfon Systems' Australian water business reported strong performance, with a held market position across Malaysia, Indonesia and Vietnam. Tank Industries recorded a material revenue increase driven by major process water storage projects, with momentum from a large data centre project in Melbourne's western suburbs expected to continue into FY27.

On 15 September 2026, EVZ lodged formal submissions for Australia's Fuel Security Reserve programme under the government's broader A$14.8 billion fuel resilience package. The company estimates the design and construction component at more than A$1 billion, with implementation expected to begin in the fourth quarter of FY27. Lodging a submission does not guarantee contract awards, and the procurement timeline will depend on government processes. However, Brockman Engineering's experience in large fuel storage infrastructure positions it as a potential contractor for such programmes.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.