Highlights

  • Verbrec confirmed FY26 continuing operations revenue guidance of between A$115 million and A$120 million.
  • Total Group EBITDA for FY26 is expected to range from A$15.0 million to A$15.5 million.
  • The company introduced FY27 revenue guidance of A$140 million to A$160 million and adjusted EBITDA guidance of A$10 million to A$12 million.
  • Verbrec’s opportunity pipeline increased to A$277 million at the end of FY26, compared with A$203 million at the half-year.

Verbrec Limited (ASX:VBC) has confirmed its financial guidance for the year ended 30 June 2026 and introduced a new outlook for FY2027, supported by a larger project pipeline, increased work in hand and the first full-year contribution from Alliance Automation. The engineering services group expects FY26 continuing operations revenue of between A$115 million and A$120 million, while FY27 revenue is forecast to increase to between A$140 million and A$160 million.

Verbrec shares were trading unchanged at AUD 0.21 during the morning session on 27 July 2026. Although the stock was flat for the session, it remained 133.33% higher over the past year, representing an increase of AUD 0.12 over that period. The share price information is presented separately from the company’s latest operational and financial guidance.

Verbrec is an Australian engineering business providing integrated services across the full asset lifecycle, from initial design and construction through to asset management, operations and maintenance. The company serves customers operating in the mining, energy, water and defence sectors across Australia and the Pacific, with capabilities spanning engineering, automation, operational technology and related infrastructure services.

FY26 Revenue Guidance Points to Material Year-on-Year Growth

Verbrec confirmed that continuing operations revenue for FY2026 is expected to fall within a range of A$115 million to A$120 million.

At the lower end of the guidance range, revenue would represent an increase of 47% compared with FY2025. At the upper end, the year-on-year improvement would reach 54%.

The projected increase reflects the changed scale and capability of the business following the addition of Alliance Automation, as well as activity across Verbrec’s broader engineering and technology services platform.

The company also confirmed total Group EBITDA guidance of between A$15.0 million and A$15.5 million for FY2026.

Adjusted EBITDA from continuing operations is expected to be between A$8 million and A$9 million.

Verbrec defines adjusted EBITDA as excluding one-off proceeds and costs linked to acquisitions and divestments, expenses related to the pursuit of ongoing synergies and the integration of Alliance Automation, and the effects of share-based payments.

The company’s guidance therefore separates recurring operating performance from transaction-related and integration expenses that are not expected to form part of its underlying cost base over the longer term.

Project Delays Affected Timing but Not Full-Year Guidance

Verbrec stated that its FY26 performance was achieved despite temporary delays in the award of some projects during the second half of the financial year.

The company attributed the delays primarily to volatility in global energy markets and uncertainty during the early stages of conflict in the Middle East.

These conditions affected the timing of certain client investment decisions and project awards. However, Verbrec has since observed projects beginning to move from its opportunity pipeline into contracted work in hand.

The company also noted that energy market volatility has increased the focus of clients and governments on energy sovereignty and security.

According to Verbrec, investment in energy security is expected to remain an important theme as the business moves into FY2027.

One project cited as evidence of this trend is the A$21 million Beetaloo Basin Bi-Directional Upgrade project for Power and Water Corporation, which was announced in June 2026.

Verbrec expects projects linked to energy security, network resilience and infrastructure reliability to contribute to demand across its core markets.

Opportunity Pipeline Expands to A$277 Million

Verbrec ended FY2026 with an opportunity pipeline valued at A$277 million.

This represented an increase of A$74 million from the A$203 million opportunity pipeline recorded at the half-year.

The opportunity pipeline captures potential projects and contracts that the company is actively pursuing but has not yet recorded as secured work.

The increase indicates that Verbrec is engaging with a larger volume of potential work across its engineering, automation and technology service areas.

Management attributed the expansion partly to the wider capabilities of the combined group following the Alliance Automation transaction.

The company said cross-selling across the combined operation has also contributed to the growth of the pipeline, allowing Verbrec to present a broader range of services to existing and prospective clients.

Verbrec is now pursuing larger and more complex project opportunities than it could previously address as a standalone business.

The enlarged opportunity pipeline does not guarantee that all projects will be converted into revenue, but it provides visibility over the scale of work currently being pursued.

Work in Hand Rises Ahead of FY27

Verbrec’s reported work in hand reached A$78 million at the end of FY2026, up from A$71 million at the half-year.

The A$7 million increase occurred as project awards began moving from the opportunity pipeline into contracted work.

Verbrec reports work in hand using a 12-month forward-looking period.

The company clarified that there is additional secured work relating to later financial years that is not included in the reported A$78 million figure.

This means the disclosed balance reflects only the portion expected to be delivered within the next 12 months rather than the full value of all awarded contracts.

The higher work-in-hand balance gives the company a level of forward revenue visibility as it enters FY2027.

Management described the company as beginning the new financial year with increased forward momentum, supported by both contracted work and an expanded pool of potential opportunities.

FY27 Revenue Guidance Reaches Up to A$160 Million

Verbrec introduced FY2027 revenue guidance of between A$140 million and A$160 million.

The midpoint of this range is A$150 million, compared with a midpoint of A$117.5 million for the confirmed FY2026 continuing operations revenue guidance.

The anticipated step-up is expected to be supported by the first full-year revenue contribution from Alliance Automation.

Alliance Automation contributed to Verbrec for seven months during FY2026. In FY2027, the acquired business is expected to contribute for the entire 12-month period.

This difference in the length of the contribution is an important factor behind the projected revenue increase.

The company’s FY27 guidance also reflects its higher work-in-hand position, expanded opportunity pipeline and continued demand across its target industries.

Verbrec has not provided a specific breakdown of expected revenue by division or end market, but it identified several core growth areas where demand remains active.

Adjusted EBITDA Expected to Increase in FY27

For FY2027, Verbrec expects adjusted EBITDA of between A$10 million and A$12 million.

The midpoint of the guidance range is A$11 million, compared with a midpoint of A$8.5 million for FY26 adjusted EBITDA from continuing operations.

The improvement is expected to reflect the increased scale of the combined group and benefits arising from the integration of Alliance Automation.

Verbrec expects ongoing synergies and operating efficiencies to become more visible as integration activities mature.

Adjusted EBITDA for FY2027 will exclude one-off expenses associated with the ongoing pursuit of synergies and the integration of Alliance Automation, along with the effect of share-based payments.

The company said EBITDA margins are expected to remain broadly similar between the two financial years.

This is partly because Alliance Automation contributed only seven months of revenue in FY2026 but is expected to provide a full 12 months of revenue in FY2027.

The larger revenue contribution increases the Group’s scale, but some integration benefits are expected to emerge progressively rather than immediately.

Margins Expected to Improve Gradually

Verbrec expects Group margins to improve over the next 18 to 24 months as integration benefits and synergies are realised.

The company described the expected improvement as progressive and gradual.

This indicates that management is not forecasting an immediate step-change in margins during FY2027.

Instead, benefits are expected to accumulate as systems, operations and commercial activities are increasingly integrated.

The process may include improved utilisation of shared capabilities, cross-selling, removal of duplicated costs and stronger delivery efficiencies across the enlarged business.

Verbrec did not quantify the total value of expected synergies in the announcement.

However, the FY2027 adjusted EBITDA guidance incorporates management’s expectation that integration progress and margin gains will contribute to higher profitability.

Broader Capabilities Support Larger Project Pursuits

The combined Verbrec and Alliance Automation business offers a wider set of services across engineering, automation, operational technology and asset management.

Verbrec stated that the broader capability base has contributed to growth in both work in hand and the opportunity pipeline.

The company is also pursuing larger and more complex projects.

This represents a change in the type and scale of opportunities available to the Group, as clients can procure a broader range of services from one provider.

Cross-selling has become another contributor to the company’s pipeline.

Verbrec can introduce engineering services to automation clients, while also offering technology and automation capabilities to existing engineering customers.

This combined service model is intended to deepen client relationships and increase the value of work available across the Group.

The company believes the reshaped business is positioned to participate in ongoing investment across energy, mining, water and other infrastructure markets.

Energy Transition and Security Remain Key Demand Areas

Verbrec identified several markets where it continues to observe sustained demand.

These include the transition within the gas market, electrification, energy storage, operational technology, cyber security and industrial automation.

The company provides services to customers across the energy, mining and water industries, each of which requires ongoing investment in infrastructure, systems and asset performance.

Energy sovereignty has also become a larger area of focus following recent market volatility.

Governments and clients are assessing how infrastructure can support reliable domestic energy supply and reduce exposure to disruption.

Verbrec expects investment linked to energy security to remain a continuing trend in FY2027.

The A$21 million Beetaloo Basin Bi-Directional Upgrade project provides one example of the type of infrastructure work the company is targeting.

The project was awarded by Power and Water Corporation and forms part of Verbrec’s growing work position.

Industrial Automation Adds a Further Growth Platform

Alliance Automation expands Verbrec’s presence in industrial automation and related technology services.

Industrial customers increasingly rely on automation systems to improve efficiency, reliability, safety and operational visibility.

Verbrec’s combined offering now includes services across engineering design, construction, asset management, automation and operational technology.

The company also highlighted cyber security as one of its core growth markets.

As energy, water and mining infrastructure becomes more connected, operational technology systems require increased protection from interruption and digital threats.

Verbrec’s broader capabilities give it exposure to both physical infrastructure investment and the technology systems used to operate those assets.

The company expects this mix of engineering and technology services to support its participation in more complex client projects.

Integration of Alliance Automation Shapes the Outlook

Alliance Automation is central to Verbrec’s FY2027 revenue and EBITDA expectations.

The acquired business provides a full-year contribution in FY2027, compared with seven months in FY2026.

This creates a mechanical increase in reported revenue while also providing a platform for further commercial and operational integration.

Verbrec said the expected EBITDA improvement reflects synergies and margin gains as integration activities mature.

The company continues to incur certain one-off expenses related to integration and the pursuit of synergies.

These expenses are excluded from adjusted EBITDA guidance to provide a clearer view of expected underlying operating performance.

Over the next 18 to 24 months, management expects the combined Group to capture additional benefits from the integration process.

The company has not disclosed a specific completion date for the integration program, but the guidance suggests that benefits will continue to develop across FY2027 and beyond.

What Does the Update Mean for Investors?

Verbrec’s latest announcement provides financial guidance across two reporting periods while offering greater visibility over its forward workload.

For FY2026, continuing operations revenue is expected to rise between 47% and 54% to a range of A$115 million to A$120 million. Total Group EBITDA is forecast between A$15.0 million and A$15.5 million, while adjusted EBITDA from continuing operations is expected to reach A$8 million to A$9 million.

For FY2027, the company is targeting revenue of A$140 million to A$160 million and adjusted EBITDA of A$10 million to A$12 million.

The outlook is supported by A$78 million of work in hand and an opportunity pipeline of A$277 million at the end of FY2026.

The first full-year contribution from Alliance Automation is expected to be a major driver of the forecast revenue increase.

Investors are likely to monitor the conversion of the opportunity pipeline into secured contracts, delivery of existing work, the pace of Alliance Automation integration and the gradual margin improvement expected over the next 18 to 24 months.