Key Highlights

  • Revenue reached a record $305.6 million, up 42.5% on the prior year, driven by the Aqua Metro Acquisition and organic growth.
  • Adjusted EBITDA was $9.8 million, up 5.0% on the prior year and in line with market guidance.
  • Record Work in Hand of $571.9 million and a record pipeline of $5.1 billion, up 8.1% and 27.5% respectively on the prior year.
  • The final Dividend was set at 1.00 cent per share fully franked, down from 2.25 cents in FY25, bringing total FY26 dividends to 1.00 cent.

Saunders International Limited (ASX:SND) share price was trading at $0.91, up 0.55% or $0.0050 on the day, as at 27 August 2026, 11:58am AEST, as the company released its FY26 financial results. Revenue reached $305.6 million, a record full-year result, up 42.5% on the prior year. Adjusted EBITDA was $9.8 million, up 5.0% on the prior year and in line with market guidance. Adjusted NPATA was $3.9 million, up from $3.2 million, with adjusted Basic Earnings Per Share of 2.85 cents, up from 2.68 cents.

Managing Director and CEO Angelo De Angelis said FY2026 was a year of strengthening the Business and positioning Saunders to capture growing Capital Investment across Australia's critical infrastructure markets, noting that while the year had a statutory loss with first-half earnings impacted by project delays and extreme weather events, the second half saw a return to improved profitability, with full year revenue reaching record levels following the acquisition of Aqua Metro.

Dividend Reduced Despite Record Revenue

The Board declared a final dividend of 1.00 cent per share fully franked, resulting in total dividends for the financial year of 1.00 cent per share, down from 2.25 cents in FY25. The Board resolved that the Dividend reinvestment Plan will remain deactivated for the FY26 final dividend. The ex-dividend date is 14 September 2026, with payment scheduled for 13 October 2026.

Cash and cash equivalents were $29.8 million at year-end, up 35.0% on the prior year, providing what the company described as financial flexibility to continue investing in capability, market expansion and long-term growth.

Key Markets Deliver Milestone Contract Wins

During FY26, Saunders achieved a significant Defence milestone with the award of the Group's first head contract with the Australian Department of Defence, announced 16 July 2026, alongside four Defence fuel infrastructure contracts and two Indo-Pacific contracts in Japan and Malaysia. In Water, the company secured its first panel appointments outside Victoria, with two 10-year Sydney Water panel agreements in New South Wales, following the successful integration of the Aqua Metro acquisition.

In Energy, the company continued delivery of capital expansion, asset renewal and maintenance programs across 15 major hazardous facilities nationally, supported by a growing portfolio of Master Services Agreements and Early Contractor Involvement engagements. In Resources & Industrials, the company delivered works across four processing expansion projects, reflecting significant capital investment in gold-processing infrastructure.

Record Work in Hand and Pipeline

Saunders closed FY2026 with record Work in Hand of $571.9 million, up 8.1% on the prior year, and a record pipeline of $5.1 billion, up 27.5% on the prior year, reflecting increased access to complex, high-compliance infrastructure programs and a growing proportion of larger, longer-term opportunities.

The company also continued to strengthen its safety culture, reducing its Total Recordable Injury Frequency Rate by 20% to 3.9 injuries per million hours worked, and received accreditation under the Office of the Federal Safety Commissioner scheme for the maximum permissible period of six years.

FY27 Outlook Underpinned by Infrastructure Tailwinds

Saunders expects year-on-year revenue growth in FY2027, underpinned by its record Work in Hand, with the improved second-half FY2026 NPATA Margin expected to be sustained throughout FY2027. Key market drivers cited include increased Australian Defence spending toward 3% of GDP alongside US investment in Indo-Pacific capability, significant national investment through water utilities and local councils driven by population growth and ageing infrastructure, the Federal Government's $10.7 billion fuel security package, and commodity-price-supported capital investment in gold processing infrastructure.

Mr De Angelis said the Group enters FY2027 stronger, with record work in hand, a record and growing opportunity pipeline, and a clear strategy to build earnings resilience and support Long-term Growth across each of its key markets, while acknowledging the outlook remains subject to risks including project timing, weather conditions and government funding priorities.

Conclusion

Saunders International's FY26 results show record revenue driven substantially by the integration of the Aqua Metro acquisition and milestone contract wins across its Defence and Water divisions, even as the full-year dividend declined from 2.25 cents to 1.00 cent per share. With record Work in Hand and pipeline figures entering FY27, alongside structural tailwinds cited across Defence, Water, Energy and Resources markets, the company's near-term trajectory will depend on converting this expanded opportunity set into sustained margin improvement following a first half that was affected by project delays and weather-related disruption.