Key Highlights

• For FY27, SRG now guides to EBITDA of $195 million to $205 million and EBIT(A) of $150 million to $160 million.

• That compares with FY26 underlying EBITDA of $170.1 million, so the guidance implies continued growth rather than a plateau.

• Management says roughly 80 per cent of Earnings are annuity-style or recurring.

• A notable recent addition is TAMS, a marine infrastructure services Business acquired with effect from 1 November 2025.

Why an upgraded outlook matters

Why has SRG Global (ASX:SRG) drawn fresh attention from investors this year? The short answer is that the Australian asset services and construction group reported record full-year results on 18 August 2026, lifted its guidance for the year ahead and disclosed its largest-ever pipeline of contracted work. Together, those three items suggest management has encouraging visibility over earnings, although visibility is not the same as certainty.

For FY27, SRG now guides to EBITDA of $195 million to $205 million and EBIT(A) of $150 million to $160 million. That compares with FY26 underlying EBITDA of $170.1 million, so the guidance implies continued growth rather than a plateau. These are management targets, not reported results, and they depend on contracts being delivered on time and on budget.

What SRG does and how it earns revenue

SRG Global describes itself as an infrastructure services group. It reports two operating segments: Maintenance and Industrial Services, and Engineering and Construction. The first provides recurring work keeping Assets such as plants, ports and industrial facilities running, while the second delivers project-based construction and engineering.

Management says roughly 80 per cent of earnings are annuity-style or recurring. That matters because maintenance contracts tend to be steadier than one-off construction awards, which can swing with the timing of tenders and project milestones. The company lists target sectors including water, energy, industrial and resources, transport, defence, health, education, data centres, and ports and marine.

A notable recent addition is TAMS, a marine infrastructure services business acquired with effect from 1 November 2025. SRG said it performed roughly ten per cent above its business case in its first eight months and is now fully integrated, although that is the company's own assessment.

FY26 results in numbers

For the year to 30 June 2026, SRG reported Revenue of $1,675.5 million, up 27 per cent on FY25's $1,323.3 million. Underlying EBITDA rose 34 per cent to $170.1 million, ahead of the company's upgraded guidance range of $164 million to $168 million. EBIT(A) increased 41 per cent to $131.8 million.

Earnings per share on the company's preferred measure, EPS(A), rose 34 per cent to 13.8 cents. Statutory net profit after tax w as $71.9 million, up 51 per cent, with statutory Earnings Per Share of 11.6 cents.

Cash generation looked encouraging. SRG reported EBITDA-to-cash conversion of 101 per cent and ended the year with net cash of $6.2 million, compared with pro forma net Debt of $52.5 million after the TAMS acquisition. The second-half Dividend was 4.0 cents per share, fully franked, taking the FY26 total to 7.0 cents, up 27 per cent.

Record work in hand

SRG reported work in hand of $5.1 billion, a record and 42 per cent higher than at the end of FY25, along with an opportunity pipeline of $11.5 billion. Work in hand is contracted or awarded work yet to be completed, so it provides a guide to future revenue, but it is not guaranteed profit.

Pipeline figures deserve more caution. They represent opportunities the company is pursuing, and conversion depends on competitive tenders, client budgets and approvals.

Sector backdrop and competitive position

SRG sits in a crowded field that includes large listed contractors and many private firms, so competitive intensity on pricing is a constant feature of the industry.

SRG's argument is that its blend of maintenance Annuity work and selective construction exposure, together with a Blue-Chip client base, supports margins and cash flow.

Index membership and governance

The index provider announced that SRG would join the S&P/ASX 200 before the open on 23 March 2026. It was not named among the removals in the June or September 2026 rebalances, so we treat it as a current constituent.

At the Annual General Meeting on 8 October 2026, every resolution passed on a poll. The remuneration report received about 94.6 per cent support, and the spill resolution was not put to the meeting. Performance rights for the two executive directors were approved with roughly 89 per cent support, which is lower than other resolutions but comfortably carried.

Risks and what to watch

Several uncertainties apply. Fixed-price and lump-sum construction contracts can expose contractors to cost overruns, labour shortages and weather or client delays. Margins can be squeezed if Inflation outpaces contract escalation clauses.

Acquisition-led growth carries integration risk. TAMS has so far gone well, but further deals could strain management attention and the balance sheet, which currently holds only modest net cash. Customer concentration in resources and energy also means that a slowdown in those sectors could reduce maintenance spending.

Segment margins and cash conversion are also worth following as the business grows.