Synertec returns to positive operating cash flow and locks in $6m placement
In its FY26 update and equity raising investor presentation, Synertec Corporation outlined a financial turnaround alongside an approximately A$6 million institutional placement. The unaudited FY26 figures showed Group revenue of $21.1m, up 19% on FY25, and an operating cash inflow of +$0.5m, a $4.6m improvement that management described as the first net operating cash inflow since FY19.
The presentation detailed that the placement raised approximately A$6 million (before costs) through the issue of roughly 119.7 million New Shares at A$0.05 each. Management framed the update around a stated inflection point: base restored, technology commercialised, growth contracted.
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FY26 financial turnaround at a glance
The presentation highlighted three structural changes and a run of consecutive improvement. The 2H FY26 unaudited EBITDA loss narrowed to $0.6m, the fourth consecutive half of improving EBITDA, with unaudited normalised EBITDA reaching breakeven for the half.
Cash receipts reached $23.7m, up 23% on the prior comparative period. Management noted the EBITDA turnaround was driven by a $1.5m lower corporate cost base, a 35% improvement in Engineering contribution margin, and reduced Powerhouse R&D spend.
| Metric | FY24 | FY25 | FY26 (unaudited) | Change |
|---|---|---|---|---|
| Operating cash flow | ($6.2m) | ($4.1m) | +$0.5m | +$4.6m vs FY25 |
| Group revenue | — | — | $21.1m | +19% vs FY25 |
| Cash receipts | — | — | $23.7m | +23% vs pcp |
The half-on-half EBITDA trend showed steady narrowing of losses:
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1H25: ($3.4m)
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2H25: ($2.4m)
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1H26: ($1.5m)
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2H26: ($0.6m)
Delivering on stated commitments
Management outlined six commitments made in the FY25 and 1H FY26 updates, each marked as delivered. This section reinforced execution against previously stated targets.
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Right-size the cost base: $1.5m corporate cost-out delivered
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Target panel work with utilities and government: 9 panels secured
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Secure the Powerhouse supply chain: 500 units/year capacity established
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Convert Powerhouse proposals nearing FID: 14 contracted units
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Powerhouse FY26 recurring revenue: $2.5m, up 23% on pcp
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Return to positive operating cash flow: +$0.5m
What Powerhouse is and why it matters
The presentation described Powerhouse as a grid-forming, islanded battery and renewable microgrid platform that operates without fossil-fuel back-up.
Management noted the platform delivered >99.95% availability across six years of continuous operation, with the Gen 2 unit recording 99.98% over 2.5 years and zero unplanned callouts. In FY26, Powerhouse contributed a 2,400 tCO₂e reduction and generated recurring revenue of $2.5m with no R&D spend.
The presentation emphasised that the technology has been commercialised, moving from research and development into deployment.
On economics, management outlined a BOOM model targeting >90% EBITDA margin and >27% IRR, and a Sale model targeting >20% gross margin at scale. Synertec has responded to more than $400m of expressions of interest (EOIs) and tenders.
The Hitachi Energy BESS partnership, a 36-month MoU targeting integrated 5MW to 30MW storage solutions across energy, data centres, and critical infrastructure, represents one of the active pipeline contributors behind the $400m-plus EOI and tender figure cited by management.
Contracted growth and market segmentation
The presentation detailed 14 contracted Powerhouse units across four market segments, with revenue generated in three of them.
| Customer | Units | Segment / Buyer Group |
|---|---|---|
| Santos | 6 | Remote – energy, oil & gas, mining |
| TasNetworks | 6 | Urban – state power utilities |
| Shell | 1 | Remote – energy, oil & gas, mining |
| Amplitude – FEED | 1 | Industry Resilience – energy, mining, data centres |
| Total | 14 |
Management noted advanced contract discussions for the Grid Resilience segment, with no contract yet signed. On the engineering side, Synertec is pre-qualified on 9 engineering infrastructure panels carrying 5 to 7 year agreements, with an engineering pipeline of $174m, up 60%. The Sydney Water SCADA and Electrical Services Panel represents approximately $245m of potential project work over five years.
Sydney Water panel opportunities already generated $1 million in initial contracts within nine months of panel appointment, providing early evidence that the $245 million addressable market cited in the FY26 presentation is not a theoretical ceiling but an active tendering environment.
The presentation pointed to expanding client capital programs, including Melbourne Water’s $7.3bn FY27–FY31 plan (up 51%) and Sydney Water’s approximately $32bn long-term plan. Work in hand stood at $20.9m, up 188%, or roughly 68% of FY27 guidance.
The equity raising — structure and use of funds
The presentation detailed the placement terms. Synertec received binding commitments raising approximately A$6 million (before costs) through roughly 119.7 million New Shares issued under its existing placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A.
The Offer Price of A$0.05 per New Share represented a ~13.8% discount to the last close of A$0.058 on 13 August 2026, and a ~14.8% discount to the 5-day VWAP of A$0.059. New Shares rank equally with existing shares from their date of issue.
| Use of funds | A$m |
|---|---|
| Powerhouse build – BOOM | 2.0m |
| Powerhouse working capital – Sale | 1.5m |
| Balance sheet flexibility | 2.0m |
| Transaction fees and expenses | 0.5m |
| Total uses | 6.0m |
On a pro forma basis, the presentation outlined:
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Cash rising from $2.0m to $7.5m
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Net debt of ($4.5m) moving to a net surplus of $1.0m
Key dates from the presentation include:
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Trading halt lifted and completion announced: Monday, 17 August 2026
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Settlement of New Shares: Thursday, 20 August 2026
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Allotment and commencement of trading of New Shares: Friday, 21 August 2026
FY27 outlook and the investment case
Management reaffirmed FY27 revenue guidance of $29.5m to $31.7m alongside an improved EBITDA position. Work in hand already represents approximately 68% of that guidance, with the company stating it is in advanced discussions with multiple counterparties regarding additional Powerhouse contracts.
The presentation set out three measures for FY27:
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Powerhouse pipeline conversion and deployment, converting and expanding the pipeline
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Engineering conversion, converting the panel pipeline, expanding geographic footprint, and improving margins
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Maintaining cost discipline to deliver operating leverage
The presentation ties the FY26 turnaround to this forward strategy, positioning the reaffirmed guidance and contracted growth as the foundation for FY27 delivery.
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