Q1 FY27 highlights: contracted work-in-hand surges to $74.3 million
In its Q1 FY27 quarterly report for the period ended 30 September 2026, Synertec Corporation Limited (ASX: SOP) recorded Group contracted work-in-hand of $74.3 million, up 395% on the prior comparative period (PCP) of $15.0 million and up from $20.9 million at 30 June 2026. Powerhouse, the company’s battery energy storage platform, contributed $15.3 million of that total.
Synertec maintained FY27 revenue guidance of $37.5 million to $40.0 million, representing expected growth of approximately 77% to 89% on FY26. The company describes that guidance as now 100% contracted.
Group revenue for the quarter was $5.9 million, up 18% from $5.0 million in the PCP. Group EBITDA improved by 18% on the PCP, with breakeven EBITDA achieved in September 2026.
Key metrics from the quarter:
- Group contracted work-in-hand of $74.3 million, up 395% on PCP
- Group revenue of $5.9 million, up 18%
- External Engineering revenue of $5.1 million, up 16% from $4.4 million
- Powerhouse revenue of $0.8 million, up 35% from $0.6 million
- 15 Powerhouse units under contract, 11 in design or construction and 4 operational
- Normalised net operating cash outflow of $0.8 million versus $0.6 million in the PCP
Managing Director Michael Carroll framed the period as a starting point.
Michael Carroll, Managing Director
“…FY27 Q1 marking the beginning of what we expect will be a period of sustained growth, supported by contracted work-in-hand for both Powerhouse and Engineering…”
For investors, contracted work now covers the full guidance range, which gives the revenue outlook a firmer base.
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Engineering order book reaches $54 million
ANSTO and AGL contracts
The largest award was a $45.5 million engineering services contract with the Australian Nuclear Scientific and Technology Organisation (ANSTO) under its Nuclear Medicine Manufacturing Program. The company describes it as the largest single contract award in Synertec’s history.
Synertec will act as Process Design and Design Integration lead for ANSTO’s next-generation Nuclear Medicine Manufacturing Facility at Lucas Heights in NSW. Scope covers process design, systems engineering, facility-wide integration, regulatory support and commissioning support.
The Process Design and Design Integration lead role is heavily front-loaded, with roughly $36 million of the contract expected to be earned within the initial 26-month design phase that began in September 2026.
The Energy and Resources team also signed a contract with AGL for the SOLIS project, an upgrade of AGL’s national SCADA infrastructure. Phase 1 (of a potentially 3 phases) is valued at approximately $4 million, with centralised monitoring and control from Melbourne across approximately 25 operational sites.
The Water team secured new contracts and extensions in Victoria, NSW and WA. Management said the scale and duration of required investment could be described as an industry “super cycle”.
Revenue and pipeline
External Engineering revenue reached $5.1 million, up 16% from $4.4 million. Engineering contracted work-in-hand rose to $54 million from $10.8 million at FY26 Q4, while the qualified pipeline sits at $157 million.
The company said the business is becoming less transactional and more programmatic, providing greater revenue visibility. Separately, the Finance section of the report cites approximately $59 million of Engineering work within the Group’s $74.3 million total.
What is a Powerhouse system? Technology platform explained
Powerhouse is Synertec’s battery energy storage platform. The portfolio spans remote renewable microgrids, industrial power optimisation and utility-scale power stability applications.
Synertec is currently delivering 11 Powerhouse units with a total construction value of approximately $20 million. Of that, 20% is via its BOOM delivery model and 80% through direct sales, and the figure includes assets that will be owned by SOP and will generate annuity style revenue over the life of the assets.
The company defines four strategic market segments, with sales now in 3 of the 4.
| Segment | Applications | Buyer group |
|---|---|---|
| Powerhouse Remote | Renewable microgrids, high availability, low maintenance, remote monitoring for critical infrastructure | Energy companies (e.g. Oil & Gas, Mining) |
| Powerhouse Urban | Compact lower noise for urban environments, advanced grid services, microgrid and islanding capability | State power utilities |
| Powerhouse Industry Resilience | Fast response battery system supporting hydrocarbon generation and wider grid services (e.g. FCAS, VPP and energy shifting) | Energy/Mining/Data Centres |
| Powerhouse Grid Resilience | Edge of grid and weak network solutions, improving feed reliability, resilience and power quality for DNSPs and remote communities | State power utilities/Remote Communities |
Demand is spread across several customer groups, and the SOP-owned assets are expected to generate annuity style revenue over their life.
For readers wanting the full story behind the Urban segment, our detailed coverage of the ARENA-funded community battery contract explains why TasNetworks chose the Powerhouse platform and how the six units fit its distribution network.
Powerhouse momentum: 15 units under contract and a $500 million pipeline
Powerhouse revenue was $0.8 million, up 35% from $0.6 million. 15 units are under contract, with 11 in design or construction and 4 operational.
The pipeline stands at approximately $0.5 billion, equating to about 1.2 GWh, with delivery spanning FY27 to FY30.
Key projects during the quarter:
- Industry Resilience: A circa A$6 million contract to manufacture, supply and commission the largest Powerhouse system to date, a 12 MW / 12 MWh system of two units operating in parallel at a central Australia gas facility. The project commenced in September 2026.
- Remote: GLNG JV Unit #4 was commissioned in August 2026 and has operated at 100% availability since cutover. Six units are now under contract to power approximately 20 to 30 coal seam gas wells in Queensland’s Surat Basin.
- Urban: Detailed design is complete for six community battery units for Tasnetworks, and fabrication of the first unit is about to commence.
- Industry Resilience (Amplitude Energy): The Front-End Engineering and Design study for the Orbost Gas Processing Plant has progressed, with preferred solution options narrowed.
Financial results and cash position
Net operating cash outflow was $1.9 million (Appendix 4C: $1,871k). That included approximately $1.1 million of timing, mobilisation and working capital items: $0.6 million for an additional three months of superannuation payments, $0.3 million of ANSTO mobilisation expenditure and a $0.2 million increase in work-in-progress.
Normalised operating cash outflow was approximately $0.8 million. Investing outflow was $1.3 million (Appendix 4C: $1,290k), primarily supporting manufacture and deployment of Powerhouse systems.
| Funding item | 30 September 2026 |
|---|---|
| Cash | **$4.2 million** |
| Undrawn financing facilities | **$8.7 million** |
| Total available funding | **$12.9 million** |
| Estimated quarters of funding available | **6.9** |
The oversubscribed $6.0 million (gross) placement, announced 17 August 2026, was made to institutional and sophisticated investors. Under the Altor Capital facility, the Tranche 1 commitment remains at $10 million, of which $8.2 million is drawn, while Tranche 2 of $5 million is fully undrawn.
The ANZ Bank guarantee facility was increased from $700k to $2.4 million. Payments to related parties and their associates were $213,981, covering non-executive director fees and salary (including superannuation) for the Managing Director.
What happens next for Synertec
The report points to the following milestones:
- Tasnetworks Urban units: delivery planned through 2027, commencing with the inaugural unit in February, with project completion targeted for Q4 CY2027.
- Amplitude Energy Orbost: the selected solution is planned to be presented for Final Investment Decision in December 2026.
- GLNG JV Units #5 and #6: delivery anticipated around mid-CY2027.
- Central Australia 12 MW / 12 MWh project: delivery targeted by 30 September 2027.
- All 11 Powerhouse units under construction: expected to be delivered within the next 15 months.
- FY27 revenue guidance: $37.5 million to $40.0 million.
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