Saunders lands $23 million Defence fuel infrastructure contract at RMAF Butterworth
Saunders International (ASX:SND) has been selected by the Australian Department of Defence as head contractor to deliver the RMAF Butterworth Infrastructure Project – Defence Fuel Installation Works, a head contract valued at circa $23 million.
The works will be delivered on the Australian Leased Facilities at RMAF Base Butterworth in Penang, Malaysia. The award strengthens Saunders’ position in the Defence & Government market and supports Australia’s defence objectives in the Indo-Pacific.
Announced on 16 July 2026, the project is expected to contribute to revenue and earnings across FY2027 and FY2028.
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Inside the scope of works
The project will upgrade and enhance the resilience, safety and operational capability of the existing Defence Fuel Facility. Saunders’ scope covers a full delivery cycle from fabrication through to handover.
Core scope items include:
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Off-site fabrication, construction, installation and commissioning of fuel storage and transfer infrastructure
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Delivery of associated civil, structural, mechanical, piping, electrical, control and fire safety systems
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Testing, commissioning and handover to support operational readiness
An integrated delivery model at work
The project draws on Saunders’ integrated capabilities in a high-compliance environment, spanning multiple disciplines that the company coordinates as a single delivery package.
Capability areas engaged on the project include:
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Fluid Storage & Transfer Infrastructure
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Fabrication
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Structural, Mechanical & Piping
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Civil Infrastructure
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Industrial Automation & Electrical
Delivering across these disciplines simultaneously in a complex, operational Defence setting demonstrates Saunders’ capacity to manage critical infrastructure work end-to-end. That capability is a meaningful differentiator when competing for future high-compliance projects.
Why Defence fuel infrastructure matters to investors
Defence fuel infrastructure refers to the storage and transfer systems that hold and move fuel for military use. These systems underpin operational readiness, ensuring assets and bases can function when required.
As head contractor, Saunders leads and coordinates the full scope of delivery while carrying the primary client relationship with the Department of Defence. This role places the company at the centre of project accountability rather than acting as a subcontractor to another lead firm.
Fuel resilience and strategic infrastructure in the Indo-Pacific have become a growing area of long-term investment for the Australian Government. This positions Defence & Government as a durable market with high barriers to entry, where established trust and demonstrated capability can create recurring opportunity.
CEO Commentary
“Securing this head contract with the Australian Department of Defence is an important milestone for Saunders and reflects the capability and trusted relationships we have built. This project demonstrates our ability to deliver integrated infrastructure solutions in complex operational environments and reinforces our strategic focus on critical infrastructure markets where we can create differentiated value. Defence & Government remains a priority market for Saunders, and we continue to see opportunities aligned with long-term investment in strategic infrastructure and fuel resilience,” said Angelo De Angelis, Managing Director and Chief Executive Officer.
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What the contract means for Saunders’ strategy and outlook
The award represents an important strategic milestone, reinforcing Saunders’ capability to engineer, build and sustain critical infrastructure while further strengthening its position in Defence & Government.
The project follows a clear delivery timeline:
The Butterworth award is not an isolated win; the Ampol Lytton Refinery contract secured in April 2026 similarly drew on Saunders’ specialist fluid storage and transfer capability, and together the two projects underpin multi-year revenue visibility across FY2026-FY2028.
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Pre-mobilisation activities commence immediately
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Site mobilisation expected in Q2 FY2027
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Revenue and earnings contribution across FY2027 and FY2028
The table below summarises the key facts and their relevance for investors.
| Fact | Detail | Investor impact |
|---|---|---|
| Contract value | ~$23M head contract | Adds FY27–FY28 revenue and earnings |
| Client | Australian Department of Defence | Blue-chip, high-compliance client |
| Location | RMAF Base Butterworth, Penang | Indo-Pacific defence positioning |
| Market | Defence & Government | Priority strategic market |
Saunders’ stated vision is to be the most trusted partner for critical infrastructure delivery. The contract aligns with that objective, validating the integrated delivery model and opening the door to further opportunity within the Defence & Government market.
No forward earnings figures have been disclosed beyond the circa $23 million contract value and the FY2027 to FY2028 revenue timing. Investors should therefore treat the win as a strategic positioning milestone rather than a precise near-term earnings catalyst.
With Defence & Government identified as a priority market and long-term investment in Indo-Pacific fuel resilience continuing, the award adds to Saunders’ momentum in a sector where trusted relationships and demonstrated capability remain central to securing future work.
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