Synertec raises A$6 million as FY26 turnaround gathers pace
Synertec Corporation (ASX: SOP) has received binding commitments from institutional and sophisticated investors to raise approximately A$6 million, alongside a materially improved preliminary unaudited FY26 result. The technology design and development company reported FY26 Group revenue of $21.1m, up 19% on FY25, a return to positive operating cash flow, and a strengthened balance sheet.
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The placement at a glance
The Placement mechanics are set out below:
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Raise amount: approximately A$6 million (before costs)
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New Shares issued: approximately 119.7 million fully paid ordinary shares
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Placement Price: A$0.05 per New Share
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Discount: approximately 13.8% to the last close of A$0.058 on Thursday, 13 August 2026, and approximately 14.8% to the 5-day VWAP of A$0.059
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Capacity: issued within existing placement capacity under ASX Listing Rule 7.1 (67,669,824 shares) and 7.1A (52,044,341 shares)
Net proceeds are earmarked for working capital and to provide balance sheet flexibility to pursue future growth opportunities. The Company noted that the strengthened balance sheet will facilitate the consolidation of debt facilities, lowering borrowing costs.
Synertec held approximately A$2.0m of cash as at 30 June 2026, moving to a pro forma cash balance of approximately A$7.5m following settlement. The raise was well supported by existing shareholders, with the Company welcoming new shareholders onto the register.
FY26 unaudited results show fourth straight half of EBITDA improvement
The operational story underpinning the raise centres on a consistent narrowing of losses. Group revenue reached $21.1m, up 19% on FY25, while the 2H FY26 unaudited EBITDA loss of $0.6m marked the fourth consecutive half of improving EBITDA. On a normalised basis, the Company reported unaudited EBITDA breakeven for 2H FY26.
FY26 operating cash inflow of $0.5m represented a $4.6m improvement on FY25. This was the first operating cash inflow since FY19.
The improvement was attributed to three drivers:
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A $1.5m corporate cost-out
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A 35% improvement in Engineering contribution margin (versus the prior corresponding period)
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Reduced Powerhouse R&D spend as the platform moved to commercial deployment
The table below shows the EBITDA trajectory across the four most recent halves, illustrating the consistent narrowing trend.
| Period | 1H25 | 2H25 | 1H26 | 2H26 |
|---|---|---|---|---|
| Unaudited EBITDA loss | ($3.4m) | ($2.4m) | ($1.5m) | ($0.6m) |
What “normalised EBITDA breakeven” means for investors
EBITDA stands for earnings before interest, tax, depreciation and amortisation. It is a proxy for underlying operating performance and, as the directors note, a non-IFRS measure that offers useful information to assess the group’s performance over the period.
The term “normalised” means the figure excludes non-operating, non-recurring and discretionary items incurred in pursuit of strategic, long-term growth opportunities, along with expenses not considered representative of the ongoing operational cost base.
Growth pipeline and FY27 outlook
Synertec reaffirmed its FY27 revenue guidance of $29.5m to $31.7m. Supporting this outlook is contracted work in hand of $20.9m at period end, up 188% on the prior corresponding period.
Sydney Water contract wins, including access to a $245 million panel opportunity, contributed to the diversified order book that underpins the 188% year-on-year increase in contracted work in hand reported at period end.
The Company is also in advanced discussions with multiple counterparties regarding additional Powerhouse contracts. The raise provides additional capacity to pursue this pipeline of growth opportunities.
The Powerhouse battery pipeline surged 74% to $122M in the lead-up to this result, with the TasNetworks community battery contract providing early validation of the platform across DNSP grid resilience applications.
Managing Director, Michael Carroll
“FY26 was a year of strong operational progress and improved financial performance for Synertec. The hard work and commitment of our team has delivered a materially stronger cashflow result, while our forward-looking indicators point to an exciting period of continued revenue growth and improving financial performance.
Looking ahead, Synertec is forecasting FY27 revenue of between $29.5m and $31.7m. This outlook is underpinned by contracted work in hand of $20.9m at the end of the Period, up 188% on the prior corresponding period. The equity raising will provide us with further capacity to pursue our pipeline of exciting growth opportunities.”
Key dates for the placement
The indicative timetable for the Placement is as follows:
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Monday, 17 August 2026 — trading halt lifted; Placement announced; shares resume normal trading
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Thursday, 20 August 2026 — settlement of New Shares
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Friday, 21 August 2026 — allotment and normal trading of New Shares
The New Shares will rank equally with existing fully paid ordinary shares of Synertec. The timetable is indicative only and may be subject to change.
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