Synertec Wins $1M Sydney Water Contracts as National Water Expansion Accelerates

Synertec secures $1 million in Sydney Water contracts as national expansion gains traction

Synertec Corporation Limited (ASX: SOP) has been awarded operational technology projects with Sydney Water Corporation, with total contract value exceeding $1 million. The contracts represent the first project awards since the company joined Sydney Water’s SCADA and Electrical Services Panel in May 2025, a position that provides access to approximately $245 million in project opportunities over the next five years.

The awarded projects involve upgrades to existing Sydney Water facilities, with delivery scheduled over the next 12 months. The announcement validates Synertec’s strategy to target long-duration critical infrastructure opportunities that align with its core capabilities in operational technology, including control systems engineering, electrical and instrumentation design, SCADA, communications and cyber security.

For investors, these initial contract wins demonstrate execution against a clearly defined market opportunity. The $245 million panel value represents a substantial addressable market, whilst the company’s progression from panel appointment to active project delivery within nine months indicates commercial traction.

Regional Delivery Partner agreements unlock full Sydney Water network access

Synertec has now executed agreements with all three of Sydney Water’s Regional Delivery Partners (RDPs), positioning the company to support project delivery across the entire Greater Sydney network. These agreements enable Synertec to provide operational technology, electrical and control system engineering services in support of Sydney Water’s long-term capital and operational programme over the next 10 years, with a total budget of $34 billion.

The RDP structure provides contractors with direct access to regional project pipelines, effectively removing barriers to participation in Sydney Water’s infrastructure programme. For Synertec, securing agreements across all three regions maximises its ability to capture work as projects are released through the panel framework.

The company has further supported its Sydney Water engagement through the establishment of a Sydney office and the appointment of a State Manager, strengthening local capability and facilitating deeper client relationships. These operational investments signal management’s commitment to building a sustainable presence in the New South Wales water infrastructure market.

What is operational technology in water infrastructure?

Operational technology (OT) refers to the hardware and software systems that monitor and control physical processes within water utilities. Unlike information technology (IT), which manages data and communications, OT directly operates the pumps, valves, sensors and treatment systems that deliver water services.

Water utilities are increasing investment in OT upgrades driven by several factors: aging infrastructure requiring modernisation, regulatory requirements for improved monitoring and reporting, efficiency gains from automated control systems, and heightened cyber security threats targeting critical infrastructure. For specialised providers like Synertec (ASX: SOP), this trend creates long-term, recurring revenue opportunities as utilities pursue multi-year technology refresh cycles.

Key OT components in water infrastructure include:

• SCADA (Supervisory Control and Data Acquisition): Central monitoring and control systems that provide real-time visibility of water network operations across distributed sites
• Control systems engineering: Design and integration of automated systems that regulate water treatment processes, pumping stations and distribution networks
• Electrical and instrumentation design: Specification and deployment of power systems, sensors and measurement devices that enable remote monitoring and control
• Communications infrastructure: Network architecture that connects field devices to central control systems, enabling data transmission and remote management
• Cyber security: Protection frameworks that safeguard OT systems from digital threats whilst maintaining operational continuity and regulatory compliance

The technical complexity and safety-critical nature of these systems create barriers to entry, favouring established providers with demonstrated track records in the water sector.

National expansion strategy takes shape

The Sydney Water contracts form part of Synertec’s national expansion into the water sector, building on a 19-year relationship with Melbourne Water. The company has recently entered Water Corporation in Western Australia and is pursuing similar panel arrangements with other Australian water utilities.

This geographic diversification strategy aims to replicate the successful Melbourne Water engagement model across multiple state-based water authorities. By targeting panel positions and RDP agreements, Synertec is building a framework for recurring revenue streams tied to long-term infrastructure investment cycles.

Michael Carroll, Managing Director

“We have more than 19 years’ experience with Melbourne Water and we are taking that deep industry knowledge nationally. We started our national expansion with Water Corporation in Western Australia and more recently with Sydney Water and we are working on winning similar arrangements with others. Our goal is to be nationally recognised by every water utility as a trusted Water industry expert. We think we are tracking well in this regard.”

The company has further projects currently in various stages of engagement and tender, reflecting growing demand for technology upgrades across not only the Sydney Water network but all major Australian water utilities. This pipeline activity suggests the $1 million in awarded contracts may represent an early indicator of broader opportunity capture.

For investors, the establishment of operational infrastructure (Sydney office, State Manager appointment) alongside commercial wins demonstrates a coordinated approach to market entry. The company is building the capability to service contracts whilst simultaneously pursuing new business, reducing execution risk as the order book expands.

What’s next for Synertec?

Near-term catalysts for Synertec (ASX: SOP) include:

1. Delivery of current Sydney Water projects over the next 12 months, providing revenue recognition and demonstrating execution capability
2. Outcomes from active tenders across Sydney Water and other Australian water utilities, which could materially increase the contracted order book
3. Potential additional panel appointments with water authorities in other states, expanding the addressable market beyond the current $245 million Sydney Water opportunity
4. Contract extensions or follow-on work through established RDP relationships, converting initial project wins into ongoing engagement

The addressable market through the Sydney Water panel alone represents $245 million over five years, whilst the broader $34 billion infrastructure programme provides context for the scale of opportunity across the Greater Sydney network. Nationally, the company is positioning to capture share of similar investment programmes across multiple state-based water utilities.

Investors should monitor contract announcements and new panel or RDP wins as indicators of execution against the stated national expansion strategy. The transition from panel appointment to active project delivery provides a measurable framework for assessing commercial progress.

Want the Next Industrial Breakthrough in Your Inbox?

Join 20,000+ investors receiving FREE breaking ASX news within minutes of release, complete with expert analysis. Click the “Free Alerts” button at Big News Blast to get market-moving announcements delivered straight to your inbox the moment they break.