Verbrec confirms FY2026 guidance and unveils accelerating FY2027 outlook
Verbrec Limited (ASX:VBC) has confirmed its guidance for the full year ending 30 June 2026 and introduced fresh guidance for FY2027, setting out a quantified two-year growth trajectory.
The Company expects FY2026 continuing operations revenue of $115 million–$120 million, representing a 47%–54% increase on FY2025. Looking further ahead, guidance points to FY2027 revenue of $140 million–$160 million, driven by the first full-year contribution from Alliance Automation.
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FY2026 guidance confirmed — revenue up as much as 54%
The confirmed FY2026 outlook centres on continuing operations revenue of $115 million–$120 million, the headline 47%–54% uplift versus the prior financial year.
On the earnings side, the Company expects total group EBITDA of $15.0 million–$15.5 million, with Adjusted EBITDA from continuing operations guided between $8 million and $9 million.
Adjusted EBITDA excludes “one-off proceeds and costs associated with divestments and acquisitions, one-off expenses incurred in the pursuit of ongoing synergies and integration of Alliance Automation and the impacts of share-based payments.”
Notably, these results have been achieved despite temporary delays in project awards during the second half of FY2026. Verbrec attributes those delays primarily to global energy market volatility and uncertainty during the early stages of the conflict in the Middle East. Rather than a miss, management frames this as a headwind navigated on the way to confirmed guidance.
| Metric | FY2026 Guidance | FY2027 Guidance | Notes |
|---|---|---|---|
| Continuing operations revenue | $115m–$120m | $140m–$160m | FY2026 up 47%–54% on FY2025 |
| Adjusted EBITDA (continuing ops) | $8m–$9m | $10m–$12m | Excludes one-off and integration items |
| Total group EBITDA | $15.0m–$15.5m | — | FY2026 guidance only |
Work in hand and opportunity pipeline surge into FY2027
Momentum heading into the new financial year is reflected in a rising pipeline and expanding work in hand.
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Total opportunity pipeline of $277 million at 30 June 2026, up from $203 million at the half-year.
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Work in hand of $78 million at 30 June 2026, up from $71 million at the half-year, reported on a 12-month look-ahead basis.
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Year-to-date tender win rate of 34.0%.
Importantly, the Company notes there is additional work in hand attributable to future years that is not included in the reported figure. The reported $78 million therefore reflects only the next 12 months of contracted activity.
The $21 million Beetaloo Basin Bi-Directional Upgrade project for Power and Water Corporation, announced in June 2026, serves as an example of the opportunity pipeline converting into work-in-hand. According to the Company, that conversion has begun as heightened client and Government focus on energy sovereignty drives material project awards.
The Beetaloo Basin pipeline contract covers a two-stage upgrade of the McArthur River Pipeline, with Stage 1 targeting first commercial gas flows in 2026 and Stage 2 adding bi-directional capability by 2028, deepening a relationship with Power and Water Corporation that spans more than a decade.
Verbrec attributes the growth in its pipeline to the broader capability of the combined group and successful cross-selling. The Company states it is pursuing and converting larger and more complex work.
What’s driving Verbrec’s growth — the Alliance Automation story
The step up in FY2027 revenue reflects a straightforward mechanical driver. In FY2026, Alliance Automation contributes only 7 months of revenue to the group. In FY2027, that becomes a full 12-month contribution, lifting the top line into the $140 million–$160 million guidance range.
The Alliance Automation acquisition completed earlier in FY2026, doubling Verbrec’s revenue base above $100 million while expanding the combined group to around 700 employees across Australia and New Zealand, with EBITDA margins more than doubling to 8.7% at the half-year stage.
This same timing difference explains why EBITDA margins remain broadly similar in the near term. Because FY2026 captures 7 months of Alliance Automation revenue against 12 months in FY2027, the margin profile does not immediately expand.
Management expects group margins to “progressively and gradually improve over the next 18-24 months” as integration benefits and synergies are realised.
For context, Verbrec is an engineering business providing integrated services spanning design, construction and ongoing asset management, operations and maintenance. It serves the mining, energy, water and defence markets across Australia and the Pacific.
For investors, integration synergies are the lever that converts revenue growth into profitability growth. The revenue step-up is largely timing-driven, while the earnings improvement depends on how efficiently the combined group extracts those synergies.
FY2027 guidance signals the next leg of growth
The newly introduced FY2027 guidance sets out the following:
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Revenue of $140 million–$160 million.
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Adjusted EBITDA of $10 million–$12 million.
For FY2027, Adjusted EBITDA excludes “one-off expenses incurred in the pursuit of ongoing synergies and integration of Alliance Automation and the impacts of share-based payments.”
The Company states the improvement in EBITDA reflects the synergies and margin gains being delivered as integration activities mature.
Verbrec sees sustained demand across its core growth markets, which it identifies as:
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Gas market transition.
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Electrification and energy storage.
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Operational technology and cyber security.
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Industrial automation across the energy, mining and water markets.
Underpinning this outlook is a thematic tailwind. Heightened market volatility has sharpened client and Government focus on energy sovereignty, and the Company expects investment in energy security to be a strong continuing trend as it moves into FY2027.
FY2026 Guidance Highlight
The Company expects FY2026 continuing operations revenue of $115 million–$120 million, a 47%–54% increase on FY2025.
The investment takeaway
Verbrec has paired confirmed near-term delivery in FY2026 with a clear, quantified growth runway for FY2027, both underpinned by a rising opportunity pipeline and integration synergies from Alliance Automation. With work in hand and the pipeline both expanding, the forward case rests on how effectively the combined group converts revenue growth into margin improvement.
Investors seeking regular updates can access Verbrec’s Investor Hub at investors.verbrec.com.
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