Verbrec caps FY2026 turnaround with 52% revenue growth and a diversified growth platform
In its FY2026 results presentation, Verbrec (ASX: VBC) outlined a full-year performance that management described as the completion of its turnaround and the start of a new growth phase. Revenue from continuing operations rose 52% to $118.5m, with the company positioning itself as an integrated engineering and digital transformation business operating across Australia, New Zealand and the Pacific.
The presentation rested on three anchors: a set of strong FY2026 results, the December 2025 acquisition of Alliance Automation, and FY2027 guidance. Adjusted EBITDA climbed 47% to $8.7m, NPAT(A) grew 107% to $4.2m, and the full-year dividend rose 150% to 0.25 cents per share.
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FY2026 results at a glance
Management presented a year of broad-based improvement across earnings, cash and shareholder returns.
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Revenue | $118.5m | $77.9m | +52% |
| Adjusted EBITDA | $8.7m | $5.9m | +47% |
| NPAT(A) | $4.2m | $2.0m | +107% |
| Cash & equivalents (incl. term deposits) | $20.2m | $7.1m | +182% |
| Net cash (incl. term deposits) | $11.7m | $2.3m | +421% |
| FY2026 dividend | 0.25cps | 0.1cps | +150% |
Both headline measures landed within their guided ranges. Revenue of $118.5m fell within the guided $110m to $120m, while adjusted EBITDA of $8.7m sat inside the guided $8m to $10m band.
From turnaround to growth: two defining deals
Two transactions in December 2025 reshaped the business, and management was careful to separate their contributions.
The first was the acquisition of Alliance Automation and DLM Automation from Telstra. Alliance Automation contributed $39.4m of revenue during the seven months of Verbrec ownership in FY2026. The second was the divestment of Competency Training, sold to RelyOn Australia for $11.2m, which released capital from a non-core asset.
The margin story on Alliance was a focal point of the presentation. EBITDA margin rose from 1.1% in FY2025 (before Verbrec ownership) to 4.8% across the seven months of Verbrec ownership. Management stated a goal of lifting group EBITDA margin to 8-10% over time through integration benefits, framing this as a target rather than a current result.
What Alliance Automation adds
The presentation described the capabilities Alliance Automation brings to the group:
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Industrial automation and control
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Cyber security for operating assets
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Data and machine learning
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Electrical, instrumentation and control execution
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Project and program management
With approximately 300 staff and 11+ offices, the presentation described Alliance Automation as Australia’s leading independent industrial automation and electrical engineering firm.
The business model: how Verbrec builds recurring revenue
Verbrec operates an integrated, full-lifecycle engineering services model, providing services across the entire life of an asset from advisory and design through to operations and end-of-life. The advantage over one-off project work is that continuous involvement tends to produce sticky, repeatable revenue rather than single engagements.
Management outlined a four-stage go-to-market strategy that underpins this approach:
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Land through advisory, audit, feasibility and front-end engineering.
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Embed teams as client relationship partners to understand client drivers.
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Expand by cross-selling capabilities across the life of the asset.
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Compound by converting relationships into multi-year recurring revenues through panel and operations agreements.
For investors, recurring revenue can support earnings visibility and reduce exposure to cyclical swings in project spending.
The revenue quality picture
The presentation detailed the composition of the revenue base:
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20 key accounts, 87 multi-year panel agreements and 15 multi-year operations and maintenance contracts
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61% of revenue from relationship clients
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50% of FY2026 revenue from multi-year panel and recurring O&M agreements
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Gross margin improved for a fourth consecutive year, reaching 35.5%
The improvement in gross margin represents a continuation of a multi-year trend rather than a single-year gain.
Balance sheet strength ready for deployment
Management framed the strengthened cash and net cash position as the fuel for the next growth phase. The Competency Training divestment proceeds, combined with group profitability, lifted net cash from $2.3m at June 2025 to $11.7m at June 2026.
Net cash was restored in FY2025, and the FY2025 dividend marked the first payment in over 10 years, making FY2026 a continuation of a return to distributions rather than a new introduction. Management outlined capital allocation priorities spanning organic growth, synergies and integration benefits, disciplined bolt-on acquisitions, and periodic dividends.
Key balance sheet figures
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Cash and equivalents (incl. term deposits): $20.2m (+182%)
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Net cash (incl. term deposits): $11.7m (+421%)
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Net assets: $34.6m (+45%)
FY2027 guidance and the market tailwinds behind it
With FY2026 guidance met, management provided FY2027 revenue guidance of $140m to $160m and adjusted EBITDA guidance of $10m to $12m. At the guidance midpoints, this implies approximately 39% compounded revenue growth from FY2025 to FY2027 and approximately 35% compounded EBITDA growth.
The company expects the growth to come from a full-year contribution from Alliance Automation and improved cross-selling to common clients. Management summarised a demand backdrop spanning energy security and sovereignty (including Beetaloo Basin development), electrification and energy storage (with AEMO flagging an East Coast shortage by 2029), smart mining and critical minerals, and water and desalination.
Order book metrics supported this outlook. Work in Hand rose 77% to $78m, while the Opportunity Pipeline grew 111% to $277m, against a tender win rate of 34%.
Recent momentum
The presentation referenced $36m of energy contracts announced in July and August FY2027. The presentation also noted the approximately $21m McArthur River Pipeline Bi-Directional Upgrade, linked to the Beetaloo sub-basin.
The energy security contract awards announced in July and August 2026 span seven clients and six jurisdictions, with the flagship $6.8m EPC contract for in-line inspection facilities on a 150km Queensland pipeline running to March 2028 and providing the kind of multi-year forward revenue visibility the guidance range depends on.
The McArthur River Pipeline upgrade, a $21m contract awarded by Power and Water Corporation, is the most concrete example of the Beetaloo Basin demand thesis converting into contracted revenue, with Stage 1 targeting completion in 2026 to enable first commercial gas flows from the sub-basin.
Why the investment case stands out
The presentation tied the elements together into a single thesis: a growing, cash-generative, integrated services provider with recurring revenue, exposure to structural market tailwinds, and management aligned with shareholders. 25.6% of shares on issue are held by the Board and executive team, while the top substantial holders account for 57.2% of the register.
Verbrec has successfully completed its turnaround and is entering into its next growth phase as a stronger, larger and more diversified business.
Capital snapshot
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ASX code: VBC
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Share price (28 August 2026): $0.19
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Shares on issue: 306.2m
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Market capitalisation: $58.2m
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Enterprise value (approx.): $46.5m
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