Verbrec upgrades FY2026 revenue guidance to at least $110 million
Verbrec Limited (ASX: VBC) has issued Verbrec FY2026 revenue guidance of $110 million to $120 million for the financial year ending 30 June 2026, representing year-on-year growth of at least 41% compared to FY2025 revenue of $77.9 million. The company expects continuing operations EBITDA of $8 million to $10 million, whilst total group EBITDA is forecast at $15.3 million to $17.3 million, including a $7.3 million contribution from discontinued operations and the gain on sale of its Competency Training division in H1 FY2026.
The guidance signals a material inflection point in Verbrec’s growth trajectory, with revenue scaling significantly whilst maintaining positive EBITDA margins across its integrated engineering services business.
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What the numbers reveal about Verbrec’s growth momentum
The FY2026 guidance provides clear visibility on both revenue scale and profitability expectations, with the company projecting an implied EBITDA margin of approximately 7-8% on continuing operations at the midpoint of guidance ranges.
| Metric | FY2025 Actual | FY2026 Guidance (Low) | FY2026 Guidance (High) |
|---|---|---|---|
| Revenue | $77.9M | $110M | $120M |
| Continuing Ops EBITDA | — | $8M | $10M |
| Total Group EBITDA | — | $15.3M | $17.3M |
The distinction between continuing operations and total group EBITDA reflects Verbrec’s divestment of its Competency Training business during H1 FY2026. The $7.3 million H1 EBITDA contribution from discontinued operations and the divestment gain will not recur in future reporting periods, making the continuing operations guidance the more relevant baseline for investors assessing the core engineering business.
Understanding revenue guidance and what it signals for investors
For investors new to forward guidance disclosures, the Verbrec announcement warrants clarification on several key concepts:
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Why guidance ranges exist: Management issues revenue and EBITDA ranges rather than fixed targets to account for variables such as project timing, client decision cycles, and resource allocation across multiple sectors (mining, energy, water, defence). The range reflects reasonable best-case and worst-case scenarios within management’s control.
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Continuing operations explained: This metric excludes divisions that have been sold or discontinued. For Verbrec, the sale of Competency Training means investors should focus on the $8 million to $10 million EBITDA range for the ongoing engineering services business, rather than the $15.3 million to $17.3 million total group figure that includes one-off gains.
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How divestments affect reported earnings: When a company sells a business unit, accounting standards require separation of “discontinued operations” from ongoing results. This allows investors to assess the performance of the remaining business without distortion from assets no longer owned.
Verbrec’s guidance provides a forward-looking benchmark against which investors can measure management execution throughout FY2026 at each quarterly update and the full-year results.
Verbrec’s engineering services footprint
Verbrec operates an integrated engineering services model spanning design, construction, and asset management operations across four core sectors:
- Mining
- Energy
- Water infrastructure
- Defence
The company serves clients across Australia and the Pacific, delivering end-to-end project capabilities from initial design through to ongoing maintenance. The 41% revenue growth indicates strong demand across these sectors, suggesting favourable market conditions or successful contract wins driving activity levels.
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What investors should watch for next
With Verbrec FY2026 revenue guidance now on record, investors have clear milestones to track management credibility and execution capability:
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H2 FY2026 results (August 2026): The full-year outcome will test whether management delivers within the $110 million to $120 million revenue range and the $8 million to $10 million continuing operations EBITDA target.
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Quarterly activity updates: Any material contract wins, project completions, or sector-specific trends disclosed during FY2026 will provide interim data points on progress towards guidance.
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FY2027 guidance (if issued): Management’s willingness to issue forward guidance for the subsequent year will signal confidence in the sustainability of the growth trajectory established in FY2026.
Execution risk remains inherent in all forward guidance. Project delays, client budget revisions, or sector-specific headwinds could impact Verbrec’s ability to deliver within the stated ranges. However, the company’s positioning across mining, energy, water, and defence provides diversification that may mitigate sector-specific volatility whilst capturing growth across Australia’s infrastructure and resources investment cycle.
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