Verbrec secures $22 million in water infrastructure contracts
Verbrec Limited (ASX:VBC) announced approximately $22 million in water infrastructure project awards since the start of FY2027, spanning New Zealand, South Australia, Queensland, New South Wales and Victoria. The water infrastructure contracts were detailed in a business update dated 20 October 2026.
The total has two components: the Levin Wastewater Treatment Plant headworks contract valued at approximately A$12.3 million (NZ$15.1 million), and approximately $9.6 million in awards to Verbrec and its fully owned subsidiary Alliance Automation across Australia.
The projects will span the remainder of FY2027 and extend into FY2028. The company stated its work-in-hand position for the remainder of the financial year is in line with management’s expectations and consistent with the FY2027 revenue guidance provided to the ASX on 27 July 2026.
Key figures from the announcement:
- ~$22 million in total water infrastructure awards since the start of FY2027
- NZ$15.1 million (approx. A$12.3 million) Levin headworks contract, excluding GST
- ~$9.6 million in Australian awards
- Completion of the Levin works within approximately 16 months of award
Company statement
The company “sees this as a key growth sector for the business and has invested in dedicated resources to drive that growth for the business.”
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Levin Wastewater Treatment Plant headworks contract
Contract terms
Verbrec was selected by Horowhenua District Council as principal contractor for the design and construction of the new headworks at the Levin Wastewater Treatment Plant in the Horowhenua District, New Zealand.
The contract has a lump sum value of NZ$15.1 million (approximately A$12.3 million), excluding GST. It is contracted under New Zealand’s standard conditions of contract for design and construct works, with completion scheduled within approximately 16 months of award.
Scope of work
Verbrec’s scope covers the full design and construct delivery of the new headworks facility, including:
- Design across process, mechanical, piping, electrical, instrumentation, control, civil, structural and geotechnical disciplines, including safety in design and HAZOP workshops, permits, certifications and consents
- Supply, fabrication and installation of process equipment
- The headworks structure, including channels, grit chambers and lift pump wet well, together with the motor control centre and generator buildings
- Tie-in pipework to existing connection points across the plant and stormwater infrastructure
- The complete electrical, instrumentation and control scope, including PLC and control hardware and communications to the main control room
- Pre-commissioning and commissioning
Verbrec is delivering the project as head contractor. Together with established New Zealand delivery partners, it will perform civil, structural, electrical, instrumentation and mechanical construction.
The Levin headworks is the first of a series of upgrades planned at the plant, and Horowhenua District Council has signalled a multi-year investment programme at the site. The company said the award establishes a reference for comparable headworks and treatment plant upgrades nationally. The announcement does not state that any follow-on work has been secured.
$9.6 million in Australian awards
Verbrec and Alliance Automation have been awarded several water and wastewater projects across Australia since the start of FY2027, with a combined value of approximately $9.6 million. The work is delivered for metropolitan and regional water utilities, local government water authorities and their head contractors.
The company describes the awards as a broad and repeating base of work, won largely through framework agreements, standing panels and established delivery relationships. Recurring maintenance and control-system work of this kind may add to revenue visibility.
| State | Project type | Scope |
|---|---|---|
| South Australia | Switchboards and control panels procurement | Package forming part of a high voltage upgrade, including automation and control, at a bulk water transfer asset moving Murray River water to metropolitan Adelaide |
| South Australia | Electrical, instrumentation and control package | New water storage tank and pump station |
| South Australia | Control system design | Detailed electrical and control system design for replacement of obsolete PLC hardware at a wastewater treatment plant |
| South-East QLD | Control system design and development | Fifteen chlorine residual monitoring installations across a metropolitan drinking water network |
| South-East QLD | Annual maintenance engagement | Electrical and control systems maintenance (preventative, responsive and corrective) of SCADA, PLC, RTU, telemetry and radio assets across a metropolitan water and wastewater network |
| Gladstone, QLD | Electrical and instrumentation supply and installation | Low voltage cabling, cable support systems, switchboard modification, earthing, testing and commissioning at a pump station and reservoir, plus SCADA, PLC, RTU and industrial communications engineering |
| New South Wales | Pump station upgrade | Reservoir pump station upgrade in western Sydney |
| Victoria | Control system upgrade | Control system upgrade for a metropolitan pump station |
Individual contract values are not disclosed. Only the Levin counterparty is named, as the company considers that contract large enough to warrant specific disclosure. The other contracts are not considered individually financially material or market sensitive under ASX Listing Rule 3.1 and Guidance Note 8.
Why water is a growth sector for Verbrec
What are headworks and control systems?
Headworks are the inlet stage of a wastewater treatment plant, where incoming flows are first received and screened. In the Levin scope, this includes channels, grit chambers and a lift pump wet well.
SCADA (supervisory control and data acquisition) and PLC (programmable logic controller) systems are the automation that monitors and runs water assets such as pump stations and treatment plants. For investors, the relevance is that these are long-life assets operated under regulatory standards, which may require ongoing upgrades and maintenance.
Market drivers
The announcement cites reinvestment drivers in each region, including ageing assets, population growth and tightening regulatory and environmental standards:
- New Zealand: Analysis by the Department of Internal Affairs, cited by the Minister of Local Government, identifies total estimated investment of NZ$47.9 billion in water services infrastructure over ten years. Councils will collectively spend nearly NZ$9 billion more than estimated in their previous long-term plans.
- South Australia: SA Water’s 2024-28 regulatory determination provides for $3.3 billion of net capital expenditure, including $1.5 billion announced under the South Australian Government’s Housing Roadmap.
- Queensland: The South East Queensland Regional Plan projects the region will reach around six million people by 2046, requiring almost 900,000 new homes.
Verbrec’s positioning
The acquisition of Alliance Automation in December 2025 brought strong customer relationships with most major water utilities and authorities across Australia. Verbrec’s revenue from the water sector increased from 7% in FY2025 to 21% in FY2026.
The company has invested in dedicated resources to drive growth in the sector, and says it sees New Zealand water as a key growth market for its multi-discipline team.
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