According to Synertec Corporation Ltd (ASX:SOP) managing director Michael Carrol, it was a challenging but rewarding financial year for the company, which delivered an improved normalised underlying earnings (EBITDA) loss of A$2.8 million compared with A$3.3 million in FY24.
The company attributed this to decisive cost-out measures, including a 25% workforce reduction, streamlining of overheads, and alignment of skills with pipeline opportunities. These initiatives generated A$2.5 million in annualised savings.
Strategic investment continued across five core sectors:
- Water
- Transport
- Energy and Resources
- Life Sciences
- Defence & Manufacturing
These were supported by tighter integration between sales and delivery.
Corporate costs fell to A$0.6 million from A$1.0 million, reflecting a more targeted approach. Ongoing investment in the Powerhouse technology platform further positioned the company for growth.
The overall picture shows the following:
- Financial results: Group revenue and other income fell 8% to A$18.2 million, while net loss after tax widened to A$7.6 million. Normalised EBITDA improved by 15% to a loss of A$2.8 million.
- Operational highlights: External engineering revenue reached A$15.5 million with a strong recovery in the second half. Powerhouse revenue rose 90% to A$2.0 million, supported by consistent performance and expanding opportunities. Operating cash outflow improved to A$4.1 million, with A$3.7 million in cash at bank.
- Capital flexibility: The A$15 million Altor facility remained in place, supplemented by a post-year end A$4.0 million working capital facility.
“FY25 was challenging and rewarding with a backdrop of broad industry sector headwinds in 1H, and Synertec recording a strong rebound in 2H,” Synertec managing director Michael Carroll said. “In 1H we acted decisively to right-size and recalibrate our workforce. I am glad to report that despite the sector-wide headwinds, our Engineering business recorded normalised EBITDA of $2.2m (pcp $0.8m).”
Engineering operations
Despite first-half headwinds for the sector, the engineering division achieved external revenue of A$15.5 million and delivered normalised EBITDA of A$2.2 million, up from A$0.8 million the previous year.
A strong rebound in the second half contributed A$1.8 million of earnings compared with A$0.4 million in the first half.
Carroll noted that decisive actions in early FY25 helped recalibrate the business, setting up a more efficient operating base.
“Looking forward, our Engineering business will continue to target long-term, profitable and sustainable opportunities with government departments, utilities and infrastructure players, building on our considerable successes in securing such work in FY25,” Carroll said.
Powerhouse technology
Powerhouse continued to demonstrate strong commercial traction.
Revenue nearly doubled to A$2.0 million, supported by an annualised contracted revenue base of A$2.4 million.
“Powerhouse has now delivered over 5 years of industrial power at 99.9% availability, fossil fuel-free, across multiple sites in remote Queensland for Santos. It is this track record that is driving significant enquiry from other operators,” Carroll said.
“It is also pleasing to report that Powerhouse delivered revenue growth of 90% to $2m (pcp $1.1m) with several other Powerhouse opportunities advancing on client final investment decisions.
“A key focus of our Powerhouse team was to secure our supply chains to ensure Powerhouse remains well ahead of any emerging competition both technologically and commercially, and to be able to deliver Powerhouse units into the field at a rate industry is demanding.
“On this, I am pleased to report the team has delivered.”
Outlook
Synertec enters FY26 with positive momentum. The engineering division exits the year with a strong trajectory, enhanced positions on multi-year panels, and recurring consultancy revenue.
Powerhouse is scaling up through a secured supply chain, proven performance, and growing opportunities in resources, utilities, and remote operations.
With A$3.7 million cash at bank and flexible financing facilities, the company remains disciplined on cost and cash management.
Carroll emphasised Synertec’s ambition to evolve into a recognised “impact investment” in the short to medium term, supporting the transition to a low-carbon economy.