Synertec Corporation Ltd (ASX:SOP) reported $5 million in group revenue and other income for FY26 Q1, up 13% on the prior corresponding period (PCP) and the company’s strongest first-quarter result since FY19. Operating momentum translated to a 44% uplift in Group EBITDA versus PCP.
The balance sheet closed the period with $2.6 million net cash. Operating activities consumed $0.6 million of net cash, reflecting working-capital timing consistent with the ramp-up in project activity. The company’s Altor debt facility was increased by up to $4 million to a total available $15.5 million (subject to Investment Committee approval). Management notes there have been no additional drawdowns since September 2024.
Highlights
- Revenue & other income: $5.0m, +13% vs PCP; strongest first quarter since FY19.
- EBITDA: +44% vs PCP.
- Cash: $2.6m net cash at September 30, 2025.
- Operating cash flow: ($0.6m) net outflow for the period.
- Debt facility: Altor facility extended by up to $4m to $15.5m total (subject to Investment Committee approval); no new drawdowns since September 2024.
- Powerhouse: Fourth unit awarded by Santos, delivery slated for FY26 Q4; existing units continue to deliver >99.9% power availability across 11 CSG wells in remote Queensland over a combined five-year period.
- Engineering: Project wins in all five target sectors; 47 projects won and commenced in the quarter.
- Utilisation: Billable employee utilisation up 21% vs PCP.
- Pipeline: Revenue beginning to flow from recent Australian State Water Authority panel appointments, supporting forward visibility.
“As we reported in our FY25 Financial Results and Operational Update (released 3rd September 2025) the Engineering business delivered a significant turnaround during FY25 2H, and it is pleasing to report the group’s performance continues to improve on the back of new projects, state water utilities panel work and high utilisation rates," Synertec’s managing director, Michael Carroll, said.
"The recent engineering panel appointments previously announced, while not yet contributing significantly to top-line growth, are providing exciting opportunities. We have secured minor bodies of work from various new panels which will likely pave the way for larger projects in the not-too-distant future.
"Powerhouse, our renewable, standalone, grid-forming, microgrid power system for industrial-scale applications in remote areas, continues to perform perfectly across 11 coal seam gas wells. This performance has been recognized by Santos with a fourth order to be operational in FY26 4Q. Our Powerhouse team has worked hard to secure world leading technology providers and fabricators to ensure Powerhouse maintains its technological advantage of delivering greater than 99.9% power availability in remote areas, fossil fuel-free at a compelling price point when compared to hybrid or fossil fuel powered alternatives.
"For our Engineering business, our strategy of targeting infrastructure, government agencies and utilities, especially water, has positioned the business for sustained and profitable growth, and this is evidenced by our improved performance on nearly every metric.
"Our Powerhouse business continues to grow its revenue and now has a considerable body of performance data that is compelling for clients both within or adjacent the energy sector, and this is driving increased near-term opportunities that are advancing on Client Final Investment Decision."
Technology — Powerhouse
Synertec relocated Powerhouse Unit #1 within the Surat Basin and successfully reconnected it to Santos’ operations. This marks the first redeployment of a Powerhouse unit to a new well in response to changing production needs, demonstrating the platform’s mobility and versatility and supporting the company’s ability to service long-term supply contracts.
On September 1, 2025, Santos placed an order for a fourth Powerhouse unit, scheduled to be operational in FY26 Q4. The award sits under the existing master framework agreement between Synertec and Santos, consistent with all prior Powerhouse deployments.
The company also deepened engagement with its strategic partners in Australia and overseas. Formalised arrangements, including MOUs with technology suppliers and globally capable manufacturers, are enabling joint workstreams across technical teams to drive design efficiencies, lower manufacturing costs, and reduce delivery complexity at the scale required by industry.
Engineering
Following momentum from the second half of FY25, the Engineering business opened FY26 with above-target revenue, margin and utilisation throughout the quarter. Business development remained active, with more than $11 million of projects secured or at preferred-contractor status. At period end, the pipeline of tendered opportunities awaiting award was approximately $62 million, including $10+ million stemming from recent engineering panel appointments.
During the quarter, the business completed an internal restructure to align delivery and business development around five industry sectors — Water, Transport, Power & Resources, Defence & Manufacturing and Life Sciences. The model is designed to sharpen accountability for delivery performance, broaden ownership of work winning, and strengthen client and partner relationships, while enabling geographic expansion of core competencies.
National expansion progressed to plan. In WA and NSW, the team submitted $7 million of tenders, secured a significant new project with Water Corporation in Perth and completed onboarding with Sydney Water. Delivery continued for national clients in Queensland and Tasmania. To support near-term opportunities, Synertec increased headcount in Perth with senior technical hires and appointed a State Manager in Sydney to lead growth in NSW.