EVZ Limited Secures $28M in New Contracts Amid Strong Cash Flow

• Net positive operating cash inflow of $3.2M for Q2 FY25
• Cash balance of $10.8M with zero drawn debt
• New contract wins totaling circa $28M including United Petroleum and Eneabba projects
• Contract backlog stands at approximately $110M
• Active pursuit of acquisitions to expand Energy and Resources and Building Products sectors

Strong Cash Flow and Financial Position

EVZ Limited has delivered a solid financial performance in the second quarter of fiscal year 2025, reporting a net positive operating cash inflow of $3.2 million. This inflow was driven by improved collections and favourable supplier payment terms, underpinning the company’s healthy cash balance of $10.8 million at quarter-end. Notably, EVZ maintained zero drawn debt, reflecting a conservative capital structure and strong liquidity position as it navigates ongoing and new projects.

The company’s cash receipts for the quarter reached $32.1 million, contributing to a year-to-date total of $65.6 million. These figures highlight EVZ’s operational resilience and effective cash management amid a competitive market environment.

Contract Wins and Backlog Signal Growth Momentum

EVZ’s contract backlog remains robust at approximately $110 million, bolstered by recent contract wins valued at around $28 million. Key new projects include the United Petroleum Hastings Terminal Expansion and the Eneabba Rare Earths Refinery Project, both significant undertakings that will extend EVZ’s footprint in the energy and resources sector.

These contract wins not only reinforce EVZ’s market position but also provide a strong pipeline for revenue growth into FY26. The company is actively engaged in numerous tender bids and prospects, which management believes will sustain momentum and diversify its project portfolio across targeted sectors and geographies.

Sector-Specific Developments: Energy & Resources and Building Products

Within the Energy and Resources sector, EVZ’s Brockman Engineering division is progressing with the Rio Tinto CWSS project, expected to complete in FY26, alongside delivering large steel water reservoirs and liquid fuel tanks for various clients. TSF Power continues to expand its technical services, capitalising on the rising demand for renewable gas and low-carbon energy solutions, with growth across gas engine maintenance, parts sales, and standby power plant services in Australia and New Zealand.

In the Building Products sector, Syfon Systems has maintained strong performance, supported by a stable backlog and active tendering. Syfon Asia is improving its regional trading performance, benefiting from infrastructure demand in Malaysia, Indonesia, and Vietnam through strategic partnerships. Tank Industries is also gaining market share with recent contracts for process water tanks at the Eneabba Rare Earths Refinery and the Perdaman Industries urea plant, expected to enhance revenue and margins in FY26.

Strategic Growth and Acquisition Focus

EVZ is pursuing strategic acquisitions to complement its existing market sectors, aiming to infill adjacent markets and potentially transform its scale and market share in both the Energy and Resources and Building Products sectors. This proactive approach signals management’s intent to leverage organic growth with inorganic opportunities, positioning EVZ for sustained expansion.

Operational improvements remain a priority to enhance profit margins and reduce commercial risk, reflecting a disciplined approach to growth and risk management.

Bottom Line?

With a strong cash position and a growing contract pipeline, EVZ is well poised for expansion but must manage timing risks on new contract commencements.

Questions in the middle?

• How will delays in new contract starts affect EVZ’s cash flow and profitability in FY25?
• What specific acquisition targets is EVZ considering to accelerate growth in its core sectors?
• How sustainable is the demand growth for TSF Power’s renewable gas services amid evolving energy policies?