Saunders CEO to Exit as FY25 Earnings Forecasts Slide Amid Delays
Saunders International announces the planned resignation of CEO Mark Benson by year-end alongside a notable downgrade in FY25 revenue and earnings guidance due to project delays and weather disruptions.
- CEO Mark Benson to resign effective December 31, 2025
- FY25 revenue guidance lowered to $206-216 million
- Adjusted EBITDA forecast cut to $9-10 million
- Delays in Defence and Resources project awards impact outlook
- Strong tender pipeline valued at $1.5 billion maintained
Leadership Transition Announced
Saunders International Limited has revealed that its Managing Director and CEO, Mark Benson, will step down at the end of this year after a decade at the helm. Benson’s tenure has been marked by significant growth, expanding the workforce from 80 to over 500 employees and positioning Saunders as a leading multidisciplinary contractor in bulk liquid storage and transfer.
In a statement, Benson expressed confidence in the company’s future, highlighting a structured transition plan and the support of a capable leadership team. The Board has already initiated the search for his successor, promising a market update once the appointment is finalized.
Revised Financial Guidance Reflects Market Challenges
Alongside the leadership news, Saunders has revised its FY25 financial guidance downward. Revenue is now expected between $206 million and $216 million, down from the previous $210 million to $225 million range. Adjusted EBITDA forecasts have been cut more sharply, from $14-16 million to $9-10 million. These adjustments stem from a combination of delayed project awards, particularly in the Defence and Resources sectors, and adverse weather events, including multiple flood disruptions.
The company has responded proactively by implementing cost reduction measures to align expenses with the revised revenue outlook. Despite these setbacks, Saunders has maintained a robust tender pipeline, which has grown to $1.5 billion, up from $1.3 billion at the end of 2024. Recent contract wins, including the $27 million Kalgoorlie CIL4 project and other awards totaling over $23 million, underscore ongoing market confidence.
Outlook and Strategic Positioning
While the short-term outlook is tempered by project delays and weather-related disruptions, Saunders remains optimistic about medium to long-term growth prospects. The company’s strategic diversification across Defence, Water, Energy, and Resources sectors, combined with strong tender activity, provides a foundation for recovery and expansion.
Mark Benson’s departure marks the end of a transformative era for Saunders, but the company’s leadership and Board appear focused on ensuring continuity and capitalizing on its established market position. Investors will be watching closely for the new Managing Director’s vision and the full-year results presentation scheduled for August 2025, which will provide further clarity on the company’s trajectory.
Bottom Line?
Saunders faces a pivotal moment as leadership changes coincide with a cautious financial outlook, setting the stage for a critical year ahead.
Questions in the middle?
- Who will Saunders appoint as the new Managing Director and what strategic direction will they pursue?
- How quickly can Saunders recover from project delays and weather disruptions to meet its medium-term growth targets?
- What further cost management or operational adjustments might Saunders implement to protect profitability?