EVZ Limited reports a robust first quarter for FY2026, showcasing strong cash flow, zero debt, and a substantial contract backlog. The company advances key projects and eyes strategic acquisitions to fuel growth.
- Cash balance of $14.8 million with zero drawn debt
- Net operating cash inflow of $4.5 million for Q1 FY2026
- Contract backlog of approximately $80 million
- Progress on United Petroleum Hastings Terminal and Rio Tinto CWSS projects on schedule
- Active pursuit of strategic acquisitions and expansion in Asia
Strong Financial Position and Cash Flow
EVZ Limited has kicked off FY2026 with a solid financial footing, reporting a cash balance of $14.8 million and no drawn debt at the end of the first quarter. The company generated a net positive operating cash flow of $4.5 million, underpinned by improved collections and milestone payments from major contracts. Cash receipts surged 36% quarter-on-quarter and 30% compared to the same period last year, signaling robust operational momentum.
Robust Contract Backlog and Project Execution
With a contract backlog nearing $80 million, EVZ is well-positioned to sustain its growth trajectory. Key projects such as the United Petroleum Hastings Terminal Expansion and the Rio Tinto CWSS project in Dampier are progressing safely and on schedule. Brockman Engineering, a core business unit within EVZ’s Energy & Resources sector, is delivering enhanced margins and profitability, having moved past legacy contracts to operate at peak efficiency.
Growth Across Energy & Resources and Building Products
EVZ’s diversified portfolio spans both the Energy & Resources and Building Products sectors. TSF Power continues to expand its technical support and maintenance services, securing long-term contracts across Australia and New Zealand. Meanwhile, Syfon Systems is capitalizing on infrastructure growth in Southeast Asia, with strong demand in Malaysia, Indonesia, and Vietnam. Tank Industries has bolstered its market position through significant contracts like the Eneabba Rare Earths Refinery and the Perdaman Industries Urea Plant, enhancing revenue and margins.
Strategic Acquisitions and Market Expansion
EVZ is actively pursuing strategic acquisitions aligned with its existing operations to broaden its footprint in adjacent markets. Several promising prospects are in advanced stages, potentially transformational for the company’s market share in both core sectors. This acquisition strategy complements ongoing tender bids and contract pursuits, reinforcing EVZ’s commitment to sustainable growth and operational excellence.
Balance Sheet Strength and Risk Management
The company’s balance sheet remains strong, with no debt drawn and a bank guarantee facility of $7 million available but unused. Management continues to focus on operational improvements and commercial risk mitigation across all business units, ensuring resilience amid evolving market conditions.
Bottom Line?
EVZ’s strong start to FY2026 sets the stage for continued expansion, but investors will watch closely how acquisition plans and contract wins unfold.
Questions in the middle?
- Which strategic acquisitions are closest to completion and what impact will they have on EVZ’s financials?
- How will EVZ sustain margin improvements amid competitive tendering and market shifts?
- What is the outlook for contract awards in the Energy & Resources sector beyond the current backlog?