Synertec Corporation has reported its strongest first quarter since FY19, driven by a 13% revenue increase and a new order for its Powerhouse microgrid units from Santos. The company’s engineering division also shows promising expansion with a robust project pipeline.
- 13% revenue growth to $5 million in FY26 Q1
- 44% improvement in EBITDA compared to prior year quarter
- Fourth Powerhouse unit ordered by Santos for FY26 Q4 deployment
- Engineering business secures $11 million in projects with $62 million tender pipeline
- Altor debt facility extended by $4 million, total available $15.5 million
Strong Financial Momentum
Synertec Corporation Limited (ASX, SOP) has kicked off FY26 with its best first quarter performance since FY19, reporting a 13% increase in group revenue and other income to $5 million. This growth is complemented by a 44% rise in EBITDA, signaling improved operational efficiency and profitability. The company ended the quarter with a net cash position of $2.6 million, supported by a recently extended debt facility with Altor Capital, which now totals $15.5 million.
Powerhouse Expansion and Operational Excellence
Synertec’s flagship renewable energy solution, the Powerhouse microgrid system, continues to demonstrate exceptional reliability with over 99.9% power availability across 11 coal seam gas wells in Queensland. This performance has earned the company a fourth Powerhouse unit order from Santos, scheduled for deployment in the fourth quarter of FY26. The successful relocation of an existing unit within the Surat Basin highlights the system’s flexibility and adaptability to changing operational needs.
Engineering Business Growth and Strategic Positioning
The engineering division has maintained its positive trajectory, securing or being nominated for more than $11 million in projects during the quarter and building a tender pipeline valued at approximately $62 million. The business has realigned its teams across five key sectors; Water, Transport, Power & Resources, Defence & Manufacturing, and Life Sciences; to enhance accountability and foster growth. Geographic expansion is underway with new senior appointments in Western Australia and New South Wales, alongside ongoing projects in Queensland and Tasmania.
Strategic Partnerships and Future Outlook
Synertec has strengthened its collaborations with global technology providers and manufacturers, aiming to reduce costs and streamline delivery at scale. While revenue from recent Australian State Water Authority panel appointments is still emerging, these contracts are expected to underpin future growth. Managing Director Michael Carroll expressed optimism about the near term, citing strong utilization rates and a growing body of performance data that is attracting client interest beyond the energy sector.
Financial Stability and Operational Cash Flow
The company’s cash flow remains stable, with net cash used in operating activities amounting to $0.6 million for the quarter. Synertec’s available funding, including cash and unused financing facilities, supports nearly 32 quarters of operations at current burn rates, providing a solid financial foundation for ongoing growth initiatives.
Bottom Line?
Synertec’s robust start to FY26 sets the stage for scaling its renewable energy solutions and engineering services amid growing market demand.
Questions in the middle?
- How will revenue from new water authority panel appointments impact future quarters?
- What are the prospects for additional Powerhouse orders beyond the current Santos contract?
- How will Synertec manage costs and margins amid geographic expansion and increased project scale?