How Will Saunders Turn FY25 Challenges into FY26 Growth?

Navigating a Year of Challenges

Saunders International Limited’s FY2025 results reveal a year marked by operational headwinds and strategic transition. Despite a slight dip in revenue to $214.5 million, the company faced significant profit pressure, with adjusted net profit after tax (NPAT) plunging 71% to $3.2 million and adjusted EBITDA halving to $9.3 million. These declines were driven by delayed project awards, adverse weather events, and rising costs, particularly in the second half of the year.

However, Saunders demonstrated resilience through swift mitigation efforts, including efficiency improvements, tighter delivery controls, and a disciplined focus on safety and client outcomes. The company’s diversified business model and strong fundamentals, highlighted by a healthy cash position of $22.1 million and zero corporate debt, provided a solid foundation amid these challenges.

Strategic Expansion in Water Sector

A defining moment for Saunders in FY25 was the acquisition of Aqua Metro in July 2025. This move significantly expanded Saunders’ Victorian footprint and deepened its capabilities in the Water sector, a market experiencing accelerated national investment driven by infrastructure renewal and water security needs. Aqua Metro brings multiple long-term utility contracts, adding stable, annuity-style earnings to Saunders’ portfolio and enhancing its recurring revenue streams.

The integration of Aqua Metro has been seamless, enabling cross-sector collaboration across Water, Civil, and Mechanical disciplines. Notably, Saunders secured two 10-year Sydney Water Delivery Contractor Panel Agreements, underscoring its strengthened market position and long-term partnership potential.

Leadership and Governance Strengthened

FY25 also saw a smooth leadership transition with Angelo De Angelis appointed as Managing Director and CEO, bringing over 30 years of technical and commercial expertise. Mark Benson, the outgoing CEO after a decade of leadership, remains on the Board as Executive Director until December 2025, ensuring continuity. The Board welcomed Andrew Bellamy, former CEO of Austal Ltd, further reinforcing governance and strategic oversight.

Robust Pipeline and Positive Outlook

Despite FY25’s challenges, Saunders enters FY26 with strong momentum. The company reported a record $4 billion tender pipeline, a 30% increase year-on-year, spanning Defence & Government, Water, Energy, and Resources & Industrials sectors. Tendering activity, which slowed in FY25, is now accelerating with $81 million in projects secured year-to-date and an additional $94 million in Preferred Contractor status.

Guidance for FY26 anticipates revenue growth to between $315 million and $345 million, with adjusted EBITDA margins improving to 3.5%–4.5%, reflecting expected operational efficiencies and the benefits of Aqua Metro integration. Saunders’ focus on repeat clients, long-term annuity contracts, and early contractor involvement strategies positions it well for sustainable growth.

Safety and ESG Commitments

Safety remains a cornerstone of Saunders’ culture, with zero lost time injuries recorded in FY25 and ongoing programs fostering accountability and quality. The company also advanced its environmental, social, and governance (ESG) initiatives, launching its first Reflect Reconciliation Action Plan and enhancing modern slavery governance. Post-acquisition, Saunders has broadened its sustainability focus, supporting clients’ net zero ambitions through decarbonisation and community value creation.