Verbrec Posts Highest Margins Since 2015 and Resumes Dividends
Verbrec Limited has reported a strong FY2025 with record margins and resumed dividend payments after more than a decade, alongside strategic moves including a key acquisition and divestment.
- Resumed dividends for the first time since 2013
- Highest gross and EBITDA margins in years
- Divestment of Competency Training for $11.5 million
- Acquisition of Alliance Automation funded via balance sheet
- Nine consecutive years of zero lost time injuries
Solid Financial Performance and Safety Milestones
Verbrec Limited, a professional services firm operating across Australia, New Zealand, and the Pacific, has delivered a robust financial performance for the 2025 fiscal year. The company reported its highest gross margins since 2015 and the strongest EBITDA margin (adjusted for performance rights expense) since 2013. Notably, Verbrec resumed dividend payments for the first time in over a decade, signaling renewed confidence in its cash flow and profitability.
Safety remains a cornerstone of Verbrec’s operations, with the company proudly maintaining zero lost time injuries for the ninth consecutive year. This achievement underscores the company’s commitment to protecting its workforce and the communities it serves, supported by the recent introduction of a comprehensive leading safety indicators program.
Strategic Transactions, Divestment and Acquisition
Post-year-end, Verbrec announced two significant strategic moves. The divestment of its Competency Training business to RelyOn for $11.5 million in cash is expected to complete within the calendar year. This sale will bolster Verbrec’s balance sheet, providing capital to fuel organic growth and potential acquisitions.
In a complementary move, Verbrec acquired Alliance Automation, a respected professional services company with strengths in skills and geographic reach that align well with Verbrec’s existing operations. The acquisition was funded through the company’s balance sheet and a modest adjustment to its finance facility, notably without issuing new equity. This transaction is expected to enhance Verbrec’s service offerings and market footprint.
Financial Health and Forward Outlook
Verbrec ended FY2025 with a strong cash position of $7.1 million and a robust balance sheet. The company also holds deferred tax assets of $17.3 million and unrecognised tax losses of $14.2 million, which management believes are highly recoverable. With $5.7 million in franking credits, the board has committed to maintaining fully franked dividends moving forward.
The company’s leadership team, praised by Chair Phillip Campbell for their operational execution, is focused on leveraging these strengths to navigate a choppy market environment. Verbrec’s core markets, energy, mining, water infrastructure, and defence, are undergoing significant transitions toward sustainability, and the company is positioning itself as a key partner in this evolution.
Looking ahead, Verbrec enters FY2026 with a clear strategy, a solid foundation, and a commitment to delivering long-term value to shareholders and stakeholders alike.
Bottom Line?
Verbrec’s strategic moves and financial discipline set the stage for growth, but integration and market conditions will test its momentum.
Questions in the middle?
- How will the integration of Alliance Automation impact Verbrec’s operational efficiency and margins?
- What is the timeline and expected financial impact of the Competency Training divestment completion?
- How will Verbrec sustain dividend payments amid evolving market challenges and growth investments?