EVZ’s Acquisition Plans Stall Despite Record Cash and Profitable Growth
EVZ Limited has reported its strongest quarterly cash position since inception, alongside profitable growth and an $80 million contract backlog, signalling robust momentum in its transition to a diversified industrial group.
- Record quarterly cash balance of $18.8 million with no debt
- Net positive operating cash flow of $4.3 million
- Contract backlog stands at $80 million
- All business units trading profitably with improved margins
- Active tender bids and strategic acquisition pursuits underway
Strong Cash Flow and Financial Position
EVZ Limited has delivered a standout performance in the second quarter of fiscal 2026, posting its highest-ever quarterly cash balance of $18.8 million and generating a net positive operating cash flow of $4.3 million. Notably, the company maintains this strong liquidity position without drawing on any debt facilities, underscoring disciplined financial management amid ongoing growth.
The company’s cash receipts rose by 10% compared to the previous corresponding period, reflecting robust demand and effective receivables collection. With an unused financing facility of $396,000, EVZ is well-positioned to support operational needs and strategic initiatives.
Profitable Growth Across Business Units
All of EVZ’s business units are trading profitably, with margins improving across the group. The Energy & Resources sector, anchored by Brockman Engineering and TSF Power, continues to deliver strong results. Brockman has moved beyond legacy contracts and is now operating sustainably with enhanced margins, focusing on complex fabricated equipment and bulk liquid storage solutions for oil, gas, energy, and water sectors.
TSF Power is experiencing robust growth driven by the increasing adoption of renewable gas, securing long-term parts sale agreements and operational support contracts in Australia and New Zealand. This growth is supported by expanding installed generation capacity and rising customer demand across multiple service segments.
Building Products Sector Momentum
Within the Building Products sector, Syfon Systems and Tank Industries are capitalising on strong market fundamentals. Syfon Systems benefits from favourable tender activity and a solid backlog, particularly in Southeast Asia where infrastructure investment is rising. Tank Industries has strengthened its market position through major contract deliveries, including process water storage assets for the Iluka Rare Earths Refinery and the Perdaman Industries Urea Plant in Dampier.
Ongoing investments in manufacturing and fabrication capabilities are enhancing operational efficiency and scalability, positioning these businesses for sustained growth into the second half of FY26 and beyond.
Strategic Transition and Acquisition Focus
EVZ is actively transitioning from a pure engineering projects group to a diversified industrial group, aiming to build a resilient contract portfolio across key sectors and regions. This strategy emphasises long-term customer engagement and value creation, supported by a strong balance sheet that enables the pursuit of strategic acquisitions.
While several attractive acquisition opportunities were explored recently, none proceeded due to external factors beyond the company’s control. Nevertheless, EVZ remains committed to leveraging its cash strength to accelerate growth and diversification.
Bottom Line?
EVZ’s record cash position and profitable growth set a solid foundation, but the market will watch closely for successful acquisitions and contract wins to sustain momentum.
Questions in the middle?
- Which strategic acquisitions is EVZ targeting next, and what caused recent deals to fall through?
- How will EVZ maintain margin improvements amid competitive tendering and market shifts?
- What impact will expanding renewable gas adoption have on TSF Power’s growth trajectory?
