Synertec Reports $10.2M Revenue, 40% Improved Loss, and $6M Funding Extension

Financial Performance Highlights

Synertec Corporation Limited (ASX: SOP) has released its interim results for the half-year ended 31 December 2025, revealing a solid financial turnaround. Revenue climbed 20% to $10.2 million, driven by strong performance in its Engineering segment and growing contributions from its proprietary Powerhouse renewable energy technology. Meanwhile, the net loss after tax narrowed by 40% to $2.53 million, signalling improved operational discipline and cost management.

The Engineering business, which accounts for the majority of revenue, reported $8.9 million in sales, up 20% from the prior period. This segment remains profitable and cash positive, underpinned by a robust project pipeline exceeding $110 million. The company’s strategic focus on consultancy-driven projects and geographic expansion; particularly in New South Wales and Western Australia; has bolstered its market presence and secured significant contracts with government agencies and major infrastructure clients.

Powerhouse Technology Advances

Synertec’s Powerhouse system, an AI-driven, 100% renewable microgrid designed for remote industrial applications, continues to demonstrate operational excellence. During the period, Powerhouse generated $1.2 million in revenue with EBITDA margins exceeding 90%, reflecting its scalable rental contract model. The technology’s reliability remains a standout feature, with availability rates above 99.9% over five years and minimal maintenance requirements.

The company progressed manufacturing scalability and strengthened strategic partnerships, including a key Memorandum of Understanding with Ritar International Group to integrate advanced battery technology and reduce unit costs. Multiple Powerhouse units are under construction, with deployment expected in the fourth quarter of FY26, positioning Synertec for a commercial inflection point as it transitions from validation to scale.

Funding and Balance Sheet

To support its growth ambitions, Synertec secured an extended funding facility with Altor Capital Management, enabling access to $6 million under Tranche 3. This facility restructure includes revised covenant measurement periods and provides the liquidity needed to complete Powerhouse unit construction and expand operations. The company ended the half with $2.7 million in cash and maintained compliance with all financing covenants.

While net assets declined to $2.6 million, reflecting investments in Powerhouse assets and working capital movements, management remains confident in the company’s going concern status based on forecast cash flows and funding availability.

Outlook and Strategic Priorities

Looking ahead, Synertec is focused on converting its substantial project pipeline into contracted revenue, particularly for Powerhouse deployments. The company aims to leverage its supply chain partnerships to drive cost efficiencies and enhance manufacturing capacity. Additionally, the Engineering segment is expected to sustain growth through long-term contracts with government and infrastructure clients, supported by disciplined resource utilisation.

Synertec also emphasises its commitment to sustainability and social impact, engaging with social enterprises and advancing initiatives aligned with the global energy transition. No dividends were declared, and the company reported no litigation during the period.