Synertec’s Engineering EBITDA Rockets 144% as Revenue Hits $10.2m

• Group revenue up 20% to $10.2 million
• Engineering EBITDA surged 144% year-on-year
• Net operating cash inflow of $0.5 million, first positive since FY19
• $135 million engineering tender pipeline including $44 million recently submitted
• Secured major TasNetworks contract for community batteries under ARENA program

Strong Financial Momentum

Synertec Corporation Limited (ASX:SOP) has delivered a compelling first half performance for FY26, reporting group revenue of $10.2 million, a 20% increase compared to the previous corresponding period. This growth was accompanied by a remarkable 144% jump in engineering EBITDA, signalling a successful turnaround driven by operational efficiencies and cost reductions.

The company also achieved a net operating cash inflow of $0.5 million, marking its first positive cash flow since FY19. This improvement reflects Synertec’s disciplined cost management, including $2.5 million in savings realised over calendar year 2025, and a strategic focus on higher-margin projects.

Robust Tender Pipeline and Market Expansion

Synertec’s engineering division is firing on all cylinders with a tender pipeline valued at approximately $135 million, including $44 million of tenders recently submitted. The company’s diversified sector exposure spans water, energy and resources, life sciences, transport, and defence, supported by new office openings and panel awards in key Australian markets such as Sydney and Perth.

Notably, Synertec secured a significant contract with TasNetworks to deploy six front-of-the-meter Powerhouse community batteries under the ARENA program. This contract not only expands Synertec’s footprint into the distribution network service provider (DNSP) market but also aligns with national priorities on grid resilience, renewable energy integration, and decentralised energy systems.

Powerhouse Platform Gains Traction

The Powerhouse platform, Synertec’s flagship energy technology offering, continues to gain momentum. Designed as a flexible, modular system capable of delivering up to 30MW, the platform benefits from a low-cost supply chain that reduces costs by 40% compared to traditional fossil fuel power generation. Its cyber-resilient, autonomous operation and scalable design position it well to meet evolving energy market demands.

With multiple units installed on long-term leases for clients like Santos and Shell, Synertec has demonstrated operational reliability and quality assurance. The company’s ability to deliver at scale is underscored by its capacity to produce up to 500 units per year, supported by rigorous quality control and local software development protecting its intellectual property.

Strategic Outlook and Leadership Commentary

Managing Director Michael Carroll emphasised the strength of Synertec’s strategic positioning, highlighting the benefits of long-term panel arrangements that reduce competition and lower business development costs. He noted the company’s readiness to meet growing customer demand, with a qualified opportunity pipeline increasing from $70 million to $122 million within the first half of FY26 alone.

Carroll expressed confidence in the company’s ability to deliver quality projects at scale, supported by world-leading supply chain and technology partnerships. The company’s focus on innovation, cost efficiency, and market diversification appears to be setting the stage for sustained growth.

Bottom Line?

Synertec’s FY26 H1 results signal a pivotal moment as it scales operations and deepens market penetration amid a transforming energy landscape.

Questions in the middle?

• How will Synertec convert its substantial tender pipeline into confirmed contracts and revenue?
• What are the risks and timelines associated with scaling Powerhouse unit production to 500 units per year?
• How might evolving energy policies and grid decentralisation impact Synertec’s growth trajectory?