Synertec Corporation lifted Q3 revenue by 18%, cut costs, and secured new Powerhouse contracts that could double FY27 revenue.
- 18% revenue growth in FY26 Q3
- Powerhouse revenue forecast to double in FY27
- $1.3m corporate cost reduction YTD
- Improved operating cash outflow to $0.5m YTD
- Engineering business expands across Australia
Powerhouse Contracts Set to Double Revenue
Synertec Corporation Limited (ASX:SOP) is on track to double its Powerhouse Battery Energy Storage System (BESS) revenue in FY27, following the construction of two units for major Oil & Gas clients and a recent six-unit contract with TasNetworks. The Powerhouse units, currently being assembled in Brisbane after overseas manufacturing, are expected to be delivered in FY26 Q4, while the TasNetworks deal marks Synertec’s strategic entry into the community battery market under an ARENA-funded program.
The TasNetworks project is significant not only for its scale but also for validating the flexibility of Synertec’s Powerhouse platform in distribution-connected applications. The company’s focus on acoustic performance aims to deliver one of Australia's quietest community battery solutions, an increasingly critical factor for urban installations. Existing Powerhouse units continue to impress with over 99.9% power availability across five years, underscoring the system’s reliability in remote industrial settings.
Revenue Growth and Cost Efficiencies Drive Turnaround
Group revenue and other income rose 18% in Q3 to $5.1 million and 19% year-to-date to $15.2 million compared to the prior corresponding period. Meanwhile, corporate and management costs fell by $1.3 million year-to-date, contributing to a marked improvement in operating cash flow, which narrowed to a $0.5 million outflow from $3.1 million previously. Synertec’s Managing Director Michael Carroll highlighted that this turnaround reflects the company’s strategy of fostering deep client relationships and delivery excellence, which supports profitable repeat business and margin protection.
These financial strides build on momentum from earlier in FY26, including a robust $135 million engineering tender pipeline and a $6 million funding facility extension, as detailed in the company’s 20% revenue growth and $135m tender pipeline report. The Powerhouse segment alone delivered $0.6 million revenue at over 90% EBITDA during the quarter, emphasizing its profitability.
Engineering Business Expands Nationally with Key Contracts
Synertec’s Engineering division continues to drive growth, securing major operational technology contracts with Sydney Water exceeding $1 million and expanding its presence in New South Wales and Western Australia. The division’s pipeline now includes 322 opportunities valued at $129 million, with recent awards spanning water, transport, and life sciences sectors, including projects for Zoetis and Melbourne Metro Tunnel.
The company’s strategic appointment to the South Gippsland Water Technical Support Services SCADA Panel and ongoing work under Melbourne Water’s Operational Technology Panel further cement its position in the water infrastructure market. These developments align with Synertec’s broader national expansion strategy, supported by a new Sydney office and senior personnel appointments, as covered in the Sydney Water contracts and national expansion update.
Manufacturing and Quality Assurance Enhancements
To support scalable deployment of its Powerhouse technology, Synertec has validated a low-cost manufacturing supply chain involving overseas partners, with components delivered on schedule and passing rigorous quality assurance. The company plans to bolster QA inspection teams across Asia and Australia to maintain build consistency and accelerate delivery timelines.
These initiatives are part of Synertec’s push to “productise” the Powerhouse platform, aiming to streamline factory-to-field delivery, improve margin outcomes, and protect proprietary control systems. This manufacturing scale-up is critical as the company prepares for a growing project pipeline and broader market opportunities, including data centre builds requiring reliable renewable power.
Bottom Line?
Synertec’s FY26 Q3 results reflect a tangible turnaround, but execution risks remain as it scales manufacturing and delivers on new Powerhouse contracts.
Questions in the middle?
- Can Synertec maintain its manufacturing quality and delivery timelines amid scaling?
- How will the company capitalise on emerging data centre opportunities with its Powerhouse platform?
- What impact will increased competition in the community battery sector have on Synertec’s growth?