Verbrec Limited confirms a robust FY2026 with revenues up nearly 50%, while unveiling a bullish FY2027 outlook driven by full-year Alliance Automation integration and expanding project pipelines.
- FY2026 revenue guidance raised to $115-120 million, up 47-54%
- Adjusted EBITDA for FY2026 expected between $8-9 million
- FY2027 revenue guidance set at $140-160 million with adjusted EBITDA of $10-12 million
- Work in hand and opportunity pipeline grow to $78 million and $277 million respectively
- Alliance Automation acquisition to drive full-year earnings and synergy gains in FY2027
Strong FY2026 Performance Amid Energy Market Volatility
Verbrec Limited (ASX:VBC) has confirmed its financial guidance for the full year ending June 2026, projecting continuing operations revenue between $115 million and $120 million. This represents a striking 47% to 54% uplift compared to FY2025, underscoring the company’s accelerating growth trajectory despite a challenging global energy landscape.
The company expects total group EBITDA in the range of $15.0 million to $15.5 million, with adjusted EBITDA from continuing operations forecast between $8 million and $9 million. This adjusted figure excludes one-off items related to divestments, acquisitions, integration costs of its recent Alliance Automation purchase, and share-based payments.
Pipeline Expansion and Project Momentum
Verbrec attributes some temporary delays in project awards during the second half of FY2026 to global energy market volatility and geopolitical uncertainty stemming from the early stages of the Middle East conflict. However, this turbulence has sharpened client and government focus on energy sovereignty, translating into tangible contract wins.
Notably, the $21 million Beetaloo Basin Bi-Directional Upgrade for Power and Water Corporation, announced in June 2026, exemplifies the company’s foothold in critical energy infrastructure projects. By year-end, Verbrec’s total opportunity pipeline had surged to $277 million, up from $203 million mid-year, while work in hand increased to $78 million from $71 million, reflecting a 12-month look-ahead basis. This growth evidences the combined group’s expanded capabilities and success in cross-selling services to capture larger, more complex contracts.
FY2027 Guidance Reflects Full Alliance Automation Impact
Looking ahead, Verbrec has introduced guidance for FY2027, forecasting revenue between $140 million and $160 million and adjusted EBITDA ranging from $10 million to $12 million. The step-up in revenue reflects the first full-year contribution from Alliance Automation, acquired earlier in FY2026, while margin improvements are expected as integration activities mature and synergies are realised.
Management anticipates EBITDA margins to remain broadly stable in FY2027 due to the difference between a seven-month revenue contribution from Alliance Automation in FY2026 versus a full 12 months in FY2027. However, margins are projected to gradually improve over the next 18 to 24 months as integration benefits deepen.
Positioned for Growth in Core Markets
Verbrec is well placed to capitalise on sustained demand across its core growth markets, including the gas market transition, electrification and energy storage, operational technology and cybersecurity, and industrial automation within energy, mining, and water sectors. The reshaped business is leveraging its expanded service offerings and partnerships to capture this demand.
The company’s Managing Director, Mark Read, has overseen this strategic expansion, building on the momentum from Alliance Automation’s acquisition and recent contract wins. The growing work pipeline and opportunity book provide a solid foundation for the company’s ambitious FY2027 targets.
Bottom Line?
Verbrec’s confirmed FY2026 results and robust FY2027 guidance signal a company on a clear growth path, with integration of Alliance Automation and expanding project pipelines key to sustaining momentum.
Questions in the middle?
- How will ongoing global energy market volatility affect Verbrec’s project award timing in FY2027?
- What specific synergies from Alliance Automation integration will drive margin expansion over the next two years?
- Can Verbrec convert its sizeable opportunity pipeline into secured contracts at the anticipated pace?