EVZ Limited Reports $10.1M FY26 Operating Cash Flow Amid Active M&A and $80M Backlog

FY26 Cash Flow Strength Despite Quarterly Outflow

EVZ Limited (ASX:EVZ) wrapped up the 2026 financial year with a net positive operating cash flow of $10.1 million, underscoring solid underlying trading and disciplined working capital management. However, the June quarter saw a net operating cash outflow of $2.4 million, primarily due to the delayed receipt of two payments totaling approximately $1.5 million, which were received shortly after quarter-end. This timing issue masks what remains a resilient operational performance across EVZ's portfolio.

Contract Backlog and Sector Diversification Drive Revenue

Cash receipts for FY26 climbed 18% year-on-year to $142 million, reflecting the company's expanding footprint in both Energy & Resources and Building Products sectors. EVZ holds a contract backlog of $80 million, providing revenue visibility and underpinning growth prospects. Key contributors include Brockman Engineering, which is positioned to support Australia's expanded onshore fuel storage network backed by a $10.2 billion federal funding package, and TSF Power, whose diversified service offerings to power generation clients are benefiting from an expanding installed generation base across Australia and New Zealand.

Building Products Segment Gains Momentum in Asia-Pacific

Syfon Systems and Tank Industries continue to strengthen EVZ's Building Products division. Syfon Systems maintains strong demand domestically and in Southeast Asia, with growing infrastructure investments in Malaysia, Indonesia, and Vietnam supporting regional expansion. Tank Industries has recently delivered major water storage projects, including a large Melbourne data centre, contributing to a significant revenue uplift with momentum expected to carry into the first half of FY27. Ongoing investments in manufacturing and fabrication are enhancing operational efficiency and margins.

Balance Sheet Flexibility Fuels Growth and M&A Ambitions

EVZ ended FY26 with a cash balance of $18.3 million and no drawn debt, supported by undrawn financing facilities of $9.1 million. The company has transitioned its banking facilities from Commonwealth Bank to HSBC, securing a $15.5 million total facility with improved terms and flexibility. This robust financial position enables EVZ to pursue accretive acquisitions, with several opportunities currently under discussion and potential execution targeted for the first half of FY27. The active M&A pipeline aligns with the company’s strategic shift towards a diversified industrial business model focused on sustainable margin expansion and risk mitigation.

Outlook Hinges on Contract Wins and M&A Execution

With numerous active tender bids underway for FY27 and a strong contract backlog, EVZ appears well placed to continue its growth trajectory. The interplay between successfully converting these bids, realising pipeline M&A deals, and managing working capital will be pivotal. While the recent quarterly cash outflow raises a short-term caution flag, the delayed payments and underlying operational strength suggest this is a temporary blip rather than a structural issue.