Synertec Secures $4 Million AGL SCADA Upgrade Amid Robust FY27 Growth Outlook

Major AGL Contract Confirms Synertec’s Strategic Momentum

Synertec Corporation Limited (ASX:SOP) has taken a significant step forward in its energy infrastructure ambitions by securing a $4 million contract to deliver AGL’s SOLIS Project, a comprehensive SCADA upgrade across 26 sites nationwide. This deal, formalised under a Framework Agreement signed in October 2025, follows a Letter of Intent announced in May and cements Synertec’s role as a key player in advanced automation systems for critical energy infrastructure.

The SOLIS Project aims to replace AGL’s legacy Supervisory Control and Data Acquisition system with a modern, cyber-secure platform centralised in Melbourne. It promises to streamline monitoring and control across AGL’s gas and renewable assets, offering a unified operational view. Phase 1 is already underway, reflecting Synertec’s growing ability to win large-scale, technically complex projects against both domestic and international competitors.

Robust FY26 Performance Sets Stage for Accelerated Growth

Behind this contract win lies a year of solid operational progress for Synertec. The company reported FY26 group revenue of $21.1 million, a 19% increase on the prior year, alongside a positive net operating cash flow of $0.5 million, a $4.6 million improvement from the previous year’s deficit. The fourth quarter alone saw $6 million in revenue, up 16% year-on-year, with Engineering segment revenue climbing 22% in the same period.

Synertec’s Managing Director Michael Carroll highlighted the company’s disciplined cost management, including a $1.5 million reduction in corporate expenses and a 35% improvement in Engineering contribution margin. The Powerhouse Technology Platform also transitioned from development to commercialisation, delivering $2.5 million in recurring revenue, up 23% from FY25.

Expanding Pipelines and Contracted Work Underpin FY27 Guidance

Looking ahead, Synertec forecasts FY27 revenue between $29.5 million and $31.7 million, representing a 40% to 50% increase over FY26. This ambitious outlook is supported by a contracted work-in-hand figure of $20.9 million, up 188% year-on-year, and a sizeable engineering pipeline valued at $174 million, a 60% increase from the prior period. The Powerhouse pipeline, based solely on tendered opportunities and expressions of interest, exceeds $400 million.

Synertec’s strategy to focus on critical infrastructure markets, resilient to economic headwinds, appears validated by these figures. The company holds panel memberships with nine major critical infrastructure and government-owned corporations, securing work in sectors ranging from water and transport to energy and life sciences. Notably, Melbourne Water and Sydney Water have announced substantial infrastructure budgets, providing fertile ground for Synertec’s engineering services.

Powerhouse and Strategic Partnerships Drive Technology Leadership

Synertec’s Powerhouse platform continues to gain traction in energy storage and resilience. The company has secured six Powerhouse units under Build, Own, Operate and Maintain contracts with Santos/GLNG JV, with additional projects underway with TasNetworks, Amplitude Energy, and Shell. The recent strategic collaboration with Hitachi Energy further bolsters Synertec’s technological capabilities and market reach.

Carroll emphasised Powerhouse’s role as a hedge against energy supply disruption and cost volatility, particularly for energy-intensive industries like oil and gas and data centres. The platform’s flexible, low-emission energy solutions are positioned to meet growing demand amid global geopolitical uncertainties.

Funding Position Supports Growth Without Immediate Capital Raises

Financially, Synertec ended the quarter with $2 million in cash and access to $14.8 million in unused financing facilities, including a $21 million secured loan from Altor Capital, of which $6.5 million is drawn. The company reported positive net operating cash flow for the quarter and full year, reducing reliance on external funding and extending its runway for growth initiatives.

This strong liquidity position, combined with improving earnings quality and disciplined working capital management, underpins Synertec’s confidence in delivering its FY27 revenue guidance without immediate capital raising.