EVZ Limited reported a 14% revenue increase to $123.1 million and a 213% jump in net profit after tax to $3.87 million for FY2026, resuming dividends for the first time since 2010.
- Revenue rises 14% to $123.1 million
- EBITDA surges 71% to $9.1 million
- Net profit after tax triples to $3.87 million
- First dividend since 2010 paid and new dividend declared
- Order book exceeds $80 million heading into FY2027
Profitability Surge Driven by Margin Improvement and Project Discipline
EVZ Limited (ASX:EVZ) delivered a standout FY2026, with net profit after tax more than tripling to $3.87 million, up from $1.24 million the previous year. Revenue climbed 14% to $123.1 million, while EBITDA soared 71% to $9.1 million, reflecting a disciplined approach to project selection, improved gross margins, and tighter cost and contract management across its diversified industrial services portfolio.
This performance enabled the company to pay its first fully franked dividend since 2010, distributing 0.5 cents per share in April 2026, and subsequently declaring a further 0.55 cents per share dividend to be paid in October 2026. Basic earnings per share rose to 3.18 cents from 1.02 cents, underscoring the improved profitability per share.
Growth Across Building Products and Energy & Resources Divisions
The Building Products division, which includes Syfon Systems, Tank Industries, and TSF Power, played a significant role in revenue growth. Syfon Systems maintained a strong order book and expanded its Southeast Asian footprint, benefiting from urban development and infrastructure investment in Malaysia, Indonesia, and Vietnam. Tank Industries saw robust revenue growth driven by industrial infrastructure and emerging technology sectors, including data centre projects in Melbourne, though margins softened as it scaled operations and capacity.
Meanwhile, the Energy & Resources segment, anchored by Brockman Engineering and TSF Power, capitalised on structural investment trends such as energy security and infrastructure renewal. Brockman Engineering is well positioned to benefit from the Australian Government’s $10.2 billion fuel storage resilience package, aligning closely with its specialist capabilities. TSF Power expanded its portfolio of long-term service agreements across Australia and New Zealand, enhancing earnings visibility through recurring revenue streams.
Strong Balance Sheet and Strategic Outlook
EVZ closed FY2026 with a robust balance sheet, holding $18.3 million in cash and net assets of $38.1 million. The group generated $12.1 million in net operating cash inflows, supporting both resilience and growth ambitions. The order book exceeds $80 million heading into FY2027, underpinning confidence in sustainable growth despite cyclical market conditions.
The Board emphasises ongoing strategic priorities: enhancing margins, growing recurring earnings, strengthening market leadership, and pursuing scalable organic and acquisition-driven growth. Capital allocation remains disciplined, balancing shareholder returns with investment in manufacturing capacity and operational scalability.
Governance, Risk Management, and Incentives
Governance disclosures highlight a fully independent non-executive Board, with Chairman Graham Burns reducing his shareholding below 10% to reinforce independence. The company maintains rigorous risk management frameworks addressing safety, delivery execution, recruitment, credit, cyber security, and climate-related risks. EVZ continues to embed ESG principles through a sustainability strategic framework.
Executive remuneration aligns closely with performance, featuring short- and long-term incentives linked to profit growth, earnings per share, and cash flow. Performance rights granted under the long-term incentive scheme vest based on key performance indicators over a three-year period, further aligning management interests with shareholder value creation.
What to Watch Next
EVZ’s strong FY2026 results come amid active government infrastructure spending and a diversified project pipeline. The company’s ability to convert its $80 million order book into profitable revenue, execute on its growth strategy including acquisitions, and manage margin pressures will be critical to sustaining momentum. Investors will be watching how EVZ balances dividend payments with reinvestment in capacity and capability expansion as it navigates cyclical industry dynamics.
Bottom Line?
EVZ’s FY2026 results mark a clear inflection point, but sustaining growth and margin gains amid cyclical markets and scaling operations remain key challenges.
Questions in the middle?
- Will EVZ’s expansion in Southeast Asia translate into meaningful earnings contributions in FY2027 and beyond?
- How will the company capitalise on the Australian Government’s fuel storage resilience package through Brockman Engineering?
- Can EVZ maintain margin improvements while scaling Tank Industries’ manufacturing and fabrication capacity?