Synertec Reveals ANSTO Role in Major Nuclear Medicine Facility

ANSTO Contract Brings Nuclear Medicine Work Into Focus

Synertec Corporation Limited (ASX:SOP) has put a name and a national healthcare purpose to the $45.5 million engineering contract it announced last week: the client is the Australian Nuclear Science and Technology Organisation, and the work centres on a next-generation nuclear medicine manufacturing facility at Lucas Heights in New South Wales.

The approximately eight-year program is financially significant for Synertec Engineering, with the contract worth 2.4 times the division’s FY26 external revenue. The company expects to recognise approximately $36 million during the initial 26-month design phase, which begins on 21 September 2026.

Design Phase Carries Most Near-Term Revenue

Synertec expects the project to generate a contribution margin above 25%, while labour gross margin is forecast to sit at the top end of the company’s target range. It also says the contracted payment profile and current delivery plan should keep the project cumulatively cash-flow positive for more than 90% of its term.

That profile matters because the contract is expected to require minimal working capital. Synertec says funding needs can be serviced through headroom in its debt facility and the proceeds of its recent equity raise, although the announcement does not quantify the project’s earnings contribution or set out detailed termination provisions.

Synertec Takes Process Design Lead

Synertec will act as process design and design integration lead across the facility’s delivery lifecycle. Its responsibilities include process architecture, systems engineering, specialised good manufacturing practice and radiological manufacturing systems, facility-wide integration, vendor and procurement support, regulatory and licensing assistance, digital engineering, design assurance, and support through construction, commissioning, qualification and operational readiness.

The facility is intended to replace ANSTO’s existing radiopharmaceutical production infrastructure and support the long-term manufacture of nuclear medicines used in diagnostic imaging and cancer treatment. The project therefore places Synertec inside a highly regulated program tied to Australia’s stated need to maintain sovereign nuclear medicine manufacturing capability, while also expanding the company’s New South Wales operations and its exposure to healthcare, nuclear, defence and critical infrastructure opportunities.

FY27 Guidance Update Still Pending

Synertec says mobilisation is under way, but it is still assessing the contract’s effect on FY27 revenue guidance. The company expects the impact to be favourable as delivery schedules, resource requirements, commercial arrangements and revenue-recognition milestones become clearer. A formal update will come only when it has sufficient certainty over the execution profile.