Saunders builds a bigger platform as water and Defence work lift FY27 visibility

Record Work in Hand sets Saunders up for FY27

Saunders International Limited (ASX:SND) is entering FY27 with its largest secured work base on record, as management targets further revenue growth and seeks to preserve the improved profitability delivered in the second half of FY26.

Work in Hand reached A$571.9 million at 30 June, up 8.1% from the previous year, while the opportunity pipeline expanded 27.5% to A$5.1 billion. The figures give Saunders more forward visibility, but they represent different stages of the commercial funnel: Work in Hand is secured work, whereas the pipeline still has to be converted into awards and execution.

The company reported FY26 revenue of A$305.6 million, up 42.5%, adjusted EBITDA of A$9.8 million and adjusted NPATA of A$3.9 million, an increase of 19.1%. Cash and cash equivalents rose 35% to A$29.8 million. Saunders declared a fully franked final dividend of 1.0 cent per share, taking FY26 dividends to 1.0 cent per share.

Water and Defence expand the operating platform

Management says the Aqua Metro integration has created a broader national Water platform, while two 10-year Sydney Water delivery contractor panels extend Saunders’ reach beyond Victoria. The company also highlighted four multi-year water appointments and framework arrangements announced the previous day, which opened access to approximately A$2 billion of forecast capital works programs, although the earlier announcement stated that no work volumes were guaranteed and revenue was not expected until FY27. This is the same water expansion captured in the four multi-year water appointments.

Defence and Government remains another major growth focus. Saunders said it had secured its first direct head contract with the Australian Department of Defence since year-end, alongside four Defence fuel infrastructure contracts during FY26 and two Indo-Pacific contracts in Malaysia and Japan. The Malaysia award was previously described as a A$23 million Defence fuel infrastructure contract, with revenue expected across FY27 and FY28, in the Malaysia Defence fuel contract.

FY27 outlook depends on margin and conversion

Chief executive Angelo De Angelis said Saunders expects year-on-year revenue growth in FY27, underpinned by the record Work in Hand balance. Management also expects the improvement in the second-half FY26 NPATA margin to be sustained.

That forecast comes with explicit qualifications around project timing, weather conditions and government funding priorities. Saunders said 42% of FY26 revenue came from program and annuity-style work, while its growing Water panels, Master Services Agreements and Early Contractor Involvement engagements are intended to build a more resilient earnings base. The immediate operational task is to mobilise secured work safely and profitably while converting selected opportunities from the A$5.1 billion pipeline.

AGM proxy vote flags scrutiny of CEO incentive grant

The AGM’s formal business included Greg Fletcher’s re-election, the appointment of BDO Audit as external auditor after a competitive tender, renewal of the employee Rights Plan and a proposed grant of up to 415,393 performance rights to De Angelis.

The proxy position shown in the presentation was strongly supportive of the first four resolutions, including 99.99% of proxy votes in favour of appointing BDO. The performance-rights grant attracted a more divided response: 42,462,613 proxy votes were listed for, 13,648,993 against and 10,026,889 open. Those figures were presented before the poll was closed, with final AGM results to be released separately.