Synertec Corporation (ASX: SOP) has entered FY27 with $74.3 million of contracted work-in-hand, up 395% on the prior year, while maintaining revenue guidance of $37.5 million to $40.0 million. Revenue rose 18% in the first quarter and monthly EBITDA reached breakeven in September, although cash remained under pressure as project delivery accelerated.
- $74.3 million of contracted work-in-hand, up 395% year on year
- FY27 revenue guidance of $37.5 million to $40.0 million is now 100% contracted
- Quarterly revenue increased 18% to $5.9 million and EBITDA improved 18%
- Engineering work-in-hand reached approximately $54 million, supported by ANSTO and AGL contracts
- $4.2 million cash plus $8.7 million in undrawn facilities at quarter end
Contracted work-in-hand reaches record level
Synertec Corporation (ASX:SOP) has put a substantial order book behind its FY27 growth target, reporting contracted work-in-hand of approximately $74.3 million at 30 September. That is up from $15 million a year earlier and $20.9 million at 30 June, giving the technology and engineering group considerably more committed work to convert into revenue.
Synertec said its FY27 revenue guidance of $37.5 million to $40.0 million, representing growth of 77% to 89% on FY26, is now 100% contracted. The company had raised FY27 revenue guidance in September after pointing to stronger contract conversion across Engineering and Powerhouse, but the latest update adds evidence of the work secured behind that outlook.
Engineering book expands on major customer wins
Engineering generated $5.1 million of first-quarter revenue, up 16% on the prior corresponding period. Contracted Engineering work-in-hand was approximately $54 million during the period, while the company reported a qualified opportunity pipeline of $157 million. In its broader financial breakdown, Synertec attributed approximately $59 million of group work-in-hand to Engineering and $15.3 million to Powerhouse.
The largest award is a $45.5 million engineering services contract with the Australian Nuclear Science and Technology Organisation for its next-generation nuclear medicine manufacturing facility at Lucas Heights. The scope includes process design, systems engineering, facility-wide integration, regulatory support and commissioning support. The contract was previously reported as an Australian Government engineering award before ANSTO was identified as client. Synertec also secured approximately $4 million for the first phase of AGL’s SOLIS project, upgrading SCADA infrastructure across about 25 operational sites.
Powerhouse moves from contracts into delivery
Powerhouse revenue rose 35% to $0.8 million in the quarter, with 15 units now under contract. Eleven are in design or construction and four are operational. The portfolio includes a circa A$6 million, 12 MW / 12 MWh system for a major gas facility in central Australia, where two units will provide spinning reserve and power-system stability. Delivery is targeted by 30 September 2027.
Synertec also reported 100% availability since commissioning the fourth GLNG JV unit at Queensland’s Fairview field. Design and delivery of Units 5 and 6 has begun, with delivery anticipated around mid-2027. Separately, the six-unit TasNetworks community battery project has completed detailed design, with the first unit expected to be delivered in February and the overall project targeted for completion in the fourth quarter of calendar 2027. The Powerhouse pipeline is now estimated at approximately $500 million, or 1.2 GWh of storage opportunities, spanning FY27 to FY30. Those opportunities remain a pipeline rather than contracted revenue.
Breakeven EBITDA arrives as cash investment rises
Group first-quarter revenue increased 18% to $5.9 million, while EBITDA improved 18% against the prior corresponding period and reached breakeven in September. Operating cash flow was negative $1.9 million, including $1.1 million of timing, mobilisation and working-capital items such as additional superannuation payments, ANSTO mobilisation and higher work-in-progress. Synertec described normalised operating cash outflow as approximately $0.8 million.
The group invested a further $1.3 million, primarily in manufacturing and deploying Powerhouse systems. After an oversubscribed $6 million placement completed in August, Synertec held $4.2 million in cash and had $8.7 million of undrawn financing facilities at quarter end, for total available funding of approximately $12.9 million. The funding position provides room to execute the current order book, but the next test is whether the newly secured work begins producing cash as quickly as it consumes working capital. A Final Investment Decision on the potential Amplitude Energy Orbost project is planned for December 2026, offering one of the nearer-term milestones for the Powerhouse pipeline.
Bottom Line?
The order book has moved ahead of the revenue target, but delivery, working-capital conversion and Powerhouse execution will determine how much of that visibility reaches cash flow.
Questions in the middle?
- Can Synertec convert the $74.3 million order book into operating cash flow without requiring further capital?
- How quickly will the ANSTO and AGL projects contribute revenue and earnings as mobilisation costs unwind?
- Will Amplitude Energy approve the Orbost solution in December, and how much of the Powerhouse pipeline can become contracted work?