Verbrec Limited (ASX: VBC) has released its financial results for FY2026, reporting revenue from continuing operations of $118.5 million, up 52% on FY2025 ($77.9 million), and adjusted EBITDA from continuing operations of $8.7 million, up 47% on FY2025 ($5.9 million).
Verbrec is an integrated engineering, automation and asset-performance partner supporting critical industrial assets across their entire asset lifecycle.
FY2026 highlights
- Revenue from continuing operations of $118.5 million, up 52% on FY2025 ($77.9 million)
- Adjusted EBITDA from continuing operations of $8.7 million, up 47% on FY2025 ($5.9 million)
- NPAT(A) from continuing operations of $4.2 million, up 107% on FY2025 ($2.0 million)
- Statutory EBITDA of $15.4 million, up 94% on FY2025 ($7.9 million)
- Basic earnings per share of 3.5 cents (FY2025: 1.3 cents)
- Net cash position of $11.7 million, up 421% (FY2025: $2.3 million)
- Total fully franked dividend for FY2026 at 0.25 cents per share, up 150% on FY2025 (0.1 cps)
- Work in hand of $78 million, up 77%, and opportunity pipeline of $277 million, up 111%
- FY2027 guidance reaffirmed. Revenue $140 – $160 million, adjusted EBITDA $10 – $12 million
A transformational year
FY2026 was a transformational year for Verbrec, including divesting Competency Training and acquiring Alliance Automation in December 2025.
Following a period of turnaround and margin expansion from FY2023 to FY2025, Verbrec entered FY2026 positioned for its next phase of growth.
Gross profit is up 55% to $42.1 million and gross margins improved to 35.5% (FY2025: 34.8%). This is the fourth consecutive year of gross margin improvement and reflects continued discipline in the selection and management of projects across a materially larger portfolio of work.
Portfolio transformation
Verbrec completed the sale of Competency Training to RelyOn for $11.5 million before adjustments, receiving $11.2 million in cash after customary adjustments for working capital and net debt. The divestment produced a gain on sale of $6.8 million and released capital from a business that, while profitable, was no longer core to the Group’s engineering, automation, asset management and operations offering. Competency Training had been part of Verbrec since 2008.
On 2 December 2025, Verbrec completed the acquisition of Alliance Automation from Telstra for $5.5 million before working capital adjustments, representing approximately five times FY2025 EBITDA.
Founded in 2010, Alliance Automation is one of Australia’s largest independent providers of industrial automation, digital transformation, operational technology and industrial cyber security services, with a developing capability in machine learning and artificial intelligence, and established positions in water and wastewater, mining, manufacturing and Defence.
On a pro-forma basis, the acquisition adds over $60 million in annualised revenue and takes the combined Group to approximately 700 team members. Alliance Automation contributed $39.4 million of revenue during its seven months of Verbrec ownership in FY2026. Alliance Automation contributed to the Group for seven months of FY2026. Automation and technology accounted for approximately 33% of FY2026 revenue from that seven-month contribution.
A stronger, larger and more diversified business
The revenue mix changed materially in FY2026. Energy remained the largest sector, but water grew to become the second largest revenue generator and mining stepped up from a modest base. The Group’s exposure to any single client capital cycle also has been materially reduced.
| Sector | % revenue FY2026 | % revenue FY2025 |
|---|---|---|
| Energy | 36% | 64% |
| Water | 21% | 7% |
| Mining | 18% | 10% |
| Infrastructure | 11% | 11% |
| Defence | 8% | 7% |
| Manufacturing | 6% | 1% |
Dividend
The Board has determined a fully franked final dividend for FY2026 of 0.15 cents per share, bringing total dividends declared for the year to 0.25 cents per share (FY2025: 0.1 cents per share), an increase of 150%.
The increased dividend follows the stronger earnings base of the enlarged Group, a net cash balance sheet and the continuation of the dividend program reinstated in FY2025. The Group retained $5.4 million of franking credits at 30 June 2026.
Order book and pipeline
Work in hand at 30 June 2026 was a strong $78 million on a twelve-month look-ahead basis, up 77% on the prior year (FY2025: $44 million) and up from $71 million at the half. The opportunity pipeline grew 111% to a record $277 million (FY2025: $131 million), up from $203 million at the half.
The growth in both measures reflects the broader capability, genuine cross-selling to a common client base, and Verbrec being invited to bid on larger and more complex programs of work than the Company would have been considered for eighteen months ago.
FY2027 outlook and guidance
Verbrec expects FY2027 revenue of $140 million to $160 million and adjusted EBITDA of $10 million to $12 million. At the mid-point, this implies compound growth from FY2025 to FY2027 of approximately 39% in revenue and approximately 35% in adjusted EBITDA. Adjusted EBITDA excludes one-off expenses incurred in the pursuit of ongoing synergies and integration of Alliance Automation and the impacts of share-based payments.
Verbrec is positioned where Australia’s infrastructure spend is expected to grow
Australia and New Zealand are investing in energy security, water security and the infrastructure that underpins them.
Demand for automation, operational technology and cyber security across critical infrastructure continues to grow, supported in part by regulatory obligations under the Security of Critical Infrastructure Act. Data centre development is emerging as an additional source of demand for energy, water, electrical and control infrastructure.
Since the end of the financial year, Verbrec has announced further contract awards in the energy security market. The Company sees continued momentum across its core growth markets of gas market transition, electrification and energy storage, operational technology cyber security, and industrial automation and machine learning.
Verbrec’s priorities in FY2027 are to convert the opportunity pipeline and lift the margin of the combined Group toward the 8% – 10% target range as integration benefits are realised. Verbrec expects to continue to deepen the relationships that generate repeat work. The Company will also continue to assess strategic acquisition opportunities that add capability, technology or geographic reach, empowered by a strong balance sheet that remains in a net cash position.
Read the full announcement
The full FY2026 Results Announcement, FY2026 Annual Report and FY2026 Results Presentation are available on the Verbrec Investor Hub: FY2026 Results Announcement · FY2026 Annual Report · FY2026 Results Presentation · All ASX announcements.
