Verbrec secures over $11m in new contracts

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Stock Verbrec Ltd (VBC.ASX)
Release Time 21 May 2025, 9:17 a.m.
Price Sensitive Yes
 Verbrec secures over $11m in new contracts
Key Points
  • Verbrec secures $6.8m in Commonwealth Defence electrical and control system upgrade and maintenance projects
  • Verbrec awarded $2.7m in projects for design of vacuum pump stations and a major control system upgrade for water treatment facilities
  • Verbrec awarded $1.6m contract for early works and constructability design for a gas pipeline development project
Full Summary

Verbrec Limited (ASX: VBC) has announced that it has secured over $11 million in new engineering and construction contracts in South Australia during the second half of the 2025 financial year. The key projects include:- $6.8 million in contracts for the design and construction of control rooms, electrical switchboards, and other electrical infrastructure at Commonwealth Defence sites, as well as an extension to an existing electrical maintenance contract.- $2.7 million in projects for the design of vacuum pump stations and a major control system upgrade for water treatment and processing facilities.- A $1.6 million contract for early works and constructability design, including site survey, for a gas pipeline development project and associated process facilities.The company expects these projects to contribute to a solid profit performance for the half, exceeding the EBITDA and NPAT results posted in the prior half-year periods. Verbrec continues to improve its cash position and strengthen its balance sheet, and expects project deferrals to ease in the coming months as postponed investment driven by the Australian election cycle are re-tabled for decision.

Guidance

Verbrec expects to report a solid profit performance for the half, exceeding the EBITDA and NPAT results posted in the prior half year periods H1 FY2025 and H2 FY2024.

Outlook

Verbrec expects project deferrals to ease in the coming months as postponed investment driven by the Australian election cycle are re-tabled for decision. This process appears to have commenced in earnest, with Verbrec's current work in hand position exceeding the position reported at the end of H1 FY2025.