• Verbrec produces EBITDA of $11.3m in the half, $4.0m from continuing operations
• Alliance Automation acquisition complete, expected to contribute over $60m in annual revenue
• Opportunity pipeline up 50% ($203m) and work-in-hand up 75% ($71m)

Verbrec Ltd (ASX:VBC) has announced its financial results for the half-year ended 31 December 2025. The company produced a half-year EBITDA of $11.3 million, with $4.0 million from continuing operations. Verbrec's net cash position at the half-year end was $11.6 million, bolstered by the divestment of Competency Training. The balance sheet-funded acquisition of Alliance Automation was completed in December 2025 and is expected to add over $60 million in annual revenue and a combined group of approximately 700 team members across 14 regional locations in Australia and New Zealand. Founded in 2010, Alliance Automation is one of Australia's largest independent providers of digital transformation, cyber security and industrial automation services, with a developing capability in machine learning and artificial intelligence (AI). The transaction significantly enhances Verbrec's digital capability and provides opportunities to grow revenues through an expanded service offering to a common client base. Verbrec's opportunity pipeline at the end of the calendar year 2025 is $203 million, up from $131 million in the prior corresponding half, with a trailing 12-month tender win rate of 33.9%. The company's work-in-hand has also increased by over 75% to $71 million compared to $40 million in the prior corresponding half. The Board has approved a dividend of 0.1 cents per share for H1 FY2026, emphasizing the Board's confidence in the management team and the strategic direction and financial strength of the company.

Verbrec expects the acquisition of Alliance Automation to contribute over $60 million in annual revenue to the combined group.

Verbrec is positioned for growth driven by organic opportunities and synergies from the acquisition of Alliance Automation. The company's net cash position and bolstered opportunity pipeline and work-in-hand provide the opportunity to pursue further strategic acquisitions and growth initiatives.