FY2026 Annual Report
Released
Released
Announcement PDF
Delivering a more sustainable future.
ANNUAL REPORT 2026
2
VERBREC ANNUAL REPORT | 2026
Delivering value
across the full asset
lifecycle.
Additional documents
available to view at:
verbrec.com
DISCLAIMER
This Annual Report may contain forward-looking statements, guidance and statements of a general nature regarding the industries,
markets and geographies that Verbrec serves. Albeit statements of this nature reflect the Company’s opinion and expectations as at
the date of this Annual Report, they cannot be relied upon as guarantees or accurate predictions of future performance or outcomes.
Except as required by law and the ASX Listing Rules,Verbrec does not intend to publicly update or review any forward-looking
statements or statements of a general nature should the underlying assumptions change, or future events transpire differently to
expectations.
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| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
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Directors’ Report
Remuneration Report
Auditor’s Independence
Declaration
Financial Statements
Consolidated Statement
of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of
Changes in Equity
Consolidated Statement of
Cash Flows
Notes to the Financial
Statements
Consolidated Entity Disclosure
Statement
Directors’ Declaration
Independent Auditor’s Report
ASX Information
Corporate Directory
FY26 Contents
40
52
64
66
68
70
71
72
117
119
120
124
127
Overview
Group Highlights
Who We Are
What Drives Us
Chairman’s Letter
Our Board of Directors
Managing Director’s Letter
Context & Strategy
Positioned for a Changing
Industrial Landscape
Capturing the Opportunity
Our Strategy for Growth
Operational Overview
Sector Outlook
Energy
Gas Transition
and Decarbonisation
Low Carbon Energy
Infrastructure
Water Security
Defence
Mining & Resources
Digital Capabilities
Across Growth Markets
Cyber Security for
Operational Technology
Industrial Automation, Data
and Machine Learning
Group Highlights
4
VERBREC ANNUAL REPORT | 2026
NET PROFIT AFTER TAX
$10.4M
Last year $3.7M
$3.3M from continuous operations
(last year $1.3m)
STRONG
NET CASH POSITION
$11.7M
Last year $2.3M
*Including cash term deposits
REVENUE
$118.5M
Continuing operations
Up 52.1% on
FY2025: $77.9M
GROSS MARGIN
UP
35.5%
From 34.8%
Strategic Focus of what
Verbrec does well
DIVIDEND APPROVED
0.25CPS
(0.1cps interim, 0.15cps final)
$5.4M of franking
credits retained
HAZARD REPORTS
SUBMITTED
HSEQ LEADERSHIP
CONVERSATIONS
SINCE LAST LOST
TIME INJURY
525
15
10YRS
FINANCIAL HIGHLIGHTS
2026 IN REVIEW
SAFETY HIGHLIGHTS
Safety. Zero Harm, Always.
LTIFR MTIFR TRIFR
FY2016 1.14 1.14 2.28
FY2017 0 2.39 3.59
FY2018 0 1.45 4.35
FY2019 0 0 0
FY2020 0 0 0
FY2021 0 0 0
FY2022 0 4.35 8.70
FY2023 0 1.20 6.02
FY2024 0 0 4.58
FY2025 0 3.48 3.48
FY2026 0 2.6 2.6
$m 2022 2023 2024 2025 2026
REVENUE 121.4 109.9 93.4 77.9 118.5
GROSS PROFIT 35.4 36.9 33.4 27.1 42.1
GROSS PROFIT MARGIN 29.2% 33.6% 35.8% 34.8% 35.5%
EBITDAI / EBITDA 3.0 -2.9 8.8 5.0 8.1
EBITDAI / EBITDA MARGIN 2.5% -2.6% 9.4% 6.4% 6.8%
NPBT (CONTINUING OPS) -3.4 -6.8 4.4 1.0 3.3
INCOME TAX BENEFIT / (EXPENSE) 0.3 0.4 0.4 0.2 0.1
PROFIT / (LOSS) FROM DISCONTINUED OPS - -3.1 -2.8 2.5 7.1
NPAT (AFTER DISCONTINUED OPS) -3.1 -9.5 1.9 3.7 10.4
NET CASHFLOW FROM OPERATIONS 3.1 -3.9 2.0 6.5 5.8
GROUP EBITDA
$15.4M
Last year $7.9M
From continuous operations: $8.1M
6.8% - last year $5M (6.4%)
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| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
56%
44%
61%
Key
Relationship
Clients
39%
41%
Project
Reimbursable
Fixed Price
36%
18%
Mining
PROPORTION OF REVENUE:
Multi-year Revenue Sources
By Commercial Model
By Sector
Top 20 Relationship Client Revenue
61%
Key
Relationship
Clients
39%
50%
41%
9%
Project
Recurring O&M
Revenue
Repeatable
Panel
Agreement
Revenue
Project
Revenue
56%
44%
61%
Key
Relationship
Clients
39%
50%
41%
9%
Project
Recurring O&M
Revenue
Repeatable
Panel
Agreement
Revenue
Project
Revenue
Reimbursable
Fixed Price
36%
Energy
6%
21%
11%
Manufacture
Wate
Infrastructure
18%
Mining
8%
Defence
56%
44%
Reimbursable
Fixed Price
36%
Energy
6%
21%
11%
Manufacture
Water
Infrastructure
18%
Mining
8%
Defence
BUILDING A STRONGER REVENUE BASE
Long-term relationships and multi-year agreements provide
greater revenue visibility and support sustainable growth.
INDUSTRY SEGMENTS:
20
KEY CLIENT
ACCOUNTS
87
PANEL
AGREEMENTS
Multi-year
15
O&M
CONTRACTS
Multi-year operation
50%
MULTI-YEAR
REPEATABLE
Agreement revenue
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VERBREC ANNUAL REPORT | 2026
PEOPLE
ACHIEVEMENTS:
• Developed the Verbrec Capability
Framework, creating a consistent approach
to employee development across the business.
• Introduced the Verbrec Leadership
Development Program to strengthen leadership
capability and build organisational succession
readiness.
• Launched the Sales & Marketing Development
Program, including a focus on Key Account
Management capability.
• Implemented Culture Amp to strengthen
employee engagement, feedback and
benchmarking.
• Launched Verbrec's Employee Value Proposition
(EVP), strengthening our ability to attract,
engage and retain talent.
• Enhanced the National Graduate Program
to provide a more structured and consistent
development experience for early career
professionals Business Units reducing
non-billable time.
TRANSFORMATION
ACHIEVEMENTS:
• Divestment of the Competency Training
business, paving the way for transformational
acquisition of Alliance Automation.
• Introduction of Operational Technology (OT)
and Cyber Security capability via Alliance
Automation.
• Refreshed Vision, Mission and Values to
represent the broader business.
• General Manager – Growth and Energy
Transition raising Verbrec’s industry profile,
forging partnerships with technology providers
and driving growth.
• Increased market presence as a thought leader
in Energy across conventional and emerging.
• Continued ongoing adoption of AI with
data migration, training and the roll out of
internal tools.
• Transition towards an AI enabled partner across
the asset lifecycle.
• New Document Management, Engineering and
Project Delivery Hub being piloted.
• Co-location of Verbrec and Alliance
Automation teams in Western Australia and
South Australia completed.
• Re-structured the WA business to consolidate all
EI&C under Alliance Automation and leadership.
• Appointment of new General Manager NZ to
expand the NZ operations.
OPERATIONAL HIGHLIGHTS
OPERATIONAL
EXCELLENCE:
• Continued strong project delivery
performance, with the entire portfolio
of 2200+ active projects for FY2026 achieving
a Cost Performance Index (CPI) of 1.17
at aggregate.
• 2200+ projects contributing to FY2026 delivered
above bid margin at aggregate, with gross
margin again up year on year.
• Net project write-ups of 5.2%.
• Overall win rates ($:$) remain strong at 34%
for FY2026.
• Robust project control as demonstrated by 5.2%
project write ups.
• Investment in automated project reporting.
• Continued our robust safety record with now 10
years with no Lost Time Injuries.
• Record Work In Hand and Forward pipeline.
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| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
Integrated expertise
for complex projects
and critical assets.
ABOUT VERBREC
8
VERBREC ANNUAL REPORT | 2026
Who We Are
CORE SECTORS
GROWTH MARKETS
ADDING VALUE TO EVERY STAGE OF THE LIFECYCLE OF AN ASSET
Align.
Advise.
Plan.
Design.
Engineer.
Value.
Control.
Automate.
Integrate.
Build.
Implement.
Commission.
Operate.
Maintain.
Support.
Improve.
Optimise.
Extend.
Decommission.
Re-purpose.
Close out.
An integrated engineering, automation and asset-performance partner
supporting critical industrial assets across their entire lifecycle.
EXPANDED CAPABILITY. GREATER REACH.
More than 700 people operating across Australia and New Zealand, with expanded capability through a
strategic partnership in India.
PARTNERING THROUGH A CHANGING INDUSTRIAL LANDSCAPE
Supporting clients across established sectors, transition markets and increasingly digital operations.
ONE TRUSTED PARTNER ACROSS THE ASSET LIFECYCLE
Integrated, end-to-end capabilities that help clients develop, operate and optimise critical assets.
Advisory Engineering Automation
& Control Construction Operations
Asset
Management End of Life
Advisory
Gas
market
transition
Electrification
and energy
storage
OT cyber
security
Industrial
automation, data
and machine
learning
Engineering Automation
& Control Construction Operations
Asset
Management End of Life
Manufacturing
Energy Mining and
Resources
Infrastructure
Water
Security
Defence
Advisory
Gas
market
transition
Electrification
and energy
storage
OT cyber
security
Industrial
automation, data
and machine
learning
Engineering Automation
& Control Construction Operations
Asset
Management End of Life
Manufacturing
Energy Mining and
Resources
Infrastructure
Water
Security
Defence
ABOUT VERBREC
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| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
What Drives Us
OUR PURPOSE
OUR AMBITION
HOW WE GROW AND CREATE VALUE
OUR WAYS OF WORKING
Through trusted partnerships, deploying the best people and
technologies, we deliver a smarter, brighter, more sustainable
future for our clients and their customers.
To be the recognised partner for a smarter, more
sustainable future.
Built on five pillars:
Trusted
Partnerships
Collaboration
We are
better together.
Strategic
Growth
Integrity
We do what
we say.
Best People,
Great Teams
Impact
We deliver
outcomes
that matter.
Technology &
innovation
Curiosity
We find
better ways.
Delivery &
Operational
Excellence
ORGANIC
GROWTH
Cross-selling,
Untapped geographic
expansion opportunity,
Industry tailwinds.
CAPABILITY
EXPANSION
Partnerships with
technology leaders,
Strategic recruitment,
Employee upskilling
and training.
FINANCIAL
DISCIPLINE
Track record of
improving margins,
Staged plan to increase
Group profitability.
STRATEGIC
ACQUISITIONS
Geographic expansion,
Bolt-on capability,
Technological
capability expansion.
Care
We put people
and safety first.
VERBREC ANNUAL REPORT | 2026
10
"Verbrec has entered
a new growth phase
after the divestment of
Competency Training
and acquisition of
Alliance Automation.
The strength of
our balance sheet
provides flexibility
and, opportunities for
investment and growth.
I am proud to increase
our dividend to
shareholders in FY2026."
Chairman's
Letter
independent provider of industrial
automation, digital transformation,
operational technology and industrial
cyber security services. At the time
of acquisition, Alliance Automation
employed approximately 275 engineers
and professional staff across Australia
servicing a tier-one client base.
This was a truly transformational
financial year. We have released capital
from a non-core asset and acquired
new capability that our clients are
actively asking for in a high growth
market segment.
FINANCIAL PERFORMANCE
The Board is pleased with a result that is
significantly improved over prior years
and at the same time better balanced
across our operating verticals.
Gross margin on a continuing operations
basis improved to 35.5% (FY2025: 34.8%).
Adjusted EBITDA of $8.7 million landed
within the guidance range confirmed to
the market in July, and group EBITDA of
$15.4 million reflects the one-off gain on
the Competency Training sale.
CAPITAL MANAGEMENT AND
DIVIDEND
A fundamental objective of the Board
is the disciplined use of capital to grow
total shareholder returns.
In FY2026 that took three forms:
• The divestment of
Competency Training
• The acquisition of
Alliance Automation
• The continuation and growth of
the dividend program which we
reinstated in FY2025
Shareholders received a fully franked
final dividend of 0.1 cents per
share for FY2025, paid in October
2025, and a fully franked interim
dividend of 0.1 cents per share
for H1 FY2026, paid in April 2026.
The Board has determined a
final dividend for FY2026 of 0.15
cents per share, fully franked.
Our balance sheet is strong
and provides optionality.
On behalf of the Board and
management, I am proud to
present Verbrec’s Annual Report
for the financial year ended 30
June 2026.
Over the past three years,
in my annual reports, I have
written about repair, then about
consistency, and then about the
return of profits and dividends.
This year I write to report about
growth. FY2026 was the year the
platform we spent three years
rebuilding was put to work.
The Company delivered revenue
from continuing operations of
$118.5 million, up 52% on the
prior year, and an adjusted
EBITDA on a continuing
operations basis of $8.7 million,
up 47% on the prior year.
We ended the year with net cash
of $11.7 million and net assets
of $34.6 million, and we have
increased our dividend.
TRANSFORMING THE
COMPANY
Two transactions defined the year.
In September 2025 we agreed to sell
Competency Training to RelyOn Australia
for $11.5 million in cash, completing
on 1 December 2025 with $11.2 million
received after adjustments. Competency
Training had been part of Verbrec since
2008 and was a profitable business run by
good people. It was not, however, core
to the engineering, asset management
and operations business Verbrec has
become, and the Board judged that the
capital was better deployed elsewhere.
The following day, 2 December 2025, we
completed the acquisition of Alliance
Automation from Telstra for $5.5 million,
funded entirely from the balance
sheet with no equity issued. Alliance
Automation is arguably Australia’s largest
| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
11
Mark Read
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
The Board’s focus now turns to ensuring
that the projected solid growth in
revenues is executed to yield increased
margins. Delivering on the integration,
scale and synergy benefits available to
the group via the Alliance Automation
acquisition will be key to success and
the management’s bonuses will be
dependent on it.
ACKNOWLEDGMENT
To our shareholders, thank you for your
continued support and conviction. To
those who held through the difficult years,
I hope this result reads as a vindication of
your patience.
I thank my fellow directors for their
counsel through a demanding year of
transactions, and Mark Read and the
executive team for delivering a result
that has changed what this Company is
capable of.
With $20.2 million of cash and a net cash
position of $11.7 million, Verbrec is able to
fund organic growth, invest in capability,
and continue to evaluate bolt-on
acquisitions that fit the strategy.
OUR PEOPLE
Verbrec is a people business, and this
year we asked a great deal of our
people. Integrating a business of Alliance
Automation’s scale while delivering a
record volume of work is demanding,
and the Board recognises the effort that
went into it.
The Board also acknowledges the
executive team’s work in bringing two
organisations together without losing the
delivery discipline that has driven the
improvement in margins over the past
three years.
For the tenth year in a row, we have
recorded no lost time injuries.
BOARD OF DIRECTORS
We welcomed Mark Read to the Board
in March 2026 when he accepted the
appointment as Managing Director of the
Verbrec group, having previously served
as CEO since 2023.
Mark’s extensive experience in the
industry rounds out our Board’s capability
and we consider him to be a valuable
addition. Mark continues to lead the
operations of the business.
As the Company grows, the Board
continues to consider the mix of skills
and experience required around the
table, while at the same time being
mindful of board renewal and planning
for succession.
OUTLOOK
Verbrec enters FY2027 with work in hand
of $78 million and an opportunity pipeline
of $277 million, and the Company has
provided guidance of $140 million to
$160 million in revenue and $10 million
to $12 million in adjusted EBITDA for the
year ahead.
Whilst market conditions are becoming
more favourable for our key markets,
we remain cautious of the geopolitical
tensions across the globe.
Australia and New Zealand are investing
in energy and water security and in
the infrastructure that underpins it. The
demand for automation, operational
technology and cyber security in critical
infrastructure is growing quickly.
Brian O’Sullivan (AM)
NON-EXECUTIVE
DIRECTOR
Matthew Morgan
NON-EXECUTIVE
DIRECTOR
Phillip Campbell
NON-EXECUTIVE
CHAIR
Read teams' full bio's here.
Our Board of Directors
VERBREC ANNUAL REPORT | 2026
12
A CAPABILITY
TRANSFORMATION
In December we completed two positive
and transformational transactions within
twenty-four hours of each other.
We sold Competency Training to RelyOn
for $11.5 million, receiving $11.2 million
after adjustments. It was a business
we had owned since 2008 and was
one with good people and good
operating margins. It was also a training
business inside an engineering group,
and the right home for it was a global
training company.
We acquired Alliance Automation
from Telstra for $5.5 million (approx. five
times FY2025 EBITDA) with no equity
issued. Alliance Automation brings
industrial automation and control, digital
transformation, operational technology,
cyber security and a developing
machine learning and artificial
intelligence capability, together with
strong positions in water and wastewater,
mining, manufacturing and Defence.
Alliance Automation derives a
substantial share of its revenue from
clients we already serve, and Verbrec
has clients who need automation and
control capability at the scale Alliance
Automation can deliver.
Adjusted EBITDA margin of 7.3% is
slightly below the prior year, as Alliance
Automation came to us with a lower
margin profile than Verbrec’s. Integrating
a business of that size takes time
and careful consideration. Lifting the
combined group’s margin is the central
operational task of FY2027 and it is where
my attention and the executive team’s
attention is directed. We aim for the
group to produce 8% – 10% EBITDA
margins over time as integration
benefits and efficiencies are realised.
Every stage of our partnership model
(advisory, engineering, automation
and control, construction,
operations, asset management)
is now covered in-house. A truly
integrated offering providing
services across the entire lifecycle
of an asset.
Managing
Director's Letter
"We live and breathe
our strategy and the
consistency of our results
is evidence that we’ve
found our footing.
In FY2027, Verbrec will
continue to deliver on
its strategy, aligned
with industry tailwinds
as Australia and New
Zealand seek to improve
their energy security from
an increasingly diversified
energy mix."
I proudly present Verbrec’s
Annual Report for the financial
year ended 30 June 2026.
FY2026 was the most significant
year of change in Verbrec’s
recent history, with two
transformational transactions,
being the divestment of
Competency Training and
the acquisition of Alliance
Automation. These have
improved our capability, scale
and relevance in the market.
SAFETY
The health and safety of our people, our
clients and the communities in which we
work remain the Board’s first concern.
It is with pride that I can report a tenth
consecutive year of zero lost-time injuries.
The integration of Alliance Automation
has meaningfully expanded the Group’s
field and site-based workforce, and the
Board has paid close attention to the
alignment of safety systems, reporting
and culture across the combined
business through the second half.
FINANCIAL PERFORMANCE
On a continuing operations basis:
• Revenue was $118.5 million, up 52%
on FY2025 ($77.9 million)
• Gross profit was up 55% to $42 million
with gross margins also improving to
35.5%
• Adjusted EBITDA was $8.7 million up
47% on FY2025 ($5.9 million)
Including the gain on the sale of
Competency Training and the impacts of
discontinued operations, Group EBITDA
was $15.4 million and comprehensive
profit was $10.1 million.
We closed the year with $20.2 million in
cash and a net cash position of $11.7
million, having funded the Alliance
Automation acquisition entirely from the
balance sheet.
| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
13
ACKNOWLEDGMENT
I acknowledge the effort and enthusiasm
from all Verbrec team members.
We delivered strong results whilst
navigating major changes in the scale of
our business.
To the Board, thank you for the support
and the challenge through two
significant transactions.
To our shareholders, thank you for your
continued confidence. We are only at
the beginning as we continue this growth
phase for our business.
OPERATIONAL PERFORMANCE
Work in hand finished the year at $78
million on a twelve-month look-ahead
basis, up from $71 million at the half. Our
opportunity pipeline grew to $277 million,
from $203 million at the half and $131
million in the prior corresponding period.
Our trailing tender win rate was 34%.
The growth in the pipeline reflects
genuine cross-selling and, more
importantly, it reflects Verbrec being
invited to bid on larger and more
complex programs of work than we
would have been considered for
eighteen months ago.
Panel and long-term operations and
maintenance agreements now account
for approximately half of Group revenue,
which is the contracting model we have
consistently said we want more of. These
arrangements are repeatable, lower cost
of sale, and built on relationships rather
than one-off tenders.
DIVERSIFICATION
The revenue mix has changed materially.
Energy remains our largest market at
approximately 36% of revenue, but water
has grown to approximately 21%, mining
to 18%, infrastructure to 11%, Defence to
8% and manufacturing to 6%.
Defence in particular has stepped up
from a modest base, and our water and
wastewater exposure is now our second
largest revenue generator.
We have diversified the business,
reducing variables and sensitivities to any
single client or market cycle.
ENERGY SECURITY,
SOVEREIGNTY AND TRANSITION
The strongest tailwind in our market is
the reinvestment cycle now underway
in Australia’s gas system. AEMO’s 2026
Gas Statement of Opportunities forecasts
shortfall risk under extreme peak day
demand conditions in southern Australia
from 2029, with additional supply required
in most scenarios from 2030 as legacy
southern fields decline.
A more near-term demand is data
centre build out in Australia as demand
for global compute continues to grow.
Assuming data centre projects will need
to source their own power from a mix
of renewables and gas, Verbrec is well
placed to support this booming industry
in years to come.
In June we were awarded the McArthur
River Pipeline Bi-Directional Upgrade
Project by Power and Water Corporation,
with an approximate value of $21 million,
to be delivered in two stages through
to 2028. The project will help unlock
first commercial gas from the Beetaloo
sub-basin and materially strengthen gas
supply security in the Northern Territory.
We see a tremendous amount of
opportunity, and expect the body of
energy security work to continue to build
into FY2027.
OUTLOOK
We have guided to FY2027 revenue of
$140 million to $160 million and adjusted
EBITDA of $10 million to $12 million.
We enter the year with a very strong work
in hand and opportunity pipeline, a net
cash balance sheet, and a capability
set that lets us pursue work we could not
have credibly pursued only a couple of
years ago.
The priorities for us are clear. Convert the
pipeline, lift the margin of the combined
group, and continue to deepen the
relationships that generate repeat work.
We will also continue to assess bolt-on
acquisitions where they add capability
that our clients are asking for, add a
technological overlay or expand our
geographic footprint.
Positioned for a Changing
Industrial Landscape
Australia, New Zealand and the wider region are navigating
significant changes in the way energy, resources and essential
infrastructure are developed, operated and maintained.
Decarbonisation remains a major driver, but it is increasingly
being considered alongside energy security, affordability,
productivity, resilience and sovereign capability.
Energy systems are expanding and becoming more complex as renewable
generation grows, ageing coal-fired generation retires and electricity demand
increases. AEMO’s 2026 Integrated System Plan expects electricity consumption in
the National Electricity Market to almost double over the coming decades, requiring
substantial investment in generation, storage and networks.
Beyond energy, asset owners are responding to ageing infrastructure, constrained
capital, changing regulation and the need to improve the reliability and productivity
of existing operations. Demand for established commodities and critical minerals
continues alongside investment in more efficient, lower-emissions and increasingly
automated production.
Digital transformation is also reshaping industrial operations. Automation, connected
control systems, operational data and artificial intelligence are creating opportunities
to improve productivity and asset performance. However, increased connectivity is
also elevating the importance of secure and resilient operational technology.
These structural changes are influencing investment across Verbrec’s six core
sectors—Energy, Mining and Resources, Infrastructure, Water Security, Defence and
Manufacturing—and supporting demand in the Group’s growth markets: gas market
transition, electrification and energy storage, operational technology cyber security,
and industrial automation and machine learning.
OUR STRATEGIC CONTEXT
14
VERBREC ANNUAL REPORT | 2026
KEY TRENDS SHAPING OUR MARKETS
ENERGY SYSTEMS ARE BECOMING LARGER AND MORE COMPLEX
• Renewable generation, storage, networks and flexible firming must be
developed while existing energy infrastructure continues to operate safely
and reliably.
EXISTING ASSETS REQUIRE RENEWAL AND ADAPTATION
• Ageing infrastructure, obsolescence and changing operating requirements
are increasing demand for sustaining capital, asset-life extension and carefully
managed upgrades within live operating environments.
RESOURCES REMAIN ESSENTIAL TO INDUSTRIAL TRANSFORMATION
• Traditional commodities continue to support economic and energy security,
while demand for critical minerals is growing across clean energy, advanced
manufacturing and Defence applications. Australia had 432 major resources
and energy projects under development in 2025.
WATER, CLIMATE AND ENERGY SYSTEMS ARE INCREASINGLY CONNECTED
• Climate variability, population growth and new industrial demand are increasing
the importance of reliable treatment, recycling, desalination, monitoring and
water-efficient infrastructure.
SOVEREIGN CAPABILITY AND RESILIENCE ARE STRATEGIC PRIORITIES
• Australia’s Defence strategy is increasing investment in national
preparedness, sovereign industry and the infrastructure needed to maintain
operational readiness.
AUTOMATION, DATA AND CYBER RESILIENCE ARE BECOMING
OPERATIONAL PRIORITIES
• Connected control systems, industrial data, AI and machine learning are
changing how assets are operated and maintained. At the same time,
critical-infrastructure owners must strengthen the security and recoverability of
operational technology environments.
STRENGTHENING OUR STRATEGIC DIRECTION
These conditions align closely with Verbrec’s strategic direction. The Group
operates across established and emerging markets, supporting clients that must
maintain existing assets while investing in new infrastructure, technologies and
operating models.
Verbrec’s integrated delivery model spans engineering, automation, project delivery,
operations and maintenance, and asset management. This enables the Group to
support projects from early studies and design through implementation, operational
readiness and long-term asset performance.
The addition of Alliance Automation represents a significant expansion of this model.
It strengthens Verbrec’s capability in industrial automation, electrical systems, control
platforms, cyber security for operating assets, data and digital technologies, while
broadening the Group’s geographic presence and exposure to mining, water,
manufacturing, infrastructure and Defence.
15
| OVERVIEW | CONTEXT & STRATEGY | DIRECTORS' REPORT | REMUNERATION REPORT | FINANCIAL STATEMENTS
Capturing the Opportunity
Verbrec’s relationship-client model, lifecycle capability and broader technical platform
provide a foundation for growth across core and emerging markets. The Group can deepen
its involvement with existing clients by connecting complementary services across project
phases, while applying automation, cyber security, data and asset-performance capability
across a wider range of sectors and geographies.
MARKET TAILWINDS
Australia’s energy security, energy transition and digital transformation trend creates a multi-decade engineering services opportunity.
TECHNOLOGICAL OVERLAY
Verbrec’s technology businesses (Alliance Automation & StacksOn) are not standalone product businesses. They create
competitive differentiation across the group by enabling digital outcomes that pure-play engineering firms cannot deliver.
Technology drives margin premium and provides pathways to recurring revenues.
16
VERBREC ANNUAL REPORT | 2026
ENERGY SECURITY &
SOVEREIGNTY
• Energy sovereignty
priority for Australia
• Beetaloo Basin
development a high
priority area for Verbrec
• Gas pipeline investment
as energy mix evolves
• Engineering and
EPC contracts for new
gas infrastructure.
CLOUD, AI & DATA
ANALYTICS
• Turns operational data
our clients already own into
decisions they can act on.
• Recurring, higher-margin
revenue that isn't tied to a
capital cycle.
• Alliance Automation's
developing AI capability,
applied across 700 people
and a tier-one client base.
• Positions Verbrec above
the PLC layer. Advisory
and analytics, not
just integration.
• Same clients, new spend.
No new rel
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