Verbrec awarded $11m in South Australian contracts across defence, water and gas sectors
Engineering services company Verbrec (ASX: VBC) has secured $11.1 million in new construction work for government and private customers in South Australia.
The company has received a $6.3m contract from the Department of Defence for the design and build of control rooms, electrical switchboards and other infrastructure at sites throughout SA.
The agency has also extended a long-standing electrical maintenance contract — which has historically generated more than $1m per annum for Verbrec —within the same scope of work.
Water infrastructure contract
Verbrec has won a $1.8m contract for a major control system upgrade project at water treatment and processing facilities in SA.
The company will manage an additional $900,000 contract for the engineering and design of electrical infrastructure for vacuum pump stations at a major residential development in the state.
Verbrec has a long history supporting water authorities throughout Australia and has secured these sector projects on the back of its expertise in electrical systems and water infrastructure.
Gas pipeline project
Verbrec also won a $1.6m contract in the December 2024 half-year to complete early works and constructability design (including site surveys) for a gas pipeline development project and associated process facilities in South Australia.
The job builds on prior phases of detailed design completed by the company’s engineering team and will provide the undisclosed client with the information needed to approach the market for construction of the pipeline.
Verbrec said the energy security project highlighted its growing participation in the gas market transition.
Performance expectations
Verbrec anticipates it will report a solid profit for the first half of the 2025 financial year, crediting its prudent cost management strategies and improved relationships with key clients in a challenging and uncertain economy.
“We expect project deferrals to ease in the coming months as postponed investment driven by the Australian election cycle is re-tabled for decision,” the company said.
“This process appears to have commenced, with our current work in hand position exceeding what we reported at the end of the first half.”
The company believes its multi-year panel agreements and new operations and maintenance contracts will provide a stable revenue base over the next reporting period.