Morgans analyst Liam Schofield has reaffirmed a “buy” rating on Symal Group (SYL) after its recent acquisition of Timms Group and L&D Contracting, two Queensland-based civil contracting and haulage businesses. The upfront cost for the acquisition was $28 million. Symal Group operates with an integrated business model, offering construction, infrastructure, and property development services. The company also focuses on sustainable solutions within the construction industry.
Schofield noted that the acquisition bolsters SYL’s integrated contracting model and broadens its presence on the east coast, potentially positioning the company for infrastructure projects related to the upcoming Olympics. The acquired assets include over $28 million in plant and equipment, with the acquisition price set at 3.5 times EBITDA, compared to SYL’s trading multiple of approximately 4.3 times.
The acquisition is projected to contribute around $8 million in annualised EBITDA for FY26, adding approximately 6.5 per cent to the FY26 group guidance of $117 million to $127 million. The deal is expected to be finalised in Q3 FY26, pending customary closing conditions. Morgans anticipates that the acquisition will increase earnings per share (EPS) in its first year.
Schofield highlighted that Symal’s vertically integrated, self-performing model offers exposure to long-term infrastructure and sustainability themes. This model provides operational efficiency and margin retention, supporting Morgans’ target price of $2.40 per share for Symal.
