Saunders International Limited (ASX:SND) has announced a revision to its FY26 revenue and Adjusted EBITDA guidance, citing external factors that have delayed three current projects. The multidisciplinary Australian company, which provides engineering, construction, and industrial asset services across the complete asset lifecycle, primarily focusing on fluid storage and transfer infrastructure, structural, mechanical, and piping (SMP), industrial automation, and civil and water infrastructure, now expects a deferral of revenue and earnings into FY27, impacting its FY26 operating leverage.
The revised guidance sets FY26 revenue in the range of A$300 million to A$315 million, down from the previous A$315 million to A$345 million. Adjusted EBITDA for FY26 is now anticipated to be between 3.0% and 3.5%, a decrease from the earlier projection of 3.5% to 4.5%. This adjustment reflects the displacement of approximately A$30 million of revenue from FY26 into the subsequent financial year.
Key projects experiencing delays include the Siddeley Street Sewer Project in Melbourne, which has been impacted by the discovery of unforeseen cultural heritage artefacts, restricting activity and delaying the project schedule. Additionally, two Defence projects in the Northern Territory have faced delays due to changes in Defence Base access restrictions stemming from the Middle East conflict and evolving user requirements. Saunders International clarified that these projects, which deliver critical infrastructure in high-compliance markets, remain active and are not subject to commercial risk regarding continuity or profitability. Project activity is expected to normalise by the end of FY26.
Despite the short-term adjustments, the outlook for FY27 and beyond remains positive for Saunders. This sentiment is reinforced by the recently announced A$10.7 billion Australian fuels security package, aimed at expanding onshore strategic fuel reserves, a sector where Saunders is uniquely positioned to offer support. The company also continues to develop a robust pipeline of opportunities across its key markets, including Defence & Government, Water, Energy, and Resources & Industrials.
