Saunders International Limited (SND) AI Stock Analysis

• Market Cap: AU$116.17M
• Dividend Yield: 2.78%
• Average Volume (3M): 62.05K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: -0.72%
• EPS Growth: -78.03%
• Country: AU
• Employees: 505
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 140,641,160
• 10 Day Avg. Volume: 36,254
• 30 Day Avg. Volume: 62,054
• PEG Ratio: -0.54
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 6.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$327.50M

• Rating: 56 Neutral
• Price Target: AU$0.81 ▲(0.49% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weakening fundamentals (revenue decline, very thin net margin, and a sharp drop in free cash flow growth) and bearish technical trend signals (price below major moving averages, negative MACD). A stable balance sheet with low leverage and a moderate dividend yield provide partial support but are not enough to offset profitability and momentum risks.

Positive Factors

High gross margin

A sustained gross margin ~50.7% reflects strong cost control and pricing on engineering and construction contracts. This structural margin buffer helps absorb project cost inflation, supports reinvestment in capabilities, and preserves operating leverage even if revenue growth is uneven.

Low leverage and strong equity base

Low debt (D/E 0.20) and a ~50.9% equity ratio give durable financial flexibility. This reduces interest burden, improves capacity to bid on capital-intensive projects, and provides stability through industry cycles, supporting execution on long-duration contracts and working-capital needs.

High free cash flow conversion

Converting ~86% of net income into free cash flow indicates efficient cash realization from earnings. For a contracting business this supports dividend payments, maintenance capex, and bid bonding capacity, and provides a durable internal funding source for growth or downturns.

Negative Factors

Declining revenue

Nearly 10% revenue decline suggests weakening project wins or lower client demand. Over several quarters this reduces scale advantages, pressures fixed-cost absorption, and forces reliance on margin recovery or new markets; sustained declines could erode competitive position.

Very thin net margin

Net margin under 1% leaves minimal room for cost overruns, variations, or project delays—acute risks in engineering and construction. Structural margin compression limits retained earnings, constrains investment, and makes earnings highly sensitive to single-project outcomes.

Sharp free cash flow contraction

A ~-390% drop in free cash flow growth signals material cash timing or collection stress. Such a sharp contraction weakens liquidity, reduces reserve for capex and working capital, and raises reliance on external funding if sustained, impairing resilience to project volatility.

Saunders International Limited Business Overview & Revenue Model

Company Description

Saunders International Limited engages in the design, fabrication, construction, and maintenance of bulk liquid storage facilities, tanks, and road and rail bridges in Australia. The company also manufactures precast concrete products for transport infrastructure projects; and provides a range of specialized services for the maintenance of commercial, industrial, and marine infrastructure and assets. In addition, it engages in the designing, engineering, procurement, and construction of fuel and chemical storage terminals, water reservoirs and pumping stations, mineral processing plants, bridge construction works, precast concrete, concrete foundation works for heavy industry, foundation systems, jetty and wharves construction, building and construction management, bridges and marine structures, and water infrastructure, as well as coal bins, hoppers, and associated steel works. Further, the company provides various asset services comprising turn key solutions, shutdowns and refurbishment, furnace and boiler maintenance, pressure welding, air heater overhauls and upgrades, general base line maintenance, refinery and industrial services, pumps and steam valve overhaul, high performance coatings and linings, abrasive blasting and protective coatings, and structural strengthening services, as well as services related to fabrication, general, structural, piping, and pressure equipment. Additionally, it provides electrical instrumentation, and automation and control services. The company offers its products and services to oil and gas, mining and mineral processing, infrastructure, aviation, defense, new energy, power, and water/wastewater industries. Saunders International Limited was founded in 1951 and is based in Rhodes, Australia.

How the Company Makes Money

Saunders International Limited generates revenue primarily through its project-based operations in the engineering and construction sectors. The company's key revenue streams include contracts for the design and construction of water and wastewater treatment facilities, industrial storage solutions, and maintenance services for existing infrastructure. Additionally, they may engage in long-term partnerships with government entities and private companies, securing ongoing maintenance contracts that provide a stable income source. The company's ability to successfully bid for large-scale projects and maintain strong relationships with clients also plays a crucial role in its earnings, as does its focus on delivering high-quality, cost-effective solutions that meet regulatory and environmental standards.

Saunders International Limited Financial Statement Overview

Summary

Healthy gross margin (50.74%) and low leverage (debt-to-equity 0.20) support stability, but revenue declined (-9.81%), net margin is very thin (0.97%), and free cash flow growth fell sharply (-390.53%), raising profitability and cash durability concerns.

Income Statement

Saunders International Limited has shown a decline in revenue growth with a -9.81% rate in the latest year, indicating potential challenges in market demand or competition. The gross profit margin remains strong at 50.74%, reflecting efficient cost management. However, the net profit margin has decreased significantly to 0.97%, suggesting increased expenses or reduced pricing power. Overall, while the company maintains a healthy gross margin, the declining revenue and net profit margins are concerning.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of 0.20, indicating low leverage and financial stability. The return on equity has decreased to 3.97%, which is a significant drop from previous years, suggesting reduced profitability. The equity ratio stands at 50.89%, demonstrating a strong equity base relative to total assets. Overall, the balance sheet reflects financial stability but highlights a need for improved profitability.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow growth at -390.53%, indicating potential cash management issues. The operating cash flow to net income ratio is 0.38, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is 0.86, showing that a significant portion of net income is converted into free cash flow. While cash generation remains positive, the sharp decline in free cash flow growth is a risk factor.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	231.77M	214.52M	216.08M	200.89M	129.96M	101.24M
Gross Profit	57.92M	108.85M	107.40M	22.02M	12.45M	12.37M
EBITDA	-7.46M	7.49M	19.02M	17.58M	11.73M	10.11M
Net Income	-7.11M	2.08M	9.36M	9.49M	6.55M	5.54M
Balance Sheet
Total Assets	153.68M	102.79M	113.20M	93.01M	93.72M	51.91M
Cash, Cash Equivalents and Short-Term Investments	26.66M	22.08M	19.81M	12.83M	36.75M	23.82M
Total Debt	27.59M	10.42M	11.94M	4.49M	7.00M	2.42M
Total Liabilities	93.31M	50.47M	61.90M	53.74M	61.70M	23.81M
Stockholders Equity	60.37M	52.32M	51.30M	39.27M	32.02M	28.11M
Cash Flow
Free Cash Flow	1.42M	13.72M	16.67M	-15.23M	16.64M	13.81M
Operating Cash Flow	3.69M	15.92M	19.32M	-14.10M	19.76M	15.56M
Investing Cash Flow	-4.50M	-6.29M	-5.49M	-3.56M	-3.28M	-1.73M
Financing Cash Flow	8.15M	-7.37M	-6.86M	-6.26M	-3.65M	-1.01M

Saunders International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SND, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 0.89, and below the 200-day MA of 0.81, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SND.

Saunders International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACF	69 Neutral	AU$299.10M	14.46	16.13%	5.71%	25.14%	-14.54%
EVZ	65 Neutral	AU$35.84M	14.25	3.66%	―	-9.21%	-42.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	63 Neutral	AU$79.60M	20.16	17.38%	0.49%	-8.28%	89.71%
SND	56 Neutral	AU$116.17M	-15.03	4.01%	2.78%	-0.72%	-78.03%

Saunders International Limited Corporate Events

Saunders Delivers Record Revenue but Swings to H1 Loss as Pipeline Hits $4.9bn

Saunders International posted record half-year revenue of $143.6 million for H1 FY2026, up 13.7% on the prior period, but reported an adjusted EBITDA of just $0.37 million and an adjusted after-tax loss of $2.8 million as margins tightened. The balance sheet remained robust with cash of $26.7 million, while contracted work-in-hand rose to $549 million and the project pipeline reached a record $4.9 billion, underpinned by new contracts across all four key markets.

Management highlighted improved project award momentum following prior industry stagnation, securing $155.8 million in new work and advancing $787.8 million of tenders under evaluation. The successful integration of Aqua Metro, long-term Sydney Water panel agreements, and a decision to withhold an interim dividend to conserve cash position Saunders to leverage growing demand in water and defence infrastructure while focusing on earnings resilience and disciplined growth.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.99 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders Swings to Half-Year Loss Despite Revenue Rise and Aqua Metro Acquisition

Saunders International reported a sharp earnings reversal for the half-year to 31 December 2025, posting a net loss after tax of $4.2 million compared with a $5.0 million profit a year earlier, despite a 13.7% rise in revenue to $143.6 million. The company cut its interim dividend to zero, saw net tangible assets per share fall significantly, and consolidated control of the Aqua Metro group from 1 July 2025, a move that may reshape its operational profile and balance sheet as it integrates the new business.

Revenue growth suggests solid project activity, but the swing to loss and drop in asset backing point to margin pressures, integration costs, or other operational challenges that could concern investors. The absence of a current interim dividend after fully franked payouts last year underscores a more cautious capital management stance, while the unqualified auditor review indicates the reported figures fairly present the group’s financial position despite the weaker profitability.

Gaining control of Aqua Metro Pty Ltd and its associated entities from 1 July 2025 marks a strategic expansion that may enhance long-term service offerings across water and infrastructure markets. However, the acquisition coincides with a period of reduced earnings and balance-sheet dilution, leaving stakeholders to weigh the potential future benefits of diversification and scale against near-term financial softness.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.99 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Sets Date for H1 FY2026 Results Briefing

Saunders International Limited, an Australian engineering and construction company focused on fluid storage, transfer infrastructure and industrial asset services, operates across Defence and Government, Water, Energy and Resources, and industrial markets. Its capabilities span structural, mechanical and piping projects, automation and electrical work, and civil and water infrastructure, supporting assets from development through maintenance.

The company has scheduled an investor and shareholder briefing to present its half-year FY2026 results for the period ended 31 December 2025. Senior executives, including the managing director, chief financial officer and other key leaders, will host the session and a subsequent Q&A via a Zoom webinar on 25 February 2026, underscoring ongoing engagement and transparency with the market.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Lodges Final Director Interest Notice for Departing Board Member

Saunders International Limited has notified the ASX that Mark Benson ceased to be a director of the company on 31 December 2025, with this filing serving as his final director’s interest notice. At the time of his departure, Benson held substantial interests in the company through family entities, including more than 3.9 million shares, 1,368,425 performance rights and 69,100 share options, and reported no additional indirect holdings or contractual interests, clarifying his equity position as he exits the board.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.84 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders Wins $16.4m Ampol Refinery Contract to Boost Energy Infrastructure

Saunders International has secured a $16.4 million contract at Ampol’s Lytton Refinery in Brisbane to renew and refurbish an existing fuel storage tank, supporting the ongoing upgrade and future-proofing of critical refinery infrastructure. Awarded under a Master Services Agreement with long-term client Ampol, the project underscores Saunders’ strength as a trusted partner in the energy market, aligns with its sector-focused growth strategy, and is expected to contribute to revenue and earnings in FY26 and FY27 while bolstering the resilience and reliability of Australia’s energy infrastructure.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.84 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders Wins $10.4m Water Infrastructure Contract in South West Sydney

Saunders International has secured a $10.4 million contract from Ward Civil to build new potable and recycled water reservoirs, along with associated structural infrastructure, as part of the Wilton Integrated Services Program in South West Sydney. The project, which will utilise Saunders’ tank fabrication and broader water infrastructure expertise, reinforces the company’s growing presence in the water sector following recent Sydney projects and the integration of Saunders Aqua Metro, and is expected to bolster its order book and contribute to revenue and earnings in FY26 and FY27.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders to Release 4.1 Million Escrowed Shares from Piping Solutions Acquisition

Saunders International has announced that 4,109,954 fully paid ordinary shares currently subject to voluntary escrow will be released on 6 January 2026. These shares were originally issued on 6 January 2024 as part of the consideration for the acquisition of the Piping Solutions business, now operating as Saunders Piping Solutions Pty Limited, and their release will increase the pool of tradeable shares on the market, potentially impacting liquidity and ownership dynamics following the integration of the acquired business.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Lands $20M Defence Fuel Infrastructure Project in Western Australia

Saunders International Limited has secured a $20 million subcontract for Defence fuel infrastructure at RAAF Base Learmonth, Western Australia, awarded by CPB Contractors. The project, which includes aviation fuel hydrant piping and an airfield lighting emergency generator fuel system, highlights Saunders’ expertise in fuel infrastructure and reinforces its positioning as a trusted provider in the Defence sector. This milestone enhances Saunders’ presence in Western Australia and boosts its orderbook, underpinning its strategic focus on growth in the Defence fuel infrastructure market.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International to Quote New Securities on ASX

Saunders International Limited has announced the application for quotation of 144,859 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, which is expected to enhance employee engagement and align their interests with the company’s growth objectives. The issuance of these securities may strengthen Saunders’ operational capabilities and reinforce its market position by potentially increasing stakeholder confidence.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Director Increases Stake with New Performance Rights

Saunders International Limited has announced a change in the interests of its director, Angelo De Angelis, who has acquired an additional 377,112 performance rights under the FY26 LTVR program. This move, approved by shareholders at the 2025 Annual General Meeting, reflects the company’s strategic focus on aligning director incentives with long-term performance goals, potentially impacting its operational and market positioning positively.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Announces Director’s Interest Change

Saunders International Limited announced a change in the director’s interest, with Mark Benson acquiring additional performance rights under the FY26 LTVR program. This change, approved at the 2025 Annual General Meeting, reflects the company’s commitment to aligning executive incentives with long-term performance goals, potentially impacting its strategic direction and shareholder value.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.

Saunders International Issues Unquoted Performance Rights

Saunders International Limited has announced the issuance of 784,964 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s efforts to incentivize and retain its workforce, potentially impacting its operational efficiency and stakeholder engagement positively.

The most recent analyst rating on (AU:SND) stock is a Hold with a A$0.88 price target. To see the full list of analyst forecasts on Saunders International Limited stock, see the AU:SND Stock Forecast page.