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Verbrec Ltd (AU:VBC)
ASX:VBC

Verbrec Ltd (VBC) AI Stock Analysis

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AU:VBC

Verbrec Ltd

(Sydney:VBC)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
AU$0.28
▲(53.89% Upside)
Action:ReiteratedDate:02/28/26
The score is supported primarily by improving cash flow and a favorable technical trend (price above major moving averages with mildly positive momentum). It is held back by weaker financial performance on the income statement (declining revenue and low profitability) and only modest valuation support (mid-range P/E and low dividend yield).
Positive Factors
Improved cash generation
Sustained improvement in free cash flow and better operating cash conversion strengthens the company’s ability to fund working capital, invest in project capabilities, and service obligations without relying on external financing, supporting resilience across project cycles.
Leverage reduction / better balance sheet
An improving debt-to-equity metric and higher return on equity indicate management is repairing leverage and extracting more value from equity. This durable trend lowers financial risk and increases flexibility to pursue bids, absorb project delays, or refinance on better terms.
Diversified, recurring service model across sectors
A multidisciplinary engineering services model across energy, infrastructure and resources creates recurring demand from capex and maintenance spending. End-to-end lifecycle capabilities increase client stickiness and offer multiple revenue streams that persist through cycles.
Negative Factors
Declining revenue trend
A multi-year decline in revenue erodes scale advantages and limits capacity to absorb fixed costs. Persistent top-line contraction can pressurise margins, reduce bargaining power with clients, and make sustainable margin recovery and reinvestment more difficult.
Low net profitability
Low net margins indicate the business struggles to convert billings into lasting earnings. This constrains retained earnings for reinvestment, limits buffer against project overruns, and reduces long-term returns available to shareholders even if revenues stabilize.
Earnings exposed to utilisation and contract mix
Revenue and profitability are structurally sensitive to staff utilisation and the balance of time-and-materials versus fixed-price contracts. This creates durable earnings volatility tied to project scheduling, staffing and client capex cycles, complicating predictable cashflows.

Verbrec Ltd (VBC) vs. iShares MSCI Australia ETF (EWA)

Verbrec Ltd Business Overview & Revenue Model

Company DescriptionVerbrec Ltd (VBC) is a leading provider of engineering, project management, and consulting services, primarily operating in the infrastructure, energy, and resources sectors. The company specializes in delivering innovative solutions across a range of disciplines, including civil engineering, environmental services, and asset management. With a commitment to sustainability and efficiency, Verbrec offers a suite of core services that help clients navigate complex projects while optimizing operational performance.
How the Company Makes MoneyVerbrec Ltd generates revenue through a diversified model that includes project-based contracts, consulting fees, and long-term service agreements. The company’s key revenue streams come from engineering and design services, project management, and environmental consulting, often working on large-scale infrastructure projects. Significant partnerships with government entities, private sector clients, and industry stakeholders enhance its earnings potential. Additionally, Verbrec's focus on sustainability initiatives and innovative solutions attracts clients looking to improve operational efficiency and reduce environmental impact, contributing to its overall profitability.

Verbrec Ltd Financial Statement Overview

Summary
Income statement trends are weak (declining revenue and low net margins), but balance sheet leverage has improved and cash flow shows strong improvement in free cash flow growth and better cash conversion, partially offsetting profitability concerns.
Income Statement
45
Neutral
Verbrec Ltd has shown a declining revenue trend over the past few years, with a significant drop in revenue growth rate in the latest year. The gross profit margin has been relatively stable, but the net profit margin remains low, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved slightly, but overall profitability remains a concern.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved, indicating better leverage management. Return on equity has improved, reflecting better profitability relative to equity. However, the equity ratio suggests moderate reliance on debt financing, which could pose risks if not managed carefully.
Cash Flow
70
Positive
Verbrec Ltd has shown a strong improvement in free cash flow growth, indicating better cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion efficiency. However, the free cash flow to net income ratio indicates that cash flow generation relative to net income could be further optimized.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue88.94M85.62M93.35M109.92M121.39M97.41M
Gross Profit21.43M31.96M33.41M6.42M35.39M26.84M
EBITDA4.25M5.21M8.56M-2.65M2.28M357.00K
Net Income5.07M3.73M1.95M-9.52M-3.14M-3.86M
Balance Sheet
Total Assets74.84M49.41M47.69M58.86M62.07M60.17M
Cash, Cash Equivalents and Short-Term Investments21.07M7.14M4.62M4.46M6.42M8.34M
Total Debt17.11M9.57M12.64M12.87M8.49M7.74M
Total Liabilities41.99M25.57M28.53M45.82M39.54M34.04M
Stockholders Equity32.85M23.84M19.16M13.04M22.52M26.14M
Cash Flow
Free Cash Flow8.24M5.74M1.76M-4.72M2.10M-1.88M
Operating Cash Flow9.21M6.50M2.01M-3.91M3.06M-1.63M
Investing Cash Flow6.62M-762.00K-1.47M-1.27M-886.00K-5.04M
Financing Cash Flow770.00K-3.23M-400.00K3.20M-4.01M-901.00K

Verbrec Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.21
Positive
100DMA
0.17
Positive
200DMA
0.13
Positive
Market Momentum
MACD
<0.01
Negative
RSI
68.23
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VBC, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VBC.

Verbrec Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
AU$35.84M14.253.66%-9.21%-42.37%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
AU$79.60M15.1217.38%0.49%-8.28%89.71%
49
Neutral
AU$11.20M-7.31-11.81%-36.40%-192.91%
44
Neutral
AU$13.50M-2.28-90.66%-6.10%12.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VBC
Verbrec Ltd
0.23
0.14
167.44%
AU:EVZ
EVZ Limited
0.28
0.12
69.70%
AU:SOP
Synertec Corporation Limited
0.03
-0.03
-50.00%
AU:WSI
WestStar Industrial Ltd.
0.08
>-0.01
-4.88%

Verbrec Ltd Corporate Events

Verbrec forecasts sharp revenue and EBITDA growth for FY2026
Feb 27, 2026

Verbrec Limited has issued guidance for the year ending 30 June 2026, signalling a strong uplift in activity across its engineering and asset management operations. The company now expects revenue from continuing operations between $110 million and $120 million, representing at least a 41% increase from the prior year’s $77.9 million.

The group is forecasting continuing operations EBITDA of $8 million to $10 million, reflecting improved earnings scale from its core business. Including the impact of discontinued operations and the gain on the sale of its Competency Training unit, which added $7.3 million EBITDA in the first half, Verbrec anticipates total group EBITDA of $15.3 million to $17.3 million for FY2026, underscoring a material step-up in profitability and financial momentum.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec boosts earnings and cash as Alliance Automation deal reshapes growth outlook
Feb 27, 2026

Verbrec reported a strong first half of FY2026, with EBITDA rising to $11.3 million, including $4.0 million from continuing operations, and revenue from continuing operations up more than 18% to $46.1 million. The company’s net cash position improved to $11.6 million following the divestment of Competency Training, and its opportunity pipeline and work-in-hand expanded sharply, indicating a robust workload outlook.

The completion of the balance sheet-funded acquisition of Alliance Automation in December 2025 has been described as transformational, expected to add over $60 million in annual revenue and lift the combined workforce to about 700 staff across 14 locations. This deal significantly strengthens Verbrec’s digital, cyber security, and industrial automation offering, positioning the group for growth via organic opportunities and synergies, while an enhanced cash position supports potential further strategic acquisitions and expansion initiatives.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec declares interim dividend for half‑year to December 2025
Feb 27, 2026

Verbrec Ltd, listed on the ASX under ticker VBC with ordinary fully paid shares, continues to manage its capital structure via regular shareholder distributions. The company’s operations and industry focus are not detailed in the filing, but the disclosure underscores its status as a dividend-paying entity in the Australian market.

Verbrec has declared a dividend of A$0.001 per ordinary share for the six‑month period ended 31 December 2025, to be paid on 21 April 2026. The distribution will trade ex‑dividend on 30 March 2026, with a record date of 31 March 2026, providing investors clear timelines for entitlement to the upcoming payment.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Issues Interim Financial Report for Half-Year to 31 December 2025
Feb 27, 2026

Verbrec Limited has released its interim financial report for the half-year ended 31 December 2025, covering the consolidated results of the company and its subsidiaries. The report, presented in Australian currency, includes the directors’ report, financial statements and auditor’s review, and is intended to be read alongside the company’s 30 June 2025 annual report and continuous disclosure announcements.

Authorised for issue by the directors on 27 February 2026, the interim financial statements reflect Verbrec’s ongoing compliance with Australian corporate reporting and disclosure requirements. The release underscores the company’s commitment to transparent interim reporting for stakeholders, although detailed financial performance metrics are contained within the full interim report rather than this summary notice.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec delivers strong half-year turnaround with profit surge
Feb 27, 2026

Verbrec Limited has reported a sharp improvement in financial performance for the half year ended 31 December 2025, with revenue from continuing operations rising 18.6% to $46.1 million. The company swung from a loss to a profit from continuing operations after tax of $1.9 million, while net profit attributable to members surged to $9.0 million from $0.9 million a year earlier.

The results indicate a significant turnaround in profitability and stronger operational momentum compared with the prior corresponding period. Details of the drivers behind the earnings recovery and additional commentary on cash flow, balance sheet and business performance are contained in Verbrec’s interim financial report for the period.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec sets date and investor webinar for half-year 2026 results
Feb 19, 2026

Verbrec Limited will release its half-year 2026 financial results on Friday, 27 February 2026, and will brief the market via a webinar the following Monday, 2 March, at 2:00 p.m. AEST. The session, led by Chief Executive Officer Mark Read, will cover the company’s financial performance and provide a business activity update, with investors able to pre-register online and submit questions in advance or during the event, underscoring Verbrec’s ongoing engagement with shareholders.

The announcement signals the company’s intention to maintain open communication with investors ahead of what may be a key update for stakeholders in the energy, infrastructure, mining and defence sectors it serves. By combining financial disclosure with an operational briefing and interactive Q&A, Verbrec is positioning the half-year release as an opportunity to reinforce market confidence and clarify its strategic trajectory in core regional markets.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Seeks ASX Quotation for 2 Million New Shares
Feb 6, 2026

Verbrec Limited has applied to the ASX for quotation of 2,000,000 new fully paid ordinary shares (ASX code: VBC), issued on 6 February 2026 as part of previously flagged transactions. The move modestly increases the company’s free float and may enhance liquidity in its stock, marking another step in implementing earlier capital or transaction plans disclosed to the market.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Cancels 76,143 Shares Under Minimum Holding Buy-Back
Feb 2, 2026

Verbrec Ltd, an ASX-listed Australian public company (code VBC) with ABN 90 127 897 689, has ordinary fully paid shares on issue and is subject to the exchange’s capital management and disclosure requirements. The company has cancelled 76,143 ordinary fully paid shares following the execution of a minimum holding buy-back, slightly reducing its issued capital as part of routine capital management activity that may simplify its register and reduce administrative costs for small holdings.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Completes Minimum Holding Buy-Back, Cancels 76,143 Shares
Feb 2, 2026

Verbrec Limited has completed its minimum holding buy-back program, targeting shareholders with less than a marketable parcel of shares who did not opt to retain, increase or consolidate their holdings by the 22 January 2026 deadline. The company will repurchase 76,143 shares from 68 such shareholders at $0.2135 per share, based on the ten-day volume-weighted average price prior to the closing date, and will cancel these shares in line with Corporations Act requirements, marginally tightening its share register and reducing the number of small, illiquid holdings on its books.

The most recent analyst rating on (AU:VBC) stock is a Buy with a A$0.25 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Seeks ASX Quotation for 4.86 Million New Shares
Jan 6, 2026

Verbrec Limited has lodged an Appendix 2A with the ASX for the quotation of 4,860,000 new fully paid ordinary shares, to be issued on 5 January 2026 under its existing Appendix 3B framework. The move will increase the company’s quoted share capital on the ASX, potentially enhancing trading liquidity and reflecting the progression of previously flagged capital or transaction arrangements for existing shareholders and new investors.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Ltd Announces Securities Quotation Under Employee Incentive Scheme
Dec 18, 2025

Verbrec Limited has announced the application for quotation of 6,244,030 ordinary fully paid securities under an employee incentive scheme. This move reflects the company’s efforts to enhance employee retention and align performance incentives, potentially strengthening its operational capacity and positioning in the competitive engineering services market.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Secures $20 Million in Contracts to Drive Growth in Transition Markets
Dec 18, 2025

Verbrec Ltd has secured over $20 million in new contracts during the first half of FY2026, spanning multiple sectors and transition markets. Among key developments, the company has reinforced its position as a trusted partner in biogas advancements with significant projects in New Zealand supporting energy transitions, while its acquisition of Alliance Automation strengthens its capabilities in operational technology and cyber security within the electrification and energy storage sectors. Furthermore, extensions of major pipeline contracts and ongoing software licensing agreements with BHP showcase Verbrec’s ability to maintain reliable revenue streams and provide advanced solutions, bolstering its industry presence and future growth potential.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Ltd Highlights Strategic Moves in Recent Webinars and Interviews
Dec 15, 2025

Verbrec Ltd recently participated in a Coffee Microcaps Webinar and an interview with RAAS Research Group, where CEO Mark Read discussed the company’s strategic moves, including the divestment of Competency Training and the acquisition of Alliance Automation. These events highlight Verbrec’s efforts to strengthen its market position and enhance its service offerings, which could have significant implications for its operations and stakeholders.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Limited Announces New Securities Quotation
Dec 12, 2025

Verbrec Limited has announced a new application for the quotation of securities, specifically 959,416 ordinary fully paid shares, on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, indicating a strategy to retain and motivate staff by offering them equity in the company. The issuance of these securities could potentially enhance employee engagement and align their interests with the company’s performance, possibly impacting Verbrec’s operational dynamics and market positioning.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec to Present Strategic Initiatives at Coffee Microcaps Webinar
Dec 3, 2025

Verbrec Limited announced its participation in the Coffee Microcaps Webinar Event on December 5, 2025, where CEO Mark Read will discuss the company’s background, financial results, and strategic moves such as the divestment of Competency Training and the acquisition of Alliance Automation. These initiatives aim to strengthen Verbrec’s balance sheet and enhance its capabilities in digital transformation, industrial automation, and emerging technologies like machine learning and artificial intelligence, positioning the company for growth in the energy transition and automation sectors.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Announces Minimum Holding Buy Back to Streamline Operations
Dec 2, 2025

Verbrec Limited has announced a minimum holding buy back of fully paid ordinary shares for shareholders with less than a marketable parcel of shares, valued at under $500. This initiative aims to help eligible shareholders sell their shares without incurring brokerage or handling costs, while also reducing administrative and share registry fees for the company. The buy back does not require shareholder approval, but eligible shareholders can opt out by submitting a Share Retention Form by January 22, 2026. The buy back is expected to streamline Verbrec’s operations and improve cost efficiency.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Expands Digital Capabilities with Alliance Automation Acquisition
Dec 2, 2025

Verbrec Limited has successfully completed the acquisition of Alliance Automation Pty Ltd, marking a significant enhancement in its digital capabilities and service offerings. This acquisition is expected to add $60 million in annual revenue and expand Verbrec’s team to approximately 700 members across 18 locations in Australia and New Zealand, thereby strengthening its market position and providing growth opportunities through an expanded service offering to a common client base.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Verbrec Strengthens Position with Strategic Divestment
Dec 1, 2025

Verbrec Limited has completed the divestment of its subsidiary, Competency Training Pty Ltd, for $11.2 million. This strategic move is aimed at strengthening Verbrec’s balance sheet, enabling further investments in organic growth and acquisitions that align with its strategy in the energy transition and automation sectors. The divestment is expected to enhance shareholder value by improving geographic expansion and reducing ongoing costs, while also increasing revenues through better client access to in-demand capabilities.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 28, 2026