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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)
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Neutral 63 (OpenAI - 5.2)
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Neutral 63 (OpenAI - 5.2)
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Neutral 63 (OpenAI - 5.2)
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Neutral 63 (OpenAI - 5.2)
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Neutral 63 (OpenAI - 5.2)
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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
AU$0.22
â–˛(24.44% 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 free cash flow generation
Sustained improvement in free cash flow strengthens the company’s ability to fund operations, service debt and invest in capacity without external capital. Over 2–6 months this reduces refinancing risk, enables strategic hiring or bidding flexibility and supports resilient operations.
Improving leverage and ROE
Better debt-to-equity and rising ROE indicate improving balance sheet discipline and more efficient use of shareholder capital. These trends reduce financial fragility, lower interest burden sensitivity and improve capacity to pursue projects or weather slower demand.
Diversified engineering services across lifecycle
A multi-discipline, lifecycle service model spreads revenue across advisory, design, delivery and operational support, reducing reliance on a single project phase. This structural diversification supports steadier demand and cross-selling, helping stabilize revenue over medium term.
Negative Factors
Declining revenue and low net margins
A persistent decline in revenue combined with low net profit margins constrains capacity to reinvest and build reserves. Over several months this erodes competitiveness, limits pricing power, and increases sensitivity to cost overruns or contract underperformance.
Moderate reliance on debt financing
Ongoing dependence on debt increases exposure to interest rate moves and refinancing risk. While leverage has improved, moderate debt reliance can limit agility to pursue large contracts or absorb project delays, pressuring liquidity in downturns.
Earnings sensitive to utilisation and project mix
Revenue and margins hinge on staff utilisation, contract mix and client capex cycles. Structural sensitivity makes earnings lumpy and exposes margins to fixed-price project risk and downturns in client spending, reducing predictability of medium-term cash flows.

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

Verbrec Ltd Business Overview & Revenue Model

Company DescriptionVerbrec Limited primarily provides engineering, training, and infrastructure services to mining, energy, and infrastructure industries. The company offers asset management services, including maintenance and reliability engineering, asset integrity, operational readiness, and material and inventory management; and engineering and project delivery services in the areas of controls and automation, data acquisition, industry digitalization, industrial data analytics, advanced algorithms, and low voltage and high voltage electrical systems. It also provides infrastructure services, such as specialist pipeline and compressor station operation and maintenance services; and pipeline engineering services comprising conceptual studies, engineering design, EPC delivery, commercial services, and condition assessments, as well as multi-disciplinary engineering, design, and procurement services for oil and gas, and chemical facilities. In addition, the company offers specialist industrial training services for the mining, resources, infrastructure, and manufacturing sectors. It operates in Australia, New Zealand, Papua New Guinea, and the Pacific Islands. The company was formerly known as LogiCamms Limited and changed its name to Verbrec Limited in December 2020. Verbrec Limited was founded in 1988 and is headquartered in Brisbane, Australia.
How the Company Makes MoneyVerbrec makes money by delivering contracted engineering and professional services to clients, with revenue primarily generated from (1) time-and-materials engagements where it bills clients for staff time (e.g., engineers, designers and project professionals) at agreed hourly/daily rates plus reimbursable expenses, and (2) fixed-price or milestone-based contracts where it earns revenue as project deliverables are completed and accepted. Key revenue streams generally include multidisciplinary engineering design and drafting, engineering consulting/advisory (e.g., studies, feasibility and technical assurance), project management and delivery support, and ongoing operational/asset support services. Earnings are influenced by utilisation and charge-out rates of its technical workforce, project mix (T&M vs fixed-price), contract margin performance, and the level of client capital and maintenance spend in its target sectors. Specific material partnerships or customer concentrations: null.

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
Neutral
Last Price0.18
Price Trends
50DMA
0.21
Negative
100DMA
0.18
Positive
200DMA
0.14
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.38
Neutral
STOCH
47.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VBC, the sentiment is Neutral. 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 0.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
72
Outperform
AU$35.24M3.427.07%―-9.21%-42.37%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
AU$64.29M7.3217.89%0.49%-8.28%89.71%
46
Neutral
AU$13.50M-1.03-160.73%―-6.10%12.50%
44
Neutral
AU$9.27M4.84-11.81%―-36.40%-192.91%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VBC
Verbrec Ltd
0.21
0.13
159.26%
AU:EVZ
EVZ Limited
0.29
0.13
87.10%
AU:SOP
Synertec Corporation Limited
0.03
-0.02
-48.00%
AU:WSI
WestStar Industrial Ltd.
0.07
<0.01
1.41%

Verbrec Ltd Corporate Events

Verbrec Names Mark Andrew Read Director with Significant Equity Stake
Mar 15, 2026

Verbrec Limited has appointed Mark Andrew Read as a director, effective 15 March 2026, marking a change in the boardroom that may influence the company’s strategic and governance direction. Upon his appointment, Read holds 6,102,513 ordinary shares in Verbrec and 2,719,248 performance rights, aligning his financial interests closely with shareholder outcomes.

The substantial equity and performance rights package suggests the board intends to closely link Read’s incentives with company performance and long-term value creation. This level of insider ownership may be viewed positively by investors focused on governance and alignment, although the market will look to future disclosures for clarity on his role in shaping Verbrec’s strategic priorities.

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 promotes CEO Mark Read to Managing Director to underpin growth strategy
Mar 15, 2026

Verbrec Limited has elevated Chief Executive Officer Mark Read to the role of Managing Director, adding him to the board as it continues its turnaround and growth strategy. Read, who has more than three decades of relevant industry experience and a record of board service, has been central to the company’s recent operational improvement and strategic direction.

To reinforce leadership stability, the board has doubled Read’s notice period from six to 12 months while otherwise keeping his contract terms largely unchanged. The appointment is framed by the chairman as a natural progression that strengthens governance and supports Verbrec’s ambition to build a more resilient, profitable and respected organisation for shareholders, employees and clients.

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 issues broad liability and forecast disclaimer on investor presentation
Mar 2, 2026

Verbrec Limited has issued a presentation disclaimer emphasising that its materials may contain forward-looking statements based on assumptions that are subject to significant business, economic, competitive and regulatory uncertainties, many of which are outside the company’s control. The company stresses that actual results may differ materially from forecasts and that it makes no representation as to the accuracy, completeness or attainability of any projections.

The release further disclaims liability for any loss arising from the use or reliance on the information provided, stating that neither Verbrec nor its related parties will be responsible for omissions or inaccuracies in the presentation. It also clarifies that the document should not be regarded as an offer or solicitation to buy or sell securities and should not be used in isolation as a basis for investment decisions, underscoring the need for investors to seek additional information and conduct their own due diligence.

The most recent analyst rating on (AU:VBC) stock is a Hold with a A$0.28 price target. To see the full list of analyst forecasts on Verbrec Ltd stock, see the AU:VBC Stock Forecast page.

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.

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