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GR Engineering Services Ltd
(Sydney:GNG)
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Rating:75Outperform
Price Target:
AU$7.50
▲(18.86% Upside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by strong financial fundamentals—low leverage and very strong free cash flow—offset by operational variability highlighted by the sharp 2026 gross margin compression and historical revenue swings. Technically, the uptrend is intact but indicators are overbought, and valuation is a headwind due to a high P/E despite a moderate dividend yield.
Positive Factors
Low leverage and balance-sheet resilience
Low, stable leverage gives GNG financial flexibility to fund projects, absorb cyclical resource-sector conditions and withstand execution setbacks without excessive interest or refinancing pressure.
Negative Factors
Sharp gross-margin compression
The significant margin decline raises concern about project mix, pricing, procurement or cost control. If persistent, it could reduce earnings quality and make future profitability more dependent on successful contract execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and balance-sheet resilience
Low, stable leverage gives GNG financial flexibility to fund projects, absorb cyclical resource-sector conditions and withstand execution setbacks without excessive interest or refinancing pressure.
Read all positive factors
GR Engineering Services Ltd (GNG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.27B
Dividend Yield3.86%
Average Volume (3M)280.16K
Price to Earnings (P/E)29.3
Beta (1Y)1.27
Revenue Growth2.95%
EPS Growth12.85%
CountryAU
Employees979
SectorBasic Materials
Sector Strength58
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.23
Shares Outstanding188,673,550
10 Day Avg. Volume450,321
30 Day Avg. Volume280,161
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)11.71
Price to Sales (P/S)1.82
P/FCF Ratio15.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.34
Revenue Forecast (FY)AU$754.95M
GR Engineering Services Ltd Business Overview & Revenue Model
Company Description
GR Engineering Services Limited provides engineering, process control, automation, and construction services to the mining and mineral processing industries in Australia and internationally. The company operates through Mineral Processing and Oil ...
How the Company Makes Money
GNG primarily makes money by contracting to deliver EPC/EPCM-style project work for clients in the resources and energy industries. Revenue is earned under customer contracts as project milestones are achieved and/or as work is performed (e.g., en...
GR Engineering Services Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 493.16M | 479.02M | 424.06M | 551.36M | 651.67M |
| Gross Profit | 74.33M | 254.86M | 232.54M | 52.61M | 65.77M |
| EBITDA | 61.48M | 55.44M | 50.02M | 46.20M | 55.93M |
| Net Income | 39.03M | 34.21M | 31.18M | 27.49M | 34.72M |
Balance Sheet | |||||
| Total Assets | 265.43M | 192.51M | 226.75M | 193.96M | 235.44M |
| Cash, Cash Equivalents and Short-Term Investments | 87.94M | 70.96M | 74.65M | 86.02M | 101.99M |
| Total Debt | 10.16M | 9.18M | 9.15M | 7.23M | 4.26M |
| Total Liabilities | 188.84M | 123.66M | 160.43M | 134.23M | 173.28M |
| Stockholders Equity | 76.60M | 68.85M | 66.33M | 59.73M | 62.16M |
Cash Flow | |||||
| Free Cash Flow | 58.76M | 35.84M | 24.97M | 9.86M | 65.81M |
| Operating Cash Flow | 62.00M | 38.21M | 29.79M | 13.27M | 69.42M |
| Investing Cash Flow | -2.99M | -3.02M | -8.27M | 4.25M | -3.99M |
| Financing Cash Flow | -41.97M | -38.69M | -33.51M | -32.94M | -33.13M |
GR Engineering Services Ltd Technical Analysis
Positive
6.31
Price Trends
5.67
Positive
5.38
Positive
4.75
Positive
Market Momentum
0.27
Negative
65.35
Neutral
48.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GNG, the sentiment is Positive. The current price of 6.31 is above the 20-day moving average (MA) of 6.27, above the 50-day MA of 5.67, and above the 200-day MA of 4.75, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 48.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GNG.
GR Engineering Services Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$854.92M | 21.04 | 24.65% | 2.26% | 12.00% | -5.39% | |
75 Outperform | AU$1.27B | 29.35 | 53.12% | 3.86% | 2.95% | 12.85% | |
71 Outperform | AU$2.85B | 22.36 | 22.77% | 3.73% | 29.43% | 50.05% | |
67 Neutral | AU$3.51B | 22.47 | 23.03% | 2.40% | 31.39% | 451.49% | |
66 Neutral | AU$919.87M | 17.71 | 9.25% | 3.27% | 11.40% | 22.22% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | AU$4.19B | 19.30 | 11.01% | 4.52% | -7.37% | 59.81% |
* Basic Materials Sector Average
AU:GNG
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GR Engineering Services Ltd Corporate Events
GR Engineering issues nearly 2 million shares to staff under incentive plan
Aug 27, 2026
GR Engineering Services Limited has issued 1,991,750 fully paid ordinary shares to employees at nil consideration, following the vesting and exercise of an equivalent number of Performance Rights under its 2022 Equity Incentive Plan approved by sh...
GR Engineering to List Nearly 2 Million New Shares from Staff Incentive Plan
Aug 27, 2026
GR Engineering Services Ltd has applied to the ASX for quotation of 1,991,750 new fully paid ordinary shares, to be issued on 27 August 2026. The new securities arise from an employee incentive scheme and their quotation will expand the company...
GR Engineering Raises $100m via Institutional Placement and Launches Retail SPP
Aug 26, 2026
GR Engineering Services Ltd has successfully secured binding commitments for a non-underwritten institutional placement of new shares to raise up to $100 million. The new shares, priced at $6.10 each and issued under ASX Listing Rule 7.1, attracte...
GR Engineering Services Plans Share Placement and Securities Purchase Plan
Aug 24, 2026
GR Engineering Services Ltd has notified the ASX of a proposed issue of ordinary fully paid shares via a placement and a securities purchase plan. The move underscores the company’s use of equity markets to support its capital requirements a...
GR Engineering outlines equity raising via placement and share purchase plan
Aug 24, 2026
GR Engineering Services Ltd, an ASX-listed Australian engineering and construction services provider, focuses on delivering projects to resource and industrial clients and accesses capital markets through equity raisings targeted at institutional,...
GR Engineering Targets Strong FY27 Growth with Record Earnings and First Equity Raise Since IPO
Aug 24, 2026
GR Engineering Services reported FY26 revenue of $493.2 million, record EBITDA of $63.1 million and net profit after tax of $39.0 million, underpinned by strong project execution across its engineering and production services units. The company in...
GR Engineering Services Sets Dividend Timetable With 2026 Annual Report
Aug 24, 2026
GR Engineering Services Limited has released its annual financial report for the year ended 30 June 2026, outlining its consolidated profit or loss, financial position, cash flows and changes in equity, together with detailed notes to the financia...
GR Engineering Services Requests Trading Halt Ahead of Market-Sensitive Announcement
Aug 24, 2026
GR Engineering Services Ltd, an ASX-listed engineering services company focused on mineral processing and energy-related projects, provides design, construction and maintenance solutions to resource sector clients. Its revenues and growth prospect...
GR Engineering Sets Date for FY26 Results and Investor Briefing
Aug 18, 2026
GR Engineering Services Limited has announced that it will release its full year results for the period ended 30 June 2026, along with its outlook for the year to 30 June 2027, on 24 August 2026. The timing of the announcement gives investors an u...
GR Engineering wins $229.5m EPC contract for BHP’s Yandi upgrade
Jul 23, 2026
GR Engineering Services has secured a $229.5 million EPC contract from BHP Iron Ore, acting for the Yandi joint venture, to upgrade the Yandi Eastern front-end facility as part of the Ministers North Project in Western Australia’s Pilbara re...
GR Engineering Sees No Earnings Hit as Tower Hill Plant May Be Shelved
Jul 13, 2026
GR Engineering Services Limited has been informed that Genesis Minerals’ proposed acquisition of Vault Minerals could enable ore from the Tower Hill deposit to be processed through the existing King of the Hills plant, removing the need to b...
GR Engineering issues new unquoted performance rights under staff incentive plan
Jun 26, 2026
GR Engineering Services Limited has notified the market of the issue of 42,500 unquoted performance rights under its employee incentive scheme. The new performance rights, which will not be quoted on the ASX, were issued on 22 June 2026 and form p...
GR Engineering cancels 102,000 lapsed performance rights
Jun 26, 2026
GR Engineering Services has reported the cessation of 102,000 performance rights, identified under the ASX security code GNGAQ. The rights lapsed on 22 June 2026 after the conditional requirements attached to those securities were not met or becam...
GR Engineering Named Preferred EPC Contractor for A$295m Sulphur Springs Project
Jun 9, 2026
GR Engineering Services has been selected as the preferred contractor by Venturex Sulphur Springs, a subsidiary of Develop Global, for the engineering, procurement and construction of the 1.5 Mtpa Sulphur Springs copper-silver-zinc project in West...
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.