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Verbrec Ltd (AU:VBC)
ASX:VBC
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Verbrec Ltd (VBC) AI Stock Analysis

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AU:VBC

Verbrec Ltd

(Sydney:VBC)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
AU$0.23
â–²(27.22% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improving but still mixed financial performance: profitability and strong FY2026 revenue growth are tempered by sharp gross margin compression and weaker free-cash-flow trends. Technicals add support as the stock trades above key moving averages with positive momentum indicators. Valuation is a clear positive with a low P/E and a modest dividend yield.
Positive Factors
Revenue rebound
FY2026 revenue growth of roughly 33% marks a meaningful rebound after declines in FY2023–FY2025. If sustained, higher project volume can improve technical-staff utilization, broaden client activity, and provide a stronger base for future operating leverage.
Negative Factors
Gross margin compression
The sharp gross-margin decline signals that recent revenue growth is converting less effectively into gross profit. Whether driven by mix, pricing, or delivery costs, sustained compression would reduce earnings durability and leave less capacity to absorb execution variability across contracted projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
FY2026 revenue growth of roughly 33% marks a meaningful rebound after declines in FY2023–FY2025. If sustained, higher project volume can improve technical-staff utilization, broaden client activity, and provide a stronger base for future operating leverage.
Read all positive factors

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

Verbrec Ltd Business Overview & Revenue Model

Company Description
Verbrec Limited primarily provides engineering, asset management, training, mining technology software, and operations and maintenance services to mining, energy, defense, and infrastructure industries in Australia, New Zealand, Papua New Guinea, ...
How the Company Makes Money
Verbrec makes money primarily by selling professional engineering and consulting services to client organizations on a contract basis. Revenue is generally earned through (1) time-and-materials engagements where the company bills clients for engin...

Verbrec Ltd Financial Statement Overview

Summary
Fundamentals show a turnaround with sustained profitability in FY2024–FY2026 and strong FY2026 revenue growth (~33% YoY). Offsetting this, FY2026 gross margin compressed sharply (~10.8% vs mid-30% in FY2024–FY2025) and free cash flow declined ~47% YoY, raising durability and execution-risk concerns.
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
54
Neutral
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue118.47M85.62M93.35M109.92M121.39M
Gross Profit12.82M31.96M33.41M6.42M35.39M
EBITDA118.47M5.21M8.56M-2.65M2.28M
Net Income3.33M3.73M1.95M-9.52M-3.14M
Balance Sheet
Total Assets88.56M49.41M47.69M58.86M62.07M
Cash, Cash Equivalents and Short-Term Investments20.16M7.14M4.62M4.46M6.42M
Total Debt21.92M9.57M12.64M12.87M8.49M
Total Liabilities53.99M25.57M28.53M45.82M39.54M
Stockholders Equity34.57M23.84M19.16M13.04M22.52M
Cash Flow
Free Cash Flow4.39M5.74M1.76M-4.72M2.10M
Operating Cash Flow5.78M6.50M2.01M-3.91M3.06M
Investing Cash Flow1.71M-762.00K-1.47M-1.27M-886.00K
Financing Cash Flow1.31M-3.23M-400.00K3.20M-4.01M

Verbrec Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.19
Positive
100DMA
0.18
Positive
200DMA
0.19
Positive
Market Momentum
MACD
<0.01
Negative
RSI
64.93
Neutral
STOCH
58.50
Neutral
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 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, 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
80
Outperform
AU$854.92M21.0424.65%2.24%12.00%-5.39%
75
Outperform
AU$1.27B29.3553.12%3.70%2.95%12.85%
71
Outperform
AU$2.85B22.3622.77%3.80%29.43%50.05%
68
Neutral
AU$64.36M6.0010.61%1.02%38.37%-8.53%
67
Neutral
AU$3.51B22.4723.03%2.43%31.39%451.49%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
50
Neutral
AU$126.01M-109.64-1.51%2.47%42.47%-144.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VBC
Verbrec Ltd
0.21
0.11
116.49%
AU:LYL
Lycopodium Limited
21.67
9.76
81.93%
AU:MND
Monadelphous Group Limited
28.40
8.08
39.78%
AU:NWH
NRW Holdings Limited
7.64
3.40
80.15%
AU:SND
Saunders International Limited
0.91
0.11
13.75%
AU:GNG
GR Engineering Services Ltd
6.75
2.88
74.51%

Verbrec Ltd Corporate Events

Verbrec Seeks ASX Quotation for New Employee Incentive Shares
Sep 4, 2026
Verbrec Ltd, traded on the ASX as VBC, is an Australian listed entity issuing ordinary fully paid shares to the market. The company utilises employee incentive schemes as a mechanism to distribute equity, indicating a commitment to performance&#82...
Verbrec pivots to growth with strong FY2026 results and expanded pipeline
Aug 31, 2026
Verbrec reported a transformational FY2026, with revenue from continuing operations surging 52% to $118.5 million and adjusted EBITDA rising 47% to $8.7 million, despite a slightly lower EBITDA margin due to the Alliance Automation acquisition. Ne...
Verbrec Declares Modest Interim Dividend for June Half-Year
Aug 31, 2026
Verbrec Ltd has announced a dividend on its ordinary fully paid shares, declaring a distribution of AUD 0.0015 per share for the six-month period ended 30 June 2026. The dividend will trade ex-dividend on 5 October, with a record date of 6 October...
Verbrec Files Updated Corporate Governance Statement and Appendix 4G
Aug 31, 2026
Verbrec Ltd has lodged its Appendix 4G and confirmed that its updated corporate governance statement for the year ended 30 June 2026 is available on its investor website. The statement, current as at 31 August 2026 and approved by the board, outli...
Verbrec posts sharp profit and revenue jump in FY2026 preliminary results
Aug 31, 2026
Verbrec Limited, an ASX-listed engineering and technical services provider, derives its revenue from continuing operations in project and operational support for industrial and infrastructure clients. Its business model centres on comprehensive en...
Verbrec wins $16m in energy security contracts, bolstering gas infrastructure role
Aug 24, 2026
Verbrec has secured $16 million in new energy security contracts, including a $6.8 million engineering, procurement and construction deal for in-line inspection facilities on a 150&#8209;kilometre gas pipeline in southern Queensland. The company&#...
Verbrec Switches Share Registry to Automic to Enhance Investor Access
Aug 13, 2026
Verbrec Limited has changed its shareholder registry services provider from Computershare Investor Services to Automic Pty Ltd, effective 17 August 2026, with Automic now responsible for managing the company&#8217;s share register. The transition ...
Verbrec lifts growth outlook as pipeline and automation integration drive FY2027 guidance
Jul 27, 2026
Verbrec Ltd is an engineering and technology services provider to the energy, mining, water and infrastructure sectors, offering capabilities in industrial automation, operational technology and cyber security. The company is increasingly focused ...
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: Sep 06, 2026