Introducing ‘Self-Performing’ Contractor Symal

This story features SYMAL GROUP LIMITED. For more info SHARE ANALYSIS: SYL

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Diversified construction contractor Symal Group’s self-performance model differentiates the company from peers. A shift towards services and recurring revenues provide upside in a growing addressable market.

-Recently listed Symal Group beats FY25 prospectus forecasts
-Subsequent Locale acquisition “prudent”
-Self-performance model maximises margins
-Short history sees growth potential under-appreciated

By Greg Peel

Symal Group ((SYL)) is a vertically integrated, “self-performing” contractor spanning civil contracting, plant hire, and material recycling.

A self-performing contractor is one which draws only on its own labour pool to cover the various trades within construction (eg electricity, plumbing) rather than hiring sub-contractors.

Not having to pay sub-contractors allows a self-performer to maximise margins, but it also means taking on all of the risk of construction.

Symal’s activities are diversified, spanning a range of construction services including infrastructure, power and renewables, utilities, data centres and defence. Through its vertically integrated model, Symal provides end-to-end solutions across contracting, plant & equipment hire, material sales, recycling and repurposing.

The group operates under five core brands – Symal, Sycle, Searo, Unyte and Wamarra.

Symal posted its maiden earnings result in August. Collectively, the three founding executives hold circa 70% of the company’s shares, with their holdings subject to two years voluntary escrow.

Morgans has initiated coverage of Symal with a Buy rating and $2.40 price target.

Strong Outlook

Symal’s FY25 result delivered ahead of prospectus forecasts, beating upgraded earnings guidance. The ‘beat’ was achieved on an earnings margin of 11.8%, sitting at the high end of the company’s typical range of 10-12%.

FY26 guidance offers a lot to like, Jarden suggested in August. Symal is building capability and capacity in more “services” (power, renewables), which is diversifying revenue streams, its customers and its regional exposure (growth outside Victoria).

Symal’s balance sheet strength (net cash) provides support for optionality in growth, but also insulation if conditions weaken or turn.

The company’s underlying health is improving, Jarden notes, as it shifts more towards services work. Symal continues to shift its work-in-hand (WIH) balances away from infrastructure work, representing 77% at the time of IPO and is currently down to 51%, to utilities and power, up to 35% from 2% at IPO, as it captures more services-orientated consulting through early contractor involvement (ECI) and support services via the Locale acquisition.

Symal acquired Locale in August. Locale Civil holds a minimum six-year civil works agreement with Power Network Services to deliver civil infrastructure services. The agreement guarantees a minimum of $230m in recurring revenue over the initial contract term, with a guaranteed minimum operating margin.

Despite numerous peers reporting a weaker Victorian market, especially for plant & equipment hire, Symal ‘s vertically integrated self-performing model, coupled with limited exposure to residential development/new projects, has provided insulation for margins and earnings for investors, Jarden notes.

WIH remains strong at $1.76bn, before factoring in Locale’s $230m minimum guaranteed revenue over six years. The company also announced two new ECIs in the form of wind farms in NSW and Victoria, which on inspection look to Ord Minnett to be sizable.

These aren’t factored into WIH until the ECI is converted to contract wins, and given Symal’s strong track record (greater than 90%) in converting ECIs, Ord Minnett sees a strong case for the upside scenario.

Petra Capital expects Symal’s growth to be driven by increases in market share in civil projects, geographic network expansion and investment in Sycle (recycling). This forms a continuation of its vertically integrated platform.

Opportunity

In supporting its initial Buy rating, Morgans points out Australia’s civil construction outlook is supported by a multi-year pipeline of infrastructure investment. The energy transition is accelerating, with renewables driving demand for transmission, storage, and grid upgrades. Defence estate development is set to exceed $40bn over the next decade, while data centre expansion is creating new demand for enabling infrastructure — all supporting Symal’s $80bn-plus addressable market.

The company continues to demonstrate disciplined risk management and strong operational control, Morgans notes, supporting margin resilience through varied market conditions. Its vertically integrated model enables margin capture across contracting, hire, and recycling, while a high proportion of self-performed work and a stable repeat client base drives consistency and cost efficiency.

The business remains tightly aligned with its core strengths, although Morgans suggests scale benefits may take time to build. Management’s decision to exit Bridge & Civil and Symal Structures reflects a clear strategic pivot toward scalable, higher-return segments.

Value

Trading on a forecast FY26 PE of 7.7x, Symal’s multiple is approximately half that of ASX and international peers. While this discount is likely attributable to the company’s focus on self-performed contracting and short history as a listed business, the extent of the multiple discount appears to Morgans to be excessive.

Jarden forecasts FY26 earnings of $121.5m, slightly above the mid-point of management’s $115m to $125m guidance range, and growth of more than 15% on FY25 ($106m). Although D&A will step up in FY26 alongside interest costs, this broker forecasts this to result in more than 27% underlying profit growth relative to FY25.

Jarden saw, in late August, this strong earnings growth as fundamentally underappreciated by the market with Symal’s current share price around the same level as then. Jarden has a Buy rating and $2.50 target.

Compositionally, the FY25 result was different to Petra’s expectations, but cash flow was strong and cash is building. Looking forward, WIH is strong, margins are attractive and further acquisitions are likely. Petra has a Buy rating and $2.75 target.

Ord Minnett suggests the Locale acquisition provides Symal with cross-selling opportunities with Locale’s key clients as well as potential synergy realisation with Symal’s Plant & Equipment segment.

Ord Minnett has upgraded its target to $2.50 from $2.40 off the back of this “prudent” acquisition, retaining a Buy rating.

Symal offers exposure to long-term infrastructure and sustainability themes through a diversified, vertically integrated model that combines civil construction, material recycling and equipment hire.

Its self-performing approach enables greater delivery control, operational efficiency, and margin retention, which Morgans sees as a key differentiator in a competitive sector.

All four of the above brokers hold Buy ratings on Symal Group, with targets ranging from $2.40 (Morgans) to $2.75 (Petra).

Jarden Australia was directly involved in the company’s IPO as sole global coordinator, underwriter and joint lead manager and Ord Minnett was joint lead manager.

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