Why did Saunders International (ASX:SND) lower its FY26 financial guidance?

The company revised its outlook due to external factors delaying three major projects, which deferred approximately $30 million in revenue from FY26 into FY27.

What are the new revenue and EBITDA margin targets for Saunders International (ASX:SND)?

For FY26, Saunders International now expects revenue between $300 million and $315 million, down from the previous range of $315 million to $345 million. The adjusted EBITDA margin guidance has also been lowered to 3.0%–3.5%, compared to the earlier forecast of 3.5%–4.5%.

Is the Saunders International (ASX:SND) investment thesis permanently damaged by these delays?

The medium-term thesis appears to be delayed rather than broken, as the $30 million in revenue is deferred to FY27 rather than cancelled. Management explicitly stated there is no commercial risk to project continuity or overall profitability.

What specific projects caused the guidance downgrade for Saunders International?

The primary disruptions involve the Siddeley Street Sewer Project in Melbourne and two Defence sector projects in the Northern Territory. The Melbourne project was halted by the discovery of "unforeseen cultural heritage artefacts," requiring slow excavation.

How does the Middle East conflict affect an Australian company like Saunders International (ASX:SND)?

While Saunders is an Australian-based firm, its work on Defence infrastructure makes it sensitive to global geopolitical shifts. The conflict in the Middle East led to changes in access restrictions for Defence bases in the Northern Territory, directly delaying Saunders' ability to execute planned works.

What are the main bull and bear points for Saunders International (ASX:SND) stock right now?

The bull case rests on a strong $10.7 billion Australian fuel security package and the fact that current delays are timing-related, suggesting a bumper FY27. The bear case focuses on the immediate margin compression and the risk that "external factors" or regulatory hurdles (like cultural heritage finds) could cause further unpredictable delays.

Saunders slashes FY26 guidance over project delays

Written by Liezl GambePublished May. 12 2026Last Updated May. 12 2026

Saunders International (ASX:SND) revised its financial guidance for the 2026 financial year, citing external factors that have deferred revenue from three major projects into FY27.

The Sydney-based engineering and construction group announced that FY26 revenue is now anticipated to fall between $300 million and $315 million, a decrease from the previously forecasted range of $315 million to $345 million.

The adjusted EBITDA margin has been softened to a range of 3.0% to 3.5%.

The primary catalyst for this adjustment is the displacement of approximately $30 million in revenue caused by timing delays.

In Melbourne, the Siddeley Street Sewer Project faced an immediate pause following the discovery of unforeseen cultural heritage artefacts, necessitating a meticulous excavation and retrieval process.

Two critical defence projects in the Northern Territory have been hampered by shifting base access restrictions linked to Middle East instability and evolving user requirements.

The group emphasised that the impacts are limited to scheduling rather than project viability.

No commercial risks to profitability or continuity have been identified, and activity is expected to normalise by the end of the current financial year.

At the time of reporting, Saunders International’s share price was $0.85.