Saunders slashes FY26 guidance over project delays

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.