Verbrec's Turnaround Delivers a Net Cash Balance Sheet and 107% NPATA Growth
A new CEO's focus on profitable contracts and selling non-core assets funded a strategic acquisition expanding into automation, cyber security and renewable energy engineering.
30 Sep 2026 · 3 min read
In short
Verbrec transformed from years of significant debt into a net cash position of around $13.8 million, more than 40% of its market cap, after selling its non-core training business for $11.5 million.
The company acquired Alliance Automation for $5.5 million, expanding its engineering capabilities into automation, cyber security and digital solutions supported by strong industry tailwinds.
An August 2026 result showed EBITDA up 42% to $8.7 million and NPATA up 107% to $4.2 million, with strong momentum and recent wins in energy security and storage.
Verbrec transformed from years of carrying significant debt into a net cash position, then sold its non-core training business and acquired Alliance Automation to expand into electrification and renewable energy engineering, with a new CEO's turnaround delivering a 107 percent NPATA increase over the year.
A debt-laden business turns to net cash, then sells non-core assets
DMX Asset Management said it had previously discussed how Verbrec, after many years of carrying significant debt, ended FY25 in a net cash position following a strong year, with the balance sheet further improved when the company announced the sale of its training business for $11.5 million in upfront cash. Once completed, the sale would take Verbrec's net cash to approximately $13.8 million, representing more than 40 percent of its market cap.
After many years of carrying significant debt, following a strong FY25, Verbrec ended the year in a net cash position. The sale, once completed, will take VBC's net cash to approximately $13.8m, representing more than 40% of its market cap.
— DMX Asset Management, Monthly Report, September 2025
A step-change acquisition under a turnaround CEO
DMX Asset Management said Verbrec is a national engineering and infrastructure services business with a focus on energy transition, with ex-Sedgman CEO Mark Read, since his 2023 appointment, delivering an impressive turnaround by emphasising profitable contracts and selling non-core assets at attractive prices, with the recent acquisition of Alliance Automation expanding capabilities in automation, digitisation and machine learning. Cyan Investment Management said Verbrec rose 33 percent after making several strong strategic moves that materialised in December's stock rise, first selling its non-core training business for $11.2 million in cash and subsequently acquiring Alliance Automation for $5.5 million, calling it a positive step-change for the company, now forecast to generate stronger earnings.
Verbrec sold a non-core training business for $11.2m in cash and subsequently acquired another engineering business, Alliance Automation, for $5.5m. This represents a positive step-change for the company.
— Cyan Investment Management, Monthly Report, December 2025
Strong results confirm the electrification and renewables positioning
DMX Asset Management said Verbrec rose 24 percent on a strong result and positive guidance, with integration of Alliance Automation underway and the merged company gaining attention as an interesting engineering services business with exposure to electrification and renewable energy, underpinned by multi-year maintenance contracts and a strong balance sheet. By August, DMX said Verbrec capped off an eventful year with an $8.7 million EBITDA result, up 42 percent, and NPATA of $4.2 million, up 107 percent, with the Alliance Automation acquisition deepening its presence in automation, cyber security and digital solutions, all supported by strong tailwinds, alongside strong momentum and recent wins in energy security and storage.
Verbrec capped off an eventful year with an $8.7m EBITDA result (+42%) and NPATA of $4.2m (+107%). Verbrec's recent acquisition of Alliance Automation deepens its presence in automation, cyber security and digital solutions, which are all supported by strong tailwinds.
— DMX Asset Management, Monthly Report, August 2026
What fund managers say they are watching next is continued integration of Alliance Automation deepening automation, cyber security and digital solutions capabilities, delivery on the significant pipeline of opportunities in energy security and storage, continued strength in the net cash-backed balance sheet, and whether multi-year maintenance contracts continue underpinning the electrification and renewables positioning.
Questions
How did Verbrec transform its balance sheet?
Verbrec transformed from years of carrying significant debt into a net cash position of around $13.8 million, more than 40% of its market cap, after selling its non-core training business for $11.5 million in upfront cash.
What was Verbrec's Alliance Automation acquisition?
Verbrec acquired Alliance Automation for $5.5 million, expanding its engineering capabilities into automation, digitisation, machine learning, cyber security and digital solutions.
How much did Verbrec's earnings grow in its latest result?
Verbrec reported EBITDA up 42% to $8.7 million and NPATA up 107% to $4.2 million, with strong momentum and recent wins in energy security and storage.
2 managers, 17 comments, with each manager's latest recorded position.
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