Fund Manager Summary
The fund managers believe that Symal Group Ltd presents a compelling opportunity for investors, particularly due to its strong positioning in the civil construction sector. In their opinion, the company’s work-in-hand of $1.3 billion and focus on Infrastructure and Defence projects enhance its growth prospects. They note that SYL is founder-led, which contributes to its strong culture and reputation in the market. With management owning approximately 60% of the business, there is significant alignment of interests. Additionally, the company is net cash and is expected to achieve solid earnings growth moving forward, bolstered by returns on invested capital exceeding 20%. The attractive valuation metrics of c.4x EBITDA and c.10x price-earnings multiple further support a favorable investment thesis.
Source: Trading View
Commentary From The Managers
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Tyndall Asset Management
31 Oct 2025
$2.39
Summary
- Tyndall Asset Management initiated a position in Symal Group Ltd.
- Symal is a recently listed contractor involved in civil construction, plant hire, and recycling.
- The contractors space has performed well due to rapidly expanding demand.
- Tyndall believes Symal has lagged its peers due to overexposure to Victoria, which is experiencing softer economic growth compared to the rest of Australia.
- While this presents a short-term headwind, Tyndall sees potential in Symal's ability to grow and diversify beyond its Victorian roots.
- The fund manager believes Symal is well positioned to deliver strong earnings growth, which is expected to be recognized by the market.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Tyndall Asset Management
31 Oct 2025
$2.39
- Tyndall Asset Management initiated a position in Symal Group Ltd.
- Symal is a recently listed contractor involved in civil construction, plant hire, and recycling.
- The contractors space has performed well due to rapidly expanding demand.
- Tyndall believes Symal has lagged its peers due to overexposure to Victoria, which is experiencing softer economic growth compared to the rest of Australia.
- While this presents a short-term headwind, Tyndall sees potential in Symal's ability to grow and diversify beyond its Victorian roots.
- The fund manager believes Symal is well positioned to deliver strong earnings growth, which is expected to be recognized by the market.
Summary
Tamim Funds Management
15 Oct 2025
$2.14
- Market Cap: ~$270 million
- FY26 Normalised EBITDA Guidance: $117–127 million
- Investment View: Founder-led infrastructure play with strong growth trajectory and multiple expansion potential.
- Symal Group Limited has shown strong attributes post-IPO, including founder leadership, strong balance sheet, and earnings visibility.
- Recent acquisition of McFadyen Group for $11 million expected to deliver annualised EBITDA of $3 million by FY26.
- Acquisition is earnings accretive from the first year of ownership.
- FY26 normalised EBITDA guidance upgraded by $2 million following the acquisition.
- Continuity and cultural alignment ensured with McFadyen’s founder remaining with the business.
- Acquisition aligns with Symal’s growth strategy and diversifies into high-demand sectors like renewable energy and defence.
- Symal trades on a 10x price-to-earnings multiple, significantly lower than peers in the construction sector.
- Maintains a net cash balance sheet, allowing for further strategic acquisitions.
- Tamim Funds Management believes Symal is positioned for a significant re-rating as it secures more government contracts and scales operations.
- Internal valuation suggests a price above $3.00 per share, indicating potential for meaningful upside.
Summary
Tamim Funds Management
30 Sept 2025
$1.81
- Tamim Funds Management continues to hold its position in Symal Group Limited (ASX: SYL) due to recent strategic developments.
- SYL has announced the acquisition of McFadyen Group for $11 million, enhancing its portfolio in the water utilities sector.
- The acquisition is projected to be EPS accretive from the first year of ownership.
- Management has updated FY26 guidance for Normalised EBITDA, raising it by $2 million to a range of $117-$127 million.
- Ron McFadyen, founder and Managing Director of McFadyen, will remain involved, ensuring continuity and expertise.
- SYL operates as a founder-led contracting business, primarily servicing government and infrastructure clients across Australia, with a focus on Victoria.
- The company went public last year and possesses key characteristics: majority founder ownership, profitability, a strong balance sheet, and a favorable valuation at 10x PE compared to peers in the mid-teens.
- Tamim Funds Management anticipates ongoing success in renewable projects and potential opportunities in defence-related work.
- Acquisitions are a strategic element for expanding into new states and sectors.
- The stock is viewed as being on the cusp of a major re-rate, moving towards a valuation target of $3.00+ in the coming months.
Summary
Salter Brothers
10 Sept 2025
$1.75
- Symal Group Ltd is a civil construction and equipment hire business.
- Salter Brothers has increased their conviction in the holding following a strong trading update and outlook in August.
- In FY25, Symal modestly outperformed their prospectus guidance by 3.7%, achieving an EBITDA of $106.1m.
- This result is particularly strong given the broadly soft civil construction industry with widespread project delays.
- Guidance for FY26 is $115-125m EBITDA, with strong contract wins and Work in Hand increasing to $1.76bn, up 35% on PCP.
- Salter Brothers maintains high conviction in SYL, which trades at an attractive valuation relative to peers.
- This view is supported by a strong pipeline and potential for additional acquisitions, backed by Symal’s strong balance sheet.
- Symal is an Australian founder-led business providing construction contracting, equipment hires, material sales, recycling, and remediation services.
- The company has a strong track record of organic growth and effective risk management through a vertically integrated operating model.
- Salter Brothers has built a meaningful position in Symal, making it a top 5 holding as of 31/8/2025.
- Symal’s civil construction segment involves civil and private infrastructure, energy, renewables, and complex engineering.
- This division accounted for $714m revenue and $58m normalised EBITDA in FY25.
- The plant and equipment hire business provides heavy machinery, with 50% of equipment hired externally and 50% internally.
- This division accounted for $184m in revenue and $44m in normalised EBITDA in FY25.
- SYCLE is a new segment focused on processing and recycling construction materials, forecasted to enhance vertical integration.
- Symal is well positioned to outperform with good execution of contracted work and a growing pipeline, all while trading at an attractive valuation.
Summary
Salter Brothers
30 June 2025
$1.72
- Symal listed on the ASX in November 2024, raising over $130m, with a post-offer market capitalisation of $437m.
- Recently added to the Salter Brothers portfolio.
- Symal is an Australian founder-led business providing construction contracting, equipment hires, material sales, recycling, and remediation services to the civil construction industry.
- The company has a strong track record of organic growth and effective risk management through a vertically integrated operating model.
- In June, Symal updated their market guidance, expecting to deliver $105m EBITDA, exceeding their prospectus guidance of $102m.
- As of the end of May, the company reported significant work in hand of $1.4B.
Summary
Contract Asset Management
30 Nov 2024
$1.80
- Contract Asset Management added Symal (SYL) to the portfolio in November when it listed on the ASX.
- SYL is a civil construction contractor and commercial services provider.
- The majority of SYL’s earnings come from its Construction division, focusing on major projects in Infrastructure, Defence, and Energy.
- SYL also engages in non-construction work such as Asset Management, Logistics, Landfill, and Quarries.
- The company has a work-in-hand of $1.3 billion.
- SYL is well positioned to benefit from ongoing investment in Infrastructure and Defence.
- It has a good reputation in its end markets and a strong culture, attributed to being founder-led.
- Founded in 2001 by Joe Bartolo, who remains the Managing Director.
- The management team owns approximately 60% of the business.
- SYL is net cash and poised for solid earnings growth in the coming years.
- It generates solid returns on invested capital of greater than 20%.
- SYL was listed at attractive valuation metrics of approximately 4x EBITDA multiple and 10x price-earnings multiple.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With a robust work-in-hand of $1.3 billion and a founder-led ethos, it appears that Symal Group Ltd is set to capitalize on the booming infrastructure and defense sectors, positioning itself as a compelling growth story in the construction landscape."
Last Updated: 15 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Symal Group Ltd (ASX:SYL)?
Fund managers including Contract Asset Management, Salter Brothers and Tamim Funds Management have invested in Symal Group Ltd (ASX:SYL).
Why do fund managers invest in Symal Group Ltd?
Fund managers invest in Symal Group Ltd due to its strong position in the civil construction sector, particularly in Infrastructure and Defence, supported by a substantial work-in-hand of $1.3 billion. The company, founded in 2001 and still led by its founder, boasts a committed management team that owns approximately 60% of the business. With a net cash position and a solid earnings growth outlook, Symal generates impressive returns on invested capital exceeding 20%. Additionally, it offers attractive valuation metrics, making it a compelling investment opportunity.
What happened to Symal Group Ltd (ASX:SYL)?
Fund managers are investing in Symal Group Ltd due to its strong growth potential and attractive valuation. The company, which operates in civil construction and equipment hire, has consistently outperformed its financial guidance, achieving an EBITDA of $106.1 million in FY25. With a robust pipeline of contracts totaling $1.76 billion and a recent acquisition of McFadyen Group expected to enhance earnings, Symal is well-positioned for future growth. Its founder-led structure, strong balance sheet, and strategic focus on high-demand sectors like renewable energy further bolster investor confidence. Trading at a price-to-earnings multiple of 10x, below industry peers, Symal presents significant upside potential as it continues to secure government contracts and expand its operations.