GR Engineering Services (ASX: GNG) Seeks $110 Million as Revenue Growth Accelerates

GR Engineering Services plans to raise up to $110 million after forecasting a sharp increase in revenue for the 2027 financial year.

The engineering contractor expects FY27 revenue between $825 million and $850 million. That represents growth of 67% to 72% from FY26 revenue of $493.2 million.

More than 90% of the guidance's upper end is secured through contracted projects. The balance is expected from studies, minor works and other new work.

Funding a Larger Workload

GR Engineering will seek up to $100 million through a fixed-price institutional placement. It is also targeting up to $10 million through a share purchase plan.

The placement is priced at $6.10 per share and is not underwritten. That price is 3.3% below the August 21 closing price of $6.31. It matches the 10-day volume-weighted average price.

Eligible Australian and New Zealand shareholders can apply for up to $30,000 of shares through the plan. The share purchase plan is also priced at $6.10 and is not underwritten.

Proceeds will support working capital for recent and new contract awards. Funds will also strengthen internal technology infrastructure, resourcing and flexibility for potential acquisitions.

Completion of both offers would lift pro forma cash to $197.9 million before costs. External debt would remain at zero. This is the company's first additional equity raising since its 2011 initial public offering.

Contracts Reshape the Revenue Base

GR Engineering has secured more than $1 billion of new contracts since April 1. Its order book includes several large engineering, procurement and construction projects.

These include the $275 million Yitirrti copper-silver-zinc project and the $233 million Davyhurst expansion. The company also holds a $230 million contract for BHP's Yandi Eastern facility upgrade.

Other projects span gold, silver, lead and copper developments across Australia. More than 60% of forecast FY27 revenue is expected from commodities other than gold.

That mix provides context for the revenue guidance. Growth is being driven by multiple processing and infrastructure projects rather than one commodity or contract.

Record Earnings and Higher Dividend

FY26 revenue rose 3% to $493.2 million. EBITDA increased 10% to a record $63.1 million, while profit before tax reached $57.6 million.

Net profit after tax climbed 14% to $39 million. Operating cash flow increased to $62.7 million from $38.2 million.

The company ended June with $87.9 million in cash and no external debt. It paid $40.5 million in dividends during the year.

The final fully franked dividend increased to 13 cents per share. Total FY26 dividends reached 25 cents, compared with 22 cents in FY25.

The final dividend goes ex-dividend on August 31 and is payable on September 23. New placement and share purchase plan shares will not receive it.

The share purchase plan opens on September 2 and is scheduled to close on September 23. GR Engineering may scale back applications or accept subscriptions above its $10 million target.

About GR Engineering Services

GR Engineering Services Limited is an Australian engineering, consulting and contracting company specialising in the design and construction of mineral processing facilities and supporting infrastructure. The group works across the mining and resources sector, delivering projects from feasibility and engineering through to construction, commissioning and operational support.