Lycopodium Targets 50% FY27 Revenue Jump on $1.4B Pipeline

Lycopodium (ASX: LYL) has laid out FY27 guidance that would mark the strongest year in the engineering group's recent history. Revenue is expected to land between $540 million and $580 million, with net profit after tax of $54 million to $58 million. The midpoint implies roughly 50% revenue growth and 40% NPAT growth from FY26.

FY26 itself came in at the top end of the company's earlier guidance. Revenue hit $377.5 million, up 11% from FY25, while NPAT of $40.2 million was slightly below the prior year's $42.2 million. EBITDA fell 13% to $59.5 million, and the NPAT margin eased to 10.6% from 12.4%.

The forward-looking numbers rest on a secured workload that has expanded sharply. Committed contracts stood at $661 million as of June 30. The potential revenue opportunity pipeline is about $1.4 billion, with recent awards including the Doropo gold project in West Africa, the Katanning gold project early works in Western Australia, the Pilgangoora P2000 expansion, the Blackwater expansion project, and the San Cristóbal silver oxide project in Bolivia.

Lycopodium enters FY27 with more than 90 resource studies and more than 50 resource projects in its portfolio. The total capital value within studies is about $11.4 billion, with approximately $4.9 billion of managed capital expenditure in projects under delivery.

"We had initially expected FY27 to be a record year with results surpassing recent years, and that is even more pronounced now, with a suite of new projects recently awarded and in execution," chief executive officer Peter De Leo said.

The balance sheet supports the growth. Lycopodium finished FY26 with $106.2 million in cash and equity of about $170.7 million, up 13% year-on-year. Debt is minimal. Net tangible assets stood at $3.92 per share.

The strong cash position funded a fully franked final dividend of 37 cents per share, taking full-year dividends to 59 cents. That represents a 60% payout ratio and a 69% increase from FY25's total of 35 cents. Earnings per share declined 5% to 101.1 cents.

Major projects completed during FY26 included Newmont's Ahafo North mine in Ghana, the Chemical Grade Processing Plant #3, Boto Gold in Senegal, and Bomboré Hard Rock Stage 1 in Burkina Faso. Delivery also continued across Africa, Australia, Oman, Canada, and other markets.

The business recorded about nine million controlled service hours during the year with a lost time injury frequency rate of zero.

Regional reorganisation taking shape

Lycopodium has reorganised its global operations around three hubs: Asia-Pacific in Perth, Americas in Toronto, and Africa in Cape Town. The model is intended to deepen client engagement and make greater use of local expertise.

The Americas generated about 11% of FY26 revenue, roughly $40 million, after activity increased materially over the past 12 months. The regional footprint now extends through Canada, Peru, Argentina, Brazil, and the US.

Toronto has grown from fewer than 10 people when established in 2011 to about 180. The majority acquisition of Argentina-based SAXUM in 2025 added a network of offices and a platform for further Latin American growth.

That regional push was reinforced this week by an approximately $37 million engineering, procurement and construction management (EPCM) contract from Minera San Cristóbal S.A. for a new silver oxide plant at the San Cristóbal mine in Bolivia. The contract is subject to a final investment decision. Lycopodium will provide EPCM services for a plant with capacity of 15,000 tonnes per day to produce silver doré alongside the existing process plant treating 52,000 tonnes per day of sulphide ore. Work begins immediately, with completion anticipated in 2030. Execution will draw on teams in Toronto, SAXUM in Argentina, and Lima.

"FY26 has been another successful year for the company, with an expanded geographic reach and the continued delivery of high-quality studies and projects for our clients globally," De Leo said.

The group expects resources demand to remain robust across gold, critical minerals, and uranium. Australian rail infrastructure investment provides another source of work beyond its core resources business.

Lycopodium shares last traded at $12.95, giving the company a market capitalisation of roughly $640 million.