Lycopodium Targets Major FY27 Growth on Expanding Global Pipeline

Lycopodium (ASX: LYL) has delivered FY26 revenue of $377.5 million and $40.2m NPAT, meeting guidance while expanding its global project footprint and secured workload.

Revenue increased 11% from FY25, although EBITDA fell 13% to $59.5m and NPAT eased 5% as the NPAT margin moderated to 10.6%.

The engineering and project delivery group has guided to FY27 revenue of $540m to $580m and NPAT of $54m to $58m, with the midpoint representing about 50% revenue growth and 40% NPAT growth.

Committed contracts stood at $661m at 30 June, while a strong balance sheet with $106.2m cash supported a fully franked final dividend of 37 cents per share, taking full-year dividends to 59 cents.

Margins Ease as Revenue Grows

Earnings per share declined 5% to 101.1 cents, while the 59-cent full-year dividend represents a 60% payout ratio and 69% increase from FY25.

Lycopodium finished FY26 with equity of about $170.7m, up 13% year-on-year, minimal debt and net tangible assets of $3.92 per share.

The business managed about nine million controlled service hours across its operations during the year and recorded a lost time injury frequency rate of zero.

Major projects completed during FY26 included Ahafo North, Chemical Grade Processing Plant #3, Boto Gold, and Bomboré Hard Rock Stage 1.

Delivery also continued across a broad portfolio spanning Africa, Australia, Oman, Canada, and other markets.

Pipeline Supports FY27 Step-Up

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

Its potential revenue opportunity pipeline is about $1.4 billion, with recent awards including the Doropo gold project, Katanning gold project early works, Pilgangoora P2000 expansion project, Blackwater expansion project and San Cristóbal silver oxide project.

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

“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,” chief executive officer Peter De Leo said.

“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.”

Americas Expansion Traction

Lycopodium has reorganised its global operations around Asia-Pacific, Americas, and Africa hubs based in Perth, Toronto, and Cape Town respectively, with the model intended to deepen client engagement, access new markets, and make greater use of local expertise.

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

The company’s Toronto operation has grown from fewer than 10 people when established in 2011 to about 180, while 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 $37m 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, 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 52,000tpd of sulphide ore, with work commencing immediately, completion anticipated in 2030 and execution drawing on teams in Toronto, SAXUM in Argentina, and Lima.