Veris (ASX:VRS) executives outlined continued momentum in the first half of FY2026, pointing to higher revenue, improved earnings and growing contribution from the company’s digital and spatial consulting strategy.
Presenting alongside CEO Michael Shirley, CFO Steve Harding said the business is increasingly targeting engagements where it can differentiate through “data capture, storage, analytics, and insights,” as Veris continues shifting toward what management described as higher-quality revenues and margins.
Half-year results show higher revenue and earnings
Harding noted that reported PBT was AUD 0.8 million, which he said was affected by “a number of larger one-off expense items” during the half. He added that when normalizing for those costs, Veris’ underlying EBIT and PBT margins continued to improve year-over-year.
Management also highlighted a growing proportion of revenue tied to the company’s digital and spatial strategy. Shirley said digital and spatial revenue reached 29% of total revenue for the half, up from 20% in the same period last year. Harding contrasted that with FY2023, when he said 10% of full-year revenue came from digital and spatial consulting and advisory projects.
Strategy centered on digital platforms and advisory growth
Shirley described Veris’ transformation from a “legacy” surveying business into a spatial data, advisory, and digital solutions provider. While he said the survey business remains a strong core offering, he characterized it as potentially “low margin” in a standalone context and said the company has focused on building higher-value consulting and advisory work supported by proprietary digital platforms.
Harding said the improved underlying margins reflect platforms and analytics developed in-house that he said are “disrupting traditional industry methodologies,” helping move the company away from more commoditized work.
Shirley said Veris aims to “monetize the data, not just the time and hours of our people,” and pointed to potential revenue streams such as subscriptions, software sales, and pricing tied to analytics.
Digital products and examples discussed
Shirley said Veris has developed a suite of proprietary, cloud-based, AI-enabled platforms used to help clients visualize assets and generate insights. He cited products including:
- Vantage (property solution)
- BridgeSiDe and RoadSiDe (transport asset-focused solutions)
- PhotoNavigator (applied across industries)
- Parsel (a newer solution acquired through Mesh, described as optimizing development contributions in the property sector)
To illustrate PhotoNavigator in practice, Shirley said Veris completed a dilapidation survey for an Australian port authority using “3-day reality capture data” with spatial referencing, along with AI-assisted analysis to create a digital asset record. He also described a transport asset engagement where the company collected more than 30,000 images over a matter of weeks and used an AI-developed application to produce descriptions and inspection reports, which he said delivered productivity benefits and supported ongoing asset management.
Shirley also referenced the company’s application development capability, originating from the acquired Spatial Vision team, and cited the QLD Fishing 2.0 app as an example of building a solution with real-time updates and reporting.
Backlog, pipeline, and market conditions
Veris reported a secure backlog of AUD 65 million at the half, which Shirley said was supported by wins including Suburban Rail Loop and other digital and spatial projects. He added that the company’s weighted pipeline exceeded AUD 195 million.
Harding said some of the company’s traditional service lines experienced “market-related softness,” primarily in Victoria, which he attributed to project timing and regional conditions. He said the impacts were viewed as market-related rather than structural.
In Q&A, Shirley said the company’s efforts to diversify across geographies and sectors are intended to mitigate timing risks such as major infrastructure program delays shifting between periods. He pointed to relative strength in New South Wales, anticipated growth in Queensland, and a “pretty strong resources sector in WA.”
Shirley also discussed transport and energy-related activity, citing ongoing support for Western Sydney Airport and referencing work in Queensland including Gold Coast Light Rail. He said the company is supporting renewable energy projects using digital solutions through development and into construction and described a “strong bow wave of work” coming from that sector.
Balance sheet, acquisitions, and capital allocation
Shirley said Veris ended the half with a cash balance of AUD 14.9 million, which management described as providing flexibility to accelerate strategic execution. Harding said the strong cash position reflected a focus on higher-margin project delivery, working capital management, cost control, and minimizing capital expenditure through equipment utilization and mobilization efficiency.
Harding said maintaining cash was particularly notable given outlays during the half including the acquisition of Mesh and a 50% interest in the Parsel business, payment of the FY2025 final dividend (which he said was not paid in the prior year), FY2025 staff incentive payments (also not incurred in the prior year), and non-recurring legal and M&A process costs.
On M&A, Shirley said Veris is focused on “small to mid-size acquisitions,” targeting opportunities across consulting/advisory capabilities and digitally focused businesses, including filling geographic gaps. Harding added that the balance sheet has capacity to leverage up if the right larger acquisition opportunity arises.
Addressing debt, Harding said borrowings have historically been used to invest in technology and equipment, including surveying and data capture tools, laser scanning, and drone fleet capabilities that he linked to applications such as BridgeSiDe and RoadSiDe. He said the company expects to continue repaying debt from project cash flows, describing the balance sheet as “pretty clean.”
Management closed by reiterating confidence in continued progress through the second half, citing strategy execution, growth in digital revenue contribution, and the backlog and pipeline position.
About Veris (ASX:VRS)
Veris Limited provides surveying and spatial data services primarily in Australia. The company provides an end-to-end spatial data solution, which includes data collection, analysis, interpretation, data hosting and access, modelling, and sharing and insights for clients. It offers engineering survey; engineering and property services; and town planning and urban design services. It serves infrastructure, property, mining, resources, energy, utilities, government, and defence sectors. Veris Limited was incorporated in 2006 and is headquartered in East Melbourne, Australia.
