Saunders International secures $52 million worth of new construction contracts in a week

It’s been a busy few days for construction company Saunders International (ASX: SND) which has confirmed a collection of new contract wins that total $52 million worth of revenue, spanning projects across New South Wales and Western Australia. 

The first of these announcements came on Monday, when Saunders revealed it had been awarded the $31.5 million CIL3 Tanks Replacement project at the Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia. This contract, granted by Northern Star Resources (ASX: NST), involves the reconstruction and upgrade of six carbon-in-leach (CIL) tanks. The project also includes the associated pipework, structural steel, and interconnecting launders within a complex brownfield environment.

The CIL3 Tanks Replacement project is designed to enhance the throughput and reliability of the Fimiston Processing Plant. Saunders’ construction methodology ensures the plant remains fully operational during the project, minimising shutdowns and maintaining revenue for Northern Star Resources. Site mobilisation for the project commenced in July 2024, with contributions to Saunders’ revenue and earnings expected from FY25 through to FY27.

Today, Saunders announced it had secured four additional contracts in the civil infrastructure sector, totalling $20.6 million. These projects involve the demolition of existing bridges and the design and construction of new concrete bridge structures across New South Wales.

The first project is the Brunners Bridge in Singleton, NSW. This project aims to provide safe and efficient connectivity for the community at a critical access point. It is funded by the Singleton Council, the NSW Government, and the Federal Government, with Singleton Council as the client.

The second project is the Spring Creek Bridge in Narrabri, NSW. This new, wider concrete bridge is designed to improve access for wide loads and enhance vehicle safety. Both the client and the project funding come from the NSW Government.

The third project is the Melville Ford Bridge in Aberglasslyn, NSW. The new bridge structure, which will be twice as wide and twice as high as the existing one, has been designed to minimise impacts on the community during minor flooding events. The Maitland City Council is the client, with funding provided by the council, the NSW Government, and the Federal Government.

The fourth project encompasses the Molong Street Bridge and Burrendong Bridge No 1 in Dubbo, NSW. This project aims to enhance safety for pedestrians, cyclists, and motorists. The Dubbo Council, a repeat client of Saunders, is the client, with funding from the council, the NSW Government, and the Federal Government.

Reflecting on these projects, Saunders Managing Director Mark Benson said, “We’re proud of our strong track record and performance in bridge design and construction. 

“It’s fantastic to see all levels of government working together to make high-priority community infrastructure projects like this possible.”

These new contracts are expected to contribute to Saunders’ revenue and earnings in FY25 and FY26, showcasing the Company’s busy project pipeline.

For the Half Year ended 31 December 2023, Saunders reported $104.4 million revenue which contributed $4.9 million in net profit after tax. Shareholders were rewarded with a fully-franked interim dividend of 2 cents per share. The Company will report it’s Full Year results later this month.