Saunders Piping Solutions - Comprehensive Analysis Report

Summary

Saunders Piping Solutions is a specialized engineering business with over 45 years of experience in high-quality metal fabrication, installation, and maintenance services, established in 2004. Acquired by Saunders International Limited (ASX: SND) in late 2023, it now operates as a principal contractor, self-delivering design, civil, mechanical, structural, and electrical components for projects across Australia and the Asia Pacific region. The company's mission is to deliver safe and reliable construction, maintenance, and fabrication service solutions to the industry. Its integration into Saunders International has significantly enhanced its capabilities and market reach, particularly in the Defence and new energy sectors.

1. Strategic Focus & Objectives

Core Objectives

Saunders Piping Solutions aims to deliver safe and reliable construction, maintenance, and fabrication service solutions. Following its acquisition by Saunders International, a key objective is to leverage this integration to accelerate expansion into the Defence sector and enhance capabilities in complex steel piping fabrication, installation, and maintenance. This pursuit leads to a vertically integrated offering and better penetration into new energy markets.

Specialization Areas

The company specializes in fabrication, installation, and maintenance services for steel pipelines, structures, pressure vessels, and refuelling systems. Its expertise covers all areas of steel pipe fabrication, including carbon, stainless, and exotic steels, along with refurbishment and shutdown work, tank and pressure vessel fabrication, protective coating, and site installation.

Target Markets

Saunders Piping Solutions targets critical industries such as Oil & Gas, Mining, Power, Water, and Defence. Its strategic expansion now includes foundational roles in green hydrogen infrastructure, green liquid ammonia infrastructure, natural gas infrastructure upgrades, green biofuel refining and distribution, waste-to-energy infrastructure, and water and wastewater infrastructure.

2. Financial Overview

Funding History

Saunders Piping Solutions was acquired by Saunders International Limited (ASX: SND) with effect from November 1, 2023. The purchase price for the business and operating assets was up to $20.0 million, on a cash-free and debt-free basis. The acquisition was funded from Saunders International's cash reserves and the issue of new shares. The initial instalment of $13.0 million was paid with $6.50 million in cash and $6.50 million in equity (based on the 30-trading day Volume Weighted Average Price of Saunders shares prior to completion). A second instalment of up to $7.0 million is subject to the achievement of Piping Solutions' EBIT targets for a 12-month earn-out period commencing November 1, 2023, and will be paid 50% in cash and 50% in equity.

For the financial year 2023, Saunders Piping Solutions generated a revenue of $40.8 million and an adjusted Earnings Before Interest and Tax (EBIT) of $3.60 million. The acquisition is anticipated to be earnings per share (EPS) accretive for Saunders International in FY2024.

3. Product Pipeline

Key Products/Services

Saunders Piping Solutions provides a comprehensive suite of services:

Metal Fabrication: High-end fabrication of steel pipelines, structures, pressure vessels, and refuelling systems. This includes precise work with carbon, stainless, and exotic steels.

Site Installation: On-site installation services for fabricated components across various industrial settings.

Maintenance Services: Refurbishment and shutdown work, ensuring the longevity and operational efficiency of industrial piping and related assets.

Protective Coating: Application of protective coatings to fabricated components to enhance durability and resistance to environmental factors.

Tank and Pressure Vessel Fabrication: Specialized fabrication of tanks and pressure vessels adhering to stringent industry standards.

4. Technology & Innovation

Technology Stack

Saunders Piping Solutions prides itself on providing high-quality metal fabrication, site installation, and welding workmanship. The company possesses extensive experience and resources for design, material supply, fabrication, Non-Destructive Testing (NDT), hydro testing, protective coating, transportation, site installation, and commissioning. Its operations adhere to stringent quality requirements of client specifications and Australian and overseas standards including AS 4041, AS 2885, AS 1210, AS/NZS 3992, AS/NZS 1554.1, ASME IX, and ASME B31.3.

Proprietary developments:
The company has developed its own customized "spool tracker database system." This system is crucial for enabling enhanced traceability, tracking progress throughout the production phase, and facilitating detailed progress reporting for fabricated products.

Technical capabilities:
Saunders Piping Solutions' workshops are equipped to produce up to 5000 welded inches per week. They are capable of handling a wide variety of metals including carbon steel, chrome moly, duplex, and stainless steels. Their specialization encompasses fabricating pipe spool pieces, flanges, and cutting and joining all sizes of pipes.

5. Leadership & Management

Executive Team

Angelo De Angelis (Managing Director & Chief Executive Officer, Saunders International Limited): Appointed to this role effective October 1, 2025. Previously Chief Operating Officer of Saunders since June 2021, he has over 30 years of experience across Saunders' key markets, including senior leadership positions at Transfield Services and Ventia.

Linkon Allan (Director, Saunders Piping Solutions): Formerly a director of Piping Solutions prior to its acquisition, Mr. Allan continues in his role within the combined business.

Rowley Hill (Director, Saunders Piping Solutions): Formerly a director of Piping Solutions prior to its acquisition, Mr. Hill continues in his role within the combined business.

Shane Tynan (General Manager, Saunders Piping Solutions): Appointed General Manager following the acquisition, he leads the overall business and operations, bringing experience as a Mechanical Engineer for companies such as Shell and UGL.

Recent Leadership Changes

Mark Benson stepped down from his role as Managing Director and Chief Executive Officer of Saunders International Limited, effective December 31, 2025. Angelo De Angelis was appointed as the new Managing Director and Chief Executive Officer, commencing as an Executive Director on September 22, 2025, and assuming the MD and CEO role on October 1, 2025. Mr. Benson will remain engaged with Saunders for a further 12 months to provide support to Mr. De Angelis. The existing directors and management team of Piping Solutions, Linkon Allan, Rowley Hill, and Shane Tynan, have continued in their roles within the combined Saunders Piping Solutions business after the acquisition.

6. Talent and Growth Indicators

Hiring Trends and Workforce

At the time of its acquisition in late 2023, Piping Solutions employed approximately 100 team members across Management, Engineering, and Operations, located at its Brisbane Head Office and various project sites across Queensland, New South Wales, and the Northern Territory. Saunders International Limited, the parent company, has approximately 580 total employees.

Current job opportunities within Saunders International often include roles relevant to piping and structural fabrication. Recent job postings include positions for Pipe Fitters/Welders for pipeline welding and construction projects in Yatala, QLD, as well as Project Managers and Trades Assistants.

Company Growth Trajectory Indicators

The acquisition of Piping Solutions by Saunders International is a significant growth indicator. This acquisition accelerates Saunders' strategic expansion into the Defence sector and broadens its target markets to include new energy initiatives. Saunders International reported a record order book of $529.0 million and a record pipeline of $4.0 billion as of June 30, 2025, reflecting organic growth and contributions from recent acquisitions such as Piping Solutions and Aqua Metro.

7. Social Media Presence and Engagement

Digital Footprint

Saunders Piping Solutions primarily operates its broader social media presence under the umbrella of Saunders International Limited.

LinkedIn (Saunders International Limited): https://www.linkedin.com/company/4829818 The company's LinkedIn page is utilized for corporate announcements, highlights of projects, and thought leadership related to its multidisciplinary engineering and construction services, which include piping solutions capabilities. Content often features updates on contract wins, financial results, and strategic initiatives.

YouTube (Saunders International Limited): The Saunders International YouTube channel features executive interviews discussing financial performance, market outlook, and strategic acquisitions, including mentions of piping capabilities and project diversification.

8. Recognition and Awards

Industry Recognition

Saunders Piping Solutions is an ISO 9001 accredited company, demonstrating its strong commitment to quality management systems and adherence to international standards.

9. Competitive Analysis

Major Competitors

In the Australian market for steel piping and fabrication, Saunders Piping Solutions, as part of Saunders International, competes with various companies offering metal fabrication, installation, and maintenance services across industries such as oil & gas, mining, power, water, and defence. Key competitors include:

InfraBuild: Provides a broad range of stainless steel extrusions for construction, transport, mining, industrial, and marine sectors.

Austral Wright Metals: Offers a comprehensive selection of stainless steel pipes and fittings, emphasizing timely delivery.

Steelpipes Pty Ltd: Specializes in certified, quality steel pipes, particularly medium to large diameter options.

BDR Stainless: Focuses on design, fabrication, installation, and maintenance for the resources, energy, and food & beverage sectors.

10. Market Analysis

Market Overview

The market for piping solutions in Australia is significantly influenced by substantial investments in key sectors including Defence & Government, Water, Energy, and Resources & Industrials. There is a strong, ongoing focus on fuel infrastructure resilience, national investment in water asset renewal and expansion, domestic fuel security, energy transition, and demand from sectors like gold mining. The Australian stainless steel pipe industry navigates regulatory compliance requirements, a competitive landscape with both local and international players, and increasing environmental concerns that encourage sustainable manufacturing practices.

Market challenges and opportunities

Key challenges include fluctuating raw material prices and potential supply chain disruptions. Opportunities are driven by ongoing infrastructure projects, energy production demands, and the automotive sector. Emerging trends in renewable energy also contribute to the demand for specialized piping solutions.

11. Strategic Partnerships

Saunders Piping Solutions' most significant strategic partnership is its full integration into Saunders International Limited. This integration provides enhanced capabilities and broader market reach, enabling the delivery of multidisciplinary projects that combine piping, civil, mechanical, structural, and electrical components seamlessly. This alliance strengthens Saunders International's ability to offer vertically integrated solutions, particularly within the Defence and New Energy markets.

Saunders International also engages in project-specific partnerships, such as a major $20 million subcontract for Defence fuel infrastructure at RAAF Base Learmonth, Western Australia, awarded by CPB Contractors. This project represents their second collaboration with CPB Contractors on defence projects, reinforcing an established partnership.

12. Operational Insights

Saunders Piping Solutions operates with two fully equipped workshops located in the Brisbane suburbs of Wakerley and New Chum. These facilities provide access to local labor resources and contribute to efficient operations. The company employs a highly skilled, multidisciplinary workforce experienced in processing and fabricating a wide array of materials, including carbon steels, alloy steels, chrome moly, stainless steels, duplex, and super duplex.

Its operational capabilities span the entire project lifecycle, from design, drafting, estimating, and scheduling to fabrication, non-destructive testing, hydrostatic testing, surface treatment, and site installations. The integration into Saunders International allows Saunders Piping Solutions to offer turnkey SMP (Structural, Mechanical, and Piping) contractor services. This leverages the parent company's extensive engineering, construction, and industrial asset service offerings. This vertically integrated approach streamlines project delivery, enhances service offerings, and expands market penetration, especially into the Defence and emerging New Energy sectors. The company places a strong emphasis on safety and continuously improves work quality and supporting documentation, adhering strictly to AS/NZS ISO 2001 standards.

13. Future Outlook

Strategic Roadmap

As a core component of Saunders International, Saunders Piping Solutions is strategically positioned for significant growth across key sectors. The ongoing national investment in defence fuel infrastructure resilience presents substantial future opportunities. The company aims to actively capitalize on emerging new energy markets, including green hydrogen, green liquid ammonia, natural gas infrastructure upgrades for energy transition, green biofuel refining and distribution, waste-to-energy infrastructure, and water and wastewater infrastructure.

Saunders International's expanded pipeline of opportunities and multidisciplinary capabilities, significantly strengthened by recent acquisitions like Saunders Piping Solutions, are expected to drive robust future growth. The strategic focus will remain on leveraging its comprehensive expertise in structural, mechanical, and piping, civil infrastructure, and industrial automation and electrical systems to deliver complex, integrated solutions for clients.