Saunders International (ASX:SND) cut its guidance for fiscal year 2026 due to external factors that have delayed three projects, deferring around AU$30 million of revenue into fiscal year 2027, according to a Tuesday filing with the Australian bourse.

The company now expects fiscal year 2026 revenue of AU$300 million to AU$315 million, compared with a previous outlook range of AU$315 million to AU$345 million.

Saunders said a sewer project in Melbourne has been set back by the discovery of cultural heritage artefacts that require excavation and retrieval. Additionally, two defense projects in the Northern Territory have been impacted by access restrictions due to the Middle East conflict.

Project activity is expected to normalize by the end of the current fiscal year, with no commercial risk to continuity or profitability, the company said.