Saunders Dives Into Water Sector’s Next Wave

Aqua Metro buy marks growing integration and digital focus in Australia’s water sector

17 Oct 2025

Saunders’ AUD 30 million acquisition of Aqua Metro, a Victorian water contractor, has rippled through Australia’s infrastructure market. Announced in July 2025, the deal gives Saunders access to Aqua Metro’s thick order book and long-term framework contracts, potentially reshaping a sector long carved up by small regional players.

The agreement includes AUD 18 million upfront and up to AUD 12 million in performance-linked payments. Aqua Metro holds contracts with Melbourne Water and other utilities through 2028, supported by AUD 411 million in work on hand and a project pipeline exceeding AUD 1.4 billion. For Saunders, better known for industrial and engineering work, this opens the door to steadier, utility-linked income.

Analysts see the transaction as a signal of change. Governments face mounting pressure to renew ageing assets, while utilities increasingly prefer integrated providers able to design, build, operate and maintain systems under a single contract. “The lines are blurring between contractors and utility integrators,” observes one industry analyst.

Globally, merger activity in the water sector has slowed in 2025 as investors hunt for strategic fits rather than quick scale. Yet the field remains attractive: water systems promise both stable returns and opportunities for digital upgrades. Research firm Bluefield notes that, even as "digital-water" deals dip, utilities continue to consolidate to finance technology adoption.

For Saunders, the acquisition broadens relationships with major clients, deepens technical depth and extends its geographic reach. For the wider sector, it highlights a move toward scale and integration, with data, automation and lifecycle management increasingly central to value.

The challenge will be blending cultures and keeping the local agility that has long defined Australian water work. But the direction is clear: capability, scale and technology are converging, and Saunders’ plunge may be the first of many.