Symbotic's Strong Backlog Growth: Is it a Sign for More Upside?

Symbotic’s SYM high backlog positions it to generate substantial revenues in the foreseeable future. In the third quarter of fiscal 2025, for which results were released earlier this month, the company had $22.4 billion in backlog. The company’s strong and growing product portfolio spans multiple levels of the supply chain, supported by a healthy backlog.

The company’s healthy positioning with respect to backlog drove the 26% year-over-year revenue growth witnessed in the third quarter of fiscal 2025. We expect the top line to be driven, going forward as well, by converting this sizable backlog. For the fourth quarter of fiscal 2025, Symbotic expects revenues in the $590-$610 million range and adjusted EBITDA in the $45-$49 million band. 

Apart from providing visibility with respect to revenues, SYM’s high backlog is a driver of long-term growth. A large backlog ensures a steady pipeline of deployments, giving the company predictable cash flows. SYM’s high backlog is contributing to its benefit from strong project execution, innovation and a clear product innovation roadmap.

Symbotic’s robust backlog allows it to operate more efficiently. With guaranteed demand in place, the company can optimize manufacturing, supply-chain planning and workforce allocation to meet customer needs at a faster pace. The company's $22.4 billion backlog and improved deployment efficiency are expected to fuel revenues and margins.

SYM’s sizeable backlog is likely to support its endeavors to secure stronger partnerships and negotiate favorable terms with suppliers. This should provide SYM with a competitive edge in the rapidly expanding warehouse automation market.

Taking a Look at the Backlog Positions for Some Other Players

Honeywell HON exited 2024 with a record backlog of $35.3 billion, an 11% increase, driven primarily by strong demand in its core businesses. At the end of the second quarter of 2025, Honeywell’s overall backlog grew 10% year over year to $36.6 billion. For 2025, Honeywell expects overall revenues to be in the $40.8-$41.3 billion range, with organic revenues expected to be up 4-5% on a year-over-year basis.

The strongest driver of ABB’s ABBNY business is the Process Automation segment, supported by strength in the marine, ports and energy industries. Strong project activity in several areas, like passenger vessels, port electrification and industrial automation, has been driving ABB’s performance.

In the second quarter of 2025, orders from the segment increased 45% and revenues rose 5% year over year. ABB recorded the booking of a large order in the quarter that contributed $600 million (net), with deliveries stretching over a multi-year period. Exiting the second quarter, the segment’s order backlog totaled $9.3 billion, higher than $8.1 billion reported at the end of the previous quarter. ABB’s solid order intake and robust backlog are supporting its growth.

SYM’s Price Performance, Valuation & Estimates

Shares of SYM have surged in triple digits in a year, easily outperforming its industry.

From a valuation perspective, Symbotic is trading at a premium compared with the industry average. In terms of price-to-sales (F12M), SYM is trading at 10.72X, much higher than the industry’s average of 3.23X.

The Zacks Consensus Estimate for SYM’s fourth-quarter fiscal 2025 and first-quarter fiscal 2026 earnings has remained stable over the past 60 days. However, the same has moved north for fiscal 2025.

SYM’s Zacks Rank

SYM currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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