Emeco (EHL) H1 2026 earnings summary

Executive summary

• Delivered six consecutive half-year periods of earnings and cash flow growth, with revenue up 9% year-over-year to $421M and operating NPAT up 21% to $46M, supported by a strengthened balance sheet after successful debt refinancing and net leverage reduced to 0.5x.

• Strategic focus on disciplined organic and inorganic growth, expanding fully maintained rental and maintenance services, which now represent about 50% of revenue.

• No dividends or share buy-backs declared, with capital preserved for future growth opportunities.

Financial highlights

• Group revenue up 9% year-over-year to $421M for 1H26; operating EBITDA up 7% to $155M; operating EBIT up 13% to $77M.

• Operating net profit after tax increased 21% to $46M; statutory NPAT was $39M, up 15% year-over-year.

• Operating free cash flow up 37% to $67M, with cash conversion at 110%.

• Return on capital improved to 18%, up 230bps year-over-year; target remains 20%.

• Net leverage improved to 0.5x EBITDA, providing financial flexibility.

Outlook and guidance

• Positive outlook for the rental and maintenance business, with robust medium-term production outlook and continued demand for equipment rental and maintenance services.

• FY26 guidance: staying in business CapEx of $170–175M, depreciation of $160–165M, and non-recurring spend of about $15M; growth CapEx limited until fleet utilisation exceeds 90%.

• Second half performance expected to remain strong, subject to weather impacts in Queensland.