Emeco (EHL) H2 2025 earnings summary

Executive summary

• Achieved strong earnings and margin growth in FY25, with revenue up 7% to $785 million, driven by higher demand for fully maintained rental and expanded workshop services, and supported by disciplined cost and capital management.

• Operating NPAT rose 22% to $84 million, and Operating EBITDA grew 7% to $301 million, reflecting improved operational performance.

• Major contract extensions secured, providing ongoing revenue certainty and supporting long-term customer relationships.

• Strategic repositioning completed, focusing on mining equipment rental and workshop services, with significant deleveraging and strengthened balance sheet.

Financial highlights

• Revenue up 7% year-over-year to $785 million; rental revenue up 9% to $615 million.

• Operating EBITDA up 7% to $301 million (margin 38%); operating EBIT up 16% to $146 million (margin 19%).

• Operating NPAT increased 22% to $84 million; statutory NPAT $75.1 million (+43%).

• Operating free cash flow up 32% to $114 million; cash conversion at 97%.

• Net leverage reduced to 0.65x from 1x; net debt down by $86 million to $195 million.

Outlook and guidance

• FY26 guidance includes moderate earnings growth, significant free cash flow, and further deleveraging.

• SIB CapEx expected at $170–$175 million ($155–$160 million net of disposals); no growth CapEx planned.

• Depreciation forecasted at $160–$165 million; ERP spend around $6 million.

• Focus on increasing utilisation, especially in fully maintained rental projects, and completing ERP/digitization initiatives.

• Priorities include expanding Force service offering, especially for battery-powered fleet, and setting carbon emissions reduction targets.