Emeco (EHL) H2 2026 earnings summary

Executive summary

• Delivered FY26 earnings growth, strong cash generation, and further deleveraging, supporting a robust balance sheet and flexibility for growth initiatives.

• Maintenance services, especially on-site and technology-led, drove significant revenue and EBIT growth, now accounting for about half of gross revenue.

• Board approved an on-market share buyback of up to 10% of shares, reflecting strong cash flow and balance sheet strength.

• New project pipeline and business model evolution to technology-led, fully maintained rental and maintenance solutions provider.

• Utilisation expected to recover, with forecasts of ~90% for surface and ~80% for underground by end of FY27.

Financial highlights

• Group revenue grew to $792.8 million (+1% year-over-year); operating EBIT was $148.0 million (+2%); operating NPAT increased 5% to $89.0 million.

• Operating EBITDA was $292.5 million; EBITDA margin 36.9%; operating EBIT margin 18.7%.

• Adjusted operating free cash flow was $114.5 million; cash conversion at 108%.

• Return on capital improved to 16.9%, up 30 basis points year-over-year.

• Net leverage reduced to 0.43x; net debt down by $67.8 million to $127.1 million.

Outlook and guidance

• FY27 earnings expected to be in line with FY26, with a second-half weighting.

• Utilisation forecast: ~90% for surface and ~80% for underground by end of FY27; FY28 expected to achieve 20% ROC target.

• CapEx for FY27 projected at $155–165 million net of disposals; ERP spend around $5 million; depreciation $145–150 million.

• Growth strategy includes expanding maintenance services, increasing fleet utilisation, and pursuing sector consolidation.

• Continued strong free cash flow and further deleveraging anticipated.