The Environmental Group (EGL) Trading update summary

Revised FY26 earnings guidance

• FY26 normalised EBITDA now expected at $8.5–$9.0M, down from previous $12.7–$13.5M guidance.

• Key drivers for the downgrade are operational issues in EGL Energy and project delays in EGL Baltec.

• Total estimated EBITDA impact is $4.0M, with $2.5M from EGL Energy and $1.5M from EGL Baltec.

Division performance and operational factors

• EGL Energy's revenue growth remains positive, with margins expected to be consistent with historical levels.

• Operational matters in EGL Energy include ERP implementation issues and higher fleet diesel costs, with a $0.4M EBITDA impact from fuel.

• Process enhancements have been implemented to improve job cost recovery and invoicing.

• EGL Baltec faces delayed deliveries due to shipping disruptions and slower Middle East tender awards, with most affected product now expected to deliver in FY27.

Outlook and other divisions

• EGL Clean Air and EGL Waste are trading in line with expectations, with no material change in outlook.

• Management remains focused on converting revenue growth into improved profitability and cash generation.

• Revised guidance reflects management's current assessment of operational and logistics challenges.