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Emeco Holdings Limited
(Sydney:EHL)
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Rating:71Outperform
Price Target:
AU$1.00
â–¼(-13.79% Downside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by stable financial performance with improved leverage and strong operating cash generation, plus a constructive earnings-call outlook despite near-term flat guidance and utilization headwinds. A low P/E supports the valuation component, while technicals are moderately positive but capped by the stock remaining below its 200-day moving average.
Positive Factors
Deleveraging and liquidity
Material debt reduction and ample liquidity strengthen financial resilience, reduce refinancing risk and provide capacity to fund fleet investment or manage a cyclical downturn without excessive balance-sheet pressure.
Negative Factors
Multi-year revenue decline
Sustained revenue contraction signals weaker volume or pricing momentum and limits operating leverage. Without a durable recovery in equipment demand, growth in maintenance services may not fully offset rental weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging and liquidity
Material debt reduction and ample liquidity strengthen financial resilience, reduce refinancing risk and provide capacity to fund fleet investment or manage a cyclical downturn without excessive balance-sheet pressure.
Read all positive factors
Emeco Holdings Limited (EHL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$591.26M
Dividend Yield4%
Average Volume (3M)469.98K
Price to Earnings (P/E)7.7
Beta (1Y)0.99
Revenue Growth0.95%
EPS Growth1.92%
CountryAU
Employees863
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding518,374,760
10 Day Avg. Volume518,530
30 Day Avg. Volume469,978
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)0.64
Price to Sales (P/S)0.64
P/FCF Ratio6.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.24Price Target Upside7.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.17
Revenue Forecast (FY)AU$809.91M
Emeco Holdings Limited Business Overview & Revenue Model
Company Description
Established in 1972 and headquartered in Perth, Australia, Emeco Holdings Limited delivers a broad spectrum of heavy earthmoving machinery and essential mining support services throughout Australia. The company primarily leases key equipment inclu...
How the Company Makes Money
EHL makes money primarily by renting or leasing heavy earthmoving equipment to mining customers under commercial hire arrangements. Revenue is earned through: (1) equipment hire charges, typically priced on time-based terms (e.g., monthly/weekly) ...
Emeco Holdings Limited Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call conveyed a positive strategic and financial position: solid earnings growth (operating NPAT +5%), strong cash generation (adjusted FCF AUD 114.5m), significant deleveraging (net leverage 0.43x), and a deliberate shift toward higher‑margin, lower‑capex maintenance services (on‑site maintenance +44% YoY; maintenance ~50% of revenue). Key negatives were a H2 utilization decline (surface 82%, underground 67%), reduced rental revenue and an 8% drop in Force external revenue due to capacity prioritization, plus one lost time injury and one‑off refinancing/ERP costs. Overall, the positive metrics, balance-sheet strength, growth in maintenance services, and shareholder return actions (10% buyback) outweigh the operational headwinds, supporting a constructive outlook as utilization recovers into FY2027–FY2028.Positive Updates
Revenue and EBITDA
Group revenue grew to AUD 792.8 million and operating EBITDA was AUD 292.5 million, with operating EBIT of AUD 148 million (up 2% year-on-year).
Negative Updates
Second-Half Utilization Decline
Fleet utilization dropped off in the second half of FY2026 due to fuel supply and cost concerns and extended wet weather in Queensland; surface fleet averaged 82% for the year and underground 67%, reducing rental revenue in H2.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue and EBITDA
Group revenue grew to AUD 792.8 million and operating EBITDA was AUD 292.5 million, with operating EBIT of AUD 148 million (up 2% year-on-year).
Read all positive updates
Company Guidance
Guidance: management expects FY2027 earnings to be in line with FY2026 (FY2026 operating NPAT AUD 89m; operating EBIT AUD 148m; operating EBITDA AUD 292.5m), with a second‑half weighting; fleet utilization is forecast to recover to 90% for surface and 80% for underground by end‑FY2027 (FY2026 averages: surface 82%, underground 67%); FY2027 net CapEx is expected to be ~AUD 155–165m (net of disposals) with ERP spend ~AUD 5m and depreciation of ~AUD 145–150m; redeployment opportunities have been secured for a material portion of the fleet; looking to FY2028 management expects the utilization run‑rate to drive earnings growth towards a 20% return on capital (which management estimates would generate ~AUD 140m operating free cash flow), supported by strong liquidity (~AUD 315m available) and low net leverage (0.43x).Emeco Holdings Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
76
Positive
Cash Flow
68
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 792.84M | 785.35M | 822.73M | 874.92M | 754.37M |
| Gross Profit | 183.02M | 455.96M | 464.32M | 179.65M | 178.91M |
| EBITDA | 273.78M | 290.35M | 258.19M | 224.52M | 244.31M |
| Net Income | 76.66M | 75.14M | 52.66M | 41.33M | 64.95M |
Balance Sheet | |||||
| Total Assets | 1.31B | 1.25B | 1.17B | 1.09B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 125.38M | 126.36M | 78.27M | 46.67M | 60.16M |
| Total Debt | 252.43M | 321.33M | 358.74M | 322.65M | 301.06M |
| Total Liabilities | 518.01M | 532.18M | 537.52M | 498.98M | 454.29M |
| Stockholders Equity | 792.30M | 714.82M | 637.24M | 589.44M | 567.22M |
Cash Flow | |||||
| Free Cash Flow | 78.02M | 92.00M | 22.22M | 26.98M | 50.73M |
| Operating Cash Flow | 266.69M | 253.78M | 237.17M | 206.39M | 221.15M |
| Investing Cash Flow | -153.17M | -149.18M | -201.43M | -180.88M | -169.87M |
| Financing Cash Flow | -114.50M | -56.50M | -4.13M | -38.99M | -65.69M |
Emeco Holdings Limited Technical Analysis
Positive
1.16
Price Trends
1.02
Positive
1.05
Positive
1.17
Negative
Market Momentum
0.04
Negative
62.32
Neutral
69.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EHL, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.02, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EHL.
Emeco Holdings Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$591.26M | 7.72 | 9.91% | 4.00% | 0.95% | 1.92% | |
71 Outperform | AU$2.85B | 22.36 | 22.77% | 3.73% | 29.43% | 50.05% | |
67 Neutral | AU$112.16M | 18.56 | 4.45% | 6.89% | -12.68% | -76.78% | |
67 Neutral | AU$3.51B | 22.47 | 23.03% | 2.93% | 31.39% | 451.49% | |
66 Neutral | AU$919.87M | 17.71 | 9.25% | 3.35% | 11.40% | 22.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.19B | 19.30 | 11.01% | 4.52% | -7.37% | 59.81% |
* Industrials Sector Average
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Emeco Holdings Limited Corporate Events
Emeco Releases FY26 Results Overview with Extensive Disclaimers
Aug 19, 2026
Emeco Holdings Limited has released its FY26 results presentation, providing a high-level summary of performance for the year ended 30 June 2026 and directing stakeholders to the full annual report for detailed financial information. The document ...
Emeco boosts earnings, cash flow and unveils share buy-back amid growth outlook
Aug 19, 2026
Emeco reported FY26 revenue of $792.8 million and operating NPAT of $89.0 million, delivering modest earnings growth despite weather and geopolitical headwinds that dampened fleet utilisation. Strong performance in maintenance services, particular...
Emeco Announces New On-Market Share Buy-Back for Ordinary Shares
Aug 19, 2026
Emeco Holdings Limited, listed on the ASX under the code EHL, has ordinary fully paid shares that are the subject of its latest capital management initiative. The company’s use of an on-market buy-back reflects an ongoing effort to manage it...
Emeco Bolsters Board Independence in 2026 Governance Update
Aug 19, 2026
Emeco Holdings has released its 2026 Corporate Governance Statement, confirming that it followed the ASX Corporate Governance Council’s fourth edition principles and recommendations during the year to the extent disclosed. The board details ...
Emeco lodges 2026 corporate governance statement with ASX
Aug 19, 2026
Emeco Holdings Limited has confirmed that its corporate governance statement for the year ended 30 June 2026 is now available on its website, in line with ASX Listing Rules. The statement, current as at 19 August 2026 and approved by the board, de...
Emeco lifts profit and asset backing but keeps dividend on hold
Aug 19, 2026
Emeco Holdings Limited reported a modest increase in full-year performance for the 12 months to 30 June 2026, with revenue from continuing operations rising 1% to A$792.8 million and net profit attributable to members up 2% to A$76.7 million. Desp...
Emeco schedules global webcast for FY26 results briefing
Jul 30, 2026
Emeco Holdings Limited has scheduled the release of its FY26 financial results for Thursday, 20 August 2026, with a results briefing to be delivered via webcast by CEO and Managing Director Ian Testrow and CFO Theresa Mlikota. The briefing is set ...
Emeco Performance Rights Lapse Trims Equity Incentive Pool
Jun 30, 2026
Emeco Holdings Limited has reported the cessation of 491,067 performance rights, which lapsed after the conditions attached to those rights were not satisfied or became incapable of being met as of May 18, 2026. The lapse reduces the company’...
Emeco Targets Stable FY27 Earnings as Utilisation and Cash Flow Strengthen
Jun 17, 2026
Emeco has flagged resilient FY26 trading with operating EBITDA expected between $290 million and $295 million and operating EBIT between $145 million and $150 million, despite a moderately softer finish to the year. Operating free cash flow is for...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.