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Emeco Holdings Limited
(Sydney:EHL)
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Rating:71Outperform
Price Target:
AU$1.50
▲(29.31% Upside)
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 deleveraging has strengthened Emeco’s capital base and reduced financial risk. Lower debt relative to equity should preserve borrowing capacity, improve resilience through mining-cycle volatility, and give management greater flexibility to fund fleet investment and customer opportunities.
Negative Factors
Revenue decline and gross-margin volatility
Persistent revenue contraction points to weaker operating momentum and makes future profit growth more dependent on cost control and mix. The sharp gross-margin deterioration also signals cost-structure or reporting volatility, which could limit the durability of current profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging and liquidity
Material deleveraging has strengthened Emeco’s capital base and reduced financial risk. Lower debt relative to equity should preserve borrowing capacity, improve resilience through mining-cycle volatility, and give management greater flexibility to fund fleet investment and customer opportunities.
Read all positive factors
Emeco Holdings Limited (EHL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$665.83M
Dividend Yield4%
Average Volume (3M)811.08K
Price to Earnings (P/E)9.0
Beta (1Y)0.99
Revenue Growth0.95%
EPS Growth1.92%
CountryAU
Employees867
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding516,409,000
10 Day Avg. Volume531,605
30 Day Avg. Volume811,082
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 primarily makes money by renting heavy earthmoving equipment to mining customers under commercial hire arrangements, typically charging customers periodic hire fees for the use of equipment supplied from its owned fleet. These hire fees are ge...
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
1.20
Positive
1.10
Positive
1.15
Positive
Market Momentum
0.03
Positive
64.03
Neutral
69.09
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 below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.20, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.09 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$665.83M | 8.96 | 9.91% | 4.00% | 0.95% | 1.92% | |
71 Outperform | AU$2.93B | 23.25 | 22.77% | 3.71% | 29.43% | 50.05% | |
67 Neutral | AU$2.94B | 18.71 | 23.03% | 3.61% | 31.39% | 451.49% | |
66 Neutral | AU$832.02M | 15.96 | 9.25% | 3.71% | 11.40% | 22.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | AU$109.04M | 17.27 | 4.45% | 6.89% | -12.68% | -76.78% | |
59 Neutral | AU$4.61B | 21.64 | 11.01% | 4.12% | -7.37% | 59.81% |
* Industrials Sector Average
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Emeco Holdings Limited Corporate Events
Emeco Reports Ongoing On-Market Share Buy-Back Activity
Oct 28, 2026
Emeco Holdings Limited, an ASX-listed equipment solutions provider to the mining and resources sector, offers and manages heavy earthmoving fleets for clients requiring reliable production support. The group focuses on optimising asset utilisation...
Emeco Pushes Integrated, Data-Driven Maintenance for Australia’s Mining Fleets
Oct 27, 2026
Emeco Holdings is emphasising a fully integrated approach that links maintenance strategy, condition monitoring and execution for mining fleets, aiming to close the loop between data and operational performance. By combining predictive maintenance...
Emeco Updates Market on Progress of On‑Market Share Buyback
Oct 27, 2026
Emeco Holdings Limited has provided an updated notification to the ASX regarding its ongoing on-market share buyback program for ordinary fully paid shares. The latest daily update, dated 28 October 2026, reports that a total of 4,547,889 shares h...
Emeco Updates Market on Progress of On‑Market Share Buy‑Back
Oct 26, 2026
Emeco Holdings Limited has updated the market on its ongoing on‑market share buy‑back of ordinary fully paid shares. The latest notification to the ASX confirms the program remains active, targeting EHL stock as part of a capital manag...
Emeco Updates ASX on Progress of Active On-Market Share Buy-Back
Oct 21, 2026
Emeco Holdings Limited has issued an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares. The latest daily update, dated 22 October 2026, reports that 4,133,964 sh...
Emeco Continues Daily On-Market Share Buy-Back Program
Oct 20, 2026
Emeco Holdings Limited has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares, disclosing that a total of 4,093,242 shares had been repurchased prior to the latest trading day. The company reporte...
Emeco Updates Market on Progress of On-Market Share Buy-Back
Oct 19, 2026
Emeco Holdings Limited has provided an update on its ongoing on-market share buy-back program for its ordinary fully paid shares, reflecting active capital management. The company reported that a total of 3,927,860 shares had been repurchased befo...
Emeco Expands On-Market Buy-Back With Daily ASX Update
Oct 13, 2026
Emeco Holdings Limited has issued an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program in its ordinary fully paid shares. The company reported a cumulative total of 3,537,762 shares repurchase...
Emeco Continues On‑Market Share Buy‑Back Program
Oct 12, 2026
Emeco Holdings Limited, a mining services and heavy equipment solutions provider listed on the ASX under ticker EHL, supplies and manages large earthmoving fleets for resource and construction projects across Australia. Its business is closely lin...
Emeco Continues On-Market Buy-Back to Tighten Share Base
Oct 11, 2026
Emeco Holdings Limited has provided an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares. The latest daily disclosure reports a cumulative 3,269,741 shares repur...
Emeco updates investors on ongoing on-market share buy-back
Oct 8, 2026
Emeco Holdings Limited has reported an update to its on-market share buy-back program, covering ordinary fully paid shares traded under ASX code EHL. The company is continuing to retire equity through daily purchases, reflecting a disciplined capi...
Emeco Updates ASX on Progress of On-Market Share Buy-Back
Oct 7, 2026
Emeco Holdings Limited has provided an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program in its ordinary fully paid shares. The announcement notes that the company continues to report daily bu...
Emeco Updates Market on Ongoing On‑Market Share Buy‑Back
Oct 6, 2026
Emeco Holdings Limited has disclosed an updated notification of its on-market share buy-back program for its ordinary fully paid shares listed under the ASX code EHL. The update confirms the company continues to repurchase stock on the market as p...
Emeco Cancels Nearly 2 Million Shares in On-Market Buy-Back
Oct 6, 2026
Emeco Holdings Limited has cancelled 1,965,750 fully paid ordinary shares as part of an on-market share buy-back, effective 30 September 2026. The reduction in issued capital reflects the company’s ongoing capital management strategy, which ...
Emeco Updates Market on Progress of On-Market Share Buy-Back
Oct 5, 2026
Emeco Holdings Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for ordinary fully paid shares under code EHL. The latest daily disclosure shows that a total of 2,649,735 shares had been bough...
Emeco Updates Investors on Ongoing On‑Market Share Buy‑Back
Sep 30, 2026
Emeco Holdings Limited has provided a daily update on its on‑market share buy‑back program for ordinary fully paid shares traded under ASX code EHL. The latest notification, dated 1 October 2026, reports a cumulative total of 2,192,877...
Emeco Expands On-Market Share Buy-Back With Daily ASX Update
Sep 29, 2026
Emeco Holdings Limited, listed on the ASX as EHL, is a provider of heavy equipment services to the mining and resources sector, operating and supplying large machinery fleets to support production and contracting activities. Its ordinary fully pai...
Emeco Continues On‑Market Buy‑Back of Ordinary Shares
Sep 28, 2026
Emeco Holdings Limited has continued its on‑market share buy‑back program, targeting its ordinary fully paid shares listed on the ASX under the code EHL. The company is progressively reducing its share count, which can enhance capital ...
Emeco Continues Daily On‑Market Buy‑Back of Ordinary Shares
Sep 27, 2026
Emeco Holdings Limited has notified the market of an update to its on‑market share buy-back program covering its ordinary fully paid shares, traded under the ASX code EHL. The announcement, dated 28 September 2026, confirms the company is co...
Emeco Reports Ongoing Daily On-Market Share Buy-Back Activity
Sep 24, 2026
Emeco Holdings Limited has continued its on-market share buy-back program for its ordinary fully paid shares, reporting a cumulative 1,485,530 shares repurchased before the most recent trading day. The company disclosed that a further 90,941 share...
Emeco updates market on ongoing on‑market share buy‑back
Sep 23, 2026
Emeco Holdings Limited has provided an updated notification to the ASX confirming ongoing on‑market buy‑back activity in its ordinary fully paid shares. The update records that a total of 1,428,263 shares had been repurchased before th...
Emeco Names Kellie Clee Acting Company Secretary After Young’s Retirement
Sep 23, 2026
Emeco Holdings has appointed Ms Kellie Clee as Acting Company Secretary, effective immediately, following the retirement of former Company Secretary Ms Penelope Young. Clee will assume responsibility for communications with the ASX under Listing R...
Emeco Continues On-Market Share Buy-Back With Daily ASX Update
Sep 22, 2026
Emeco Holdings Limited has issued an updated notification regarding its ongoing on-market share buy-back program for ordinary fully paid shares under the ASX code EHL. The latest daily report, dated 23 September 2026, records a cumulative total of...
Emeco Continues Daily On-Market Share Buy-Back Program
Sep 21, 2026
Emeco Holdings Limited, an ASX-listed provider of heavy equipment solutions to the mining and resources sector, manages its capital structure through active use of on-market buy-backs of its ordinary fully paid shares. The company’s trading ...
Emeco updates market on progress of on‑market share buy‑back
Sep 20, 2026
Emeco Holdings Limited has provided an updated notification to the ASX regarding its on‑market share buy‑back program for its ordinary fully paid shares under code EHL. The company reported that a cumulative 809,297 shares had been bou...
Emeco Updates Investors on Progress of On‑Market Share Buy‑Back
Sep 17, 2026
Emeco Holdings Limited, listed on the ASX under the code EHL, operates in the heavy equipment solutions sector serving mining and related industries. The company’s ordinary fully paid shares are actively traded, and capital management, inclu...
Emeco Sets New Date and Director Nomination Deadline for 2026 AGM
Sep 17, 2026
Emeco Holdings Limited has rescheduled its 2026 annual general meeting in Sydney to Thursday, 19 November 2026, with further details to be provided in the formal meeting notice. The company has also set a deadline of 5.00pm AEDT on 1 October 2026 ...
Moody’s Affirms Emeco’s Ba3 Rating as Maintenance Services Bolster Earnings
Sep 17, 2026
Moody’s has affirmed Emeco Holdings Limited’s Ba3 corporate family rating with a stable outlook, citing the company’s strong position in mining equipment rental and maintenance and its conservative financial profile. The rating a...
Emeco Expands On-Market Buy-Back With Fresh Daily Share Purchases
Sep 16, 2026
Emeco Holdings Limited, the ASX-listed equipment solutions provider to the mining and resources sector, continues to actively manage its capital structure through an on-market share buy-back program. The company’s ordinary fully paid shares,...
Emeco Updates ASX on Progress of On‑Market Share Buy‑Back
Sep 15, 2026
Emeco Holdings Limited has issued an updated notification to the ASX regarding its ongoing on‑market share buy‑back of ordinary fully paid shares under the security code EHL. The update, dated 16 September 2026, reports that a total of...
Emeco Updates Market on Progress of On-Market Share Buy-Back
Sep 14, 2026
Emeco Holdings Limited, listed on the ASX under the code EHL, is conducting capital management using its ordinary fully paid shares as the primary class of securities. The company’s activities are disclosed through regular market notificatio...
Emeco Updates Market on Progress of On‑Market Share Buy‑Back
Sep 13, 2026
Emeco Holdings Limited, an ASX-listed mining equipment solutions provider, operates in the resources sector by offering heavy earthmoving machinery and support services to mining companies across Australia and other markets. Its business model is ...
Emeco Reports Daily Activity in Ongoing On-Market Share Buy-Back
Sep 10, 2026
Emeco Holdings Limited has issued an updated notification regarding its ongoing on-market share buy-back program for its ordinary fully paid shares listed under the ASX code EHL. The latest daily disclosure, dated 11 September 2026, reports that 1...
Emeco Appoints Broker and Sets Start Date for On-Market Share Buy-Back
Sep 9, 2026
Emeco Holdings Limited has updated investors on its planned on-market share buy-back of ordinary fully paid shares listed under ASX code EHL, refining the terms of the capital management initiative first notified in August 2026. The release confir...
Emeco Sets Date and Director Nomination Deadline for 2026 AGM
Sep 2, 2026
Emeco Holdings Limited has scheduled its 2026 annual general meeting to be held in Sydney on 18 November 2026, with further details to come in a formal notice to shareholders. The company has also set a deadline of 30 September 2026 for the receip...
Emeco CEO Increases Indirect Stake Through Incentive Plan Conversion
Aug 25, 2026
Emeco Holdings Limited has reported a change in the indirect shareholding of managing director Ian Testrow, arising from the company’s employee incentive and long‑term share ownership structures. His interests are held via family and s...
Emeco Issues New Shares After Option Conversions
Aug 25, 2026
Emeco Holdings Limited, traded on the ASX as EHL, operates in the mining services industry, supplying and managing heavy earthmoving equipment for resource and infrastructure projects in Australia. Its business is centred on long-term equipment re...
Emeco Issues New Shares on Conversion of Unquoted Securities
Aug 25, 2026
Emeco Holdings Limited has notified the market of the issue of 151,309 new ordinary fully paid shares following the conversion of previously unquoted options or other unquoted convertible securities. The shares will be issued on August 22, 2026, a...
Emeco Performance Rights Lapse Adjusts Future Equity Dilution
Aug 25, 2026
Emeco Holdings has reported the lapse of 1,628,184 performance rights, designated under the ASX security code EHLAA, after the conditions attached to these rights were not met or became incapable of being satisfied. The cessation of these securiti...
Emeco updates market on executive performance rights vesting and lapses
Aug 25, 2026
Emeco Holdings Limited has updated the market on the status of performance rights under its long-term incentive plans following the release of its FY26 results. A total of 1,906,242 performance rights from the FY24 management plan have vested, inc...
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 ...
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.