Emeco Holdings Limited

FY 2026 group revenue was AUD 792.8 million. Operating EBITDA was AUD 292.5 million and operating EBIT was AUD 148 million, with operating EBIT margin improving 10 basis points to 18.7%. Operating NPAT increased 5% to AUD 89 million, and return on capital rose to 16.9% from 16.6% in FY 2025. Operating free cash flow was AUD 127.6 million after net sustaining CapEx of AUD 153.2 million; adjusted free cash flow was AUD 114.5 million. Net debt decreased by AUD 67.8 million to AUD 127.1 million, and net leverage was 0.43x. For FY 2027, management guided to earnings in line with FY 2026 with a weighting to the second half; CapEx is expected to be approximately AUD 155 million-AUD 165 million net of asset disposals, ERP spend around AUD 5 million, and depreciation about AUD 145 million-AUD 150 million. Management also said utilization is forecast to reach 90% for surface and 80% for underground by the end of FY 2027.

Ian Testrow said the company is in the strongest shape he has seen in his time as CEO, pointing to four years of rising ROC, stronger free cash flow, and much lower leverage. He framed maintenance services, digital capability, and fully maintained rental offerings as the core of Emeco’s evolution from a rental business into a broader solutions provider. His tone was confident and disciplined, with emphasis on capital returns, selective growth, and opportunistic sector consolidation.

Theresa Mlikota emphasized resilient performance, noting revenue of AUD 792.8 million, operating EBITDA of AUD 292.5 million, operating EBIT of AUD 148 million, and operating NPAT of AUD 89 million. She highlighted margin management despite lower second-half utilization, with operating EBIT margin up to 18.7%, and strong cash conversion of 108%. She also cited net debt of AUD 127.1 million, net leverage of 0.43x, approximately AUD 315 million of available liquidity, and a refinancing that redeemed the AUD 250 million AMTN six months early while extending maturity to December 2030.

There was no analyst Q&A, so no specific concerns or follow-up questions were raised on the call. The operator noted that no questions were received and the call went straight to closing remarks. As a result, management’s key messages around utilization recovery, maintenance growth, and capital allocation were not challenged live.