Emeco (EHL) investor relations material

Business model and service offering

• Delivers equipment rental, mid-life rebuilds, asset management, and condition monitoring through a national network of workshops and field service units, supporting over 200 customers and 240 projects.

• Largest provider of open cut and underground rental equipment in Australia, with a fleet of 840 units and 950 employees.

• Offers fully maintained equipment service model, including on-site and off-site maintenance, predictive maintenance, and real-time data analytics to drive fleet optimisation and reliability.

• Maintenance services include asset management, smart technology, machine learning, and comprehensive field support across 7 workshops and 80 field vehicles.

Financial performance and growth

• Maintenance services now contribute 50% of gross revenue and ~35% of gross operating EBIT, doubling earnings over the last 12 months.

• Operating free cash flow increased by 230% since FY23, with a $130M reduction in net debt and net leverage reduced from 1.1x to 0.46x.

• Return on capital improved by 500 basis points to 18%, with a target of 20% ROC and projected free cash flow exceeding $140M.

• Operating EBITDA for 1H26 reached $155.5M, with a leverage ratio of 0.5x and closing cash of $171.2M.

Strategic and capital management priorities

• Strategic focus on strengthening the core business, expanding maintenance services, and leveraging digitalisation and AI/OT to improve reliability and lower costs.

• Plans to opportunistically expand fleet when utilisation exceeds 90% and pursue M&A for consolidation and adjacent low-capital verticals.

• Capital management targets net debt/EBITDA of 0.5–1.0x, with flexibility for organic and inorganic growth, share buybacks, and special dividends when leverage is below 0.5x.