Emeco (EHL) H1 2026 earnings summary

Executive summary

• Earnings and cash flow grew for the sixth consecutive half, with revenue up 9% year-over-year to AUD 421 million and operating NPAT up 21% to AUD 46 million; balance sheet strengthened by successful refinancing and net leverage reduced to 0.5x.

• Strategic focus on disciplined organic and inorganic growth, expanding fully maintained rental and maintenance services, which now contribute about 50% of revenue.

• No dividends or share buy-backs declared, with capital preserved for future growth opportunities.

Financial highlights

• Group revenue up 9% year-over-year to AUD 421 million for H1 FY26; operating EBITDA up 7% to AUD 155 million; operating EBIT up 13% to AUD 77 million.

• Operating net profit after tax increased 21% to AUD 46 million; operating free cash flow up 37% to AUD 67 million, with cash conversion at 110%.

• Net leverage improved to 0.5x EBITDA from 1.1x two years prior; return on capital increased to 18% from 15% in H1 FY24.

• No income tax paid due to AUD 74 million in carried forward tax losses.

Outlook and guidance

• Positive outlook for rental and maintenance services, with robust medium-term production outlook and continued demand.

• FY26 guidance: staying in business CapEx of AUD 170–175 million, depreciation of AUD 160–165 million, and non-recurring spend of about AUD 15 million.

• Second half performance expected to remain strong, subject to weather impacts in Queensland.