Emeco (EHL) Investor Presentation summary

Business overview and strategy

• Operates Australia's largest mining equipment rental fleet, with 830 pieces of equipment and 900 employees across 7 workshops nationwide.

• Competitive advantage stems from mid-life rebuild model, onsite service, and asset management technology.

• Strategic pillars focus on being the lowest cost, highest quality, technology-driven provider, maintaining a diversified portfolio, and disciplined capital management.

• Technology investments drive operational efficiency, predictive maintenance, and value-added solutions for customers.

• Diversified by customer, commodity, and geography, with a strong blue-chip client base and robust demand outlook.

Financial performance and targets

• 1H25 saw revenue of $387M (up 11%), operating NPAT of $38M (up 15%), and operating EBIT of $68M (up 13%).

• Operating EBITDA margin improved to 38% in 1H25, with operating cash flow at $49M and ROC at 16%.

• Net leverage reduced to 0.84x, with free cash flow before growth capex at $48.8M in 1H25.

• Return on capital consistently above WACC, targeting 20% ROC and $300M operating EBITDA for FY25.

• Free cash flow prioritized for debt reduction, with leverage targeted sustainably below 1.0x operating EBITDA.

Fleet, customer, and revenue profile

• Fleet is flexible across surface and underground applications, with major brands including Caterpillar, Komatsu, and Sandvik.

• Top 10 customers account for a significant portion of revenue, diversified across thermal coal, gold, iron ore, copper, and met coal.

• Revenue is geographically diversified, with major contributions from WA, QLD, and NSW.

• 95% of debtors are blue-chip or insured, supporting a strong credit profile.

• Revenue mix includes surface rental, underground rental, and maintenance services through Force by Emeco.