Emeco Delivers Strong Earnings and Balance Sheet Growth

Emeco Holdings Limited has reported strong financial and operational results for the year ended 30 June 2025, driven by a strategic focus on its core rental and equipment rebuild business.

Group revenue increased 7 percent to $785.4 million, while operating EBITDA rose to $301.1 million, also up 7 percent. Operating EBIT climbed 16 percent to $145.7 million and operating NPAT grew 22 percent to $84.5 million. Statutory NPAT reached $75.1 million, a 43 percent increase on the previous year.

Margins improved significantly, with operating EBITDA margin rising to 38 percent from 34 percent and operating EBIT margin increasing to 19 percent from 15 percent. These gains were supported by contract renewals, disciplined cost management and the exit from lower margin contracting operations.

The company also made substantial progress in strengthening its balance sheet. Operating free cash flow grew 32 percent to $114.3 million with a conversion rate of 97 percent. Net leverage was reduced to 0.65 times following a reduction of $85.6 million in net debt. Return on capital improved to 17 percent, with a second half run rate of 18 percent.

Chief Executive Officer Ian Testrow said the results reflect Emeco’s repositioning and focus on its core strengths. “Emeco has delivered an excellent result in FY25, achieving strong growth in earnings and margins. The business continued to generate positive operating cash flow, improve returns on capital and reduce debt. The strategic repositioning of our business is now complete, and we are well placed for continued improvement in FY26,” he said.

The company’s core rental operations remained the largest contributor, with rental revenues rising 9 percent to $615.4 million and average surface fleet utilisation steady at 85 percent. Underground fleet utilisation improved to 57 percent and is now trending towards 65 percent on the back of new project wins.

Emeco’s Force Workshops completed 137 major machine rebuilds during the year and delivered $170 million in revenue, providing stable support for both internal and external customers.

Technology initiatives also advanced, including the Emeco Operating System which leverages on-board telemetry to improve equipment performance, safety and emissions management. The company also progressed its new enterprise resource planning system, with deployment scheduled to begin in FY26.

Looking ahead, Emeco expects moderate earnings growth, strong free cash flow and further deleveraging in FY26. The company will maintain its focus on disciplined capital management, fleet utilisation and expanding fully maintained projects.

No dividend was declared, in line with the company’s priority to reduce net debt and enhance financial flexibility.