Highlights

  • Emeco reported FY2026 net profit after tax of $89.0 million, up 5%, with operating EBIT rising 2% to $148.0 million.
  • Cash conversion of 108% helped reduce net Debt by $67.8 million to $127.1 million, lowering Leverage to 0.43 times.
  • The board approved an on-market buy-back of up to 10% of shares on the back of balance-sheet strength.
  • FY2027 Earnings are guided broadly in line with FY2026, with around 80% of rental Revenue already secured.

Emeco Holdings (ASX:EHL) has delivered a FY2026 result that combines modest earnings growth with strong cash generation and a Shareholder Capital return, as the mining-equipment specialist continues to grow its higher-margin maintenance and workshop services division.

The result, released in late August 2026, showed improved returns on capital and a materially stronger balance sheet, alongside guidance for broadly stable earnings in FY2027.

FY2026 Financial Results

Revenue for FY2026 reached $792.8 million, up 1%, with operating EBIT rising 2% to $148.0 million and net profit after tax growing 5% to $89.0 million. The EBIT Margin edged higher to 18.7%, while operating EBITDA eased 3% to $292.5 million. Return on capital improved to 16.9%.

Adjusted operating free Cash Flow of $114.5 million and cash conversion of 108% underpinned the result. Net debt fell by $67.8 million to $127.1 million, reducing net leverage to 0.43 times from 0.65 times in the prior year. The company also refinanced its debt into a $355 million revolving Facility maturing December 2030.

Share Buy-Back Approved

On the back of the improved balance sheet, the board approved an on-market buy-back of up to 10% of shares on issue. The buy-back reflects the company's confidence in its cash generation and capital position, and is expected to provide support to per-share earnings and returns metrics over time.

The announcement follows a period of deliberate debt reduction and reflects a disciplined approach to capital allocation that management has emphasised as central to the Business strategy.

Maintenance Services Expanding

Emeco provides heavy earthmoving equipment rental and related maintenance and rebuild services to Mining operators across a range of commodities in Australia. Management has focused on expanding higher-margin maintenance and workshop services alongside the traditional rental model, aiming to lift asset utilisation and returns through the cycle.

The shift toward maintenance services is intended to provide more stable, recurring earnings alongside the inherently cyclical equipment-rental business. Around 80% of FY2027 rental revenue is already secured, providing a degree of earnings visibility.

What Could Come Next for Emeco Holdings (ASX:EHL)?

Management has guided to FY2027 earnings broadly in line with FY2026, weighted toward the second half. Key operational targets include lifting surface fleet utilisation toward 90% and underground toward 80% by the end of FY2027, alongside progress toward a 20% return on capital.

Execution of the buy-back and deployment of planned Capital Expenditure of $155-165 million for fleet Investment will be monitored alongside the broader trajectory of Australian mining activity, which remains the primary driver of equipment demand.