Emeco Holdings (ASX:EHL) posted a 5% increase in operating net profit after tax to $89.0 million for the fiscal year ended June 30, 2026, as a strategic shift toward maintenance services bolstered returns. Revenue rose 1% year-over-year to $792.8 million, while operating EBIT grew 2% to $148.0 million, lifting the operating EBIT margin by 10 basis points to 18.7%.
The company’s maintenance segment now accounts for 50% of gross revenue, up from 34% four years ago, driven by a 44% surge in on-site maintenance services. Maintenance EBIT expanded from $34 million in FY23 to $67 million in FY26, reflecting the division’s growing contribution. Earnings per share increased 2% to 14.8 cents, while return on capital improved 30 basis points to 16.9%, approaching the long-term target of 20%.
Emeco’s fleet of 840 units, valued at $888 million, operated at an average utilization rate of 82% for surface equipment and 67% for underground equipment, below typical ranges due to prolonged wet weather in Queensland and supply chain disruptions. Management expects surface utilization to recover to around 90% and underground to 80% in FY27.
Net debt declined by $67.8 million to $127.1 million, with total debt falling to $252.5 million. The company refinanced its debt facility in late 2025, securing a five-year arrangement maturing in December 2030 and maintaining $190 million in undrawn committed facilities. Liquidity stood at approximately $315 million, including cash and undrawn credit.
The board approved an on-market share buyback of up to 10% of shares outstanding, alongside a 35% increase in net tangible assets per share to $1.51. Operating free cash flow per share more than doubled to 22.1 cents, while adjusted operating free cash flow reached $114.5 million.
Looking ahead, Emeco expects FY27 earnings to align with FY26 results, with second-half weighting. Capital expenditure is forecast at $155–165 million net of asset disposals, while depreciation is projected at $145–150 million. The company’s revenue remains concentrated in metallurgical coal (33%), gold (19%), and iron ore (9%), with Western Australia accounting for 47% of total revenue.
