Emeco Holdings Limited (EHL) AI Stock Analysis

• Market Cap: AU$676.10M
• Dividend Yield: N/A
• Average Volume (3M): 708.95K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 1.02
• Revenue Growth: -4.54%
• EPS Growth: 43.24%
• Country: AU
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.07
• Shares Outstanding: 518,374,760
• 10 Day Avg. Volume: 558,899
• 30 Day Avg. Volume: 708,948
• PEG Ratio: 0.14
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 4.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.36
• Price Target Upside: 2.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$845.12M

• Rating: 75 Outperform
• Price Target: AU$1.50 ▲(13.64% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by solid financial performance (strong cash flow, improving margins and deleveraging) and a positive earnings-call outlook with clear capital and ROC targets supported by improved liquidity. Valuation is attractive on a low P/E, while technicals are only moderately supportive due to mixed near-term momentum and elevated stochastic readings.

Positive Factors

Free cash flow generation

Sustained, high free cash flow and 110% cash conversion create durable funding for reinvestment, fleet renewal, debt reduction and optional shareholder returns. Reliable cash conversion also reduces reliance on external financing and supports long-term capital discipline.

Deleveraging and improved liquidity

Material reduction in net leverage and stronger liquidity after refinancing lowers financial risk and interest exposure. A healthier balance sheet increases capacity for targeted capex, opportunistic M&A or cyclical downturns, improving long-term financial resilience.

Technology and predictive maintenance

Investment in telemetry and AI-driven maintenance enhances fleet reliability, reduces downtime and lowers operating costs over time. These capabilities strengthen Emeco's service differentiation, improve utilization and support higher returns on capital across cycles.

Negative Factors

Shift to lower-margin maintenance revenue

A structural mix shift toward maintenance reduces average price-per-hour and depresses gross margins despite improving ROC. If maintenance continues to outpace higher-margin rental growth, sustainable margin dilution could limit net profit expansion and free cash flow upside.

External service revenue constrained by redeployment

Redeploying workshop capacity to internal rebuilds limits third-party service growth and diversification of revenue. Persistent capacity trade-offs can cap service margin expansion and reduce the resilience of earnings when rental demand softens.

Higher stay-in-business CapEx and timing effects

Elevated recurring stay-in-business capex increases ongoing cash requirements and can constrain free cash flow conversion in future periods. Combined with reversing working-capital timing benefits, this raises the risk that short-term cash strength may normalize, pressuring reinvestment flexibility.

Emeco Holdings Limited Business Overview & Revenue Model

Company Description

Emeco Holdings Limited provides heavy earthmoving equipment and mining service solutions in Australia. The company rents trucks, excavators, dozers, loaders, and graders. It is also involved in the maintenance and remanufacturing of various components of heavy earthmoving equipment; mechanical and boilermaker repair services; and sandblasting and painting services. The company was founded in 1972 and is headquartered in Perth, Australia.

How the Company Makes Money

Emeco Holdings Limited makes money primarily through its equipment rental services, where it leases heavy earthmoving machinery to mining companies. The company generates significant revenue by offering both short-term and long-term equipment rental agreements, tailored to the specific needs of its clients. Additionally, Emeco provides maintenance and repair services, ensuring the optimal performance of its fleet, which is another key revenue stream. The company also benefits from asset management and fleet optimization services, helping clients improve operational efficiencies. Strategic partnerships with mining operators and a focus on high-utilization regions further contribute to Emeco's earnings, enhancing its market position and driving revenue growth.

Emeco Holdings Limited Financial Statement Overview

Summary

Strong cash generation (high free cash flow growth and robust cash conversion) supports a solid overall profile. Revenue and gross margin trends are positive with strong EBIT/EBITDA margins, while profitability (net margin) is only moderate. Balance sheet leverage has improved, but continued debt discipline remains important.

Income Statement

Emeco Holdings Limited has shown a consistent revenue growth trajectory over the years, with a notable increase in revenue in the latest period. The gross profit margin has improved, indicating efficient cost management. However, the net profit margin, while improving, remains moderate, suggesting room for enhancing profitability. The EBIT and EBITDA margins are strong, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating a reduction in leverage and a stronger equity position. Return on equity has shown positive trends, reflecting effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Emeco Holdings has demonstrated strong cash flow management, with significant growth in free cash flow in the latest period. The operating cash flow to net income ratio is robust, indicating efficient cash generation from operations. The free cash flow to net income ratio is healthy, supporting the company's ability to reinvest and manage debt.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	818.82M	785.35M	822.73M	874.92M	754.37M	620.53M
Gross Profit	238.26M	455.96M	464.32M	179.65M	178.91M	167.48M
EBITDA	292.32M	290.35M	258.19M	224.52M	244.31M	236.44M
Net Income	80.23M	75.14M	52.66M	41.33M	64.95M	20.70M
Balance Sheet
Total Assets	1.32B	1.25B	1.17B	1.09B	1.02B	1.06B
Cash, Cash Equivalents and Short-Term Investments	171.15M	126.36M	78.27M	46.67M	60.16M	74.72M
Total Debt	361.04M	321.33M	358.74M	322.65M	301.06M	299.21M
Total Liabilities	561.64M	532.18M	537.52M	498.98M	454.29M	528.96M
Stockholders Equity	755.52M	714.82M	637.24M	589.44M	567.22M	531.41M
Cash Flow
Free Cash Flow	105.25M	92.00M	22.22M	26.98M	50.73M	51.46M
Operating Cash Flow	280.07M	253.78M	237.17M	206.39M	221.15M	205.62M
Investing Cash Flow	-161.15M	-149.18M	-201.43M	-180.88M	-169.87M	-149.56M
Financing Cash Flow	-57.95M	-56.50M	-4.13M	-38.99M	-65.69M	-179.47M

Emeco Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EHL, the sentiment is Neutral. The current price of 1.32 is below the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.31, and above the 200-day MA of 1.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:EHL.

Emeco Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNP	76 Outperform	AU$1.44B	11.36	25.18%	0.57%	36.30%	82.20%
EHL	75 Outperform	AU$676.10M	4.12	10.86%	―	-4.54%	43.24%
BOL	71 Outperform	AU$72.20M	3.33	19.72%	1.18%	2.05%	259.95%
KSC	70 Neutral	AU$454.33M	10.20	8.00%	4.73%	-9.67%	-6.49%
ACF	69 Neutral	AU$291.31M	12.10	16.13%	5.71%	25.14%	-14.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNG	63 Neutral	AU$726.70M	10.83	50.61%	5.24%	12.96%	8.19%

Emeco Holdings Limited Corporate Events

Emeco Redeems $250m Notes Early Under New Syndicated Debt Facility

Emeco Holdings Limited has redeemed its $250 million Australian Medium Term Notes ahead of their July 2026 maturity, using funds from a new five-year A$355 million revolving syndicated debt facility arranged in November 2025. The new facility, which matures in December 2030, offers improved terms and pricing compared with the redeemed notes and is designed to enhance the company’s funding capacity for its core rental and equipment maintenance businesses while preserving net debt levels. Management described the redemption as the final step in Emeco’s broader debt refinancing process, positioning the group with a more flexible capital structure and a stronger foundation to pursue future growth opportunities in the mining services market.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Says MD’s Share Reorganisation Leaves Overall Stake Unchanged

Emeco Holdings has advised that Managing Director Ian Testrow has undertaken an off-market transaction to reorganise some of his fully vested shareholdings in the company, without changing his overall interest in Emeco shares. The company emphasised that Testrow has no intention of disposing of his holdings and remains fully committed to Emeco and the execution of its growth strategy, signalling management stability and continued leadership alignment with shareholders’ interests.

The most recent analyst rating on (AU:EHL) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Flags Internal Restructure of CEO’s Indirect Shareholding

Emeco Holdings has disclosed a change in the indirect interests of managing director Ian Testrow, with shares previously held for his benefit in the company’s managed plan by Pacific Custodians Pty Ltd being transferred to Ms Jodie Testrow as trustee for the Jod & E Trust. The notice outlines Testrow’s substantial existing holdings in fully paid ordinary shares and performance rights but confirms that no new securities were acquired or disposed of in the transaction, suggesting an internal restructuring of personal and trust arrangements rather than a change in his overall economic exposure to the company, with limited immediate implications for other shareholders.

The most recent analyst rating on (AU:EHL) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Issues 315,246 New Shares Following Conversion of Unquoted Securities

Emeco Holdings Limited has advised the market that 315,246 new ordinary fully paid shares have been issued following the exercise or conversion of previously unquoted options or other convertible securities. The additional shares, dated 9 December 2025, incrementally expand the company’s listed equity base, modestly diluting existing holders while signalling the crystallisation of value from past incentive or financing arrangements.

The most recent analyst rating on (AU:EHL) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Reports Strong FY25 Financial Performance

Emeco Holdings Limited reported a strong financial performance for FY25 with a revenue of $785 million and an operational EBITDA of $301 million. The company maintains a robust balance sheet with low leverage and operates across all key mining regions in Australia, managing over 260 projects. This solid performance underlines Emeco’s leading position in the mining equipment rental industry and its strategic focus on enhancing service offerings to support its growth and stakeholder interests.

The most recent analyst rating on (AU:EHL) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Secures Improved Debt Refinancing to Boost Growth

Emeco Holdings Limited has successfully refinanced its long-term debt facilities, securing a new 5-year A$355 million revolving syndicated debt facility with improved pricing and terms. This new facility, which replaces an existing $100 million facility and will retire $250 million in Australian Medium Term Notes, enhances Emeco’s funding capability, supporting its core rental and equipment maintenance businesses while providing flexibility for future growth. The refinancing was oversubscribed, indicating strong market confidence in Emeco’s financial health and business model, and aligns with the company’s strategy of operational excellence and capital discipline.

The most recent analyst rating on (AU:EHL) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Updates Director’s Interest in Securities

Emeco Holdings Limited announced a change in the director’s interest, specifically regarding Ian Testrow’s holdings. The change involves the issuance and vesting of performance rights under the company’s incentive plans, which were approved at the 2025 AGM. This adjustment reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting the company’s governance and stakeholder relations.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Announces Director Departure

Emeco Holdings Limited has announced the cessation of Sarah Elizabeth Adam-Gedge as a director, effective November 20, 2025. This update, as required by ASX listing rules, indicates that Adam-Gedge holds no relevant interests in securities or contracts with the company, suggesting a clean departure without financial entanglements.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Secures Shareholder Support at AGM

Emeco Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on 20 November 2025. The resolutions included the re-election of board members and the approval of incentive plans for the CEO, reflecting shareholder support for the company’s strategic direction and leadership. This outcome reinforces Emeco’s commitment to maintaining strong governance and incentivizing its leadership team to drive future growth.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.