EQT Holdings Ltd. (EQT) AI Stock Analysis

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EQT Holdings Ltd.

(Sydney:EQT)

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Neutral 59 (OpenAI - 4o)

Rating:59Neutral

Price Target:

AU$30.00

▲(9.69% Upside)

EQT Holdings Ltd. has strong financial stability and profitability, but the significant revenue decline is a concern. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and showing oversold conditions. The valuation is high, but the dividend yield provides some compensation. Overall, the stock score reflects these mixed factors, with financial performance being the most significant contributor.

EQT Holdings Ltd. (EQT) vs. iShares MSCI Australia ETF (EWA)

Market Cap

AU$719.75M

Dividend Yield4.06%

Average Volume (3M)61.33K

Price to Earnings (P/E)22.3

Beta (1Y)0.76

Revenue Growth4.26%

EPS Growth79.41%

CountryAU

Employees441

SectorFinancial

Sector Strength70

IndustryAsset Management

Share Statistics

EPS (TTM)0.84

Shares Outstanding26,776,453

10 Day Avg. Volume48,163

30 Day Avg. Volume61,329

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

AU$37.00

Price Target Upside35.28% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

EQT Holdings Ltd. Business Overview & Revenue Model

Company DescriptionEQT Holdings Limited, together with its subsidiaries, provides philanthropic, trust executor, and investment services in Australia, the United Kingdom, and Ireland. It operates through three segments: Trustee and Wealth Services, Superannuation Trustee Services, and Corporate Trustee Services. The company provides estate planning and management; charitable, compensation, community, and personal trust services; and asset and wealth management, and advisory services. It also offers trustee, custody, and investment management services for superannuation funds; and legal services. In addition, the company provides a range of global fiduciary services, and fund governance and trustee services for managed investment schemes on behalf of local and international fund managers and sponsors, as well as trustee services for debt, securitizations, custody, and real estate arrangements for corporates. EQT Holdings Limited was founded in 1888 and is headquartered in Melbourne, Australia.

How the Company Makes MoneyEQT Holdings Ltd. generates revenue through various streams primarily centered around financial services. The company earns fees from managing and administering trusts, estates, and charitable foundations, offering investment management and advisory services, and providing superannuation fund services. Additionally, EQT earns income from its corporate trustee services, where it acts as a trustee for managed investment schemes. Key factors contributing to its earnings include its ability to attract and retain clients, the performance of its investment portfolios, and its strategic partnerships with financial advisors and institutions.

EQT Holdings Ltd. Earnings Call Summary

Earnings Call Date:Aug 20, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Feb 19, 2026

Earnings Call Sentiment Positive

The earnings call highlighted strong production and financial performance, strategic acquisitions, and significant growth opportunities, balanced by a few challenges such as litigation expenses and near-term market headwinds. The overall sentiment is positive, with a strong outlook for sustainable growth and financial stability.

Q2-2025 Updates

Positive Updates

Record Production and Efficiency Improvements

Production was at the high end of guidance, benefiting from robust well productivity and outperformance from compression projects. Capital spending came in approximately $50 million below the low end of guidance, driven by midstream spending optimization, continued improvements and completion efficiency, and lower well costs.

Strong Financial Performance

Approximately $240 million of Q2 free cash flow was generated despite a $134 million litigation settlement expense. Without this legal expense, free cash flow would have totaled approximately $375 million. Cumulative free cash flow generation totaled nearly $2 billion over the past 3 quarters.

Strategic Acquisition and Integration

Closed acquisition of Olympus Energy on July 1, funded with $475 million of cash and issuance of approximately 25.2 million shares. The assets include a 90,000 net acre position offsetting EQT's acreage in Southwest Appalachia with 500 million cubic feet per day of net production and over a decade of core Marcellus inventory.

Deleveraging and Financial Stability

Exited the quarter with $7.8 billion of net debt, down approximately $350 million compared to Q1. Nearly $6 billion of debt reduction over the past 3 quarters with a target to achieve $7.5 billion net debt by year-end 2025.

Significant Growth Projects

Announced a pipeline of projects representing nearly $1 billion of organic investment opportunity, expected to generate approximately $250 million of recurring free cash flow by 2029.

Negative Updates

Litigation Settlement Expense

$134 million net expense incurred relating to a litigation settlement that resolved outstanding securities class action litigation.

Near-term Market Headwinds

Near-term headwinds primarily due to production growth, with storage levels 6% above normal and production at 107 Bcf, which is higher than anticipated.

Company Guidance

During the EQT Q2 2025 earnings call, guidance highlighted several key metrics and strategic initiatives driving the company's performance and future outlook. Production was at the high end of guidance due to robust well productivity and compression project outperformance, with capital spending approximately $50 million below the low end of guidance. This resulted in about $240 million of Q2 free cash flow, despite a $134 million legal expense, indicating that without this, free cash flow would have been approximately $375 million, significantly exceeding expectations. The recent Olympus Energy acquisition, funded with $475 million in cash and 25.2 million shares, is expected to enhance operational integration and growth opportunities. EQT plans to embark on nearly $1 billion of organic investment projects, projected to yield a 25% free cash flow yield upon completion, with MVP Boost and Southgate projects commencing in 2028 and 2029, respectively. The company aims to reduce net debt to $7.5 billion by the end of 2025, with a long-term target of $5 billion, leveraging strong free cash flow to continue deleveraging while simultaneously pursuing high-return growth projects.

EQT Holdings Ltd. Financial Statement Overview

Summary

EQT Holdings Ltd. demonstrates strong profitability and cash flow management with robust margins and cash flow ratios. However, the significant decline in revenue growth is a concern that could impact future performance. The balance sheet remains solid with low leverage and a strong equity base, providing financial stability.

Income Statement

Positive

EQT Holdings Ltd. has demonstrated strong profitability with a high gross profit margin of 96.87% in the latest year, indicating efficient cost management. However, the company experienced a significant revenue decline of 41.7%, which is a concern for growth. Net profit margin improved to 18.59%, showing enhanced profitability despite the revenue drop. The EBIT and EBITDA margins are robust at 30.44% and 34.56%, respectively, reflecting strong operational efficiency.

Balance Sheet

Positive

The company's balance sheet is stable with a low debt-to-equity ratio of 0.21, indicating conservative leverage. Return on equity is moderate at 8.23%, suggesting reasonable profitability relative to shareholder equity. The equity ratio stands at 74.73%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Positive

EQT Holdings Ltd. shows a healthy cash flow position with a 33.3% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.24, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is high at 0.95, reflecting effective cash management and a strong ability to cover net income with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	178.71M	178.71M	169.45M	138.58M	110.56M	99.61M
Gross Profit	173.11M	173.11M	44.38M	34.22M	43.38M	37.78M
EBITDA	61.76M	61.76M	39.55M	36.27M	41.65M	35.58M
Net Income	32.26M	33.22M	20.71M	18.83M	24.23M	21.53M
Balance Sheet
Total Assets	540.48M	540.48M	539.86M	511.91M	371.15M	353.83M
Cash, Cash Equivalents and Short-Term Investments	156.48M	156.48M	138.76M	109.69M	118.32M	97.17M
Total Debt	82.96M	82.96M	82.14M	60.43M	50.45M	41.26M
Total Liabilities	136.59M	136.59M	141.26M	112.38M	89.81M	79.58M
Stockholders Equity	403.90M	403.90M	402.09M	405.39M	285.27M	276.81M
Cash Flow
Free Cash Flow	39.60M	38.27M	32.54M	8.76M	31.86M	19.12M
Operating Cash Flow	39.89M	40.33M	39.04M	12.58M	34.13M	19.81M
Investing Cash Flow	-2.06M	2.96M	-3.29M	-127.25M	-7.27M	-691.00K
Financing Cash Flow	-20.42M	-25.44M	-6.58M	106.10M	-10.53M	-11.69M

EQT Holdings Ltd. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price27.35

Price Trends

50DMA

29.93

Negative

100DMA

30.69

Negative

200DMA

31.01

Negative

Market Momentum

MACD

-0.87

Negative

RSI

43.18

Neutral

STOCH

57.63

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EQT, the sentiment is Negative. The current price of 27.35 is below the 20-day moving average (MA) of 28.01, below the 50-day MA of 29.93, and below the 200-day MA of 31.01, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EQT.

EQT Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FID	76 Outperform	405.96M	21.82	0.00%	3.59%	10.61%	23.34%
RPL	74 Outperform	972.18M	23.17	7.79%	5.71%	21.81%	-43.93%
PAC	72 Outperform	336.82M	8.97	0.00%	3.91%	31.09%	-75.49%
AEF	65 Neutral	798.48M	38.94	0.00%	1.96%	18.80%	74.51%
EQT	59 Neutral	AU$719.75M	22.28	8.50%	4.06%	4.26%	79.41%
MAF	50 Neutral	1.72B	41.45	10.01%	2.11%	35.30%	44.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

AU:EQT

EQT Holdings Ltd.

27.35

-0.80

-2.84%

TSRUF

Pacific Current Group Ltd

7.37

0.27

3.80%

DE:1OP

Australian Ethical Investment Ltd

3.94

1.45

58.23%

AU:RPL

VGI Partners Ltd.

2.80

-0.37

-11.67%

AU:MAF

MA Financial Group Limited

9.50

4.22

79.92%

AU:FID

Fiducian Group Ltd

12.97

4.72

57.21%

EQT Holdings Ltd. Corporate Events

EQT Holdings to Host Investor Webinar on Full Year Results

Jul 29, 2025

EQT Holdings Limited announced a webinar presentation for investors to discuss its Full Year Results, scheduled for 21 August 2025. This initiative reflects EQT’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning by enhancing investor relations and providing insights into its financial performance.