Why did Emeco lower its earnings expectations?

Emeco Holdings Limited (ASX:EHL) experienced a softer close to the 2026 financial year because wet weather, supply chain challenges, and fuel price uncertainty reduced equipment utilisation.

What are the expected financial results for Emeco?

Emeco Holdings (ASX:EHL) expects its full-year operating EBITDA to be between $290 million and $295 million. The company also forecast an operating EBIT of $145 million to $150 million and operating free cash flow between $100 million and $110 million.

How is Emeco managing its balance sheet and leverage?

Emeco Holdings (ASX:EHL) improved its net leverage ratio to approximately 0.4x. Management stated that this improvement maintains balance sheet flexibility to consider future acquisition opportunities within the fragmented rental equipment market.

What does the fleet redeployment timeline mean for the company?

Emeco Holdings (ASX:EHL) is focusing on securing asset redeployment contracts to support stable earnings into the 2027 financial year. The business expects its 2027 performance to have a second-half weighting as equipment redeployment and asset utilisation levels improve.

How did the stock market react to the Emeco announcement?

The Emeco Holdings (ASX:EHL) share price decreased to $0.99 following the release of the updated trading forecast. The market adjusted downwards in response to the weaker end-of-year earnings metrics caused by operational delays.

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Emeco forecasts operating EBITDA up to $295M

Written by Heidi Cuthbert Published Jun 17, 2026, 11:14 PM

Emeco released its preliminary financial expectations for the 2026 financial year and outlook for 2027.
The company reported expected operating EBITDA between $290 million and $295 million alongside an improved net leverage ratio of approximately 0.4x.
Management is focusing on securing asset redeployment opportunities to counter recent weather disruptions and supply chain challenges.

Emeco (ASX:EHL) announced its expected 2026 operating EBITDA of $290 million to $295 million following weather and supply disruptions.

The projections reflect a softer end to the period because wet weather and supply chain issues reduced equipment usage.

"Emeco has built a robust business model able to withstand challenging market conditions and still deliver resilient earnings, growth in margins, a strong balance sheet and cash flow generation," said Emeco CEO and Managing Director Ian Testrow.

The group estimated its full-year operating EBIT at $145 million to $150 million and operating free cash flow at $100 million to $110 million.

Following the announcement, the Emeco share price was down at $0.99.

The company stated that its net leverage ratio improved to approximately 0.4x to maintain balance sheet flexibility for potential acquisitions.

The business also aims to secure fleet redeployment contracts to support stable production outcomes throughout the 2027 financial year.

Emeco forecasts operating EBITDA up to $295M

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