Australian mining equipment rental company Emeco says continuing strong domestic mine production levels bode well for heavy equipment demand in fiscal 2026 after it lifted operating margins and revenue went up 7% year-on-year to A$785.4 million in FY2025.
Emeco reported a net profit after tax of $75.1 million for the year to June 30, 2025, up 43% yoy, and EBITDA of $301.1 million (up 7% yoy). FY25 EBIT of $145.7 million was a 16% improvement on the previous year.
Emeco exited the underground contract mining business early in calendar 2024.
“With the strategic repositioning of our business now complete we have refocused on our core strengths in mining equipment rental and workshop services,” CEO Ian Testrow said. “This, and a disciplined approach to cost and capital management, has been instrumental in driving the improved financial performance.
“The focus for FY26 will be to continue to improve the financial metrics of our business with a particular focus on return on capital, margins, cashflow and leverage, whilst increasing our fleet utilisation, building our competitive advantage by further reducing our costs, improving our operational performance and enhancing the digitisation of our business.”
The ASX-listed company is forecasting “moderate earnings growth, significant free cash flow and substantial further deleveraging” in FY26.
Its share price is up about 9% in the past month, giving Emeco a current market value around $500 million.
