ENVIRONMENTAL GROUP LIMITED (EGL)
Share Price Analysis and Chart

20/08/2026

1

Buy

$0.16

83.91%

Environmental Group's FY26 result was broadly in line at the EBITDA level, with underlying EBITDA down -22% to $8.7m versus Bell Potter's $8.6m forecast, although revenue missed the broker's expectations.

The $6.1m reported loss was materially impacted by a -$5.7m Airtight Solutions impairment. Operational issues in Energy and delivery delays and Middle East disruptions at Baltec also weighed on earnings, the analyst explains.

Conditions are anticipated to remain challenging but the broker forecasts FY27 normalised EBITDA to recover 20%, supported by improved margins and growing PFAS treatment plant sales. Recurring revenue has increased to 55.3% of group revenue.

FY27/FY28 EPS forecasts are cut by -43%/-49%, respectively. Buy retained on the growing recurring revenue base and valuation.

Target slips to $0.16 from $0.20.

FORECAST
Bell Potter forecasts a full year FY27 dividend of 0.00 cents and EPS of 0.90 cents.
Bell Potter forecasts a full year FY28 dividend of 0.00 cents and EPS of 1.10 cents.

26/05/2026

1

Buy

$0.20

129.89%

Moelis maintains a Buy rating for Environmental Group with its target price revised to $0.20 following a trading update and earnings guidance downgrade.

Management lowered FY26 earnings before interest, tax, depreciation and amortisation guidance to a range between $8.5m and $9.0m, reflecting a combined -$4m impact across the energy and Baltec divisions.

The energy segment downgrade stems from operational matters, historical job balances, and higher fleet diesel costs, despite ongoing customer demand supporting underlying revenue growth, commentary highlights.

The Baltec division suffered from delayed deliveries, logistics disruptions, and slower tender awards from the Middle East, with affected product deliveries deferred into FY27.

Clean air and waste segments continue to trade in line with expectations, providing the broker sufficient confidence to retain a positive long-term investment view despite near-term earnings reductions.

FORECAST
Moelis forecasts a full year FY27 dividend of 0.00 cents and EPS of 1.20 cents.