EMECO HOLDINGS LIMITED (EHL)
Share Price Analysis and Chart

20/02/2025

1

Outperform

$1.18

34.86%

Emeco Holdings delivered a robust 1H25 result, with EBITDA in line with Macquarie’s estimates and 2% above consensus.

The analyst highlights half-on-half improvement in most financial metrics, with rising earnings margins as management focuses on efficiency and returns on capital employed.

Cash conversion was 94%, and free cash flow increased 22% year-on-year, supported by a decline in investing cash flow.

Macquarie lowers FY25 EPS by -3% and FY26 by -1% due to weather risk in Qld and WA.

Target rises to $1.18 from $1.03, Outperform retained.

FORECAST
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.10 cents.
Macquarie forecasts a full year FY26 dividend of 4.70 cents and EPS of 15.70 cents.

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

24/02/2025

2

Overweight

$1.00

14.29%

Jarden notes Emeco Holdings' 1H25 net profit was ahead of consensus but it also revealed decline in EBITDA margins for both rental and workshops. The company maintained FY25 EBITDA guidance which reflects a slight skew to 2H earnings.

While some concerns were raised about the guidance being met in the light of margin contraction and wet weather impacts, the broker remains comfortable sticking to its forecast at $300m guidance.

With an improved balance sheet setting and earnings outlook, the broker sees the current valuation and earnings momentum as providing strong risk/reward for investors, all else remaining equal. Overweight rating and $1 target price retained.

FORECAST
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 14.90 cents.
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 15.90 cents.