Emeco's FY25 financial forecast

Emeco Holdings (ASX:EHL), a prominent player in the equipment rental and maintenance sector for mining, has revealed its financial outlook for the fiscal year ending June 30, 2025. The company anticipates achieving an Operating EBITDA of at least $300 million, with a consistent distribution between the first and second halves of the year similar to FY24.

Emeco's strategic focus and market position

Emeco Holdings has announced a robust financial outlook for FY25, projecting an Operating EBITDA of at least $300 million. The company plans to maintain minimal growth capital expenditure while focusing on earnings growth and free cash flow. Despite challenging market conditions for nickel and lithium, Emeco remains confident in the positive production outlook for gold and bulk commodities. With a strong national presence and competitive advantage in equipment rental and rebuild services, Emeco is set to leverage these strengths to drive performance improvements and achieve a targeted ROC of 20% by the second half of FY25. The company remains cautious, acknowledging the inherent risks and uncertainties in forward-looking statements.

Executive insights from Emeco

Ongoing improvements in earnings due to better utilization rates have been highlighted. Emeco aims to achieve a ROC target of 20%, with expectations of an annualized run rate of 18% in the second half of FY25.