Full Year 2024 Emeco Holdings Ltd Earnings Call Transcript
Key Points
- Emeco Holdings Ltd (EOHDF) delivered a strong financial performance for FY24, with operating EBITDA up 12% to $281 million.
- The company achieved significant growth in operating free cash flow, which increased by 66% to $87 million.
- EBITDA margin improved from 29% to 34%, and EBIT margin increased from 12% to 15%, reflecting better cost and contract management.
- Gross fleet utilization averaged 91% for surface rental, indicating high levels of activity in the mining sector.
- The company successfully transformed its underground business, delivering a turnaround performance with a $5.5 million EBIT contribution in FY24.
- Total revenue was down 6% to $823 million due to the sale of the Pit N Portal underground contract mining business.
- The Total Recordable Injury Frequency Rate (TRIFR) remains a concern, although it improved from 3.2 to 2.8 in 2024.
- Corporate costs were higher, mainly due to the award of short-term incentives, impacting overall expenses.
- Net debt increased marginally despite the growth CapEx program, indicating ongoing financial leverage.
- The underground rental fleet utilization was low at the end of FY24, although there has been an uptick entering FY25.
Good morning, everyone, and welcome to Emeco's 2024 financial year results presentation. Thank you for joining us today. I'll run through the investor presentation we lodged on the ASX this morning and then provide an opportunity for questions at the end.
Theresa Mlikota, our CFO, is with me today and she'll cover the more detailed financial aspects of the results, will also be available for questions.
As always, before we begin, I'd like to draw your attention to the disclaimer on slide 2, which cover the usual important information around forward-looking statements.
I'll start on slide 4 with the key business highlights. Emeco delivered a strong financial performance for FY24 in line with expectations. The business achieved solid growth in operating earnings, margins, and cash flow generation. Importantly, a simplified business model following the sale of the underground contracting business means we now fully focus on our core business, which is equipment rental supported by our
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