2343 GMT - Emeco's earnings miss is balanced by its solid balance sheet. Emeco signaled FY 2026 operating Ebitda of A$290 million-A$295 million. That fell short of Macquarie's A$308 million expectation, driving a 23% cut in its price target to A$1.08/share. Still, Emeco expects annual free cash flow of A$100 million-A$110 million. It says net leverage is likely to improve to 0.4X, below it long-term target. "The strong balance sheet opens up capital management initiatives including a special dividend, and also M&A opportunities," says Macquarie. Emeco is currently assessing potential deals, noting the market for equipment rental is fragmented. Emeco ended Thursday at A$0.96. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
June 18, 2026 19:43 ET (23:43 GMT)
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