Our recent initiation was predicated on earnings growth coming from margin expansion. With leverage at comfortable levels and limited growth capex in future years we anticipated the free cash flow generated would provide flexibility and broad capital management options. The FY24 results confirmed for us that Emeco is on track, with margins and returns on capital both higher. We see a FY25 earnings uplift on margin gain and returns from newly deployed surface fleet. BUY on a valuation of $1.13 (prior $1.10).
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