Emeco Holdings Limited (ASX: EHL) continues its outstanding share price run. The stock was up 1.5% to $0.36c on Monday, after the earth-moving vehicle rental company released its unaudited results for FY18.
Two years ago Emeco traded at just 3 cents a share, but since then the company has delivered a series of strong results and grown through a number of acquisitions, topped off with the $80 million purchase of bulldozers rental business Matilda Equipment in April.
Emeco maintained a solid performance in the last quarter of FY18. Operating EBITDA grew 10% on the previous quarter, thanks to new contracts resulting in increased utilisation of the company's fleet. EBITDA for the full year amounts to $153 million, an 83% increase on FY17.
As strong earnings bring the company's net debt/EBITDA ratio down to 2x, Emeco appears well on its way to reduce leverage to 1.5x by FY20 as planned.
Emeco is not the only mining services stock that has enjoyed sustained growth recently. The NRW Holdings Limited (ASX: NWH) share price for instance has increased 150% in the last 52 weeks. However, such gains expose mining services stocks to spectacular falls, such as the 40% tumble that Ausdrill Limited (ASX: ASL) shareholders had to endure in the past 2 months.
