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Environmental Group Ltd ASX:EGL

1 opened or increased3 held0 reduced or exitedlatest position by manager, past 12 months90 days: 0 increased, 0 reduced. 5 managers in total.

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20252026

26 Feb 2026 to today

Commentary Showing 2 of 6

DateManagerActionSummary

30 Jun 2026DMX Asset ManagementInitiatedDMX Asset Management continues to hold Environmental Group, an environmental engineering company operating across resources and waste through its EGL Energy, EGL Clean Air, EGL Waste Services and EGL Baltec divisions, with EGL Energy, the largest boiler maintenance business of its kind in Australia and around 70% recurring revenue from mandated boiler inspections, contributing the majority of group earnings. The manager notes the company downgraded FY26 normalised EBITDA guidance by around $4 million to between $8.5 million and $9.0 million in May, causing the share price to more than halve, driven by an ERP system rollout that disrupted job-level cost allocation and invoicing, alongside higher diesel costs, shipping delays and slower tender awards in the Middle East. Having watched the company for some time but previously struggled with its valuation, DMX took the downgrade-driven price fall as an entry opportunity, noting management believes the FY26 issues have been addressed and expecting a return to FY25-level profitability of $6 million normalised NPAT on revenue of around $120 million, with the fund's entry market capitalisation of around $33 million offering an attractive risk-reward.

Monthly Report, price recorded $0.09

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31 May 2026Salter BrothersHeldSalter Brothers continues to hold Environmental Group despite a material negative trading update driven by ERP implementation issues and operational headwinds, which resulted in revised FY26 EBITDA guidance cut from $13.1 million to $8.75 million at the midpoint. The fund manager notes that job cost allocation and cost recovery issues in EGL Energy following a February ERP implementation contributed $1.7 million to the earnings impact, alongside a $400,000 historical job balance clean-up and $400,000 in higher diesel costs. Additional pressures in EGL Baltec from shipping disruptions and slower Middle East tender awards contributed a further $1.5 million impact. Management emphasised the revision does not reflect weaker underlying demand, though the fund manager notes the update raises concerns around operational execution and earnings quality.

Monthly Report, price recorded $0.11

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4 more comments on EGLPro shows every comment, with a link to each source document.

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Price at first mentionThe share price recorded when each of 5 managers first commented on EGL.

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Articles

30 Jun 2026Environmental Group's Compounding Story Hits an ERP Speed Bump
30 Jun 2026The Environmental Group Fell 55% on a Botched ERP System Rollout

About Environmental Group Ltd

Industrials, Machinery

The Environmental Group (ASX:EGL), an environmental engineering company, fell sharply after an earnings downgrade. In May 2026, Investors Mutual reported EGL fell 55% after cutting earnings guidance by around one-third due to higher one-off IT costs and disruption from a new system. Salter Brothers, which first invested in February, noted the negative trading update stemmed from ERP implementation issues and broader operational headwinds. HD Capital had earlier highlighted that since 2021 EGL compounded revenue, EBITDA and cash earnings per share at 28%, 50% and 44%. Environmental Group operates in the Industrials sector within the Machinery industry, and Thesis Tracker has captured 6 comments from 5 fund managers, including Investors Mutual, Salter Brothers, HD Capital and DMX. Founded in 1923 and headquartered in Notting Hill, Melbourne, EGL provides emission control, gas turbine inlet and exhaust systems, water treatment and waste-to-energy solutions to resources, energy and industrial customers.

Market cap: $33m
Price to earnings: Loss-making
Return on equity: -14.2%
Dividend yield: 0.0%
Price to book: 0.87x
Net margin: -5.4%
52-week range: $0.07 to $0.26

Company figures as of 15 Oct 2026. For information only.

Questions

Who is investing in Environmental Group Ltd (ASX:EGL)?

Fund managers including Tyndall Asset Management, HD Capital Partners, Salter Brothers, Investors Mutual Limited and DMX Asset Management have invested in Environmental Group Ltd (ASX:EGL).

What opportunities or catalysts do fund managers highlight for Environmental Group Ltd?

HD Capital and DMX highlight EGL's strong compounding of revenue and earnings since 2021 and its exposure to resources, energy and waste sectors.

What are the key risks to the Environmental Group Ltd investment thesis, according to fund managers?

Investors Mutual and Salter Brothers note a one-third earnings guidance cut from ERP implementation problems and operational headwinds, causing a 55% share price fall.

What does Environmental Group Ltd (ASX:EGL) do?

The Environmental Group Ltd (EGL), founded in 1923 and headquartered in Notting Hill, Australia, specializes in emission control, gas turbine systems, and water purification. The company operates through three segments: Products, Services, and Corporate. The Products segment encompasses air pollution control, including dust, fume, and gas vapor solutions, alongside the design and manufacture of gas turbine equipment (Baltec). The Services segment covers service provision, while the Corporate segment manages headquarters expenditures and assets. EGL focuses on industrial environmental engineering, delivering integrated solutions for emission and inlet/exhaust systems.

General information only. Thesis Tracker reports what named fund managers have published about ASX companies. It does not take into account your objectives, financial situation or needs, and is not financial product advice or a recommendation to buy, sell or hold any security.

11,356 comments from 164 managers on 761 companies, snapshot 15 Oct 2026.

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