Aquirian Positioned for Further Earnings Growth on Strong Contract Pipeline, Euroz Hartleys Says
Aquirian (ASX:AQN) is well placed for further earnings growth following a strong fiscal 2026 performance and continued contract momentum, Euroz Hartleys said in a note on Monday.The company reported fiscal 2026 revenue of AU$32 million, up nearly 23% year on year, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of AU$4.6 million, up about 194% and broadly in line with Euroz Hartleys' AU$4.8 million forecast.The research firm said the result reflected strong operational momentum, with underlying EBITDA more than doubling from fiscal 2025.The research firm noted that the Wubin emulsion plant remains a key earnings driver after processing a record 4,000 tonnes in May, with a planned high-capacity melt circuit and expanded on-site emulsion storage expected to support further growth.Euroz Hartleys expects the company's biodegradable collar keeper to remain on track for a commercial launch in the first half of fiscal 2027, with the product set to improve customer efficiency, cut operating costs and reduce plastic waste, while new African distribution agreements support future sales.It added that the potential additional contract awards for Drillforce, following its inaugural AU$48 million three-year contract with Brightstar Resources (ASX:BTR), remain a key catalyst for earnings and share price growth.The research firm maintained its fiscal 2027 EBITDA forecast of AU$8.5 million for the company, noting that it is valued at around 6.2 times fiscal 2027 enterprise value-to-EBITDA, compared with a peer median of about 9.5 times.Euroz Hartleys maintained a buy rating on Aquirian and price target of AU$0.80.The company's shares fell around 3% in recent Monday trade. Brightstar Resources' shares also shed about 3%.
