Engenco Limited: Navigating Headwinds with Strategic Resilience

Engenco Limited (ASX: EGN), a Melbourne-based engineering services company, has revised its FY25 outlook due to operational challenges. Despite anticipating a positive second half, the company no longer expects growth over FY24 results. This is largely attributed to delays in Gemco Rail's capital wagon program, impacted by skilled labor shortages, and lower bearing sales. Consequently, part of the June 2025 quarter’s revenue will shift to FY26. Similarly, Drivetrain’s workshop activity has slowed as some mining clients insourced services. Nonetheless, Engenco remains strategically optimistic, underpinned by a robust wagon manufacturing pipeline and plans to initiate production in Karratha by late FY26. The company continues expanding its services across heavy-duty engines, rollingstock, and workforce training, serving diverse sectors including mining, defence, and rail. With a forward-looking approach, Engenco aims to capitalize on future growth opportunities while mitigating current shortfalls.

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