ALS Limited: Upgrade to OW: ** This is not a drill **

Research evidence excerpt

ALS Limited: Upgrade to OW: ** This is not a drill **

J P M O R G A N Asia Pacific Equity Research

27 July 2026

ALS Limited ▲Overweight

Previous: Neutral

Upgrade to OW: ** This is not a drill ** ALQ.AX, ALQ AU

Price (27 Jul 26):A$21.26

▲Price Target (Mar-27):A$26.10

Prior (Mar-27):A$21.50

Despite investor caution around implied Minerals guidance during a brief pause Australia

from Middle East events, domestic testing volumes have held up and activity/

Emerging Companies

program intent has re-accelerated, with turnaround times continuing to lengthen

and supporting price growth. Our view is this exploration cycle will be more drawn Don Carducci AC

out, however, based on recent feedback we bridge FY27 with a more constructive (61-2) 9003-8379

donald.n.carducci@jpmorgan.com

earnings profile. We factor in ~21% organic Minerals growth through FY27 with

George Stewart

sequential margin improvement from operating leverage. Our FY27 Commodities (61-2) 9003-8199

Revenue/EBIT sits +1.6%/+4.9% above BBG consensus (and group EBIT/NPAT george.stewart@jpmorgan.com

+2.0%/3.5%). Upgrade ALQ to OW - PT A$26.10. Laura S Hill

• Industry feedback inconsistent with implied minerals guidance: Recent (61-2)laura.s.hill@jpmorgan.com9003-8258

testing volumes domestically have not been impacted materially from fuel J.P. Morgan Securities Australia Limited

availability/concerns. While the Middle East conflict/downstream factors

caused a temporary hesitation in late March/early April - our feedback is

Key Changes (FYE Mar) sequential acceleration of activity/program intent. Turnaround times have

stretched further, supporting pricing action beyond CPI growth in recent Prev Cur Δ

Adj. EPS - 27E (A$) 0.83 0.93 12.6%

months. We expect this cycle to be more drawn out, noting capital raising to Adj.