3rd Sep 2025 08:54
(Alliance News) - Ashtead Group PLC on Wednesday said it continued to expect up to 4% rental r revenue growth in the current financial year, as first quarter profit fell as cost increases outpaced revenue growth.
The London-based industrial equipment hire company reported a pretax profit of USD511.6 million for the first quarter that ended July 31, falling 6.0% from USD544.4 million the year before.
Revenue grew 1.8% to USD2.80 billion from USD2.75 billion, while operating costs increased 4.8% to USD1.54 billion from USD1.47 billion. This included a one-off USD13 million cost associated with Ashtead's move of its primary listing to the US.
Staff costs came in 3.5% higher at USD655.5 million from USD633.3 million.
Earnings before interest, tax, depreciation and amortisation sank 2.3% to USD1.26 billion from USD1.29 billion.
"The group delivered solid first quarter results with revenues, profits and free cash flow in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry. Rental revenue increased 2.4% as mega project activity gained momentum, and we are seeing positive leading indicators for local non-residential construction activity," said Chief Executive Officer Brendan Horgan.
He added: "We are reaffirming our revenue and capex guidance for the year, while raising it for free cash flow. Lastly, we continue to progress our relisting on the NYSE that is currently scheduled for March 2026."
Ashtead guided for up to 4% rental revenue growth for the year, and between USD1.8 billion and USD2.2 billion in capital expenditure.
The company now expects free cash flow between USD2.2 billion and USD2.5 billion for the current financial year, compared to its prior guidance for USD2.0 billion to USD2.3 billion.
Its capital allocation framework remains committed to a progressive dividend.
Ashtead Group shares were 1.2% higher at 5,440.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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