9th Dec 2025 09:09
(Alliance News) - Ashtead Group PLC on Tuesday reiterated full-year guidance after a mixed second quarter, which was held back by continued soft US non-residential construction markets, as the company announced a new share buyback to coincide with the move of its primary listing to New York.
The London-based industrial equipment rental company said pretax profit fell 12% to USD571 million in its financial second quarter to October 31 from USD653 million a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation slipped 2.1% to USD1.38 billion from USD1.41 billion, below company compiled consensus for adjusted Ebitda to be steady at USD1.41 billion.
Revenue edged up 0.7% to USD2.96 billion from USD2.94 billion, with rental revenue of USD2.76 billion, up 1.1% from USD2.73 billion.
Adjusting for USD55 million to USD60 million of lower hurricane clean-up activity in the quarter, rental revenue was up 3%, Ashtead Group said, as "mega project activity gained momentum, offset by continued moderation in our local non-residential construction markets".
"The group reported solid results for both the first half of the year and the second quarter, with revenue, profit, and free cash flow in line with our expectations as we benefit from long-term industry trends and ongoing improvements in our sector," commented Chief Executive Brendan Horgan.
For the half-year that ended October, pretax profit declined 10% to USD1.08 billion from USD1.20 billion on revenue up 1.1% to USD5.76 billion from USD5.70 billion. Free cash flow improved to USD1.11 billion from USD420 million.
Given the "continued confidence in our free cash flow outlook," Ashtead said it plans a new USD1.5 billion share buyback programme, starting March 2 next year to coincide with its re-listing on the New York Stock Exchange. Ashtead said the move of its primary listing to New York from London which "remains on track".
The existing USD1.5 billion buyback is expected to complete by the end of February.
In addition, Ashtead declared an interim dividend of 37.5 US cents, up 4.2% from 36.0 cents.
Ashtead pointed to "positive leading indicators for local non-residential construction activity", as it reiterated annual guidance for rental revenue, capital expenditure and free cash flow for the financial year.
The company continues to expect full-year rental revenue growth of 0% to 4%, capex of USD1.8 billion to USD2.2 billion and free cash flow of USD2.2 billion to USD2.5 billion.
Shares in Ashtead Group were down 0.8% at 4,771.00 pence each in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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