Unaudited results for first quarter ended 31/07/25

3 September 2025

Unaudited results for the first quarter ended 31 July 2025

Highlights

· Group rental revenue up 2%; revenue up 2%

· Operating profit of $642m (2024: $688m)

· Adjusted2 profit before taxation of $552m (2024: $573m)

· Adjusted2 earnings per share of 95.3¢ (2024: 97.4¢)

· $532m of capital invested in the business (2024: $855m)

· Free cash flow1 of $514m (2024: $161m)

· $330m spent on share buyback (2024: $nil)

· Net debt to adjusted EBITDA leverage of 1.6 times (2024: 1.7 times)

· Reaffirm guidance for revenue and capex while increasing it for free cash flow

Ashtead's chief executive, Brendan Horgan, commented:

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.

Our revenue growth combined with strong margins and disciplined capital deployment resulted in near record free cash flow in the quarter. In addition, we were able to complete $330m of share buybacks in the quarter bringing our total to c. $675m under the current programme, as well as paying down $91m of long-term borrowings, with leverage of 1.6x. I would like to thank the team for these results, while leading with our safety-first culture and Engage for Life programme, which are continuing to drive improvements in our safety metrics.

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.

Contacts:

Brendan Horgan and Alex Pease will hold a conference call for equity analysts to discuss the results and outlook at 11:30am (6:30am EST) on Wednesday, 3 September 2025. The call will be webcast live via the Company's website at www.ashtead-group.com and a replay will be available via the website shortly after the call concludes. A copy of this announcement and the slide presentation used for the call are available for download on the Company's website. The usual conference call for bondholders will begin at 3pm (10am EST). 

Analysts and bondholders have already been invited to participate in the analyst and bondholder calls but any eligible person not having received details should contact the Company's PR advisers, H/Advisors Maitland (Audrey Da Costa) at +44 (0)20 7379 5151.

Forward-looking statements This announcement contains forward-looking statements. These have been made by the directors in good faith using information available up to the date on which they approved this report. The directors can give no assurance that these expectations will prove to be correct. Due to the inherent uncertainties, including both business and economic risk factors underlying such forward-looking statements, actual results may differ materially from those expressed or implied by these forward-looking statements. Except as required by law or regulation, the directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Trading results1

1 During the prior financial year, the Group reassessed the basis of its segment information to report its results reflecting North America General Tool, North America Specialty and UK segments, which we believe reflects better the basis upon which we review the performance of the business internally and aligns with the basis of our strategic growth plan, Sunbelt 4.0. Prior year comparative information has been restated to reflect these segments. 

2 Segment performance is measured internally excluding central costs which support the business as a whole. Furthermore, the Group manages debt, including lease liabilities, centrally and therefore segment profit measures are presented before the application of lease accounting adjustments in accordance with IFRS 16 Leases but instead reflect the cash cost incurred in the period. The impact of lease accounting adjustments are included within the central costs line item above. 

3 Segment results presented are adjusted EBITDA and adjusted operating profit. A reconciliation of adjusted measures to statutory measures is provided in the Glossary of Terms on page 28.

North America General Tool

In the North American General Tool business, rental revenue of $1,535m (2024: $1,524m) was 1% higher than the prior period, driven by volume growth. Organic performance (same-store and greenfields) was flat, while bolt-ons since 1 May 2024 contributed 1% of rental revenue growth. North American General Tool total revenue, including new and used equipment, merchandise and consumable sales, was $1,649m (2024: $1,661m). As expected, this reflects a lower level of used equipment sales than the comparable period last year ($71m; 2024: $94m).

We continued to focus on the cost base which contributed to North America General Tool EBITDA of $871m (2024: $900m) and an EBITDA margin of 52.8% (2024: 54.2%). The margins reflect higher costs associated with internal repairs and repositioning of rental fleet to drive utilisation improvements. As anticipated, lower used equipment sales and second-hand values resulted in lower gains on sale. After higher depreciation on a larger fleet, this contributed to adjusted operating profit decreasing by 7% to $520m (2024: $561m) with a margin of 31.5% (2024: 33.8%).

North America Specialty

In the North American Specialty business, rental revenue of $854m (2024: $813m) was 5% higher than the prior year, driven by both volume and rate improvement, demonstrating the benefits of our strategy of growing our Specialty businesses. North American Specialty total revenue, including new and used equipment, merchandise and consumable sales, was $909m (2024: $855m). 

This performance combined with our focus on the cost base contributed to North American Specialty EBITDA of $436m (2024: $410m) and an EBITDA margin of 47.9% (2024: 48.0%). After higher depreciation on a larger fleet, this contributed to adjusted operating profit increasing by 8% to $301m (2024: $279m) with a margin of 33.1% (2024: 32.7%).

UK

The UK business generated rental revenue of $212m, up 4% on the prior year (2024: $204m). Rental revenue growth has benefitted from favourable foreign exchange movements, with rental revenue in local currency 2% lower than the prior year. Total revenue increased 2% to $243m (2024: $237m).

In the UK, the focus remains on delivering operational efficiency and long-term, sustainable returns in the business, while rental rate achievement remains an area of focus. The UK generated EBITDA of $61m (2024: $64m) at a margin of 25.3% (2024: 26.9%) and adjusted operating profit of $16m (2024: $22m) at a margin of 6.7% (2024: 9.3%).

Group

Group revenue was $2,801m (2024: $2,754m) during the quarter. This revenue and our focus on the cost base, but with lower used equipment sales, resulted in adjusted EBITDA decreasing 1% to $1,276m (2024: $1,288m). We invested in the infrastructure of the business during Sunbelt 3.0 to support the growth of the business now and into the future. Our intention is to leverage this infrastructure during Sunbelt 4.0 as we look to improve operating performance. 

Adjusted operating profit decreased 5% to $683m (2024: $717m), reflecting a depreciation charge which was 4% higher than the prior year. The higher increase in the depreciation charge relative to revenue growth reflects the ongoing impact of life cycle fleet inflation, contributing to the decline in adjusted operating profit. 

After lower net financing costs of $130m (2024: $144m), reflecting lower average debt levels, Group adjusted profit before tax was $552m (2024: $573m). After a tax charge of 26% (2024: 26%) of the adjusted pre-tax profit, adjusted earnings per share were 95.3ȼ (2024: 97.4ȼ).

Statutory profit before tax was $512m (2024: $544m). This is after non-recurring costs of $13m (2024: $nil) associated with the move of the Group's primary listing to the US and amortisation of $28m (2024: $29m). Included within the total tax charge is a tax credit of $8m (2024: $7m) which relates to the amortisation of intangibles and non-recurring costs. As a result, basic earnings per share were 87.7¢ (2024: 92.4¢).

Capital expenditure and acquisitions

Capital expenditure for the quarter was $532m gross and $416m net of disposal proceeds (2024: $855m gross and $722m net). As a result, the Group's rental fleet at 31 July 2025 at cost was $19bn (2024: $18bn) and our average fleet age was 50 months (2024: 46 months) on an original cost basis.

We invested $20m (2024: $53m) in two bolt-on acquisitions during the period, as we continue to both expand our footprint and diversify our end markets. Further details are provided in Note 14.

Return on Investment

The Group return on investment was 14% (2024: 16%). For North America General Tool, return on investment (excluding goodwill and intangible assets) for the 12 months to 31 July 2025 was 20% (2024: 24%), while for North America Specialty it was 31% (2024: 29%). The reduction in North America General Tool return on investment reflects principally the impact of lower average utilisation of a larger fleet. In the UK, return on investment (excluding goodwill and intangible assets) was 6% (2024: 7%). Return on investment excludes the impact of IFRS 16.

Cash flow and net debt

The Group generated free cash flow of $514m (2024: $161m) during the quarter, which is after capital expenditure payments of $506m (2024: $933m). In December 2024, the Group launched a share buyback programme of up to $1.5bn over 18 months. During the quarter, we spent $330m (2024: $nil) on share buybacks under this programme.

Net debt at 31 July 2025 was $10,268m (2024: $10,761m). Excluding the effect of IFRS 16, net debt at 31 July 2025 was $7,425m (2024: $8,033m), while the ratio of net debt to adjusted EBITDA was 1.6 times (2024: 1.7 times) on a constant currency basis. The Group's target range for net debt to adjusted EBITDA is 1.0 to 2.0 times, excluding the impact of IFRS 16. Including the effect of IFRS 16, the ratio of net debt to adjusted EBITDA was 2.0 times (2024: 2.2 times) on a constant currency basis.

At 31 July 2025, availability under the senior secured debt facility was $3,702m with an additional $6,325m of suppressed availability - substantially above the $475m level at which the Group's entire debt package is covenant free.

The Group's debt facilities are committed for an average of five years at a weighted average cost of 5%.

Capital allocation

The Group remains disciplined in its approach to allocation of capital with the overriding objective being to enhance shareholder value. 

Our capital allocation framework remains unchanged and prioritises:

· organic fleet growth;

- same-stores;

- greenfields;

· bolt-on acquisitions; and

· a progressive dividend with consideration to both profitability and cash generation that is sustainable through the cycle.

Additionally, we consider further returns to shareholders. In this regard, we assess continuously our medium-term plans which take account of investment in the business, growth prospects, cash generation, net debt and leverage. As we execute on Sunbelt 4.0, we expect a number of years of strong earnings and free cash flow generation. Given this outlook, we have the opportunity to enhance returns to shareholders, while maintaining leverage towards the middle of our target range of 1.0 to 2.0 times net debt to adjusted EBITDA (excluding the IFRS 16). 

Guidance

Set out below is our guidance for 2025/26:

1 Stated at C$1=$0.69 and £1=$1.26.

2 Increase in free cash flow guidance reflects recent changes in US tax legislation.

CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED 31 JULY 2025

* EBITDA is presented here as an alternative performance measure as it is commonly used by investors and lenders. This and other adjusted alternative performance measures are detailed in the Glossary of Terms on page 28.

All revenue and profit is generated from continuing operations.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED 31 JULY 2025

CONSOLIDATED BALANCE SHEET AT 31 JULY 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED 31 JULY 2025

CONSOLIDATED CASH FLOW STATEMENT

FOR THE THREE MONTHS ENDED 31 JULY 2025

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. General information

Ashtead Group plc ('the Company') is a company incorporated and domiciled in England and Wales and listed on the London Stock Exchange. The condensed consolidated interim financial statements as at, and for the three months ended 31 July 2025, comprise the Company and its subsidiaries ('the Group') and are presented in US dollars.

The condensed consolidated interim financial statements for the three months ended 31 July 2025 were approved by the directors on 2 September 2025.

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The statutory accounts for the year ended 30 April 2025 were approved by the directors on 16 June 2025 and have been mailed to shareholders and filed with the Registrar of Companies. The auditor's report on those accounts was unqualified, did not include a reference to any matter by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Details of principal risks and uncertainties are given in the Review of Balance Sheet and Cash Flow accompanying these condensed consolidated interim financial statements.

2. Basis of preparation

The condensed consolidated interim financial statements for the three months ended 31 July 2025 have been prepared in accordance with relevant UK-adopted International Accounting Standards ('IFRS'), including the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and the accounting policies set out in the Group's Annual Report & Accounts for the year ended 30 April 2025.

In preparing the financial statements, the exchange rates used in respect of the pound sterling (£) and Canadian dollar (C$) are:

The directors have adopted various alternative performance measures to provide additional useful information on the underlying trends, performance and position of the Group. The alternative performance measures are not defined by IFRS and therefore may not be directly comparable with other companies' alternative performance measures but are defined within the Glossary of Terms on page 28.

The condensed consolidated interim financial statements have been prepared on the going concern basis. The Group's internal budgets and forecasts of future performance, available financing facilities and facility headroom (see Note 11), provide a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and consequently the going concern basis continues to be appropriate in preparing the financial statements.

3. Segmental analysis

The Group's externally reportable segments reflect the internal reporting structure of the Group, which is the basis on which resource allocation decisions are made by management in the pursuit of strategic objectives. 

During the prior financial year, the Group reassessed the basis of its segmental information considering recent organisational changes. The Group operates under two primary geographic regions reflecting its North American activities and assets, and its UK activities and assets. The North American business is further split by General Tool and Specialty, reflecting the nature of its products and services and the management structure of the Group. As such, the Group identified its reportable operating segments as North America - General Tool, North America - Specialty and UK which we believe reflects better the basis upon which we review the performance of the business internally and aligns with the basis of our strategic growth plan, Sunbelt 4.0.

The Group manages debt (including lease liabilities) and taxation centrally, rather than by business unit. Accordingly, segmental results are stated excluding the impact of IFRS 16 lease accounting. Furthermore, segment results are stated before interest and taxation which are reported as central Group items. This is consistent with the way the chief executive reviews the business.

Segmental information for the three months ended 31 July 2024 has been restated to reflect these updated segments.

Three months to 31 July 2025 (unaudited)

Three months to 31 July 2024 (unaudited) (restated)

4. Operating costs and other income

5. Net financing costs

6. Taxation

The tax charge for the period has been determined by applying the expected effective tax rates in each jurisdiction for the year as a whole, based on the tax rates in force as at 31 July 2025 of 25% in the US (2024: 25%), 26% in Canada (2024: 26%) and 25% in the UK (2024: 25%). This results in a blended effective rate for the Group as a whole of 27% (2024: 26%) for the period.

The tax charge of $136m (2024: $141m) on the profit before taxation of $512m (2024: $544m) can be explained as follows:

On 4 July 2025, Public Law No. 119-21, commonly referred to as the 'One Big Beautiful Bill Act' ('the Act') was enacted in the United States. The Act, among other things, permanently reinstated the additional first-year depreciation allowance for qualified property ('bonus depreciation'), permanently reinstated the EBITDA approach for calculating the business interest limitation and the immediate expensing of US research and experimental expenditures. An estimate of the effects of the legislation has been recorded in the current quarter leading to a $28m reduction in 2025 April cash tax. The legislation has no significant impact on our effective rate.

7. Earnings per share

Basic and diluted earnings per share for the three months ended 31 July 2025 have been calculated based on the profit for the relevant period and the weighted average number of ordinary shares in issue during that period (excluding shares held by the Company and the ESOT over which dividends have been waived). Diluted earnings per share is computed using the result for the relevant period and the diluted number of shares (ignoring any potential issue of ordinary shares which would be anti-dilutive). These are calculated as follows:

A reconciliation to adjusted earnings per share is included in the Glossary of Terms on page 28.

8. Property, plant and equipment

9. Right-of-use assets

10. Lease liabilities

11. Borrowings

The senior secured bank debt is secured by way of fixed and floating charges over substantially all the Group's property, plant and equipment, inventory and trade receivables and is committed until November 2029. The senior notes are guaranteed by Ashtead Group plc and all its principal subsidiary undertakings.

Our debt facilities are committed for the long term, with an average maturity of five years and a weighted average interest cost (including non-cash amortisation of deferred debt raising costs) of 5%.

There is one financial performance covenant under the first priority senior credit facility. That is the fixed charge ratio (comprising EBITDA before exceptional items less net capital expenditure paid in cash over the sum of scheduled debt repayments plus cash interest, cash tax payments and dividends paid in the last twelve months) which, must be equal to, or greater than, 1.0. This covenant does not apply when availability exceeds $475m. At 31 July 2025, availability under the senior secured bank facility was $3,702m ($3,616m at 30 April 2025), with an additional $6,325m of suppressed availability, meaning that the covenant did not apply at 30 April 2025 and is unlikely to apply in forthcoming quarters.

Fair value of financial instruments

Financial assets and liabilities are measured in accordance with the fair value hierarchy and assessed as Level 1, 2 or 3 based on the following criteria:

Fair value of derivative financial instruments

At 31 July 2025, the Group had no derivative financial instruments. The embedded prepayment options included within the senior notes are either closely related to the host debt contract or immaterial and hence, are not accounted for separately. These loan notes are carried at amortised cost.

Fair value of non-derivative financial assets and liabilities

The table below provides a comparison, by category of the carrying amounts and the fair values of the Group's non-derivative financial assets and liabilities.