Decrease in Q1 pre-tax profits for Ashtead Group; affirms full-year revenue forecast
Ashtead Group Plc., the equipment rental company, has announced its financial results for the first quarter of the 2025-26 fiscal year. The company reported a decline in profit, but also revised its free cash flow guidance upward.
The company's profit attributable to equity holders of the company for Q1 2025-26 decreased to $375.5 million or 87.5 cents per share. This decline is attributed to non-recurring costs of $13 million and amortisation expenses of $28 million. Adjusted earnings per basic share also decreased to 95.3 cents from 97.4 cents in the previous year.
Despite the decline in profit, the company's revenue for the first quarter grew to $2.801 billion from $2.754 billion last year. This growth was driven by a strong performance in the company's Sunbelt Rentals division.
Ashtead Group Plc. also reaffirmed its revenue and capital expenditure guidance for the year, while raising its free cash flow guidance. The company now expects annual free cash flow to be in the range of $2.2 billion - $2.5 billion, up from the prior estimation of $2.0 billion - $2.3 billion. The company's capital expenditure is expected to be in the range of $1.8 billion - $2.2 billion for the year.
The company's adjusted operating profit for Q1 2025-26 decreased 5% to $683 million. This decrease was partially offset by a tax credit of $8 million, up from $7 million last year.
Ashtead Group Plc. continues to progress with its relisting on the NYSE, currently scheduled for March 2026. The company did not disclose any information on which shareholder(s) expect the company's cash balance to be between 2.2 billion and 2.5 billion US dollars in March 2026.
The company expects rental revenue growth of 0% - 4% for the year 2025-26. This growth is expected to be driven by a recovery in the construction and industrial markets, as well as continued growth in the company's Sunbelt Rentals division.
In conclusion, while Ashtead Group Plc. reported a decline in profit for Q1 2025-26, the company revised its free cash flow guidance upward and reaffirmed its revenue and capital expenditure guidance for the year. The company expects rental revenue growth of 0% - 4% for the year 2025-26, driven by a recovery in the construction and industrial markets and continued growth in the Sunbelt Rentals division. The company continues to progress with its relisting on the NYSE, currently scheduled for March 2026.
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