Ashtead Shares Rise on Key Profit Metric Increase, U.S. Boost

By Anthony O. Goriainoff

Ashtead Group shares rose after the company reported a rise in a key profit metric for the first quarter on higher revenue from all regions including its biggest U.S. market which was driven by volume and rate improvements.

Shares were up 186 pence, or 3.4%, at 5,544 pence in early morning trading. They are up 1.5% over the year to date.

The London-listed equipment rental company on Tuesday reported earnings before interest, taxes, depreciation and amortization for the quarter ended July 31 of $1.29 billion, compared with $1.23 billion the year prior.

Within this the U.S. Ebitda was $1.15 billion compared with $1.10 billion, Canada was $78.5 million compared with $69.9 million, while the U.K. was $68.1 million compared with $63.3 million.

Revenue was $2.75 billion, compared with $2.7 billion the year before and a FactSet consensus of $2.76 billion, based on three analysts' forecasts.

Rental revenue increased 7% to $2.54 billion with U.S. rental revenue rising to $1.73 billion and ahead of last year's $1.615 billion. Rental revenue in Canada rose 21% to 180 million Canadian dollars ($133.4 million) as its business there performed in a manner similar to the U.S., the company said.

Ashtead said that in North America the rising proportion of mega projects and the strength of its specialty business more than offset lower activity levels seen in the local commercial construction markets.

The board said that fiscal 2025 earnings are in line with its expectations. It sees group rental revenue rising 5% to 8% and gross capital expenditure in a $3 billion to $3.3 billion range. Rental revenue for the year ended April 30 was $9.63 billion.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 03, 2024 04:45 ET (08:45 GMT)

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