Ashtead Boosted by US ‘Mega Projects’ and Green Bill, But Warns UK Market is Softening
Revenue rose by 19% to £2.7bn for the first half to 31 July year-to-year
Rental revenue rose by 14% to £2.4bn over the same time period
Machinery hire firm Ashtead Group announced that its business is thriving in the US, thanks to “mega projects” and the government’s green spending bill. The London-based company, which specializes in renting out machinery like scaffolders, excavators, and forklift trucks, reported strong revenue and profits. Ashtead stated that its adjusted profit before tax increased by 11 percent to $615 million.
For the first half of the year to July 31, revenue rose by 19 percent to $2.7 billion (approximately £2.15 billion), while rental revenue grew by 14 percent to $2.4 billion. However, Ashtead also cautioned that its UK business is seeing a softening trend.
Brendan Horgan, Ashtead’s CEO, highlighted the company’s record-breaking quarter, with revenue, rental revenue, and adjusted profit before tax all showing positive growth. He attributed this success to the robust end markets in North America and the increasing number of mega projects and legislative acts in the US. Horgan expressed confidence in Ashtead’s ability to capitalize on opportunities and adapt to ongoing market conditions.
Richard Hunter, head of markets at Interactive Investor, praised Ashtead’s strong performance and momentum. He noted that group revenue increased by 19 percent, driven primarily by the US unit’s gains of 22 percent. Hunter also highlighted the company’s investment in the business and expansion into North America, which have contributed to its success.
In June, Ashtead achieved record annual performance due to high demand for its industrial equipment in the US. The company reported a turnover increase of $1.7 billion (£1.4 billion), or 24 percent at constant currency levels, reaching a record $9.7 billion for the 12 months ending April. Despite market risks and potential weakening demand, Ashtead’s positive momentum and growth have been well-received by investors.
In morning trading on Tuesday, Ashtead shares were down 2.27 percent to 5,344p.
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