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Ashtead Group PLC said on Tuesday third quarter rental revenue grew 25% on the previous year and as a result, the company raised its annual guidance.
In the three months that ended January 31, the company's financial third quarter, Ashtead reported revenue of $2.0 billion, up 23% from $1.62 billion in the previous year. Core rental revenue rose by even more, increasing 25% to $1.82 billion from $1.45 billion.
The London-based industrial equipment rental company explained that rental revenue growth had been driven by volume, with a larger fleet and improved utilisation.
Pretax profit was $393 million, up 38% from $284 million year-on-year.
Earnings before interest, tax, depreciation and amortisation in the quarter totalled $876.9 million. This represented a 21% increase from $726.3 million.
Looking forward, Ashtead said it expects its full-year results to be slightly ahead of its previous expectations. The company raised its rental revenue growth expectations to between 20% to 22% from 18% to 20%. It said the business is performing strongly despite ‘supply chain constraints, inflation and labour scarcity’.
Capital expenditure is expected to be slightly above previous guidance of $2.5 billion.
Shares in Ashtead were up 2.2% at 4,747.00 pence on Tuesday morning in London.
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