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Ashtead Group PLC on Wednesday said it continued to expect up to 4% rental r revenue growth in the current financial year, as first quarter profit fell as cost increases outpaced revenue growth. The London-based industrial equipment hire company reported a pretax profit of $511.6 million for the first quarter that ended July 31, falling 6.0% from $544.4 million the year before. Revenue grew 1.8% to $2.80 billion from $2.75 billion, while operating costs increased 4.8% to $1.54 billion from $1.47 billion. This included a one-off $13 million cost associated with Ashtead’s move of its primary listing to the US. Staff costs came in 3.5% higher at $655.5 million from $633.3 million. Earnings before interest, tax, depreciation and amortisation sank 2.3% to $1.26 billion from $1.29 billion. ‘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,’ said Chief Executive Officer Brendan Horgan. He added: ‘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.’ Ashtead guided for up to 4% rental revenue growth for the year, and between $1.8 billion and $2.2 billion in capital expenditure. The company now expects free cash flow between $2.2 billion and $2.5 billion for the current financial year, compared to its prior guidance for $2.0 billion to $2.3 billion. Its capital allocation framework remains committed to a progressive dividend. Ashtead Group shares were 1.2% higher at 5,440.00 pence each on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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