Ashtead expects full-year earnings to be “in line” with expectations despite first-quarter decline

Ashtead Group said it expects full-year results to be “in line” with expectations despite a drop in first-quarter profits.

The equipment rental company, which rents out machinery such as battery-powered saws and forklifts, saw its pre-tax profit fall by 7 per cent – or $544m (£414m) – in the first quarter ended July 31.

The Surrey-based company, which relies heavily on its US market, also saw its operating profit fall slightly by two per cent to $688m (£524m).

However, the company saw a 7 per cent increase in rental revenue to $2.54bn (£1.9bn) over the same time period.

The firm added that it expects full-year results to be “in line” with previous expectations.

In a separate note, the group revealed that Michael Pratt, Ashtead’s chief financial officer (CFO), will step down from his role in September 2025.

He added that Alex Pease will join the company in October as chief financial officer designate.

Brendan Horgan, Ashtead’s chief executive, said: “In North America, the increasing proportion of mega projects and the strength of our specialist businesses have more than offset lower levels of activity in local commercial construction markets.”

In March, Ashtead’s total pre-tax profit stagnated at $1.69 billion following a rise in impairment charges and financing costs amid higher interest rates and debt levels.

The same results saw its UK sales stagnate at £523.7m over the nine-month period, partly due to the end of Covid-related contracts with the Department of Health.

Ashtead Group Shares rose 4.40 percent to 5,594 pence in morning trading on Tuesday.