‘Solid’ first half year for Ashtead

Ashtead Group has reported what it describes as ‘solid results’ for the first half and second quarter of its financial year.

Rental revenue increased 2% in the half, offset by a flat non-residential construction markets. The company added, “That being said, we continue to see positive leading indicators for local non-residential construction activity, and we are reaffirming our guidance for rental revenue, capex and free cash flow for the year.” Ashtead’s 2025/26 guidance for rental revenue growth is 4%, while capital expenditure is expected to be $1.8bn - $2.2bn.

Photo: Sunbelt Rentals

The group also announced a new share buyback programme of $1.5bn commencing 2 March, to coincide with its re-listing to the New York Stock Exchange from the London Stock Exchange, which remains on track.

In North America, the Specialty business continued to outperform general tool hire. Rental revenue for the segment was $1,770 million - 2% higher than the previous half year, driven by both volume and rate improvement.

“In the prior year, North America Specialty rental revenue benefited from storm response efforts which have not arisen in the current year,” said the company. Ashtead estimated that these efforts contributed $38 million - 43 million to rental revenue and therefore adjusting for the impact of these amounts, the revenue would have been 5% higher.

Total North America Specialty revenue, including new and used equipment, merchandise and consumable sales, stood at $1,880 million for the half year, up from $1,824 million in 2024.

This performance combined with our focus on the cost base contributed to North America adjusted operating profit increasing by 2% to $628m.

Tool hire revenue up, profit down

In the North America General Tool business, rental revenue stood at $3,166m for the half year of, 1% higher than the same period last year, driven by volume growth. Total revenue for the segment stood at $3,399 million, just up from the $3,391 million recorded in the previous year. This reflects a lower level of used equipment sales, amounting to $146 million, compared to the $179 million in 2024.

Tool hire EBITDA margin was down for the half year at 53.6%, compared to 55.3% in 2024. “The margins reflect higher costs associated with internal repairs and repositioning of rental fleet to drive utilisation improvements,” said the company. “As anticipated, lower used equipment sales and second-hand values resulted in lower gains on sale.”

And, following higher depreciation on a larger fleet, this contributed to adjusted operating profit decreasing by 6% to $1,118 million.

The UK business’ rental revenue saw a marked uptick of 3% to $422 million, thanks to favourable foreign exchange movements, with rental revenue in local currency 2% lower than the prior year. The UK’s total revenue also increased, by 1% to $484 million.

In the UK, the focus remains on delivering operational efficiency and long-term, sustainable returns in the business, added the company, while rental rate growth remains an area of focus. EBITDA in the UK business was $124 million for the half year, down from $132 million in 2024.

“In addition, in line with our Sunbelt 4.0 strategic priorities for the UK business, we initiated an operational restructure during the quarter involving the consolidation of certain regional operations and taking steps to optimise cost efficiency. “We are also seeking to exit certain non-core assets and disposed of the UK Hoist business in October 2025 for proceeds of $16 million.”

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