Ashtead Group PLC

Latest Results (17.12.2024):

Revenue Growth

Ashtead Group PLC reported a 2% increase in total revenue for the half year ended 31 October 2024, reaching $5,695 million compared to $5,573 million in the same period of 2023. This growth was driven by a 6% rise in rental revenue, which amounted to $5,265 million, up from $4,960 million in the previous year.

Profit and Earnings

The company's operating profit for the half year was $1,484 million, slightly down from $1,502 million in 2023, reflecting a 1% decrease. Adjusted profit before taxation also saw a decline, reaching $1,255 million compared to $1,312 million in the prior year, marking a 4% drop. Adjusted earnings per share decreased by 5% to 213.6¢ from 225.8¢.

Cash Flow and Investment

Ashtead Group PLC generated a free cash inflow of $420 million during the half year, a significant improvement from a cash outflow of $355 million in 2023. The company invested $1.7 billion in capital, focusing on existing locations and greenfield projects, while also completing two bolt-on acquisitions for $53 million, adding 47 new locations in North America.

Dividend and Share Buyback

The company announced an interim dividend of 36¢ per share, up from 15.75¢ in 2023, reflecting a rebalanced interim/final split. Additionally, Ashtead Group PLC is commencing a share buyback program of up to $1.5 billion over the next 18 months, supported by strong free cash flow and leverage within the target range.

Outlook and Strategic Plan

Ashtead Group PLC revised its full-year guidance, now expecting Group rental revenue growth in the range of 3-5%, with full-year profit anticipated to be lower than previous expectations. The company remains optimistic about its Sunbelt 4.0 strategic growth plan, focusing on customer service, growth, performance, sustainability, and investment, while maintaining operational flexibility and financial strength.