Ashtead Group PLC 

Ashtead Group PLC (LSE: AHT) is an FTSE 100 listed UK-based global equipment rental firm operating under the brand Sunbelt Rentals in the United States, Canada, and the United Kingdom. The company provides a wide selection of construction and industrial equipment for various applications, serving a broad and diverse clientele.

Q1 FY25 Results (Released on 03 September 2024)

• Financial Update: Group revenue for the quarter rose by 2% to USD 2,754 mn, compared to USD 2,696 mn in the same period the previous year. EBITDA also saw a 5% increase, reaching USD 1,288 mn, up from USD 1,229 mn in 2023. Despite these gains, adjusted operating profit fell by 2% to USD 717 mn, down from USD 733 mn, primarily due to lower used equipment sales, along with higher depreciation and interest costs. Consequently, adjusted profit before tax decreased to USD 573 mn from USD 615 mn in 2023.

• Cash Flow & Debt: During the quarter, the Group generated free cash flow of USD 161 mn, a significant improvement from the outflow of USD 139 mn in the same period in 2023. This performance is after accounting for capital expenditures of USD 933 mn, which were down from USD 1,164 mn in 2023. Net debt as of July 31, 2024, stood at USD 10,761 mn, up from USD 9,679 mn the previous year. The net debt to EBITDA ratio was 1.7 times, slightly higher than the 1.6 times ratio reported in 2023, calculated on a constant currency basis.

• Outlook: The company is well-positioned with operational flexibility and financial capacity, poised to leverage structural growth opportunities. Having started the year positively, management anticipates that the full-year results to align with expectations, fostering a confident outlook from the Board. Guidance for the year includes rental revenue growth projections across various regions: 4 to 7% in the US, 15 to 19% in Canada, and 3 to 6% in the UK, with overall group growth anticipated between 5 to 8%. Planned capital expenditures are projected to be between USD 3.0 and USD 3.3 bn, and free cash flow is expected to be around USD 1.2 bn.

Share Price Chart

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Ashtead Group PLC (LSE: AHT) was trading at the current market price of GBX 5,282.00 (as of 05 September 2024, 09:35 AM GMT +1) 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 05 September 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.