Ashtead reports moderate growth

Ashtead Group has reported across the board growth for the third quarter of the financial year ending January 31 2024, despite North America being hit by lower emergency response activity and the actors’ and writers’ strikes.

The company reported a 9% increase in revenues to $2.6 billion for the third quarter, while rental revenues were up by 7% to $2.3 billion.

Elsewhere, EBITDA profit was up by 7% to $1.1 billion for the quarter.

In the US the company said lower level of emergency response activity related to natural disasters and the longer than anticipated strikes means it predicts full-year growth to stand at the lower end of 11-13%.

Its Canadian business, initially forecasted to achieve growth between 14-16%, has also been impacted by the strikes and is now expected to see growth between 11-13%.

However, Sunbelt said “robust end markets” propped up by an increasing number of mega projects and recent legislative acts means its North American business remains well placed to “capitalise on the opportunities arising from these market conditions and ongoing structural changes.”

In the UK the company achieved $176 million in revenue for the quarter, an 11% increase on the same period last year, and EBITDA of $183 million.

Ashtead said the focus for the UK is on “delivering operational efficiency and long-term, sustainable returns in the business,”

Meanwhile, capital investment for the year is in line with previous guidance of $4.2 billion, while the 24/25 financial year is expected to be in the $3.0-3.3 billion range. 

Ashtead’s chief executive, Brendan Horgan, said the company continues to be in a strong position following recent growth; “We invested $3.5bn in capital across existing locations and greenfields and $906m on 26 bolt-on acquisitions (throughout the 2023 financial year), adding a combined 106 locations in North America.

“This investment is enabling us to take advantage of the substantial structural growth opportunities that we see for the business as we deliver our strategic priorities to grow our general tool and specialty businesses and advance our clusters.”

He added that the company will launch its next strategic growth plan, Sunbelt 4.0, during its capital markets event in April. 

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