Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
Investing.com -- Ashtead Group plc announced its fiscal year 2025 financial results today, with adjusted diluted earnings per share about 2.5% above consensus expectations.
The company also provided a cautious outlook for fiscal year 2026, signaling mixed trading prospects.
For the fiscal year ended 2025, Ashtead reported adjusted diluted earnings per share of $3.695.
This figure was about 2.5% higher than the Visible Alpha consensus of $3.604. Total (EPA:TTEF) revenue for the year reached $10.79 billion, slightly below the Visible Alpha consensus of $10.88 billion.
Adjusted EBITDA stood at $5.02 billion, in line with the Visible Alpha consensus of $5.02 billion. Adjusted EBITA was $2.69 billion, exceeding the Visible Alpha consensus of $2.67 billion.
This increase in EBITA was attributed to a sequential drop in depreciation between the third and fourth quarters, which was likely related to equipment disposal, according to RBC Capital Markets.
The adjusted pre-tax profit for the fiscal year was $2.13 billion, surpassing the Visible Alpha consensus of $2.10 billion.
Fourth-quarter results showed adjusted pre-tax profit of $430m and earnings per share of $0.787, which were approximately 5% above consensus figures of $409m and $0.72 respectively.
This quarter’s performance benefited from a $28m provision release and reduced net interest expenses.
Group EBITDA for the fourth quarter totaled $1.15 billion. Fourth-quarter revenues amounted to $2.53 billion.
North America’s rental revenue growth improved to 3% in the fourth quarter, compared to 1% in the third quarter, leading to a full-year growth of 4% for North America.
Within North America, the General Tool segment grew by 1% in the fourth quarter, while the Specialty segment increased by 4%. The group’s fourth-quarter EBITDA margin was 45.4%.
Free cash flow for the fiscal year was $1.8bn, surpassing previous guidance of approximately $1.4bn, primarily supported by lower capital expenditure.
Ashtead Group (LON:AHT)’s outlook for fiscal year 2026 indicates a projected group rental revenue growth rate between 0% and 4%, which includes bolt-ons. This projection compares to a Visible Alpha consensus of 4.7% for U.S. rental revenue.
Capital expenditure guidance for fiscal year 2026 is set at $1.8bn to $2.2bn, representing approximately 17% below consensus at the midpoint, and about 25% below the Visible Alpha consensus of $2.7bn.
Management has indicated an emphasis on spending flexibility as the year progresses, noting that original equipment manufacturer lead times have decreased to approximately two months.
Expected free cash flow for fiscal year 2026 is between $2.0bn and $2.3bn, with consensus at $2.0bn. The company’s stock performance year-to-date reflects the outlook, which is weaker than consensus.
The U.S. macroeconomic outlook remains central, and policy uncertainty affects the ’Local’ business. Ashtead Group’s statement regarding longer-term structural tailwinds maintains a positive tone.