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Investing.com -- Shares of Ashtead (LON:AHT) Technology Holdings plc (LON:ATAS) rose more than 2% on Thursday after the company released a first-half 2025 trading update showing stronger-than-expected margins, despite revenue coming in below estimates and a reduced outlook for the second half of the year.
The subsea technology and rental group reported projected first-half revenues of approximately £99 million, up 23% year-over-year but below consensus expectations and RBC Capital Markets’ estimate of £110 million. Stifel said revenue and EBITA figures were about 10% lower than its forecast.
Adjusted EBITA margins improved to 27.3%, equating to approximately £27 million in EBITDA.
The margin expansion was attributed to a better revenue mix and synergies from the Seatronics and J2 acquisitions.
Cash generation was in line with expectations, and pro forma net debt leverage stood at approximately 1.6x as of June 30, consistent with prior guidance.
For the second half of 2025, which typically contributes a larger share of annual performance, Ashtead Technology expects high single-digit percentage revenue growth.
The revised guidance is approximately 8% below current consensus forecasts. The company cited ongoing geopolitical unrest and tariffs as contributing factors to slower market conditions.
Management said full-year 2025 adjusted EBITA is expected to be modestly below previous expectations.
The outlook for adjusted profit before tax remains unchanged, supported by lower interest costs.
Ashtead Technology is also shifting its strategic focus toward higher-quality rental revenues and reducing its exposure to lower-margin cross-hire activities.
The company also confirmed plans to move its listing to the Main Market of the London Stock Exchange (LON:LSEG) during 2025, with further updates expected in due course.