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Investing.com -- Ashtead Technology saw its shares soar Tuesday after the company delivered higher revenues and profits in the first half despite U.S. tariffs and weaker activity linked to stalled offshore wind projects. The results were broadly in line with market expectations.
Ashtead shares were up 12.5% at 387p as of 07:34 GMT.
Revenue climbed 23.2% year-on-year to £99.1 million, supported by organic growth and contributions from the Seatronics and J2 Subsea acquisitions. The result compared with a Visible Alpha consensus forecast of £98.9 million.
"After an encouraging start to the year, Ashtead Technology experienced a slower seasonal ramp up in activity through Q2. This resulted in first half revenues being below our initial expectations for the period at £99.1m," the company said in the release.
Adjusted EBITA came in at £27 million, just shy of the £27.7 million consensus, with a margin of 27.3%. Adjusted profit before tax rose 10% to £21.6 million.
Adjusted EBITDA was £38.3 million versus expectations of £39.2 million, while operating profit reached £23.2 million against consensus of £24.1 million.
Earnings per share were 17.2 pence, broadly in line with estimates of 17 pence.
The company reiterated its full-year guidance, having already lowered revenue forecasts for fiscal 2025 in a July trading update.
RBC Capital Markets analysts said that many of Ashtead’s oil and gas customers continued to record growth in order intakes during the first half, with “near-record backlogs” set to be executed between 2025 and 2028.
They said these backlogs should support “a high level of sustained offshore activity.”
After a softer first half and reduced revenue guidance, RBC expects the second half to see a steadier pace of activity, underpinned by high offshore utilisation across the customer base.