In This Article:
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Group Rental Revenue: Increased by 5%.
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Total Revenue: Flat year-on-year due to lower used equipment sales.
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Group EBITDA: Grew by 3% to $3.9 billion.
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Pre-Tax Profit (PBT): $1.7 billion.
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Earnings Per Share (EPS): $2.91.
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EBITDA Margin: 47% at the group level, 49% in the US.
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Capital Expenditure (CapEx): $2.1 billion.
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Free Cash Flow: $858 million for the nine months.
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Net Debt to EBITDA: 1.7 times.
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US Rental Revenue: Grew by 4% to $6.6 billion.
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Canada Rental Revenue: Increased by 16% to CAD662 million (USD478 million).
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UK Rental Revenue: Increased by 4% to GBP461 million (USD589 million).
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Operating Profit Margin: 26%.
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Interest Expense: $429 million.
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Share Buyback Program: Up to $1.5 billion over 18 months.
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New Locations: Expanded by 54 locations in North America.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ashtead Group PLC (ASHTF) reported strong performance with group and US rental revenues up 5% and 4%, respectively, in line with December guidance.
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The company achieved record revenues and EBITDA for the first nine months, with EBITDA margins of 47% at the group level and 49% in the US.
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Ashtead Group PLC (ASHTF) expanded its North American footprint by 54 locations through 43 greenfield openings and 11 through two bolt-on acquisitions.
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The company maintained a strong balance sheet with a net debt to EBITDA ratio of 1.7 times, comfortably within the long-term range of 1 to 2 times.
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Ashtead Group PLC (ASHTF) commenced a new share buyback program of up to $1.5 billion over 18 months, demonstrating confidence in its financial position.
Negative Points
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Total revenues were flat year-on-year, largely due to lower used equipment sales as expected.
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The company faced ongoing weakness in the local commercial construction market, impacting rental revenue growth.
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Higher interest expenses, which increased by 7% compared to last year, affected adjusted pre-tax profit, which was 5% lower than the previous year.
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The Canadian segment faced a weaker outlook due to uncertainty related to tariffs and non-residential construction.
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The UK business delivered an operating profit margin of only 8%, with a return on investment of 7%, indicating room for improvement in operational efficiency.
Q & A Highlights
Q: Can you provide more color on the fleet on rent chart and February trading? Was there any impact from the California fires? A: Brendan Horgan, CEO, noted that the positive trend in the fleet on rent chart is encouraging, but it's important not to overinterpret a single month's data. Alex Pease, CFO, added that the impact from the California fires was minimal and did not significantly affect February trading.