Ashtead’s second-quarter revenue rose by 1% to $3.0bn ($2.9bn expected), driven by rental revenue growth of 1%. Underlying cash profit (EBITDA) fell 2% to $1.4bn.
Free cash flow rose from $0.4bn to $1.1bn over the first half, due to reduced capital spending. Net debt ended the period at $10.5bn.
A new $1.5bn buyback was announced, to begin in March 2026. The existing $1.5bn buyback is around 50% complete, with the remainder expected by February 2026. An interim dividend of $0.375 was announced, up 4%.
Guidance was unchanged, with full-year rental revenue expected to grow by 0-4% and free cash flow of $2.2-2.5bn.
The shares were broadly flat in early trading.
Our view
Ashtead delivered another decent set of results, marking its second consecutive quarter of revenue growth (albeit only just). The construction market is still soft in places, but we’re still reasonably confident that 2026 should see a better profit performance, not least because it’ll be lapping some easier comparable periods.
Ashtead’s own ambition has perhaps been its downfall in recent times. Rapid expansion led to a period of overspending that coincided with a slowing market. But investment in the growing fleet has been reined in, which means even a small rise in fleet utilisation can have an outsized impact on margins and cash flows – and we’re already starting to see a cash flow benefit.
The more local market is still looking soft in places, with unpredictable trade policies making it hard for privately funded construction projects to get sign-off. But there are green shoots, and a big chunk of the demand for Ashtead’s fleet of rental equipment comes from publicly funded projects, which should be more insulated.
North America is Ashtead’s largest market and remains the real growth opportunity over the medium term. There are several growth drivers here, ranging from the onshoring of supply chains to government legislation looking to expand infrastructure and chip manufacturing.
Ashtead's scale and expertise are proving valuable, with its win rate on so called ‘mega-projects’ running at roughly twice the company average. The bigger players have an advantage in the fragmented industry, and there’s still scope to snap up smaller players in the space too.
Growing the speciality business is also a key strategy (things like scaffolding, flooring and air conditioning). These businesses are higher growth and present a varied income stream for Ashtead, which should help provide a little more resilience during downturns.
Cash flows have been a major benefactor of the reigned in spending, and the balance sheet is in a good position. Plans are in place to start allocating capital to expansion again next year, to match improving market activity.
We think capital discipline and better utilisation of the existing fleet can drive improving profit and cash flow even if top-line growth is only in the low-single-digit range. We see upside over the medium term and the valuation isn’t overly demanding. The main risk is a delayed recovery in local markets, which could muddy the shape and timing of a return to profit growth.
Environmental, social and governance risk
General Industrial companies are medium risk in terms of ESG but can trend up to the higher end of the spectrum depending on subindustry. The primary risks can include labour relations, emissions (either product or production-based), business ethics and product governance. Other concerns are waste and health & safety.
According to Sustainalytics, Ashtead’s overall management of material ESG issues is strong.
Ashtead reports on Scope 1 and 2 emissions, has initiatives in place to reduce emissions, and aligns these initiatives with its risk management programme. Within the last three years, the company's carbon intensity trend experienced a moderate decline. ESG reporting is strong, and executive pay is explicitly tied to ESG performance targets.
Ashtead key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.