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
HL view to follow.
Ashtead key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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.