Ashtead Cuts Outlook Despite Expecting Record 1st Half Results

By Joe Hoppe

Ashtead Group cut guidance for fiscal 2024 despite expecting to report record revenue for the first half.

The equipment-rental group said Monday that for the year ending April 30 it now expects group and U.S. rental revenue growth in the range of 11%-13%, down from prior guidance of 13%-16% for both. It said this will result in earnings before interest, taxes, depreciation and amortization being 2%-3% below current market expectations.

The company said it also now expects a full-year depreciation charge of around $2.12 billion and a net interest cost of around $540 million, which will lead to adjusted pretax profit being below current market views.

Ashtead said it expects record results for the six months ended Oct. 31, with rental revenue growth of 13%, Ebitda growth of 15% to around $2.58 billion, and adjusted pretax profit growth of 5% to $1.31 billion.

The company said the underperformance comes from revenue late in the second quarter being affected by lower levels of emergency response activity, with a significantly quieter hurricane seasons and fewer naturally occurring events like wildfires.

It said it was also affected by the writers' and actors' strikes, which impacted its film and television business in Canada.

Despite these one-off events, the company said its North American end-markets remain robust.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

November 20, 2023 02:38 ET (07:38 GMT)

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