Ashtead Group Reports Flat Revenue but Strong Free Cash Flow in Q3 Update
Why we think this is neutral
The RNS provides a detailed update on Ashtead Group's financial performance for the 9 months and Q3 ended 31/1/25. While the company reported a decline in operating profit and adjusted profit before tax compared to the prior year, it also highlighted strong free cash flow generation and a reduction in net debt leverage. There are no significant red flags or concerning insights identified in the information provided.
Key Points
- Group rental revenue up 5% for 9 months, with revenue flat
- Operating profit declined to $2,034m (2024: $2,093m)
- Adjusted profit before tax decreased to $1,698m (2024: $1,785m)
- Adjusted earnings per share fell to 290.8¢ (2024: 307.2¢)
- $2.1bn of capital invested in the business (2024: $3.5bn)
- Free cash inflow of $858m (2024: outflow of $463m)
- Net debt to adjusted EBITDA leverage reduced to 1.7 times (2024: 1.9 times)
- Full year results expected to be in line with previous expectations
Summary
The industrial equipment rental company reported flat revenue but strong free cash flow in its Q3 update, with a decline in profitability offset by improved leverage.
Ashtead Group reported its unaudited results for the 9 months and Q3 ended 31/1/25. Key highlights include:
- Group rental revenue up 5% for the 9 months, with revenue flat
- Operating profit of $2,034m (2024: $2,093m), with $108m lower gains on disposal
- Adjusted profit before tax of $1,698m (2024: $1,785m)
- Adjusted earnings per share of 290.8¢ (2024: 307.2¢)
- $2.1bn of capital invested in the business (2024: $3.5bn)
- Free cash inflow of $858m (2024: outflow of $463m)
- Net debt to adjusted EBITDA leverage of 1.7 times (2024: 1.9 times)
- Full year results expected to be in line with previous expectations
Key Dates
30 April 2025
Full year results announcement
GENERAL UPDATE