**Summary of Ashtead Group PLCs 1st Quarter Results (Ended 31 July 2025):**
**Financial Performance**
**Revenue Growth** Revenue increased by 2% to $2,801 million compared to $2,754 million in Q1 2024, driven by a 2% rise in rental revenue to $2,601 million.
**Profit Metrics**
Adjusted EBITDA declined slightly by 1% to $1,276 million.
Operating profit decreased by 7% to $642 million.
Adjusted profit before taxation fell by 4% to $552 million.
Profit before taxation dropped by 6% to $512 million.
**Earnings Per Share (EPS)** Adjusted EPS decreased by 2% to 95.3¢, while basic EPS fell by 5% to 87.7¢.
**Free Cash Flow** Increased significantly to $514 million from $161 million in Q1 2024, reflecting strong cash generation.
**Capital Expenditure** $532 million invested in the business, down from $855 million in Q1 2024.
**Share Buyback** $330 million spent on share buybacks, bringing the total under the current program to $675 million.
**Net Debt** Net debt to adjusted EBITDA leverage improved to 1.6 times from 1.7 times in Q1 2024.
**Operational Highlights**
**Rental Revenue Growth** Group rental revenue grew by 2%, with North America Specialty leading at 5% growth, driven by volume and rate improvements.
**Segment Performance**
North America General ToolRental revenue up 1%, with flat organic performance. EBITDA margin at 52.8%.
North America SpecialtyRental revenue up 5%, with EBITDA margin at 47.9%.
UKRental revenue up 4% (2% in local currency), with EBITDA margin at 25.3%.
**Fleet Utilization** Dollar utilization decreased to 47% for North America General Tool, 74% for North America Specialty, and 53% for the UK.
**Strategic Initiatives**
**Acquisitions** Completed two bolt-on acquisitions for $20 million, expanding footprint and diversifying end markets.
**Relisting Progress** Reaffirming plans to relist on the NYSE by March 2026.
**Guidance**
**Revenue and Capex** Reaffirmed guidance for revenue growth of 0%–4% and capital expenditure of $1.8–$2.2 billion.
**Free Cash Flow** Increased guidance to $2.2–$2.5 billion, reflecting changes in US tax legislation.
**Management Commentary**
CEO Brendan Horgan highlighted strong results driven by secular tailwinds, structural industry progression, and disciplined capital deployment. Emphasized safety-first culture and improvements in safety metrics.
**Key Metrics and Ratios**
**Return on Investment (RoI)** Group RoI at 14%, down from 16% in Q1 2024, primarily due to lower utilization in North America General Tool.
**Leverage** Net debt to adjusted EBITDA at 1.6 times (excluding IFRS 16), within the target range of 1.0–2.0 times.
**Conclusion**
Ashtead Group delivered solid Q1 results with revenue and profit in line with expectations, driven by rental revenue growth and strong cash flow. The company continues to focus on strategic growth, operational efficiency, and shareholder returns through share buybacks and dividends. Guidance for the year remains positive, with an increased focus on free cash flow generation.
| Metric | 2025 ($m) | 2024 ($m) | Growth (%) |
|---|---|---|---|
| Revenue | 2,801 | 2,754 | 2% |
| Rental revenue | 2,601 | 2,541 | 2% |
| Adjusted EBITDA | 1,276 | 1,288 | -1% |
| Operating profit | 642 | 688 | -7% |
| Adjusted profit before taxation | 552 | 573 | -4% |
| Profit before taxation | 512 | 544 | -6% |
| Net debt | 10,268 | 10,761 | -5% |
| Net debt to adjusted EBITDA leverage (excl. IFRS 16) | 1.6 | 1.7 | -6% |
| Net debt to adjusted EBITDA leverage (incl. IFRS 16) | 2.0 | 2.2 | -9% |
| Free cash flow | 514 | 161 | 219% |