Ashtead maintains guidance after record year so far

(Sharecast News) - Equipment rental firm Ashtead said it expects full-year results to rise in line with previous guidance, after a record performance over the first nine months of the year. The company, which operates under the Sunbelt Rentals brand, said rental revenues are expected to rise by 3-5% for the year ending 31 March.

However, rental revenue growth in Canada - which accounts for just under a tenth of sales - is now expected to be 9-13%, down from earlier estimates of 15-19%.

Group revenues over nine months to 31 January were flat on last year at $8.26bn, with rental revenues growing 5% to $7.65bn, though growth was limited to just 1% in the third quarter.

Ashtead said the strength of mega projects and hurricane response efforts in North America managed to offset the lower activity levels in local commercial construction markets, where demand has been affected by the continued high interest rates.

"However, underlying demand continues to be strong and we expect this segment to recover as interest rates stabilise," it said.

Adjusted EBITDA for the first three quarters combined totalled $3.87bn, up 3% on the year before.

"We are in a position of strength, with the operational flexibility and financial capacity to take advantage of the ongoing structural growth opportunities we see for the business and enhance returns to shareholders as we follow our Sunbelt 4.0 plan," said chief executive Brendan Horgan.

"We expect full-year results in line with our previous expectations and the board looks to the future with confidence."