Ashtead reaffirms guidance, unveils $1.5bn share buyback

(Sharecast News) - Ashtead Group outlined plans to return $1.5bn to shareholders on Tuesday and reaffirmed its full-year outlook, despite a dip in interim profits. Revenues at the international rental equipment firm ticked up 1% in the six months to 31 October, to $5.8bn, while rental revenues rose 2% at $5.4bn.

Operating profits fell 9%, however, to $1.3bn, in part due to non-recurring costs relating to the blue chip's US relisting and UK restructuring.

Ashtead announced earlier this year plans to move its primary listing to the US, where the company makes nearly all of its profits. It will retain a UK listing, but will exit the FTSE 100 once the move is complete, likely in the first quarter of 2026.

Brendan Horgan, chief executive, said: "The group reported solid results for both the first half and the second quarter, with revenue, profit and free cash flow in line with our expectations as we benefit from long-term industry trends and ongoing improvements in our sector."

Looking to the full-year, Ashtead reaffirmed guidance for rental revenue, capital expenditure and free cash flow.

Rental revenue growth is forecast to come in between 0% and 4%, and free cash flow between $2.2bn and $2.5bn.

It also announced a new $1.5bn share buyback, to commence with the relisting.

As at 0830 GMT, shares in Ashtead were largely flat at 4,822p.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the second-quarter numbers were "slightly soft", albeit broadly in line with expectations.

However, he called the $1.5bn buyback "a clear signal of strong cash flows and a welcome boost for sentiment after a year of share price underperformance.

"Softer conditions in the key US market continue, but lower interest rates and resilient mega-project activity could turn the tide. If those trends hold, the story for 2026 looks more attractive."