Ashtead reiterates outlook on 'solid' first-quarter trading

(Sharecast News) - Construction equipment rental specialist Ashtead Group reiterated its full-year outlook on Wednesday, despite a dip in first-quarter earnings.

Revenues at the blue chip - which is in the process of moving its primary listing to New York - improved 2% to $2.8bn in the three months to 31 July.

Rental revenues were also 2% higher, at $2.6bn, as mega project activity gained momentum.

Adjusted earnings before interest, tax, depreciation and amortisation eased 1% to $1.3bn, however, due to lower used equipment sales, while depreciation charges saw pre-profits fall 6% to $512m.

But looking to the full year, and Ashtead reiterated its outlook for rental revenue growth of between 0% and 4%.

Free cash flow was also forecast to come in between $2.2bn and $2.5bn, up from previous guidance of between $2bn and $2.3bn, due to changes in US tax legislation.

Brendan Horgan, chief executive, said: "The group delivered solid first-quarter results, with results, profits and free cashflow in line with our expectations, as we take advantage of secular tailwinds and the structural progression of our industry."

Horgan added that the Wall Street listing was on track for March 2026.

The move is widely seen as a blow to the London stock market, as it battles to attract and retain international companies. Although Ashtead will retain a UK listing, it will exit the FTSE 100 once the move is complete.

Ashtead makes nearly all of its profits in the US.