Shares of Ashtead Group PLC (GB:AHT) gained around 3% as of writing after the company announced the results for Q1 FY25 and confirmed its full-year outlook. Despite slightly mixed numbers in Q1, the company remains positive about delivering full-year results in line with its expectations.
Ashtead Group provides rental services for a wide range of construction and industrial equipment, catering to various sectors.
Ashtead Reports Mixed Performance
Ashtead Group PLC reported mixed results for the first quarter of FY25, generating higher revenue but lower profits. The company’s rental revenue rose 7% year-over-year to $2.54 billion, while total revenue increased 2% to $2.75 billion. Meanwhile, its EBITDA (earnings before interest, tax, depreciation, and amortization) grew 5% compared to Q1 FY24.
On the flip side, its pre-tax profits fell 7% year-over-year to $544 million. This was mainly attributed to reduced equipment sales and higher depreciation and interest costs.
Despite this, Ashtead made capital investments worth $855 million and spent $53 million on acquisitions during this period. Additionally, it added 33 new locations in North America. In this region, the company secured mega projects and witnessed strong performance in its Specialty businesses. This, in turn, offset the reduced activity in local commercial construction markets.
Ashtead is also positive about its strategic growth plan, Sunbelt 4.0, which was launched in April. Under this plan, the company aims to capitalize on its infrastructure strength to further enhance its operating performance.
Are Ashtead Shares a Buy?
On TipRanks, AHT stock has received a Moderate Buy rating based on six Buy and three Hold recommendations. The Ashtead share price target is 6,157.14p, which is 10.7% higher than the current trading levels.
