Ashtead Technology rises with growth in line with expectations in the first half

Investing.com — Ashtead Technology posted higher revenue and profit in the first half despite weak activity due to U.S. tariffs and discontinued offshore wind projects. Company shares rose on Tuesday. The results were generally in line with market expectations.

Ashtead shares were 10.34 per cent up 12.5 per cent at 387p as of Turkish time.

Revenue rose 23.2 per cent year-on-year to £99.1m, helped by organic growth and the acquisitions of Seatronics and J2 Subsea. This result compared to Visible Alpha's consensus estimate of £98.9 million.

The company said in a statement: “After an encouraging start to the year, Ashtead Technology experienced a seasonally slower growth in activity in the second quarter. This resulted in first-half revenues being below our initial expectations for the period at £99.1m.”

Adjusted EBITA came in at £27.7m, slightly below the consensus expectation of £27m. The margin was 27.3 percent. Adjusted pre-tax profit reached £21.6m, up 10 per cent.

Adjusted EBITDA was £38.3m, against expectations of £39.2m, while operating profit came in at £23.2m against consensus of £24.1m.

Earnings per share were 17.2 pence, in line with forecasts of 17 pence.

Although the company had already lowered its revenue forecasts for the 2025 fiscal year in its trading update in July, it reiterated its full-year guidance.

RBC Capital Markets analysts noted that most of Ashtead's oil and gas customers continued to see growth in order purchases in the first half, with “near-record orders” due between 2025 and 2028.

These order accumulations will support “sustainable high levels of offshore activity,” analysts said.

Following a weaker first half and reduced revenue guidance, RBC expects a more stable pace of activity in the second half, supported by high offshore usage in its client base.

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