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Ashtead Group Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

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Ashtead Group plc’s (ASHTY - Free Report) adjusted earnings of 97 cents per share in first-quarter fiscal 2025 (ended July 31, 2024) moved down from $1.08 in the year-ago quarter.

ASHTY’s earnings per American Depositary Receipt were $3.87, lower than $4.71 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.85.

Ashtead Group’s Q1 Revenues Rise

The company reported net revenues of $2.75 billion in the quarter under review, up 2% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.74 billion. Rental revenues increased 7% year over year to $2.54 million in the first fiscal quarter.  

In North America, growth is driven by the increase in mega projects  and the strength in the Specialty business . This is partially offset by decreased activity in the local commercial construction markets. North America revenues rose 1% year over year in the fiscal first quarter.

Revenues in Canada increased 16.4% from the prior-year quarter, whereas UK  revenues increased 5%.

ASHTY’s Q1 Margins

The adjusted operating profit moved down 2% year over year to $717 million. EBITDA was up 5% year over year to $1.29 billion. The EBITDA margin was 46.8% compared with 45.6% in the prior-year quarter.

Ashtead Group’s Cash Position & Balance Sheet

The company reported cash and cash equivalents of $17 million as of July 31, 2024, in comparison with $25 million as of July 31, 2023. It generated $288 million in cash from operating activities in the fiscal first quarter  against a cash outflow of $14 million in the prior-year quarter. ASHTY’s net-term debt was $10.76 billion at the end of the quarter, up from $9.68 billion at the end of the prior-year quarter.

Ashtead Group’s net debt to EBITDA ratio was 1.7X as of July 31, 2024, compared with 1.6X as of July 31, 2023. 
In the first quarter of fiscal 2025, ASHTY spent $53 million on two bolt-on acquisitions and invested $855 million in its capital business.

ASHTY’s FY25 Outlook

Ashtead Group expects rental revenues to rise 5-8% year over year in fiscal 2025. It expects US rental revenues to be 4-7%, Canada rental revenues to be 15-19% and UK rental revenues to be 3-6%. 

The capital expenditure for fiscal 2025 is expected to be $3 to 3.3 billion.

ASHTY’s Share Price Performance

Ashtead Group's shares have gained 7.3% in the past year compared with the industry’s 3.3% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Stock’s Zacks Rank

Ashtead Group currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ASHTY’s Peer Performances

MSC Industrial Direct Company, Inc. (MSM - Free Report) reported a third-quarter fiscal 2024 (ended on June 1, 2024) adjusted EPS of $1.33, in line with the Zacks Consensus Estimate. The bottom line decreased 23.6% year over year due to the prolonged weakness in the manufacturing sector, wherein MSM has a significant exposure. 

MSC Industrial generated revenues of around $979 million, down 7% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $993 million.

SiteOne Landscape Supply, Inc. (SITE - Free Report) posted adjusted earnings per share of $2.63 in the second quarter of 2024, beating the Zacks Consensus Estimate of $2.50. The company posted earnings of $2.71 per share in the second quarter of 2023. 

SITE posted revenues of $1.41 billion for the June-end quarter of 2024, surpassing the Zacks Consensus Estimate of $1.38 billion. The top line rose 4.4% year over year.

Hudson Technologies (HDSN - Free Report) came out with second-quarter earnings of 20 cents per share, missing the Zacks Consensus Estimate of 26 cents. The metric was down from earnings of 41 cents per share a year ago.

HDSN posted revenues of $75.3 million for the quarter ended June 2024, missing the Zacks Consensus Estimate of $79 million. The metric was down from the year-ago revenues of $90.5 million.

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