Ashtead Group plc (ASHTY – Free Report) reported adjusted earnings of 77 cents per share in third-quarter fiscal 2025 (ended Jan. 31, 2025), which were 5% lower than the year-ago quarter. ASHTY’s earnings per American Depositary Receipt (ADR) were $3.09. The metric missed the Zacks Consensus Estimate of $3.47 per share. Each Ashtead Group ADR represents four ordinary shares.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Ashtead Group Witnesses Higher Rental Revenues in Q3
The company reported net revenues of $2.57 billion, down 3.4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.62 billion.
Rental revenues increased 1% year over year to $2.38 billion. The sale of new equipment, merchandise and consumables declined 3.4% year over year to $79 million. The sale of used rental equipment plunged 50.8% to $108 million.
U.S. total revenues fell 3.4% year over year to $2.2 billion in the fiscal third quarter. Revenues in Canada decreased 6.9% to $158 million and U.K. revenues fell 0.2% to $207.5 million.
U.S. rental-only revenues were 1.1% higher than a year ago. Canada’s rental-only revenues increased 0.4%, whereas the U.K. saw a 1% increase in rental revenues.
ASHTY’s Q3 Operating Profit Declines
Total operating costs slipped 6.2% year over year to $1.39 billion. The adjusted operating profit dipped 6.9% year over year to $550 million. Adjusted operating margin contracted 81 basis points to 21.4%.
EBITDA rose 0.2% year over year to $1.17 billion due to higher depreciation and amortization. The EBITDA margin was 45.6% compared with the year-ago quarter’s 44%.
Ashtead Group’s Q3 Cash Position & Balance Sheet
The company reported cash and cash equivalents of $25.8 million as of Jan. 31, 2025, compared with $22.4 million as of Jan. 31, 2024. It generated $1.19 billion in cash from operating activities in the first nine of fiscal 2025 compared with $0.01 billion in the prior-year period. The free cash flow for the first nine months of fiscal 2025 was $858 million against $463 million in the prior-year period.
ASHTY’s net debt was $10.61 billion at the end of the quarter, down from $11.17 billion at the end of the prior-year quarter. Ashtead Group’s net debt to adjusted EBITDA ratio was 1.7X as of Jan. 31, 2025, compared with 1.9X as of Jan. 31, 2024.
ASHTY Lowers Outlook for Canada Rental Revenues in FY25
Ashtead Group expects total rental revenues to rise 3-5% in fiscal 2025. It expects U.S. rental revenues to increase 2-4%. U.K. rental revenue growth is likely to be 3-6%.
Canada rental revenues are expected to rise 9-13% compared with the previously mentioned 15-19%. The capital expenditure for fiscal 2025 is anticipated to be $2.5 -$2.7 billion.
Ashtead Group Stock’s Price Performance
The company’s shares have lost 11.7% in the past year compared with the industry’s 10.8% decline.
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ASHTY’s Zacks Rank
Ashtead Group currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ashtead Group’s Peer Performances
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