Q3 2025 Ashtead Group PLC Earnings Call Transcript
Key Points
- Ashtead Group PLC (ASHTF) reported strong performance with group and US rental revenues up 5% and 4%, respectively, in line with December guidance.
- The company achieved record revenues and EBITDA for the first nine months, with EBITDA margins of 47% at the group level and 49% in the US.
- Ashtead Group PLC (ASHTF) expanded its North American footprint by 54 locations through 43 greenfield openings and 11 through two bolt-on acquisitions.
- The company maintained a strong balance sheet with a net debt to EBITDA ratio of 1.7 times, comfortably within the long-term range of 1 to 2 times.
- Ashtead Group PLC (ASHTF) commenced a new share buyback program of up to $1.5 billion over 18 months, demonstrating confidence in its financial position.
- Total revenues were flat year-on-year, largely due to lower used equipment sales as expected.
- The company faced ongoing weakness in the local commercial construction market, impacting rental revenue growth.
- Higher interest expenses, which increased by 7% compared to last year, affected adjusted pre-tax profit, which was 5% lower than the previous year.
- The Canadian segment faced a weaker outlook due to uncertainty related to tariffs and non-residential construction.
- The UK business delivered an operating profit margin of only 8%, with a return on investment of 7%, indicating room for improvement in operational efficiency.
Hello, and welcome to the Ashtead Group PLC Q3 results analyst call. I will shortly be handing you over to Brendan Horgan and Alex Pease, who will take you through today's presentation. There will be an opportunity for Q&A later in the call.
For now, over to Brendan Horgan and Alex Pease at Ashtead Group plc. Please go ahead.
Thank you, operator, and good morning, everyone, and welcome to Ashtead Group Q3 results presentation. I'm speaking from our US support office and joined by Alex Pease, and Will Shaw. As you know, Alex joined in October and formally took over from Michael as CFO at the end of February.
Since joining, Alex has been highly engaged, getting to know our people and our business and working closely with Michael and the broader finance team to ensure a seamless transition. I speak on behalf of many of our colleagues when expressing the gratitude we have for the countless
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