Q4 2025 Ashtead Group PLC Earnings Call Transcript
Key Points
- Ashtead Group PLC (ASHTF) reported record rental revenues and EBITDA for the year, with group EBITDA reaching $5 billion and a margin of 47%.
- The company successfully added 42,000 new customers, contributing to $1.9 billion in rental revenue growth.
- Ashtead Group PLC (ASHTF) achieved near-record free cash flow of $1.8 billion, despite significant capital investments.
- The company launched a $1.5 billion share buyback program, demonstrating confidence in its cash-generative growth model.
- The Specialty business segment showed strong performance, with an 8% increase in rental revenue, and is expected to drive higher returns in the future.
- Total revenue was down 1% due to a planned lower level of used equipment sales, impacting overall profitability.
- The UK segment showed lower returns with an operating profit margin of only 8% and ROI of 7%, indicating room for improvement.
- The North American general tools segment experienced a decline in operating profit, attributed to lower gains on equipment sales and higher depreciation charges.
- The company anticipates flat to 4% rental revenue growth for the next fiscal year, reflecting ongoing market challenges.
- There is a noted slowdown in the Specialty segment's growth rate, with some areas like film and TV and oil and gas experiencing significant declines.
Hello, and welcome to the Ashtead Group plc full-year and Q4 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.
Thank you, operator, and good morning all and welcome to the Ashtead Group for your results presentation. I'm joined as usual this morning by Alex Pease and Will Shaw. But in addition, we have Kevin Powers with us, who joined in May to lead our Investor Relations for Sunbelt Rentals when the primary listing moves to the US early next year. Kevin now as you would expect is working very closely with Will and the team, and most of all, we're happy to have him on board.
Turning to slide 3. I'll begin this morning as I always do, by addressing our Sunbelt team members listening in or perhaps more significantly on the recorded call later in the morning US time.
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