Full-year highlights

• Record Group rental revenue up 4%²; revenue down 1%, impacted by lower sales of used
  equipment
• Operating profit of $2,557m (2024: $2,654m), with $142m lower gains on disposal
• Adjusted³ profit before taxation of $2,128m (2024: $2,230m)
• Adjusted³ earnings per share of 369.5¢ (2024: 386.5¢)
• $2.4bn of capital invested in the business (2024: $4.3bn)
• Free cash inflow¹ of $1,790m (2024: $216m)
• Net debt to adjusted EBITDA leverage² of 1.6 times (2024: 1.7 times)
• Proposed final dividend of 72¢, making 108¢ for the full year (2024: 105¢)

_{1 Throughout this announcement we refer to a number of alternative performance measures which provide additional useful information. The directors have adopted these to provide additional information on the underlying trends, performance and position of the Group. The alternative performance measures are not defined by IFRS and therefore may not be directly comparable with other companies’ alternative performance measures but are defined and reconciled in the Glossary of Terms on page 34.
2 Calculated at constant exchange rates applying current period exchange rates.
3 Adjusted results are stated before amortisation and non-recurring costs associated with the move of the Group’s primary listing to the US.}

Ashtead’s chief executive, Brendan Horgan, commented:

The Group delivered record full year rental revenue and adjusted EBITDA, with growth of 4% and 3% respectively.  I’d like to thank the team for these results, while leading with our safety-first culture and Engage for Life programme, which are continuing to drive improvements in our safety metrics.

We demonstrated the through-cycle, cash generative power of our business, delivering near record free cash flow of $1.8bn for the year.  Combined with sustained levels of profitability, this enabled us to invest $2.4bn of capital in our growth runway, alongside our highest ever level of shareholder returns totalling $886m across dividends and share buybacks. 

We continue to take advantage of strong secular tailwinds and structural progression, within our $87bn and growing industry.  While completions continue to outpace starts in local non-residential construction, mega project activity continues to be robust, particularly in the data centre, semi-conductor and LNG space, with the pipeline projected to grow from c. $840bn in the FY23 – FY25 timeframe, to more than $1.3 trillion in the FY26 – FY28 timeframe.  This growth comes alongside our operational success in progressing rate, as we deliver value and solutions to our customers through Sunbelt’s extensive range of products, services and expertise.

We remain focused on delivering our Sunbelt 4.0 growth strategy and, after our first year, we continue to realise momentum and extract benefits from the foundational investments made throughout Sunbelt 3.0.  We added over 42,000 new customers in the year on top of the 118,000 accounts opened during Sunbelt 3.0.  These new customers represent market share gains and combined generated more than $1.9bn of revenue in the year.  Our cross-selling effectiveness has expanded with almost 50% of our revenue coming from customers renting both General Tool and three or more Specialty lines of business.  We are achieving margin progression by driving improved efficiencies and even better customer experience.  Our 401 locations added during Sunbelt 3.0 delivered an incremental $1.9bn in revenue, growing c. 20% in the year, and c. $900m in EBITDA.  We continue to invest in our businesses’ secular growth opportunities, and in our first year of Sunbelt 4.0, we added an additional 61 locations.  I am proud of the team for driving world-class execution and positioning us for even more success.

We are on track to move the Group’s primary listing to the US in the first quarter of calendar year 2026, and I would like to thank shareholders for their engagement and approval at last week’s EGM.

The strength of our foundation and growth strategy is reflected in our results and guidance today. I am excited for FY26 and what lies ahead as we continue to advance our great company.

Contacts:

Brendan Horgan and Alex Pease will hold a conference call for equity analysts to discuss the results and outlook at 10am (5am EST) on Tuesday, 17 June 2025.  The call will be webcast live via the Company’s website at www.ashtead-group.com and a replay will be available via the website shortly after the call concludes.  A copy of this announcement and the slide presentation used for the call are available for download on the Company’s website.  The usual conference call for bondholders will begin at 3pm (10am EST).  

Analysts and bondholders have already been invited to participate in the analyst and bondholder calls but any eligible person not having received details should contact the Company’s PR advisers, H/Advisors Maitland (Audrey Da Costa) at +44 (0)20 7379 5151.

Forward-looking statements

This announcement contains forward-looking statements.  These have been made by the directors in good faith using information available up to the date on which they approved this report.  The directors can give no assurance that these expectations will prove to be correct.  Due to the inherent uncertainties, including both business and economic risk factors underlying such forward-looking statements, actual results may differ materially from those expressed or implied by these forward-looking statements.  Except as required by law or regulation, the directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Change in segment information

During the year, the Group has reassessed the basis of its segment information considering recent organisational changes.  The Group operates under two primary geographic regions reflecting its North American activities and assets and its UK activities and assets.  The North American business is further split operationally as General Tool and Specialty, reflecting the nature of its products and services and the management structure of the Group.  As such, the Group has identified its reportable operating segments as North America General Tool, North America Specialty and UK, which we believe reflects better the basis upon which we review the performance of the business internally and aligns with the basis of our strategic growth plan, Sunbelt 4.0.  Prior year comparative information has been restated to reflect these updated segments.  

Trading results

_{1 Segment performance is measured internally excluding central costs which support the business as a whole. Furthermore, the Group manages debt, including lease liabilities, centrally and therefore segment profit measures are presented before the application of lease accounting adjustments in accordance with IFRS 16 Leases but instead reflect the cash cost incurred in the period. The impact of lease accounting adjustments are included within the central costs line item above.
2 Segment results presented are adjusted EBITDA and adjusted operating profit. A reconciliation of adjusted measures to statutory measures is provided in the Glossary of Terms on page 34.} 

North America General Tool

In the North American General Tool business, rental only revenue of $4,903m (2024: $4,852m) was 1% higher than the prior year, driven by both volume and rate improvement, demonstrating the benefits of our strategy of broadening our end markets.  Organic performance (same-store and greenfields) was flat, while bolt-ons since 1 May 2023 contributed 1% of rental only revenue growth.  Rental revenue increased 1% to $5,890m (2024: $5,826m).  We estimate that hurricane response efforts contributed $25 – 30m to General Tool rental revenue in the year.  This hurricane impact, in part, mitigated the moderating local commercial construction market.  North American General Tool total revenue, including new and used equipment, merchandise and consumable sales, was $6,397m (2024: $6,721m).  As expected, this reflects a lower level of used equipment sales than last year ($338m; 2024: $720m), when we took advantage of improving fleet deliveries and strong second-hand markets to catch up on deferred disposals.

We continued to focus on the cost base which contributed to North America General Tool EBITDA of $3,478m (2024: $3,653m) and an EBITDA margin of 54.4% (2024: 54.4%).  As anticipated, lower used equipment sales and second-hand values resulted in lower gains on sale.  After higher depreciation on a larger fleet, this contributed to adjusted operating profit decreasing by 13% to $2,093m (2024: $2,394m) with a margin of 32.7% (2024: 35.6%).    

North America Specialty

In the North American Specialty business, rental only revenue of $2,383m (2024: $2,154m) was 11% higher than the prior year, also driven by both volume and rate improvement, demonstrating the benefits of our strategy of growing our Specialty businesses.  Organic growth (same-store and greenfields) was 10%, while bolt-ons since 1 May 2023 contributed 1% of rental only revenue growth.  Rental revenue increased 8% to $3,313m (2024: $3,062m).  We estimate that hurricane response efforts contributed $60 – 70m to Specialty rental revenue in the year.  North American Specialty total revenue, including new and used equipment, merchandise and consumable sales, was $3,487m (2024: $3,250m). 

This performance combined with our focus on the cost base, lower scaffold erection and dismantling revenue and recovery in the Film & TV business, contributed to North American Specialty EBITDA of $1,672m (2024: $1,438m) and an EBITDA margin of 47.9% (2024: 44.3%).  After higher depreciation on a larger fleet, this contributed to adjusted operating profit increasing by 17% to $1,135m (2024: $968m) with a margin of 32.5% (2024: 29.8%).   

UK

The UK business generated rental only revenue of $599m, up 2% on the prior year (2024: $586m).  Rental only revenue growth has been driven by both rate and volume improvement.  Rental revenue increased 5% to $778m (2024: $742m), while total revenue increased 2% to $907m (2024: $888m). 

 In the UK, the focus remains on delivering operational efficiency and long-term, sustainable returns in the business.  While we continue to improve rental rates, this remains an area of focus.  The UK generated EBITDA of $240m (2024: $235m) at a margin of 26.4% (2024: 26.5%) and adjusted operating profit of $69m (2024: $71m) at a margin of 7.6% (2024: 8.0%).

Group

Group revenue was $10,792m (2024: $10,859m) during the year.  This revenue and our focus on the cost base, but with lower used equipment sales, resulted in adjusted EBITDA increasing 3% to $5,022m (2024: $4,893m) and after higher depreciation and interest costs, adjusted operating profit decreased 3% to $2,687m (2024: $2,775m).  The higher increase in the depreciation charge relative to revenue growth reflects lower utilisation of a larger fleet and the ongoing impact of life cycle fleet inflation, contributing to the decline in adjusted operating profit.  In addition, increased financing costs due to higher average debt levels resulted in adjusted profit before tax being 5% lower than the comparative period.

Overall, including central costs, Group adjusted operating profit decreased to $2,687m (2024: $2,775m).  We invested in the infrastructure of the business during Sunbelt 3.0 to support the growth of the business now and into the future.  Our intention is to leverage this infrastructure during Sunbelt 4.0 as we look to improve operating performance.  After increased net financing costs of $559m (2024: $545m), reflecting higher average debt levels, Group adjusted profit before tax was $2,128m (2024: $2,230m).  After a tax charge of 24% (2024: 24%) of the adjusted pre-tax profit, adjusted earnings per share were 369.5ȼ (2024: 386.5ȼ).

Statutory profit before tax was $1,998m (2024: $2,110m).  This is after non-recurring costs of $15m (2024: $nil) associated with the move of the Group’s primary listing to the US and amortisation of $114m (2024: $121m).  Included within the total tax charge is a tax credit of $30m (2024: $30m) which relates to the amortisation of intangibles and non-recurring costs.  As a result, basic earnings per share were 346.5¢ (2024: 365.8¢).

Capital expenditure and acquisitions

Capital expenditure for the year was $2,401m gross and $1,873m net of disposal proceeds (2024: $4,311m gross and $3,404m net).  As a result, the Group’s rental fleet at 30 April 2025 at cost was $19bn and our average fleet age was 49 months (2024: 45 months) on an original cost basis.

We invested $137m (2024: $905m) in five bolt-on acquisitions during the year, as we continue to both expand our footprint and diversify our end markets.  Further details are provided in Note 15.

Return on Investment

The Group return on investment was 15% (2024: 16%).  For North America General Tool, return on investment (excluding goodwill and intangible assets) in the 12 months to 30 April 2025 was 20% (2024: 25%), while for North America Specialty it was 30% (2024: 27%).  The reduction in North America General Tool return on investment reflects principally the impact of lower utilisation of a larger fleet.  In the UK, return on investment (excluding goodwill and intangible assets) was 7% (2024: 7%).  Return on investment excludes the impact of IFRS 16.

Cash flow and net debt

The Group generated free cash flow of $1,790m (2024: $216m) during the year, which is after capital expenditure payments of $2,707m (2024: $4,445m).  In December 2024, the Group launched a new share buyback programme of up to $1.5bn over 18 months.  During the year, we spent $342m (2024: $78m) on share buybacks under this programme.

Net debt at 30 April 2025 was $10,331m (2024: $10,655m).  Excluding the effect of IFRS 16, net debt at 30 April 2025 was $7,517m (2024: $8,014m), while the ratio of net debt to adjusted EBITDA was 1.6 times (2024: 1.7 times) on a constant currency basis.  The Group’s target range for net debt to adjusted EBITDA is 1.0 to 2.0 times, excluding the impact of IFRS 16.  Including the effect of IFRS 16, the ratio of net debt to adjusted EBITDA was 2.1 times (2024: 2.2 times) on a constant currency basis.

At 30 April 2025, availability under the senior secured debt facility was $3,616m with an additional $6,194m of suppressed availability – substantially above the $475m level at which the Group’s entire debt package is covenant free.

The Group’s debt facilities are committed for an average of six years at a weighted average cost of 5%.

Dividends

The Company has a progressive dividend policy, which considers both profitability and cash generation, and results in a dividend that is sustainable across the cycle.  Our intention has always been to increase the dividend as profits increase and be able to maintain it when profits decline.  This, combined with the Board’s decision to rebalance the split between the interim and final dividend, to broadly one third interim, two thirds final, and reflecting its confidence in the future, the Board is recommending a final dividend of 72.0¢ per share (2024: 89.25¢) making 108.0¢ for the year (2024: 105.0¢), an increase of 3%.  If approved at the forthcoming Annual General Meeting, the final dividend will be paid on 10 September 2025 to shareholders on the register on 8 August 2025.

The dividend is declared in US dollars but will be paid in sterling unless shareholders elect to receive their dividend in US dollars.  Those shareholders who wish to receive their dividend in US dollars and have not yet made an election may do so by contacting Equiniti on +44 (0) 371 384 2085.  The last day for election for the proposed final dividend is 22 August 2025.

Capital allocation

The Group remains disciplined in its approach to allocation of capital with the overriding objective being to enhance shareholder value. 

Our capital allocation framework remains unchanged and prioritises:

• organic fleet growth;
  • same-stores;
  • greenfields;
• bolt-on acquisitions; and
• a progressive dividend with consideration to both profitability and cash generation that is sustainable through the cycle.

Additionally, we consider further returns to shareholders.  In this regard, we assess continuously our medium-term plans which take account of investment in the business, growth prospects, cash generation, net debt and leverage.  As we execute on Sunbelt 4.0, we expect a number of years of strong earnings and free cash flow generation.  Given this outlook, we have the opportunity to enhance returns to shareholders, while maintaining leverage towards the middle of our target range of 1.0 to 2.0 times net debt to adjusted EBITDA (excluding the IFRS 16).  

Guidance

Set out below is our guidance for 2025/26:

_{1 Represents change in year-over-year rental revenue at constant exchange rates.
2 Stated at C$1=$1.45 and £1=$1.26.}