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Ashtead Group Q4 Earnings Beat Estimates, Revenues Decrease 4% Y/Y

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Key Takeaways

  • ASHTY posted Q4 adjusted earnings of $3.15 per ADR, topping the estimate despite a 4% revenue drop.
  • Q4 rental revenues rose 1% while used equipment sales plunged nearly 50% year over year.
  • ASHTY projects flat to 4% rental growth and up to $2.3B in free cash flow for fiscal 2026.

Ashtead Group plc (ASHTY - Free Report) reported adjusted earnings of 79 cents per share in fourth-quarter fiscal 2025 (ended April 30, 2025), 1% lower than the year-ago quarter. ASHTY’s earnings per American Depositary Receipt (ADR) were $3.15. The metric beat the Zacks Consensus Estimate of $3.13 per share. Each Ashtead Group ADR represents four ordinary shares.

Ashtead Group Witnesses Higher Rental Revenues in Q4

The company reported net revenues of $2.53 billion, down 4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.54 billion.

Rental revenues increased 1% year over year to $2.33 billion. The sale of new equipment, merchandise and consumables declined 8.6% to $83 million. The sale of used rental equipment plunged 49.9% to $112 million.

ASHTY’s Q4 Operating Profit Declines

Total operating costs slipped 6.4% year over year to $1.39 billion. The adjusted operating profit dipped 7% year over year to $523 million. The adjusted operating margin contracted 67 basis points to 20.7%. 

Adjusted EBITDA rose 1% year over year to $1.15 billion due to higher depreciation and amortization. The EBITDA margin was 45.4% compared with the year-ago quarter’s 43.4%.

Ashtead Group’s Q4 Cash Position & Balance Sheet

The company reported cash and cash equivalents of $21 million as of April 30, 2025, compared with $20.8 million as of April 30, 2024. It generated $2.17 billion in cash from operating activities in fiscal 2025 compared with $0.85 billion in the prior-year period. The free cash flow in fiscal 2025 was $1.78 billion compared with $0.22 billion in the prior-year period.

ASHTY’s net debt was $10.33 billion at the end of the quarter, down from $10.65 billion at the end of the prior-year quarter. Ashtead Group’s net debt to adjusted EBITDA ratio was 2.1X as of April 30, 2025, compared with 2.2X as of April 30, 2024.

ASHTY FY25 Results

The company reported adjusted earnings of $3.69 per share in fiscal 2025, 4% lower than the year-ago quarter. ASHTY’s earnings per ADR were $14.78. The metric missed the Zacks Consensus Estimate of $15.53 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The company reported net revenues of $10.79 billion, down 1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $12.38 billion. Record rental revenues were offset by the impacts of lower sales of used equipment.

Ashtead Group’s FY26 Guidance

The company expects total rental revenues to be flat to rise 4% in fiscal 2026. It expects the free cash flow to be $2-$2.3 billion.

ASHTY Stock’s Price Performance

The company’s shares have lost 10.3% in the past year compared with the industry’s 1.3% decline.

 

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Ashtead Group’s Zacks Rank

Ashtead Group currently has 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

W.W. Grainger, Inc. (GWW - Free Report) reported earnings per share of $9.86 in first-quarter 2025, beating the Zacks Consensus Estimate of $9.46. The bottom line improved 2% year over year.

Grainger’s quarterly revenues rose 1.7% year over year to $4.31 billion. The top line missed the Zacks Consensus Estimate of $4.33 billion. Daily sales increased 3.3% from the prior-year quarter. We predicted daily sales to increase 2.7%. 

MSC Industrial Direct Company, Inc. (MSM - Free Report) reported second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year.

MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. MSM’s top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.

Hillenbrand, Inc. (HI - Free Report) posted second-quarter fiscal 2025 adjusted earnings per share of 60 cents, beating the Zacks Consensus Estimate of 54 cents. The bottom line decreased 21% year over year.

HI generated revenues of around $716 million in the quarter under review, down 8.8% from $785 million in the year-ago quarter. Hillenbrand’s top line beat the Zacks Consensus Estimate of $691 million.

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