Ashtead Q3 profits rise, FY results seen ahead of previous guidance

Industrial equipment rental company Ashtead said on Tuesday that third-quarter pre-tax profits had risen as a result of improved revenues throughout the period, leading the group to now expect full-year results to beat previous guidance.

Ashtead stated that its third-quarter pretax profit was $392.6m, up from $283.8m for the third quarter of fiscal 2021, driven by a 23% jump in revenues from $1.62bn to approximately $2.0bn. Rental revenues were up 25% to $1.82bn.

Operating profits were 29% firmer at $449.0m and earnings before interest, tax, depreciation and amortisation were 21% higher at $877.0m. Adjusted earnings per share were up 41% at 72.7 cents.

Chief executive Brendan Horgan said: "The group continues to perform strongly across its geographies with rental revenue up 21% in the nine months over the Covid affected prior year and 17% when compared with 2019/20, both at constant currency.

"Our business continues to perform strongly and is well positioned to manage and benefit from the unique market circumstances we face, including supply chain constraints, inflation and labour scarcity, which we believe to be drivers of ongoing structural change. We now expect full year results to be slightly ahead of our previous expectations and the board looks to the future with confidence."

As of 0835 GMT, Ashtead shares were up 3.68% at 4,815.0p.