Comment on Ashtead’s Q1 results – Edison Group
UNITED KINGFOM, September 3, 2024 /EINPresswire.com/ -- Neil Shah, Executive Director of Content & Strategy at Edison Group comments:
“Ashtead's first-quarter results for 2024 present a mixed performance, reflecting both the challenges and opportunities the company faces. Revenue growth of 2% to $2,754 million and a 7% increase in rental revenue highlight the resilience of Ashtead’s core operations, particularly in North America, where mega projects and the Specialty businesses are driving growth. However, the decline in adjusted profit before tax by 7% and a 9% drop in adjusted earnings per share indicate pressure from higher depreciation, interest costs, and lower used equipment sales.
Despite these headwinds, the company’s continued investment, with $855 million in capital expenditures and two bolt-on acquisitions, signals confidence in its long-term strategy under the Sunbelt 4.0 plan. The slight increase in net debt to EBITDA at 1.7 times is within a manageable range, offering flexibility for future growth. Overall, while short-term profitability is under pressure, Ashtead’s strategic investments position it well for future expansion and market share gains.”
“Ashtead's first-quarter results for 2024 present a mixed performance, reflecting both the challenges and opportunities the company faces. Revenue growth of 2% to $2,754 million and a 7% increase in rental revenue highlight the resilience of Ashtead’s core operations, particularly in North America, where mega projects and the Specialty businesses are driving growth. However, the decline in adjusted profit before tax by 7% and a 9% drop in adjusted earnings per share indicate pressure from higher depreciation, interest costs, and lower used equipment sales.
Despite these headwinds, the company’s continued investment, with $855 million in capital expenditures and two bolt-on acquisitions, signals confidence in its long-term strategy under the Sunbelt 4.0 plan. The slight increase in net debt to EBITDA at 1.7 times is within a manageable range, offering flexibility for future growth. Overall, while short-term profitability is under pressure, Ashtead’s strategic investments position it well for future expansion and market share gains.”
Hugo Bardsley
Edison Group
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