Ashtead Technology Holdings plc (LSE:AT.) saw its stock climb more than 2% on Thursday after issuing a first-half 2025 trading update that highlighted stronger margins, helping ease concerns over softer-than-expected revenue and a trimmed outlook for the remainder of the year.
The subsea services and equipment rental specialist reported preliminary revenues of around £99 million for the first half, representing a 23% year-over-year increase but falling short of both market consensus and RBC Capital Markets’ projection of £110 million. According to Stifel, both revenue and EBITA came in roughly 10% below its estimates.
Despite the top-line shortfall, adjusted EBITA margins expanded to 27.3%, translating into approximately £27 million in EBITDA. The margin improvement was driven by a more favorable revenue mix and cost benefits arising from the acquisitions of Seatronics and J2.
Cash generation remained solid and aligned with internal expectations, while net debt leverage on a pro forma basis was 1.6x at the end of June, in line with prior guidance.
Looking ahead to the second half of 2025—a typically stronger period for the group—Ashtead Technology is forecasting high single-digit percentage growth in revenue. However, this updated guidance is around 8% below current consensus expectations. The company attributed the softer outlook to persistent geopolitical uncertainty and tariff-related pressures affecting demand.
Management now anticipates full-year 2025 adjusted EBITA to fall slightly below earlier projections, though the forecast for adjusted profit before tax remains unchanged, bolstered by lower interest expenses.
Ashtead also noted a strategic pivot toward higher-margin rental business and a planned scale-back of lower-yielding cross-hire operations.
In addition, the company reiterated its intention to move its listing to the Main Market of the London Stock Exchange in 2025, with further details to follow later in the year.
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