Ashtead Technology (LSE:AT.) saw its shares rise sharply on Tuesday after reporting higher revenues and profits for the first half, despite headwinds from U.S. tariffs and slower activity in stalled offshore wind projects. The results broadly aligned with market expectations.
Ashtead shares were up 12.5% at 387p as of 07:34 GMT. Revenue increased 23.2% year-on-year to £99.1 million, driven by organic growth and contributions from the Seatronics and J2 Subsea acquisitions. This compared with a Visible Alpha consensus forecast of £98.9 million.
“After an encouraging start to the year, Ashtead Technology experienced a slower seasonal ramp up in activity through Q2. This resulted in first half revenues being below our initial expectations for the period at £99.1m,” the company said.
Adjusted EBITA reached £27 million, slightly below the £27.7 million consensus, with a margin of 27.3%. Adjusted profit before tax rose 10% to £21.6 million. Adjusted EBITDA came in at £38.3 million versus expected £39.2 million, while operating profit reached £23.2 million against a £24.1 million consensus. Earnings per share were 17.2 pence, in line with the 17 pence forecast.
The company reaffirmed its full-year guidance, after having lowered revenue forecasts for fiscal 2025 in a July trading update.
RBC Capital Markets analysts noted that many of Ashtead’s oil and gas customers continued to see growth in order intakes during H1, with “near-record backlogs” expected to be executed between 2025 and 2028. They added that these backlogs should sustain a “high level of offshore activity.”
Following a slower first half and reduced revenue guidance, RBC expects the second half to maintain steadier activity levels, supported by high offshore utilisation across the customer base.
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