Ashtead Group PLC on Tuesday expressed a positive outlook after posting mixed financial results for the opening quarter of its 2025 financial year, with the company contending with weaker market conditions.

The London-based industrial equipment rental company has large operations in the US under its Sunbelt brand. It said pretax profit fell 6.9% to $544.4 million in the first quarter that ended July 31 from $584.6 million a year previous.

Revenue rose 2.2% to $2.75 billion from $2.70 billion, with rental revenue increasing 6.9% to $2.54 billion from $2.38 billion.

Earnings before interest, tax, depreciation, and amortisation grew 4.8% to $1.29 billion from $1.23 billion.

Operating costs were largely unchanged at $1.47 billion and capital expenditure reduced by 24% to $855 million from $1.13 billion.

Chief Executive Officer Brendan Horgan said: ‘In North America, the increasing proportion of mega projects and the strength of our Specialty businesses has more than offset the lower activity levels in local commercial construction markets. As expected, lower used equipment sales and a higher increase in depreciation and interest costs, resulted in adjusted profit before taxation of $573 million.’ This was down 6.8% from $615 million a year before.

In April, Ashtead launched its ’Sunbelt 4.0’ strategic growth plan focused on customer, growth, performance, sustainability, and investment.

During the recent quarter, $53 million was spent on the bolt-on acquisitions of RentalMax LLC in May and Wave Equipment Ltd in June, to expand Ashtead’s footprint and diversify its end markets.

CEO Horgan said: ‘We are in a position of strength, with the operational flexibility and financial capacity to capitalise on the structural growth opportunities we see for the business. We have started the year well and expect full-year results will be in line with our expectations.’

Ashtead Group expects full-year rental revenue to grow 5% to 8% with capital expenditure between $3.0 billion to $3.3 billion.

In financial 2024 the company produced 10% rental revenue growth with capital expenditure at $4.31 billion.

Also Tuesday, Ashtead said Chief Financial Officer Michael Pratt plans to retire in September 2025 after 21 years with the company. WestRock Co’s former CFO, Alex Pease, will join Ashtead Group in October as CFO designate.

US packaging firm WestRock recently merged with Ireland’s Smurfit Kappa to form Smurfit WestRock PLC.

Ashtead Group shares were up 3.3% at 5,533.72 pence each in London on Tuesday morning.

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