Profit Metric Increase Drives Share Price Up

  • Ashtead Group shares rise due to increased key profit metric
  • Higher revenue from all regions, including the U.S.
  • EBITDA up to $1.29B from $1.23B in Q1
  • U.S. EBITDA at $1.15B, Canada at $78.5M, UK at $68.1M
  • Revenue at $2.75B vs. $2.7B last year and FactSet consensus
  • Rental revenue up 7% to $2.54B, U.S. up 21% in Canada
  • North American mega projects and specialty business driving growth
  • Group rental revenue forecasted to rise 5-8% in fiscal 2025

Ashtead Group shares have risen following a reported increase in a key profit metric for the first quarter, driven by higher revenue from all regions including its largest U.S. market. The London-listed equipment rental company saw earnings before interest, taxes, depreciation, and amortization (EBITDA) rise to $1.29 billion compared to $1.23 billion in the same period last year. In the U.S., EBITDA reached $1.15 billion from $1.10 billion, while Canada’s was $78.5 million and the UK’s was $68.1 million. Revenue increased to $2.75 billion from $2.7 billion last year and a FactSet consensus of $2.76 billion. Rental revenue rose 7% to $2.54 billion, with U.S. rental revenue up 21% in Canada. Ashtead attributed the growth to a rise in North American mega projects and its specialty business offsetting lower local commercial construction activity levels. The board expects group rental revenue to increase by 5-8% in fiscal 2025, with gross capital expenditure in the $3 billion to $3.3 billion range.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Ashtead Group’s financial performance and includes relevant data such as EBITDA, revenue, and rental revenue from different regions. It also mentions the company’s expectations for future growth.
Noise Level: 2
Noise Justification: The article provides relevant information about Ashtead Group’s financial performance and outlook, with clear data and evidence supporting its claims. It stays on topic and does not dive into unrelated territories. However, it could benefit from more analysis or context to provide actionable insights for readers.
Public Companies: Ashtead Group (AHT)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Ashtead Group shares
Financial Rating Justification: The article discusses Ashtead Group’s financial performance, including EBITDA and revenue growth, which impacts the company’s stock price and can affect investors’ decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme events mentioned in the article
Move Size: The market move size mentioned in this article is 3.4%.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

Image source: Carcharoth / Own work

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