REG - Ashtead Group PLC - Unaudited results for Interim & Q2 ended 31/10/25
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RNS Number : 7283K Ashtead Group PLC 09 December 2025
9 December 2025
Unaudited results for the half year and
second quarter ended 31 October 2025
Performance(1) Second quarter First half
2025 2024 Growth 2025 2024 Growth
$m $m % $m $m %
Revenue 2,962 2,941 1% 5,763 5,695 1%
Rental revenue 2,757 2,725 1% 5,357 5,265 2%
Adjusted(2) EBITDA 1,381 1,410 -2% 2,657 2,698 -2%
Operating profit 704 796 -12% 1,346 1,484 -9%
Adjusted(2) profit before taxation 656 682 -4% 1,208 1,255 -4%
Profit before taxation 571 653 -12% 1,083 1,197 -10%
Adjusted(2) earnings per share 116.8¢ 116.2¢ 1% 212.1¢ 213.6¢ -1%
Earnings per share 100.4¢ 111.3¢ -10% 188.1¢ 203.7¢ -8%
Half year highlights
● Reaffirming full-year Group rental revenue, capex, and free cash flow guidance
● Group rental revenue up 2%; revenue up 1%
● Operating profit of $1,346m (2024: $1,484m) after non-recurring costs relating
to US relisting and UK restructuring of $69m (2024: $nil)
● Adjusted(2) profit before taxation of $1,208m (2024: $1,255m)
● Adjusted(2) earnings per share of 212.1¢ (2024: 213.6¢)
● $1.3bn of capital invested in the business (2024: $1.7bn)
● Free cash flow(1) of $1,109m (2024: $420m)
● Total returns to shareholders of $1,021m (2024: $387m), comprising $714m on
share buyback and $307m through dividends
● Net debt to adjusted EBITDA leverage of 1.6 times (2024: 1.7 times)
● Interim dividend of 37.5¢ per share (2024: 36.0¢), up 4%
● Announcing new $1.5bn share buyback commencing with relisting
● Primary listing on track to move to NYSE and Investor Day in New York City in
March 2026
(1) Throughout this announcement we refer to a number of alternative performance
measures which provide additional useful information. The directors have
adopted these to provide additional information on the underlying trends,
performance and position of the Group. The alternative performance measures
are not defined by IFRS and therefore may not be directly comparable with
other companies' alternative performance measures but are defined and
reconciled in the Glossary of Terms on page 34.
(2) Adjusted results are stated before amortisation and non-recurring costs as
defined in the Glossary of Terms on page 34.
Ashtead's chief executive, Brendan Horgan, commented:
The Group reported solid results for both the first half of the year and the
second quarter, with revenue, profit, and free cash flow in line with our
expectations as we benefit from long-term industry trends and ongoing
improvements in our sector. Rental revenue in the first half increased 2%.
Adjusted for $55-60m of lower hurricane activity in the quarter, rental
revenue was up 3%, as mega project activity gained momentum, offset by
continued moderation in our local non-residential construction markets. That
being said, we continue to see positive leading indicators for local
non-residential construction activity, and we are reaffirming our guidance for
rental revenue, capex and free cash flow for the year.
Our revenue growth, combined with strong margins and disciplined capital
deployment, drove record free cash flow in the first-half, which we used to
complete seven bolt on acquisitions, support $307m in dividend payments and
complete $714m of share buybacks in the first-half, bringing our total to
$1,056m under the current programme. Given the continued confidence in our
free cash flow outlook, today we are also announcing a new share buyback
programme of $1.5bn commencing 2 March 2026, to coincide with the re-listing
to the NYSE which remains on track. Our net debt to EBITDA leverage is 1.6x
remaining comfortably within our targeted range. I would like to thank the
team for these results and leading every day with our safety-first culture and
Engage for Life programme.
Contacts:
Will Shaw Director of Investor Relations +44 (0)20 7726 9700
Sam Cartwright H/Advisors Maitland +44 (0)20 7379 5151
Brendan Horgan and Alex Pease will hold a conference call for equity analysts
to discuss the results and outlook at 10:30am (5:30am EST) on 9 December
2025. The call will be webcast live via the Company's website at
www.ashtead-group.com (http://www.ashtead-group.com) and a replay will be
available via the website shortly after the call concludes. A copy of this
announcement and the slide presentation used for the call are available for
download on the Company's website. The usual conference call for bondholders
will begin at 3pm (10am EST) on Wednesday, 10 December 2025.
Analysts and bondholders have already been invited to participate in the
analyst and bondholder calls but any eligible person not having received
details should contact the Company's PR advisers, H/Advisors Maitland (Audrey
Da Costa) at +44 (0)20 7379 5151.
Forward-looking statements This announcement contains forward-looking
statements. These have been made by the directors in good faith using
information available up to the date on which they approved this report. The
directors can give no assurance that these expectations will prove to be
correct. Due to the inherent uncertainties, including both business and
economic risk factors underlying such forward-looking statements, actual
results may differ materially from those expressed or implied by these
forward-looking statements. Except as required by law or regulation, the
directors undertake no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise.
First half trading results(1)
Segment
Revenue EBITDA(2,3) Profit(2,3)
2025 2024 2025 2024 2025 2024
$m $m $m $m $m $m
North America General Tool 3,399.3 3,391.3 1,822.3 1,876.1 1,118.1 1,191.2
North America Specialty 1,879.7 1,824.4 895.2 879.9 628.3 613.4
UK 484.2 478.8 124.0 132.3 34.6 46.0
Central costs - - (184.6) (190.4) (309.0) (308.2)
5,763.2 5,694.5 2,656.9 2,697.9 1,472.0 1,542.4
Financing costs (263.5) (287.5)
Adjusted profit before tax 1,208.5 1,254.9
Non-recurring costs (69.5) -
Amortisation (56.3) (57.9)
Profit before taxation 1,082.7 1,197.0
Taxation charge (282.1) (307.5)
Profit attributable to equity holders of the Company 800.6 889.5
Margins
North America General Tool 53.6% 55.3% 32.9% 35.1%
North America Specialty 47.6% 48.2% 33.4% 33.6%
UK 25.6% 27.6% 7.1% 9.6%
Group 46.1% 47.4% 25.5% 27.1%
(1) During the prior financial year, the Group reassessed the basis of its
segment information to report its results reflecting North America General
Tool, North America Specialty and UK segments, which we believe reflects
better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0. Prior year comparative information has been restated to reflect these
segments.
(2) Segment performance is measured internally excluding central costs which
support the business as a whole. Furthermore, the Group manages debt,
including lease liabilities, centrally and therefore segment profit measures
are presented before the application of lease accounting adjustments in
accordance with IFRS 16 Leases but instead reflect the cash cost incurred in
the period. The impact of lease accounting adjustments are included within
the central costs line item above.
(3) Segment results presented are adjusted EBITDA and adjusted operating
profit. A reconciliation of adjusted measures to statutory measures is
provided in the Glossary of Terms on page 34.
North America General Tool
In the North America General Tool business, rental revenue of $3,166m (2024:
$3,124m) was 1% higher than the prior period, driven by volume growth.
Organic performance (same-store and greenfields) was 0.7%, while bolt-ons
since 1 May 2024 contributed 0.7% of rental revenue growth. North America
General Tool total revenue, including new and used equipment, merchandise and
consumable sales, was $3,399m (2024: $3,391m). As expected, this reflects a
lower level of used equipment sales than the comparable period last year
($146m; 2024: $179m).
We continued to focus on the cost base which contributed to North America
General Tool EBITDA of $1,822m (2024: $1,876m) and an EBITDA margin of 53.6%
(2024: 55.3%). The margins reflect higher costs associated with internal
repairs and repositioning of rental fleet to drive utilisation improvements.
As anticipated, lower used equipment sales and second-hand values resulted in
lower gains on sale. After higher depreciation on a larger fleet, this
contributed to adjusted operating profit decreasing by 6% to $1,118m
(2024: $1,191m) with a margin of 32.9% (2024: 35.1%).
North America Specialty
In the North America Specialty business, rental revenue of $1,770m (2024:
$1,730m) was 2% higher than the prior year, driven by both volume and rate
improvement, demonstrating the benefits of our strategy of growing our
Specialty businesses. In the prior year, North America Specialty rental
revenue benefited from storm response efforts which have not arisen in the
current year. We estimated that these efforts contributed $38 - 43m to
rental revenue and therefore adjusting for the impact of these amounts, rental
revenue would have been 5% higher than prior year. North America Specialty
total revenue, including new and used equipment, merchandise and consumable
sales, was $1,880m (2024: $1,824m).
This performance combined with our focus on the cost base contributed to North
America Specialty EBITDA of $895m (2024: $880m) and an EBITDA margin of 47.6%
(2024: 48.2%). After depreciation, this contributed to adjusted operating
profit increasing by 2% to $628m (2024: $613m) with a margin of 33.4%
(2024: 33.6%).
UK
The UK business generated rental revenue of $422m, up 3% on the prior year
(2024: $411m). Rental revenue growth has benefitted from favourable foreign
exchange movements, with rental revenue in local currency 2% lower than the
prior year. Total revenue increased 1% to $484m (2024: $479m).
In the UK, the focus remains on delivering operational efficiency and
long-term, sustainable returns in the business, while rental rate achievement
remains an area of focus. The UK generated EBITDA of $124m (2024: $132m), at
a margin of 25.6% (2024: 27.6%), and adjusted operating profit of $35m (2024:
$46m) at a margin of 7.1% (2024: 9.6%).
In addition, in line with our Sunbelt 4.0 strategic priorities for the UK
business, we initiated an operational restructure during the quarter involving
the consolidation of certain regional operations and taking steps to optimise
cost efficiency. We are also seeking to exit certain non-core assets and
disposed of the UK Hoist business in October 2025 for proceeds of $16m. In
total, these activities are expected to result in non-recurring costs relating
to the UK business during the forthcoming year, with $37m recognised in the
income statement in the period, of which $3m are cash costs.
Group
Group revenue increased 1% to $5,763m (2024: $5,695m) during the first
half. This revenue and our focus on the cost base, offset by lower used
equipment sales, resulted in adjusted EBITDA decreasing 2% to $2,657m (2024:
$2,698m). We invested in the infrastructure of the business during Sunbelt
3.0 to support the growth of the business now and into the future. Our
intention is to leverage this infrastructure during Sunbelt 4.0 as we look to
improve operating performance.
Adjusted operating profit decreased 5% to $1,472m (2024: $1,542m), reflecting
an adjusted depreciation charge which was 3% higher than the prior year. The
higher increase in the depreciation charge relative to revenue growth reflects
the ongoing impact of life cycle fleet inflation, contributing to the decline
in adjusted operating profit.
After lower net financing costs of $264m (2024: $287m), reflecting lower
average debt levels, Group adjusted profit before tax was $1,208m (2024:
$1,255m). After a tax charge of 25% (2024: 26%) of the adjusted pre-tax
profit, adjusted earnings per share were 212.1ȼ (2024: 213.6ȼ).
Statutory profit before tax was $1,083m (2024: $1,197m). This is after
non-recurring costs of $69m (2024: $nil) associated with the move of the
Group's primary listing to the US of $32m (2024: $nil) and UK restructuring
activities of $37m (2024: $nil), as well as amortisation of $56m (2024:
$58m). Included within the total tax charge is a tax credit of $24m (2024:
$14m), which relates to the amortisation of intangibles and non-recurring
costs. As a result, basic earnings per share were 188.1¢ (2024: 203.7¢).
Capital expenditure and acquisitions
Capital expenditure for the first half was $1,262m gross and $1,028m net of
disposal proceeds (2024: $1,679m gross and $1,402m net). As a result, the
Group's rental fleet at 31 October 2025 at cost was $19bn (2024: $18bn) and
our average fleet age was 51 months (2024: 46 months) on an original cost
basis.
We invested $143m (2024: $53m) including acquired borrowings in seven bolt-on
acquisitions during the first half, as we continue to both expand our
footprint and diversify our end markets. Further details are provided in
Note 15.
Return on Investment
The Group return on investment was 14% (2024: 15%). For North America
General Tool, return on investment (excluding goodwill and intangible assets)
for the 12 months to 31 October 2025 was 20% (2024: 22%), while for North
America Specialty it was 31% (2024: 29%). The reduction in North America
General Tool return on investment reflects principally the impact of lower
average utilisation of a larger fleet. In the UK, return on investment
(excluding goodwill and intangible assets) was 5% (2024: 7%). Return on
investment excludes the impact of IFRS 16.
Cash flow and net debt
The Group generated free cash flow of $1,109m (2024: $420m) during the period,
which is after capital expenditure payments of $1,072m (2024: $1,824m). In
December 2024, the Group launched a share buyback programme of up to $1.5bn
over 18 months. During the period, we spent $714m (2024: $nil) on share
buybacks under this programme. This current programme is expected to
complete by the end of February 2026. The Group has announced today a new
share buyback programme of $1.5bn which is expected to commence at the
beginning of March 2026 to coincide with the move of the primary listing to
the New York Stock Exchange and to complete by the end of April 2027.
Net debt at 31 October 2025 was $10,547m (2024: $10,945m). Excluding the
effect of IFRS 16, net debt at 31 October 2025 was $7,673m (2024: $8,203m),
while the ratio of net debt to adjusted EBITDA was 1.6 times (2024: 1.7 times)
on a constant currency basis. The Group's target range for net debt to
adjusted EBITDA is 1.0 to 2.0 times, excluding the impact of IFRS 16.
Including the effect of IFRS 16, the ratio of net debt to adjusted EBITDA was
2.1 times (2024: 2.2 times) on a constant currency basis.
At 31 October 2025, availability under the senior secured debt facility was
$3,431m with an additional $6,367m of suppressed availability - substantially
above the $475m level at which the Group's entire debt package is covenant
free.
The Group's debt facilities are committed for an average of five years at a
weighted average cost of 5%.
Dividend
Our policy is to provide a progressive dividend, which considers both
profitability and cash generation, and results in a dividend that is
sustainable across the cycle. This has resulted in the Board increasing the
interim dividend to 37.5¢ per share (2024: 36¢ per share). This will be paid
on 6 February 2026 to shareholders on the register on 9 January 2026.
The dividend is declared in US dollars but will be paid in sterling unless
shareholders elect to receive their dividend in US dollars. Those shareholders
who wish to receive their dividend in US dollars and have not yet made an
election may do so by contacting Computershare on +44 (0) 370 707 1496. The
last day for election for the proposed interim dividend is 23 January 2026.
Capital allocation
The Group remains disciplined in its approach to allocation of capital with
the overriding objective being to enhance shareholder value.
Our capital allocation framework remains unchanged and prioritises:
· organic fleet growth;
- same-stores;
- greenfields;
· bolt-on acquisitions; and
· a progressive dividend with consideration to both profitability and
cash generation that is sustainable through the cycle.
Additionally, we consider further returns to shareholders. In this regard,
we assess continuously our medium-term plans which take account of investment
in the business, growth prospects, cash generation, net debt and leverage.
As we execute on Sunbelt 4.0, we expect a number of years of strong earnings
and free cash flow generation. Given this outlook, we have the opportunity
to enhance returns to shareholders, while maintaining leverage towards the
middle of our target range of 1.0 to 2.0 times net debt to adjusted EBITDA
(excluding the impact of IFRS 16).
Guidance
Set out below is our guidance for 2025/26:
Previous guidance Current guidance
Rental revenue growth 0% - 4% 0% - 4%
Capital expenditure (gross)(1) $1.8bn - $2.2bn $1.8bn - $2.2bn
Free cash flow(1) $2.2bn - $2.5bn $2.2bn - $2.5bn
( )
(1) Stated at C$1=$0.69 and £1=$1.26.
Directors' responsibility statement
We confirm that to the best of our knowledge:
a) the condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting'; and
b) the interim management report includes a fair review of the information
required by Disclosure and Transparency Rule 4.2.7R (indication of important
events during the first six months and description of principal risks and
uncertainties for the remaining six months of the year) and Disclosure and
Transparency Rules 4.2.8R (disclosure of related parties' transactions and
changes therein).
By order of the Board
Alan Porter
Company secretary
8 December 2025
CONSOLIDATED INCOME STATEMENT
FOR THE THREE AND SIX MONTHS ENDED 31 OCTOBER 2025
Unaudited
Three months to Six months to
31 October 31 October
2025 2024 2025 2024
$m $m $m $m
Revenue
Rental revenue 2,756.5 2,724.8 5,357.3 5,265.3
Sale of new equipment, merchandise and consumables 97.7 90.1 195.0 181.7
Sale of used rental equipment 108.1 125.9 210.9 247.5
2,962.3 2,940.8 5,763.2 5,694.5
Operating costs
Staff costs (659.1) (634.7) (1,314.6) (1,268.0)
Other operating costs (860.2) (784.7) (1,652.2) (1,516.5)
Used rental equipment sold (100.5) (111.2) (190.7) (212.1)
(1,619.8) (1,530.6) (3,157.5) (2,996.6)
EBITDA* 1,342.5 1,410.2 2,605.7 2,697.9
Depreciation (609.9) (584.8) (1,203.2) (1,155.5)
Amortisation of intangibles (28.2) (29.2) (56.3) (57.9)
Operating profit 704.4 796.2 1,346.2 1,484.5
Interest income 0.9 - 2.5 -
Interest expense (134.2) (143.6) (266.0) (287.5)
Profit on ordinary activities before taxation 571.1 652.6 1,082.7 1,197.0
Taxation (146.0) (166.6) (282.1) (307.5)
Profit attributable to equity holders of the Company 425.1 486.0 800.6 889.5
Basic earnings per share 100.4¢ 111.3¢ 188.1¢ 203.7¢
Diluted earnings per share 100.3¢ 111.0¢ 187.8¢ 202.9¢
* EBITDA is presented here as an alternative performance measure as it is
commonly used by investors and lenders. This and other adjusted alternative
performance measures are detailed in the Glossary of Terms on page 34. .
All revenue and profit is generated from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED 31 OCTOBER 2025
Unaudited
Three months to Six months to
31 October 31 October
2025 2024 2025 2024
$m $m $m $m
Profit attributable to equity holders of the Company 425.1 486.0 800.6 889.5
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments held at fair value - - - (25.5)
Tax on movement on equity instruments held at fair value - 2.7 - 2.7
- 2.7 - (22.8)
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences (18.8) (4.1) (32.6) 9.7
Loss on cash flow hedge - 0.1 - 0.1
(18.8) (4.0) (32.6) 9.8
Total other comprehensive loss for the period (18.8) (1.3) (32.6) (13.0)
Total comprehensive income for the period 406.3 484.7 768.0 876.5
CONSOLIDATED BALANCE SHEET AT 31 OCTOBER 2025
Unaudited Audited
31 October 30 April
2025 2024 2025
$m $m $m
Current assets
Inventories 155.8 159.9 147.2
Trade and other receivables 2,130.0 2,052.9 1,831.1
Current tax asset 52.7 53.2 23.1
Cash and cash equivalents 39.6 23.7 21.0
2,378.1 2,289.7 2,022.4
Non-current assets
Property, plant and equipment
- rental equipment 11,275.0 11,764.8 11,312.1
- other assets 1,937.9 1,927.1 1,919.2
13,212.9 13,691.9 13,231.3
Right-of-use assets 2,542.4 2,493.7 2,523.1
Goodwill 3,329.8 3,234.7 3,276.7
Other intangible assets 364.3 427.3 398.0
Other non-current assets 236.3 171.9 240.2
19,685.7 20,019.5 19,669.3
Total assets 22,063.8 22,309.2 21,691.7
Current liabilities
Trade and other payables 1,478.1 1,385.2 1,195.0
Current tax liability 10.3 25.7 8.7
Lease liabilities 306.9 286.6 298.8
Provisions 65.4 45.6 60.8
1,860.7 1,743.1 1,563.3
Non-current liabilities
Lease liabilities 2,599.3 2,496.4 2,553.3
Long-term borrowings 7,680.1 8,186.0 7,500.1
Provisions 109.2 79.7 102.0
Deferred tax liabilities 2,314.2 2,242.7 2,239.8
Other non-current liabilities 83.3 63.1 64.6
Net defined benefit pension plan liability 0.5 0.4 0.5
12,786.6 13,068.3 12,460.3
Total liabilities 14,647.3 14,811.4 14,023.6
Equity
Share capital 81.8 81.8 81.8
Share premium account 6.5 6.5 6.5
Capital redemption reserve 20.0 20.0 20.0
Own shares held by the Company (1,886.8) (818.7) (1,170.7)
Own shares held by the ESOT (23.3) (35.2) (35.0)
Cumulative foreign exchange translation differences (241.3) (253.8) (208.7)
Retained reserves 9,459.6 8,497.2 8,974.2
Equity attributable to equity holders of the Company 7,416.5 7,497.8 7,668.1
Total liabilities and equity 22,063.8 22,309.2 21,691.7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 OCTOBER 2025
Own Own Cumulative
shares shares foreign
Share Capital held by held exchange
Share premium redemption the by translation Retained
the ESOT
capital account reserve Company differences reserves Total
$m $m $m $m $m $m $m $m
Unaudited
At 1 May 2024 81.8 6.5 20.0 (818.7) (43.5) (263.5) 8,102.0 7,084.6
Profit for the period - - - - - - 889.5 889.5
Other comprehensive income:
Foreign currency translation
differences - - - - - 9.7 - 9.7
Loss on cash flow hedge - - - - - - 0.1 0.1
Movement on equity
instruments held at fair value - - - - - - (25.5) (25.5)
Tax on movement on equity
instruments held at fair value - - - - - - 2.7 2.7
Total comprehensive income
for the period - - - - - 9.7 866.8 876.5
Dividends paid - - - - - - (389.8) (389.8)
Own shares purchased
by the ESOT - - - - (84.9) - - (84.9)
Share-based payments - - - - 93.2 - (79.9) 13.3
Tax on share-based payments - - - - - - (1.9) (1.9)
At 31 October 2024 81.8 6.5 20.0 (818.7) (35.2) (253.8) 8,497.2 7,497.8
Profit for the period - - - - - - 621.0 621.0
Other comprehensive income:
Foreign currency translation
differences - - - - - 45.1 - 45.1
Loss on cash flow hedge - - - - - - 0.2 0.2
Tax on movement on equity
instruments held at fair value - - - - - - (1.8) (1.8)
Total comprehensive income
for the period - - - - - 45.1 619.4 664.5
Dividends paid - - - - - - (156.8) (156.8)
Own shares purchased
by the ESOT - - - - (0.6) - - (0.6)
Own shares purchased
by the Company - - - (352.0) - - - (352.0)
Share-based payments - - - - 0.8 - 14.6 15.4
Tax on share-based payments - - - - - - (0.2) (0.2)
At 30 April 2025 81.8 6.5 20.0 (1,170.7) (35.0) (208.7) 8,974.2 7,668.1
Profit for the period - - - - - - 800.6 800.6
Other comprehensive income:
Foreign currency translation
differences - - - - - (32.6) - (32.6)
Total comprehensive income
for the period - - - - - (32.6) 800.6 768.0
Dividends paid - - - - - - (304.6) (304.6)
Own shares purchased
by the ESOT - - - - (18.6) - - (18.6)
Own shares purchased
by the Company - - - (716.1) - - - (716.1)
Share-based payments - - - - 30.3 - (10.8) 19.5
Tax on share-based payments - - - - - - 0.2 0.2
At 31 October 2025 81.8 6.5 20.0 (1,886.8) (23.3) (241.3) 9,459.6 7,416.5
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2025
Unaudited
2025 2024
$m $m
Cash flows from operating activities
Cash generated from operations before
changes in rental equipment 2,414.0 2,543.2
Payments for rental property, plant and equipment (872.0) (1,518.2)
Proceeds from disposal of rental property, plant and equipment 193.7 214.8
Cash generated from operations 1,735.7 1,239.8
Financing costs paid (254.7) (287.9)
Tax paid (229.6) (256.0)
Net cash generated from operating activities 1,251.4 695.9
Cash flows from investing activities
Acquisition of businesses (123.3) (58.8)
Disposal of businesses 16.0 -
Payments for non-rental property, plant and equipment (199.6) (305.8)
Proceeds from disposal of non-rental property, plant and equipment 23.1 29.9
Net cash used in investing activities (283.8) (334.7)
Cash flows from financing activities
Drawdown of loans 906.4 840.4
Redemption of loans (741.2) (657.1)
Repayment of principal under lease liabilities (74.2) (69.3)
Dividends paid (307.3) (387.4)
Purchase of own shares by the ESOT (18.5) (84.9)
Purchase of own shares by the Company (714.1) -
Net cash used in financing activities (948.9) (358.3)
Increase in cash and cash equivalents 18.7 2.9
Opening cash and cash equivalents 21.0 20.8
Effect of exchange rate differences (0.1) -
Closing cash and cash equivalents 39.6 23.7
Reconciliation of net cash flows to net debt
Increase in cash and cash equivalents in the period (18.7) (2.9)
Increase in debt through cash flow 91.0 114.0
Change in net debt from cash flows 72.3 111.1
Exchange differences (15.0) 2.3
Debt acquired 33.8 18.6
Deferred costs of debt raising 5.3 4.8
New lease liabilities 119.1 153.6
Increase in net debt in the period 215.5 290.4
Net debt at 1 May 10,331.2 10,654.9
Net debt at 31 October 10,546.7 10,945.3
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
Ashtead Group plc ('the Company') is a company incorporated and domiciled in
England and Wales and listed on the London Stock Exchange. The condensed
consolidated interim financial statements as at, and for the six months ended
31 October 2025, comprise the Company and its subsidiaries ('the Group') and
are presented in US dollars.
The condensed consolidated interim financial statements for the six months
ended 31 October 2025 were approved by the directors on 8 December 2025.
The condensed consolidated interim financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
statutory accounts for the year ended 30 April 2025 were approved by the
directors on 16 June 2025 and have been mailed to shareholders and filed with
the Registrar of Companies. The auditor's report on those accounts was
unqualified, did not include a reference to any matter by way of emphasis and
did not contain a statement under Section 498(2) or (3) of the Companies Act
2006.
The condensed consolidated interim financial statements for the six months
ended 31 October 2025 are unaudited but have been reviewed by the Group's
auditors. Their report is on page 32.
Details of principal risks and uncertainties are given in the Review of Second
Quarter, Balance Sheet and Cash Flow accompanying these condensed consolidated
interim financial statements.
2. Basis of preparation
The condensed consolidated interim financial statements for the six months
ended 31 October 2025 have been prepared in accordance with relevant
UK-adopted International Accounting Standards ('IFRS'), including IAS34,
Interim Financial Reporting, the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority and the
accounting policies set out in the Group's Annual Report & Accounts for
the year ended 30 April 2025.
In preparing the financial statements, the exchange rates used in respect of
the pound sterling (£) and Canadian dollar (C$) are:
Pound sterling Canadian dollar
2025 2024 2025 2024
Average for the three months ended 31 October 1.34 1.31 0.72 0.73
Average for the six months ended 31 October 1.35 1.29 0.72 0.73
At 30 April 1.34 1.25 0.72 0.73
At 31 October 1.31 1.29 0.71 0.72
The directors have adopted various alternative performance measures to provide
additional useful information on the underlying trends, performance and
position of the Group. The alternative performance measures are not defined
by IFRS and therefore may not be directly comparable with other companies'
alternative performance measures but are defined within the Glossary of Terms
on page 34.
The condensed consolidated interim financial statements have been prepared on
the going concern basis. The Group's internal budgets and forecasts of
future performance, available financing facilities and facility headroom (see
Note 12), provide a reasonable expectation that the Group has adequate
resources to continue in operation for the foreseeable future and consequently
the going concern basis continues to be appropriate in preparing the financial
statements.
3. Segmental analysis
The Group's externally reportable segments reflect the internal reporting
structure of the Group, which is the basis on which resource allocation
decisions are made by management in the pursuit of strategic objectives.
During the prior financial year, the Group reassessed the basis of its
segmental information considering recent organisational changes. The Group
operates under two primary geographic regions reflecting its North American
activities and assets, and its UK activities and assets. The North American
business is further split by General Tool and Specialty, reflecting the nature
of its products and services and the management structure of the Group. As
such, the Group identified its reportable operating segments as North America
- General Tool, North America - Specialty and UK which we believe reflects
better the basis upon which we review the performance of the business
internally and aligns with the basis of our strategic growth plan, Sunbelt
4.0.
The Group manages debt (including lease liabilities) and taxation centrally,
rather than by business unit. Accordingly, segmental results are stated
excluding the impact of IFRS 16 lease accounting. Furthermore, segment
results are stated before interest and taxation which are reported as central
Group items. This is consistent with the way the chief executive reviews the
business.
Segmental information for the three and six months ended 31 October 2024 has
been restated to reflect these updated segments.
Three months to 31 October 2025 (unaudited)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,630.3 916.4 209.8 - 2,756.5
Sale of new equipment, merchandise
and consumables 44.6 33.4 19.7 - 97.7
Sale of used rental equipment 75.5 20.6 12.0 - 108.1
1,750.4 970.4 241.5 - 2,962.3
Adjusted segment EBITDA 951.6 459.3 62.6 (92.5) 1,381.0
Adjusted depreciation (353.0) (132.2) (44.2) (62.2) (591.6)
Adjusted operating profit 598.6 327.1 18.4 (154.7) 789.4
Net financing costs (133.3)
Non-recurring costs (56.8)
Amortisation (28.2)
Profit before taxation 571.1
Taxation (146.0)
Profit attributable to equity shareholders 425.1
Three months to 31 October 2024 (unaudited) (restated)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 1,599.9 917.6 207.3 - 2,724.8
Sale of new equipment, merchandise
and consumables 45.6 24.6 19.9 - 90.1
Sale of used rental equipment 84.7 26.9 14.3 - 125.9
1,730.2 969.1 241.5 - 2,940.8
Adjusted segment EBITDA 975.9 469.4 68.4 (103.5) 1,410.2
Adjusted depreciation (346.0) (135.5) (44.5) (58.8) (584.8)
Adjusted operating profit 629.9 333.9 23.9 (162.3) 825.4
Net financing costs (143.6)
Non-recurring costs -
Amortisation (29.2)
Profit before taxation 652.6
Taxation (166.6)
Profit attributable to equity shareholders 486.0
Six months to 31 October 2025 (unaudited)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 3,165.5 1,770.0 421.8 - 5,357.3
Sale of new equipment, merchandise
and consumables 87.7 66.2 41.1 - 195.0
Sale of used rental equipment 146.1 43.5 21.3 - 210.9
3,399.3 1,879.7 484.2 - 5,763.2
Adjusted segment EBITDA 1,822.3 895.2 124.0 (184.6) 2,656.9
Adjusted depreciation (704.2) (266.9) (89.4) (124.4) (1,184.9)
Adjusted operating profit 1,118.1 628.3 34.6 (309.0) 1,472.0
Net financing costs (263.5)
Non-recurring costs (69.5)
Amortisation (56.3)
Profit before taxation 1,082.7
Taxation (282.1)
Profit attributable to equity shareholders 800.6
Six months to 31 October 2024 (unaudited) (restated)
North America
General Tool Central costs
Specialty UK Group
$m $m $m $m $m
Revenue
Rental revenue 3,123.5 1,730.5 411.3 - 5,265.3
Sale of new equipment, merchandise
and consumables 88.9 51.4 41.4 - 181.7
Sale of used rental equipment 178.9 42.5 26.1 - 247.5
3,391.3 1,824.4 478.8 - 5,694.5
Adjusted segment EBITDA 1,876.1 879.9 132.3 (190.4) 2,697.9
Adjusted depreciation (684.9) (266.5) (86.3) (117.8) (1,155.5)
Adjusted operating profit 1,191.2 613.4 46.0 (308.2) 1,542.4
Net financing costs (287.5)
Non-recurring costs -
Amortisation (57.9)
Profit before taxation 1,197.0
Taxation (307.5)
Profit attributable to equity shareholders 889.5
North America
General Tool Central items
Specialty UK Group
$m $m $m $m $m
At 31 October 2025 (unaudited)
Segment assets 10,290.1 3,743.4 1,154.9 6,783.1 21,971.5
Cash 39.6
Taxation assets 52.7
Total assets 22,063.8
At 30 April 2025 (audited)
Segment assets 10,082.5 3,594.9 1,198.3 6,771.9 21,647.6
Cash 21.0
Taxation assets 23.1
Total assets 21,691.7
4. Operating costs and other income
Unaudited
Three months Six months
to 31 October to 31 October
2025 2024 2025 2024
$m $m $m $m
Staff costs:
Salaries 601.6 579.7 1,195.2 1,158.1
Social security costs 44.9 42.8 93.6 85.8
Other pension costs 12.6 12.2 25.8 24.1
659.1 634.7 1,314.6 1,268.0
Other operating costs:
Vehicle costs 194.2 200.9 384.2 381.4
Spares, consumables & external repairs 173.5 156.4 335.8 293.7
Facility costs 30.9 28.4 59.8 55.9
Other external charges 461.6 399.0 872.4 785.5
860.2 784.7 1,652.2 1,516.5
Used rental equipment sold 100.5 111.2 190.7 212.1
Depreciation and amortisation:
Depreciation of tangible assets 552.9 532.7 1,091.7 1,051.1
Depreciation of right-of-use assets 57.0 52.1 111.5 104.4
Amortisation of intangibles 28.2 29.2 56.3 57.9
638.1 614.0 1,259.5 1,213.4
2,257.9 2,144.6 4,417.0 4,210.0
5. Net financing costs
Unaudited
Three months Six months
to 31 October to 31 October
2025 2024 2025 2024
$m $m $m $m
Interest income:
Other interest 0.9 - 2.5 -
0.9 - 2.5 -
Interest expense:
Bank interest payable 21.7 33.9 41.6 68.7
Interest payable on senior notes 69.8 69.8 139.7 139.7
Interest payable on lease liabilities 38.7 36.2 76.9 71.7
Non-cash unwind of discount on liabilities 1.3 1.3 2.5 2.6
Amortisation of deferred debt raising costs 2.7 2.4 5.3 4.8
134.2 143.6 266.0 287.5
6. Taxation
The tax charge for the period has been determined by applying the expected
effective tax rates in each jurisdiction for the year as a whole, based on the
tax rates in force as at 31 October 2025 of 25% in the US (2024: 25%), 26% in
Canada (2024: 26%) and 25% in the UK (2024: 25%). This results in a blended
effective rate for the Group as a whole of 26% (2024: 26%) for the period.
The tax charge of $282m (2024: $308m) on the profit before taxation of $1,083m
(2024: $1,197m) can be explained as follows:
Unaudited
Six months
to 31 October
2025 2024
$m $m
Current tax
- current tax on income for the period 237.1 292.0
- adjustments to prior year (27.0) 0.1
210.1 292.1
Deferred tax
- origination and reversal of temporary differences 44.8 15.6
- adjustments to prior year 27.2 (0.2)
72.0 15.4
Tax charge 282.1 307.5
Comprising:
- US 272.3 293.0
- Canada 16.7 11.0
- UK (6.9) 3.5
282.1 307.5
On 4 July 2025, Public Law No. 119-21, commonly referred to as the 'One Big
Beautiful Bill Act' ('the Act') was enacted in the United States. The Act,
among other things, permanently reinstated the additional first-year
depreciation allowance for qualified property ('bonus depreciation'),
permanently reinstated the EBITDA approach for calculating the business
interest limitation and the immediate expensing of US research and
experimental expenditures. An estimate of the effects of the legislation has
been recorded in the first half leading to a $28m reduction in 2025 April cash
tax. The legislation has no significant impact on our effective rate.
7. Earnings per share
Basic and diluted earnings per share for the three and six months ended 31
October 2025 have been calculated based on the profit for the relevant period
and the weighted average number of ordinary shares in issue during that period
(excluding shares held by the Company and the ESOT over which dividends have
been waived). Diluted earnings per share is computed using the result for
the relevant period and the diluted number of shares (ignoring any potential
issue of ordinary shares which would be anti-dilutive). These are calculated
as follows:
Unaudited
Three months to Six months to
31 October 31 October
2025 2024 2025 2024
Profit for the financial period ($m) 425.1 486.0 800.6 889.5
Weighted average number of shares (m) - basic 423.0 436.9 425.6 436.7
- diluted 423.6 437.8 426.4 438.3
Basic earnings per share 100.4¢ 111.3¢ 188.1¢ 203.7¢
Diluted earnings per share 100.3¢ 111.0¢ 187.8¢ 202.9¢
A reconciliation to adjusted earnings per share is included in the Glossary of
Terms on page 34.
8. Dividends
During the period, a final dividend in respect of the year ended 30 April 2025
of 72¢ (2024: 89.25¢) per share was paid to shareholders, resulting in a
cash outflow of $307m (2024: $387m). In addition, the directors have
declared an interim dividend in respect of the year ending 30 April 2026 of
37.5¢ (2024: 36¢) per share to be paid on 6 February 2026 to shareholders
who are on the register of members on 9 January 2026.
9. Property, plant and equipment
2025 2024
Rental Rental
equipment Total equipment Total
Net book value $m $m $m $m
At 1 May 11,312.1 13,231.3 11,450.8 13,248.5
Exchange differences (24.9) (29.3) 9.5 10.1
Reclassifications (6.4) - 0.6 -
Additions 1,062.5 1,262.1 1,373.7 1,679.4
Acquisitions 55.4 59.1 26.0 28.5
Disposals (200.3) (218.6) (201.3) (223.5)
Depreciation (923.4) (1,091.7) (894.5) (1,051.1)
At 31 October 11,275.0 13,212.9 11,764.8 13,691.9
Included within depreciation is an impairment charge of $16m (2024: $nil).
10. Right-of-use assets
2025 2024
Property Other Property Other
Net book value leases leases Total leases leases Total
$m $m $m $m $m $m
At 1 May 2,490.7 32.4 2,523.1 2,390.5 35.1 2,425.6
Exchange differences (4.9) (0.4) (5.3) (1.1) 0.9 (0.2)
Additions 87.1 0.3 87.4 113.1 3.9 117.0
Acquisitions 15.3 - 15.3 18.6 - 18.6
Remeasurement 41.5 - 41.5 44.1 - 44.1
Disposals (7.2) (0.9) (8.1) (6.5) (0.5) (7.0)
Depreciation (107.4) (4.1) (111.5) (100.3) (4.1) (104.4)
At 31 October 2,515.1 27.3 2,542.4 2,458.4 35.3 2,493.7
Included within depreciation is an impairment charge of $2m (2024: $nil).
11. Lease liabilities
31 October 30 April
2025 2025
$m $m
Current 306.9 298.8
Non-current 2,599.3 2,553.3
2,906.2 2,852.1
12. Borrowings
31 October 30 April
2025 2025
$m $m
Non-current
First priority senior secured bank debt 1,522.1 1,345.7
1.500% senior notes, due August 2026 549.2 548.7
4.375% senior notes, due August 2027 598.1 597.6
4.000% senior notes, due May 2028 597.4 597.0
4.250% senior notes, due November 2029 596.5 596.1
2.450% senior notes, due August 2031 745.6 745.3
5.500% senior notes, due August 2032 740.5 739.9
5.550% senior notes, due May 2033 744.3 744.0
5.950% senior notes, due October 2033 744.8 744.6
5.800% senior notes, due April 2034 841.6 841.2
7,680.1 7,500.1
The senior secured bank debt is secured by way of fixed and floating charges
over substantially all the Group's property, plant and equipment, inventory
and trade receivables and is committed until November 2029. The senior notes
are guaranteed by Ashtead Group plc and all its principal subsidiary
undertakings.
Our debt facilities are committed for the long term, with an average maturity
of five years and a weighted average interest cost (including non-cash
amortisation of deferred debt raising costs) of 5%.
There is one financial performance covenant under the first priority senior
credit facility. That is the fixed charge ratio (comprising EBITDA before
exceptional items less net capital expenditure paid in cash over the sum of
scheduled debt repayments plus cash interest, cash tax payments and dividends
paid in the last twelve months) which, must be equal to, or greater than, 1.0.
This covenant does not apply when availability exceeds $475m.
At 31 October 2025, availability under the senior secured bank facility was
$3,431m ($3,616m at 30 April 2025), with an additional $6,367m of suppressed
availability, meaning that the covenant did not apply at 31 October 2025 and
is unlikely to apply in forthcoming quarters.
Fair value of financial instruments
Financial assets and liabilities are measured in accordance with the fair
value hierarchy and assessed as Level 1, 2 or 3 based on the following
criteria:
- Level 1: fair value measurement based on quoted prices (unadjusted) in active
markets for identical assets or liabilities;
- Level 2: fair value measurements derived from inputs other than quoted prices
that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
- Level 3: fair value measurements derived from valuation techniques that
include inputs for the asset or liability that are not based on observable
market data.
Fair value of derivative financial instruments
At 31 October 2025, the Group had no derivative financial instruments. The
embedded prepayment options included within the senior notes are either
closely related to the host debt contract or immaterial and hence, are not
accounted for separately. These loan notes are carried at amortised cost.
Fair value of non-derivative financial assets and liabilities
The table below provides a comparison, by category of the carrying amounts and
the fair values of the Group's non-derivative financial assets and
liabilities.
At 31 October 2025 At 30 April 2025
Book value Fair value Book value Fair value
$m $m $m $m
Long-term borrowings
- first priority senior secured bank debt Level 1 1,522.1 1,522.1 1,345.7 1,345.7
- 1.500% senior notes Level 1 550.0 537.6 550.0 528.4
- 4.375% senior notes Level 1 600.0 600.0 600.0 594.9
- 4.000% senior notes Level 1 600.0 595.4 600.0 586.1
- 4.250% senior notes Level 1 600.0 591.8 600.0 579.1
- 2.450% senior notes Level 1 750.0 666.3 750.0 636.9
- 5.500% senior notes Level 1 750.0 774.6 750.0 743.8
- 5.550% senior notes Level 1 750.0 774.9 750.0 740.6
- 5.950% senior notes Level 1 750.0 794.0 750.0 757.8
- 5.800% senior notes Level 1 850.0 892.9 850.0 850.4
Total long-term borrowings 7,722.1 7,749.6 7,545.7 7,363.7
Discount on issue of debt (11.7) - (12.4) -
Deferred costs of raising finance (30.3) - (33.2) -
7,680.1 7,749.6 7,500.1 7,363.7
Other financial instruments(1)
Contingent consideration Level 3 28.8 28.8 18.0 18.0
Financial asset investments Level 3 31.5 31.5 31.5 31.5
Cash and cash equivalents Level 1 39.6 39.6 21.0 21.0
( )
(1) The Group's trade and other receivables, trade and other payables,
excluding contingent consideration, and lease liabilities are not shown in the
table above. The carrying amounts of these financial assets and liabilities
approximate their fair values.
Contingent consideration is a Level 3 financial liability. Future
anticipated payments to vendors in respect of contingent consideration are
initially recorded at fair value which is the present value of the expected
cash outflows of the obligations. The obligations are dependent upon the
future financial performance of the businesses acquired. The fair value is
estimated based on internal financial projections prepared in relation to the
acquisition with the contingent consideration discounted to present value
using a discount rate in line with the Group's cost of debt. The movement
since 30 April 2025 can be attributed to $11m of additions through business
acquisitions (see Note 15).
Financial asset investments are measured at fair value and are Level 3
financial assets. These assets are measured at fair value through other
comprehensive income. Their fair values are estimated based on the latest
transaction price and any subsequent investment-specific adjustments.
13. Share capital
Ordinary shares of 10p each:
31 October 30 April 31 October 30 April
2025 2025 2025 2025
Number Number $m $m
Issued and fully paid 451,354,833 451,354,833 81.8 81.8
During the period, the Company purchased 10.9m ordinary shares at a total cost
of $716m (£532m) under the Group's share buyback programme announced by the
Company in December 2024, which are held in treasury. At 31 October 2025,
31.0m (April 2025: 20.1m) shares were held by the Company ($1,887m; April
2025: $1,171m) and a further 0.4m (April 2025: 0.5m) shares were held by the
Company's Employee Share Ownership Trust ($23m; April 2025: $35m).
14. Notes to the cash flow statement
a) Cash flow from operating activities
Six months to 31 October
2025 2024
$m $m
Operating profit 1,346.2 1,484.5
Depreciation 1,203.2 1,155.5
Amortisation 56.3 57.9
EBITDA 2,605.7 2,697.9
Profit on disposal of rental equipment (20.2) (35.4)
Profit on disposal of other property, plant and equipment (3.7) (8.6)
(Increase)/decrease in inventories (7.8) 0.8
Increase in trade and other receivables (277.3) (185.0)
Increase in trade and other payables 98.2 59.4
Exchange differences (0.4) 0.8
Other non-cash movement 19.5 13.3
Cash generated from operations before
changes in rental equipment 2,414.0 2,543.2
b) Analysis of net debt
Net debt consists of total borrowings and lease liabilities less cash and cash
equivalents. Borrowings exclude accrued interest. Non-US dollar
denominated balances are translated to US dollars at rates of exchange ruling
at the balance sheet date.
Non-cash movements
1 May Cash Exchange Debt New lease Other 31 October
2025 flow movement acquired liabilities movements 2025
$m $m $m $m $m $m $m
Long-term borrowings 7,500.1 165.2 (9.0) 18.5 - 5.3 7,680.1
Lease liabilities 2,852.1 (74.2) (6.1) 15.3 119.1 - 2,906.2
Total liabilities from
financing activities 10,352.2 91.0 (15.1) 33.8 119.1 5.3 10,586.3
Cash and cash
equivalents (21.0) (18.7) 0.1 - - - (39.6)
Net debt 10,331.2 72.3 (15.0) 33.8 119.1 5.3 10,546.7
Non-cash movements
1 May Cash Exchange Debt New lease Other 31 October
2024 flow movement acquired liabilities movements 2024
$m $m $m $m $m $m $m
Long-term borrowings 7,995.1 183.3 2.8 - - 4.8 8,186.0
Lease liabilities 2,680.6 (69.3) (0.5) 18.6 153.6 - 2,783.0
Total liabilities from
financing activities 10,675.7 114.0 2.3 18.6 153.6 4.8 10,969.0
Cash and cash
equivalents (20.8) (2.9) - - - - (23.7)
Net debt 10,654.9 111.1 2.3 18.6 153.6 4.8 10,945.3
Details of the Group's cash and debt are given in Notes 11 and 12 and the
Review of Second Quarter, Balance Sheet and Cash Flow accompanying these
condensed consolidated interim financial statements.
c) Acquisitions
Six months
to 31 October
2025 2024
$m $m
Cash consideration paid:
- acquisitions in the period 123.3 53.1
- contingent consideration - 5.7
123.3 58.8
During the period, seven businesses were acquired with cash paid of $123m
(2024: $53m), after taking account of net cash acquired of $2m (2024: $nil).
Further details are provided in Note 15.
Contingent consideration of $nil (2024: $6m) was paid relating to prior year
acquisitions.
15. Acquisitions
The Group undertakes bolt-on acquisitions to complement its organic growth
strategy. During the period, the following acquisitions were completed:
i) On 4 June 2025, Sunbelt US acquired the business and assets of MPC Solutions,
LLC ('MPC'). MPC is a specialty business operating in North America.
ii) On 16 July 2025, Sunbelt Canada acquired the business and assets of Location
de Beauce (1983) Inc. ('Beauce'). Beauce is a general tool business
operating in Québec.
iii) On 13 August 2025, Sunbelt US acquired the business and assets of ARX
Perimeters, LLC ('ARX'). ARX is a specialty business operating in Illinois.
iv) On 2 September 2025, Sunbelt Canada acquired the entire share capital of
Location Thomas inc. ('Thomas'). Thomas is a general tool business operating
in Québec.
v) On 17 September 2025, Sunbelt US acquired the entire share capital of Rabern
Holdco, Inc. ('Rabern'). Rabern is a general tool business operating in
Texas.
vi) On 1 October 2025, Sunbelt US acquired the business and assets of T and T
Equipment Rentals, LLC ('T and T'). T and T is a general tool business
operating in Iowa.
vii) On 22 October 2025, Sunbelt US acquired the business and assets of Action
Rentals ('Action'). Action is a general tool business operating in
California.
The following table sets out the fair value of the identifiable assets and
liabilities acquired by the Group. The fair values have been determined
provisionally at the balance sheet date.
Fair value
to the Group
$m
Net assets acquired
Trade and other receivables 8.8
Inventory 1.5
Property, plant and equipment
- rental equipment 55.4
- other assets 3.7
Right-of-use assets 15.3
Current tax 0.1
Creditors (5.5)
Deferred tax (4.0)
Debt (18.5)
Lease liabilities (15.3)
Intangible assets 24.3
65.8
Consideration:
- cash paid and due to be paid (net of cash acquired) 124.4
- contingent consideration 11.0
135.4
Goodwill 69.6
The goodwill arising can be attributed to the key management personnel and
workforce of the acquired businesses, the benefits through advancing our
clusters and leveraging cross-selling opportunities, and to the synergies and
other benefits the Group expects to derive from the acquisitions. The
synergies and other benefits include elimination of duplicate costs, improving
utilisation of the acquired rental fleet, using the Group's financial strength
to invest in the acquired business and drive improved returns through a
semi-fixed cost base and the application of the Group's proprietary software
to optimise revenue opportunities. $35m of the goodwill is expected to be
deductible for income tax purposes.
The gross value and the fair value of trade receivables at acquisition was
$9m.
Due to the operational integration of acquired businesses post-acquisition, in
particular due to the merger of some stores, the movement of rental equipment
between stores and investment in the rental fleet, it is not practical to
report the revenue and profit of the acquired businesses post-acquisition.
The revenue and operating profit of these acquisitions from 1 May 2025 to
their date of acquisition was not material.
16. Events after the balance sheet date
Since the balance sheet date, the Group has completed two acquisitions for
total purchase consideration of $13m, as follows:
i) On 12 November 2025, Sunbelt US acquired the business and assets of Sierra
Trench Protection Rentals & Sales Inc. ('Sierra'). Sierra is a specialty
business operating in California.
ii) On 12 November 2025, Sunbelt Canada acquired the business and assets of
Silverback Steam & Heating Rentals Inc. ('Silverback'). Silverback is a
specialty business operating in Alberta.
The initial accounting for these acquisitions is incomplete given the
proximity to the year end. Had these acquisition taken place on 1 May 2025,
their contribution to revenue and operating profit would not have been
material.
REVIEW OF SECOND QUARTER, BALANCE SHEET AND CASH FLOW
Second quarter
Segment
Revenue EBITDA(1,2) Profit(1,2)
2025 2024 2025 2024 2025 2024
$m $m $m $m $m $m
North America General Tool 1,750.4 1,730.2 951.6 975.9 598.6 629.9
North America Specialty 970.4 969.1 459.3 469.4 327.1 333.9
UK 241.5 241.5 62.6 68.4 18.4 23.9
Central costs - - (92.5) (103.5) (154.7) (162.3)
2,962.3 2,940.8 1,381.0 1,410.2 789.4 825.4
Financing costs (133.3) (143.6)
Adjusted profit before tax 656.1 681.8
Non-recurring costs (56.8) -
Amortisation (28.2) (29.2)
Profit before taxation 571.1 652.6
Margins as reported
North America General Tool 54.4% 56.4% 34.2% 36.4%
North America Specialty 47.3% 48.4% 33.7% 34.5%
UK 25.9% 28.3% 7.6% 9.9%
Group 46.6% 48.0% 26.6% 28.1%
( )
(1) Segment performance is measured internally excluding central costs which
support the business as a whole. Furthermore, the Group manages debt,
including lease liabilities, centrally and therefore segment profit measures
are presented before the application of lease accounting adjustments in
accordance with IFRS 16 Leases but instead reflect the cash cost incurred in
the period. The impact of lease accounting adjustments are included within
the central costs line item above.
(2) Segment results presented are adjusted EBITDA and adjusted operating
profit. A reconciliation of adjusted measures to statutory measures is
provided in the Glossary of Terms on page 34.
Group revenue for the quarter increased 1% to $2,962m (2024: $2,941m).
North America General Tool rental revenue in the quarter was 2% higher than
the prior year, while total revenue was 1% above prior year due to planned
lower sales of used equipment. Adjusted segment operating profit was $599m
(2024: $630m).
North America Specialty rental revenue and total revenue remained flat
compared with a year ago reflecting underlying growth despite lapping strong
US hurricane-related activity. Adjusted segment operating profit was $327m
(2024: $334m).
The UK generated rental revenue in the quarter of $210m (2024: $207m), 1%
higher than the prior year, while total revenue was constant with prior year
at $242m (2024: $242m). Adjusted segment operating profit was $18m (2024:
$24m).
Group adjusted EBITDA decreased 2% to $1,381m (2024: $1,410m) while adjusted
operating profit decreased 4% to $789m (2024: $825m). After financing costs
of $133m (2024: $144m), Group adjusted profit before tax was $656m (2024:
$682m).
After non-recurring costs of $57m (2024: $nil) and amortisation of $28m (2024:
$29m), statutory profit before taxation was $571m (2024: $653m).
Balance sheet
Property, plant and equipment
Capital expenditure in the first half totalled $1,262m (2024: $1,679m) with
$1,062m invested in the rental fleet (2024: $1,374m). Expenditure on rental
equipment was 84% of total capital expenditure, where life cycle inflation is
c. 20%, with the balance relating to the delivery vehicle fleet, property
improvements and IT equipment. Capital expenditure by division was:
2025 2024
$m $m
North America General Tool 651.3 951.3
North America Specialty 327.0 320.5
UK 84.2 101.9
Total rental equipment 1,062.5 1,373.7
Delivery vehicles, property improvements & IT equipment 199.6 305.7
Total additions 1,262.1 1,679.4
The average age of the Group's serialised rental equipment, which constitutes
the substantial majority of our fleet, at 31 October 2025 was 51 months (2024:
46 months) on an original cost basis. The North America General Tool fleet
had an average age of 50 months (2024: 45 months), the North America Specialty
fleet had an average age of 55 months (2024: 49 months) and the UK fleet had
an average age of 54 months (2024: 51 months).
Rental fleet at original cost
31 October 30 April LTM LTM rental LTM dollar
2025 2025 Average revenue utilisation
North America General Tool 12,825 12,523 12,590 5,932 47%
North America Specialty 4,602 4,494 4,510 3,352 74%
UK 1,467 1,521 1,503 788 52%
18,894 18,538 18,603 10,072
Dollar utilisation was 47% for North America General Tool (2024: 49%), 74% for
North America Specialty (2024: 75%) and 52% for the UK (2024: 53%). The
decrease in North America General Tool dollar utilisation is due principally
to lower average physical utilisation over the last 12 months and fleet
inflation.
Trade receivables
Receivable days at 31 October 2025 were 49 days (2024: 48 days). The bad
debt charge for the last twelve months ended 31 October 2025 as a percentage
of total turnover was 0.3% (2024: 0.8%). Trade receivables at 31 October 2025
of $1,755m (2024: $1,710m) are stated net of allowances for bad debts and
credit notes of $111m (2024: $151m), with the provision representing 6% (2024:
8%) of gross receivables.
Trade and other payables
Group payable days were 50 days at 31 October 2025 (2024: 47 days) with
capital expenditure related payables totalling $422m (2024: $374m). Payment
periods for purchases other than rental equipment vary between seven and 60
days and for rental equipment between 30 and 120 days.
Cash flow and net debt
Six months to LTM to Year to
31 October 31 October 30 April
2025 2024 2025 2025
$m $m $m $m
Adjusted EBITDA 2,656.9 2,697.9 4,980.7 5,021.7
Cash inflow from operations before
non-recurring costs and changes in rental equipment 2,448.3 2,543.2 4,858.6 4,953.5
Cash conversion ratio* 92.1% 94.3% 97.5% 98.6%
Payments for rental capital expenditure (872.0) (1,518.2) (1,605.0) (2,251.2)
Payments for non-rental capital expenditure (199.6) (305.8) (349.4) (455.6)
Rental equipment disposal proceeds 193.7 214.8 440.6 461.7
Other property, plant and equipment disposal proceeds 23.1 29.9 54.4 61.2
Tax paid (net) (229.6) (256.0) (398.4) (424.8)
Financing costs (254.7) (287.9) (521.7) (554.9)
Free cash flow 1,109.2 420.0 2,479.1 1,789.9
Non-recurring costs (34.3) - (44.7) (10.4)
Business acquisitions (123.3) (58.8) (211.9) (147.4)
Business disposals 16.0 - 16.0 -
Total cash generated 967.6 361.2 2,238.5 1,632.1
Dividends (307.3) (387.4) (464.1) (544.2)
Purchase of own shares by the ESOT (18.5) (84.9) (19.1) (85.5)
Purchase of own shares by the Company (714.1) - (1,056.0) (341.9)
(Increase)/decrease in net debt due to cash flow (72.3) (111.1) 699.3 660.5
* Cash inflow from operations before non-recurring costs and changes in rental
equipment as a percentage of adjusted EBITDA.
Cash inflow from operations before non-recurring costs and the net investment
in the rental fleet was $2,448m (2024: $2,543m). The conversion ratio for
the period was 92% (2024: 94%).
Total payments for capital expenditure (rental equipment and other PPE) during
the first half were $1,072m (2024: $1,824m). Disposal proceeds received
totalled $217m (2024: $245m), giving net payments for capital expenditure of
$855m in the period (2024: $1,579m). Financing costs paid totalled $255m
(2024: $288m), while tax payments were $230m (2024: $256m). Financing costs
paid typically differ from the charge in the income statement due to the
timing of interest payments in the period and non-cash interest charges.
Accordingly, the Group generated free cash flow of $1,109m (2024: $420m) and,
after non-recurring costs of $34m (2024: $nil) and acquisition expenditure,
net of disposal proceeds, of $107m (2024: $59m), a cash flow of $968m (2024:
$361m), before returns to shareholders.
Net debt
31 October 30 April
2025 2024 2025
$m $m $m
First priority senior secured bank debt 1,522.1 2,035.3 1,345.7
1.500% senior notes, due 2026 549.2 548.2 548.7
4.375% senior notes, due 2027 598.1 597.1 597.6
4.000% senior notes, due 2028 597.4 596.5 597.0
4.250% senior notes, due 2029 596.5 595.7 596.1
2.450% senior notes, due 2031 745.6 744.9 745.3
5.500% senior notes, due 2032 740.5 739.4 739.9
5.550% senior notes, due 2033 744.3 743.7 744.0
5.950% senior notes, due 2033 744.8 744.3 744.6
5.800% senior notes, due 2034 841.6 840.9 841.2
Total external borrowings 7,680.1 8,186.0 7,500.1
Lease liabilities 2,906.2 2,783.0 2,852.1
Total gross debt 10,586.3 10,969.0 10,352.2
Cash and cash equivalents (39.6) (23.7) (21.0)
Total net debt 10,546.7 10,945.3 10,331.2
Net debt at 31 October 2025 was $10,547m with the increase since 30 April 2025
reflecting the cash outflow set out above and additional lease commitments as
we continue our greenfield and bolt-on expansion. The Group's adjusted
EBITDA for the twelve months ended 31 October 2025 was $4,981m. Excluding
the impact of IFRS 16, the ratio of net debt to adjusted EBITDA was 1.6 times
(2024: 1.7 times) on a constant currency and a reported basis as at 31
October 2025. Including the impact of IFRS 16, the ratio of net debt to
adjusted EBITDA was 2.1 times (2024: 2.2 times) as at 31 October 2025.
Principal risks and uncertainties
Risks and uncertainties in achieving the Group's objectives for the remainder
of the financial year, together with assumptions, estimates, judgements and
critical accounting policies used in preparing financial information remain
broadly unchanged from those detailed in the 2025 Annual Report and Accounts
on pages 32 to 37.
The principal risks and uncertainties facing the Group are:
● economic conditions - in the longer term, there is a link between levels of
economic activity and demand for our services. The most significant end
market which affects our business is construction. The construction industry
is cyclical and typically lags the general economic cycle by between 12 and 24
months.
The economic uncertainties resulting from the impact of pandemics is
considered as part of this risk.
● competition - the already competitive market could become even more
competitive and we could suffer increased competition from large national
competitors or smaller regional or local companies resulting in reduced market
share and lower revenue.
This could negatively affect rental rates and physical utilisation. Continuing
industry consolidation could also have a similar effect.
● cyber security - a cyber-attack or serious uncured failure in our systems
could result in us being unable to deliver service to our customers and / or
the loss of data. In particular, we are heavily dependent on technology for
the smooth running of our business given the large number of both units of
equipment we rent and our customers. As a result, we could suffer
reputational loss, revenue loss and financial penalties.
This is the most significant factor in our business continuity planning.
● health and safety - a failure to comply with laws and regulations governing
health and safety and ensure the highest standards of health and safety across
the Group could result in accidents which may result in injury to or fatality
of an individual, claims against the Group and/or damage to our reputation.
● people and culture - retaining and attracting good people is key to delivering
superior performance and customer service and maintaining and enhancing our
culture.
Excessive staff turnover is likely to impact on our ability to maintain the
appropriate quality of service to our customers and would ultimately impact
our financial performance adversely.
At a leadership level, succession planning is required to ensure the Group can
continue to inspire the right culture, leadership and behaviours and meet its
strategic objectives. Furthermore, it is important that our remuneration
policies reflect the Group's North American focus and enable us to retain and
enhance our strong leadership team.
● environmental - as part of Sunbelt 4.0, the Group has made a long-term
commitment to reduce its Scope 1 and 2 carbon intensity by 50% by 2034,
compared to a baseline of 2024, on a journey to Net Zero by 2050. Failure
to achieve these goals could adversely impact the Group and its
stakeholders.
In terms of the Group's assessment of the broader environmental impacts of our
activities, we also consider the upstream and downstream impacts of our
operations and note that a significant part of our Scope 3 emissions arises
from our rental fleet, which today is reliant on diesel engines. Over time,
'greener' alternatives will become available as technology advances. If we
do not remain at the forefront of technological advances, and invest in the
latest equipment, our rental fleet could become obsolete.
In addition, we need to comply with the numerous laws governing environmental
protection matters. These laws regulate such issues as wastewater, storm
water, solid and hazardous wastes and materials, and air quality. Breaches
potentially create hazards to our employees, damage to our reputation and
expose the Group to, amongst other things, the cost of investigating and
remediating contamination and also fines and penalties for non-compliance.
● laws and regulations - breaches of laws or regulations governing the Group's
activities could result in criminal prosecution, substantial claims and loss
of reputation.
Further details, including actions taken to mitigate these risks, are provided
within the 2025 Annual Report & Accounts.
Our business is subject to significant fluctuations in performance from
quarter to quarter as a result of seasonal effects. Commercial construction
activity tends to increase in the summer and during extended periods of mild
weather and to decrease in the winter and during extended periods of inclement
weather. Furthermore, due to the incidence of public holidays in the US,
Canada and the UK, there are more billing days in the first half of our
financial year than the second half leading to our revenue normally being
higher in the first half. On a quarterly basis, the second quarter is
typically our strongest quarter, followed by the first and then the third and
fourth quarters.
In addition, the current trading and outlook section of the interim statement
provides commentary on market and economic conditions for the remainder of the
year.
OPERATING STATISTICS
Number of rental stores Staff numbers
31 October 30 April 31 October 30 April
2025 2024 2025 2025 2024 2025
North America - General Tool 800 774 781 13,075 12,867 12,695
North America - Specialty 592 586 588 6,590 6,539 6,444
UK 186 188 191 4,188 4,427 4,326
Central - - - 1,575 1,539 1,576
Group 1,578 1,548 1,560 25,428 25,372 25,041
INDEPENDENT REVIEW REPORT TO ASHTEAD GROUP PLC
REPORT ON THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Our conclusion
We have reviewed Ashtead Group plc's condensed consolidated interim financial
statements (the 'interim financial statements') in the unaudited results for
the half year of Ashtead Group plc for the six month period ended 31 October
2025 (the 'period').
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the consolidated income statement for the period ended 31 October
2025;
· the consolidated statement of comprehensive income for the period
then ended;
· the consolidated balance sheet as at 31 October 2025;
· the consolidated statement of changes in equity for the period then
ended;
· the consolidated cash flow statement for the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the unaudited results for the
half year of Ashtead Group plc have been prepared in accordance with UK
adopted International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ('ISRE (UK) 2410'). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the unaudited results for the
half year and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The unaudited results for the half year, including the interim financial
statements, are the responsibility of, and have been approved by the
directors. The directors are responsible for preparing the unaudited results
for the half year in accordance with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority. In
preparing the unaudited results for the half year, including the interim
financial statements, the directors are responsible for assessing the group's
ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the unaudited results for the half year based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
8 December 2025
GLOSSARY OF TERMS
The glossary of terms below sets out definitions of terms used throughout this
announcement. Included are a number of alternative performance measures
('APMs') which the directors have adopted in order to provide additional
useful information on the underlying trends, performance and position of the
Group. The directors use these measures, which are common across the
industry, for planning and reporting purposes. These measures are also used
in discussions with the investment analyst community and credit rating
agencies. The APMs are not defined by IFRS and therefore may not be directly
comparable with other companies' APMs and should not be considered superior to
or a substitute for IFRS measures.
Term Closest equivalent statutory measure Definition and purpose
Adjusted EBITDA Operating profit Adjusted EBITDA is operating profit before depreciation, amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Operating profit 704.4 796.2 1,346.2 1,484.5
Depreciation 609.9 584.8 1,203.2 1,155.5
Amortisation 28.2 29.2 56.3 57.9
EBITDA 1,342.5 1,410.2 2,605.7 2,697.9
Non-recurring costs 38.5 - 51.2 -
Adjusted EBITDA 1,381.0 1,410.2 2,656.9 2,697.9
Adjusted operating profit Operating profit Adjusted operating profit is operating profit before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Operating profit 704.4 796.2 1,346.2 1,484.5
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Adjusted operating profit 789.4 825.4 1,472.0 1,542.4
Adjusted profit before tax Profit before tax Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Profit before tax 571.1 652.6 1,082.7 1,197.0
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Adjusted profit before tax 656.1 681.8 1,208.5 1,254.9
Adjusted profit after tax Profit after tax Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Profit after tax 425.1 486.0 800.6 889.5
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Tax on adjusting items (15.5) (7.2) (23.7) (14.4)
Adjusted profit after tax 494.6 508.0 902.7 933.0
Adjusted earnings per share Earnings per share Adjusted earnings per share is earnings per share before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
ȼ ȼ ȼ ȼ
Earnings per share (basic) 100.4 111.3 188.1 203.7
Amortisation 6.7 6.6 13.3 13.2
Non-recurring costs 13.4 - 16.3 -
Tax on adjusting items (3.7) (1.7) (5.6) (3.3)
Adjusted earnings per share (basic) 116.8 116.2 212.1 213.6
Adjusted depreciation Depreciation Adjusted depreciation is depreciation of both tangible fixed assets and
right-of-use assets before the depreciation costs associated with the
restructuring in the UK.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Depreciation 609.9 584.8 1,203.2 1,155.5
UK restructure:
- Impairment of tangible assets (16.3) - (16.3) -
- Impairment of right-of-use assets (2.0) - (2.0) -
Adjusted depreciation 591.6 584.8 1,184.9 1,155.5
Adjusted segment EBITDA Operating profit Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs. Adjusted segment EBITDA is calculated
excluding the impact of IFRS 16. A reconciliation of adjusted segment EBITDA
to operating profit is shown below:
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment EBITDA
- North America - General Tool 951.6 975.9 1,822.3 1,876.1
- North America - Specialty 459.3 469.4 895.2 879.9
- UK 62.6 68.4 124.0 132.3
Impact of IFRS 16 74.0 69.5 147.0 136.9
Other central costs (166.5) (173.0) (331.6) (327.3)
Adjusted EBITDA 1,381.0 1,410.2 2,656.9 2,697.9
Non-recurring costs (38.5) - (51.2) -
EBITDA 1,342.5 1,410.2 2,605.7 2,697.9
Depreciation (609.9) (584.8) (1,203.2) (1,155.5)
Amortisation (28.2) (29.2) (56.3) (57.9)
Operating profit 704.4 796.2 1,346.2 1,484.5
Adjusted segment operating profit Operating profit Adjusted segment operating profit is operating profit by segment before
amortisation and non-recurring costs. Adjusted segment operating profit is
calculated excluding the impact of IFRS 16. A reconciliation of adjusted
segment operating profit to operating profit is shown below:
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment operating profit
- North America - General Tool 598.6 629.9 1,118.1 1,191.2
- North America - Specialty 327.1 333.9 628.3 613.4
- UK 18.4 23.9 34.6 46.0
Impact of IFRS 16 21.1 19.5 41.6 36.6
Other central costs (175.8) (181.8) (350.6) (344.8)
Adjusted operating profit 789.4 825.4 1,472.0 1,542.4
Non-recurring costs (56.8) - (69.5) -
Amortisation (28.2) (29.2) (56.3) (57.9)
Operating profit 704.4 796.2 1,346.2 1,484.5
Free cash flow Net cash generated from operating activities Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 1,251.4 695.9
Non-recurring costs 34.3 -
Payments for non-rental property, plant and equipment (199.6) (305.8)
Other property, plant and equipment disposal proceeds 23.1 29.9
Free cash flow 1,109.2 420.0
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Leverage None Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,673.5 10,546.7 8,203.0 10,945.3
at constant currency
Adjusted EBITDA ($m)
As reported 4,692.1 4,980.7 4,740.1 5,007.2
Retranslation effect 0.5 0.5 (4.5) (5.2)
At constant currency 4,692.6 4,981.2 4,735.6 5,002.0
Leverage
As reported 1.6 2.1 1.7 2.2
At constant currency 1.6 2.1 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Non-recurring costs None Non-recurring costs are costs associated with the move of the Group's primary
listing to the US and the restructuring in the UK.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Non-recurring costs associated with US relisting:
- Staff costs 2.3 - 4.5 -
- Other operating costs 17.1 - 27.6 -
Non-recurring costs associated with UK restructure:
- Staff costs 8.5 - 8.5 -
- Other operating costs 8.4 - 8.4 -
- Used rental equipment sold 2.2 - 2.2 -
- Impairment 18.3 - 18.3 -
Non-recurring costs 56.8 - 69.5 -
Return on Investment ('RoI') None LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,616.6 2,753.8
IFRS 16 impact (78.7) (63.4)
Adjusted operating profit (excluding IFRS 16) 2,537.9 2,690.4
Average net assets 17,923.5 17,753.4
Return on investment 14% 15%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,020.3 1,149.4 57.2
Average net assets, excluding goodwill and intangibles
10,338.9 3,718.9 1,061.5
Return on investment 20% 31% 5%
Adjusted operating profit
Operating profit
Adjusted operating profit is operating profit before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Operating profit 704.4 796.2 1,346.2 1,484.5
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Adjusted operating profit 789.4 825.4 1,472.0 1,542.4
Adjusted profit before tax
Profit before tax
Adjusted profit before tax is profit before tax, amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Profit before tax 571.1 652.6 1,082.7 1,197.0
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Adjusted profit before tax 656.1 681.8 1,208.5 1,254.9
Adjusted profit after tax
Profit after tax
Adjusted profit after tax is profit after tax before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Profit after tax 425.1 486.0 800.6 889.5
Amortisation 28.2 29.2 56.3 57.9
Non-recurring costs 56.8 - 69.5 -
Tax on adjusting items (15.5) (7.2) (23.7) (14.4)
Adjusted profit after tax 494.6 508.0 902.7 933.0
Adjusted earnings per share
Earnings per share
Adjusted earnings per share is earnings per share before amortisation and
non-recurring costs.
Second quarter Six months
2025 2024 2025 2024
ȼ ȼ ȼ ȼ
Earnings per share (basic) 100.4 111.3 188.1 203.7
Amortisation 6.7 6.6 13.3 13.2
Non-recurring costs 13.4 - 16.3 -
Tax on adjusting items (3.7) (1.7) (5.6) (3.3)
Adjusted earnings per share (basic) 116.8 116.2 212.1 213.6
Adjusted depreciation
Depreciation
Adjusted depreciation is depreciation of both tangible fixed assets and
right-of-use assets before the depreciation costs associated with the
restructuring in the UK.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Depreciation 609.9 584.8 1,203.2 1,155.5
UK restructure:
- Impairment of tangible assets (16.3) - (16.3) -
- Impairment of right-of-use assets (2.0) - (2.0) -
Adjusted depreciation 591.6 584.8 1,184.9 1,155.5
Adjusted segment EBITDA
Operating profit
Adjusted segment EBITDA is operating profit by segment before depreciation,
amortisation and non-recurring costs. Adjusted segment EBITDA is calculated
excluding the impact of IFRS 16. A reconciliation of adjusted segment EBITDA
to operating profit is shown below:
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment EBITDA
- North America - General Tool 951.6 975.9 1,822.3 1,876.1
- North America - Specialty 459.3 469.4 895.2 879.9
- UK 62.6 68.4 124.0 132.3
Impact of IFRS 16 74.0 69.5 147.0 136.9
Other central costs (166.5) (173.0) (331.6) (327.3)
Adjusted EBITDA 1,381.0 1,410.2 2,656.9 2,697.9
Non-recurring costs (38.5) - (51.2) -
EBITDA 1,342.5 1,410.2 2,605.7 2,697.9
Depreciation (609.9) (584.8) (1,203.2) (1,155.5)
Amortisation (28.2) (29.2) (56.3) (57.9)
Operating profit 704.4 796.2 1,346.2 1,484.5
Adjusted segment operating profit
Operating profit
Adjusted segment operating profit is operating profit by segment before
amortisation and non-recurring costs. Adjusted segment operating profit is
calculated excluding the impact of IFRS 16. A reconciliation of adjusted
segment operating profit to operating profit is shown below:
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Adjusted segment operating profit
- North America - General Tool 598.6 629.9 1,118.1 1,191.2
- North America - Specialty 327.1 333.9 628.3 613.4
- UK 18.4 23.9 34.6 46.0
Impact of IFRS 16 21.1 19.5 41.6 36.6
Other central costs (175.8) (181.8) (350.6) (344.8)
Adjusted operating profit 789.4 825.4 1,472.0 1,542.4
Non-recurring costs (56.8) - (69.5) -
Amortisation (28.2) (29.2) (56.3) (57.9)
Operating profit 704.4 796.2 1,346.2 1,484.5
Free cash flow
Net cash generated from operating activities
Free cash flow is net cash generated from operating activities adjusted for
non-recurring costs less non-rental net property, plant and equipment
expenditure. Non-rental net property, plant and equipment expenditure
comprises payments for non-rental capital expenditure less disposal proceeds
received in relation to non-rental asset disposals.
2025 2024
$m $m
Net cash generated from operating activities 1,251.4 695.9
Non-recurring costs 34.3 -
Payments for non-rental property, plant and equipment (199.6) (305.8)
Other property, plant and equipment disposal proceeds 23.1 29.9
Free cash flow 1,109.2 420.0
This measure shows the cash retained by the Group prior to non-recurring
costs, discretionary expenditure on acquisitions and returns to
shareholders.
Leverage
None
Leverage calculated at constant exchange rates uses the period end exchange
rate for the relevant period and is determined as net debt divided by last
12-month ('LTM') adjusted EBITDA.
2025 2024
Excluding IFRS 16 Including IFRS 16 Excluding IFRS 16 Including IFRS 16
Net debt ($m)
As reported and 7,673.5 10,546.7 8,203.0 10,945.3
at constant currency
Adjusted EBITDA ($m)
As reported 4,692.1 4,980.7 4,740.1 5,007.2
Retranslation effect 0.5 0.5 (4.5) (5.2)
At constant currency 4,692.6 4,981.2 4,735.6 5,002.0
Leverage
As reported 1.6 2.1 1.7 2.2
At constant currency 1.6 2.1 1.7 2.2
This measure is used to provide an indication of the strength of the Group's
balance sheet and is widely used by investors and credit rating agencies. It
also forms part of the remuneration targets of the Group and has been
identified as one of the Group's key performance indicators.
Non-recurring costs
None
Non-recurring costs are costs associated with the move of the Group's primary
listing to the US and the restructuring in the UK.
Second quarter Six months
2025 2024 2025 2024
$m $m $m $m
Non-recurring costs associated with US relisting:
- Staff costs 2.3 - 4.5 -
- Other operating costs 17.1 - 27.6 -
Non-recurring costs associated with UK restructure:
- Staff costs 8.5 - 8.5 -
- Other operating costs 8.4 - 8.4 -
- Used rental equipment sold 2.2 - 2.2 -
- Impairment 18.3 - 18.3 -
Non-recurring costs 56.8 - 69.5 -
Return on Investment ('RoI')
None
LTM adjusted operating profit divided by the LTM average of the sum of net
tangible and intangible fixed assets, plus net working capital but excluding
net debt and tax.
RoI is calculated excluding the impact of IFRS 16.
RoI is used by management to help inform capital allocation decisions within
the business and has been identified as one of the Group's key performance
indicators. It also forms part of the remuneration targets of the Group.
A reconciliation of Group RoI is provided below:
2025 2024
$m $m
Adjusted operating profit 2,616.6 2,753.8
IFRS 16 impact (78.7) (63.4)
Adjusted operating profit (excluding IFRS 16) 2,537.9 2,690.4
Average net assets 17,923.5 17,753.4
Return on investment 14% 15%
RoI for the businesses is calculated in the same way, but excludes goodwill
and intangible assets:
North America General Tool North America Specialty $m
$m
UK
$m
Adjusted segment operating profit (excluding IFRS 16)
2,020.3 1,149.4 57.2
Average net assets, excluding goodwill and intangibles
10,338.9 3,718.9 1,061.5
Return on investment 20% 31% 5%
Other terms used within this announcement include:
● Adjusted: adjusted results are results stated before non-recurring costs and
the amortisation of acquired intangibles. Reconciliations are shown above.
● Availability: represents the headroom on a given date under the terms of our
$4.75bn asset-backed senior bank facility, taking account of current
borrowings.
● Capital expenditure: represents additions to rental equipment and other
property, plant and equipment (excluding assets acquired through a business
combination).
● Cash conversion ratio: represents cash flow from operations before
non-recurring costs and changes in rental equipment as a percentage of
Adjusted EBITDA. Details are provided within the Review of Second Quarter,
Balance Sheet and Cash Flow section.
● Dollar utilisation: dollar utilisation is trailing 12-month rental revenue
divided by average fleet size at original (or 'first') cost measured over a
12-month period. Dollar utilisation has been identified as one of the
Group's key performance indicators. Details are shown within the Second
Quarter, Review of Balance Sheet and Cash Flow section.
● EBITDA and EBITDA margin: EBITDA is earnings before interest, tax,
depreciation and amortisation. A reconciliation of EBITDA to profit before
tax is shown on the income statement. EBITDA margin is calculated as EBITDA
divided by revenue. Progression in EBITDA margin is an important indicator
of the Group's performance and this has been identified as one of the Group's
key performance indicators.
● Fleet age: original cost weighted age of serialised rental assets.
Serialised rental assets constitute the substantial majority of our fleet.
● Fleet on rent: quantity measured at original cost of our rental fleet on
rent. Fleet on rent has been identified as one of the Group's key
performance indicators.
● Net debt: net debt is total borrowings (bank, bonds) and lease liabilities
less cash balances, as reported. This measure is used to provide an
indication of the Group's overall level of indebtedness and is widely used by
investors and credit rating agencies. An analysis of net debt is provided in
Note 14.
● Operating profit and operating profit margin: Operating profit is earnings
before interest and tax. A reconciliation of operating profit to profit
before tax is shown on the income statement. Operating profit margin is
calculated as operating profit divided by revenue. Progression in operating
profit margin is an important indicator of the Group's performance.
● Organic: organic measures comprise all locations, excluding locations arising
from a bolt-on acquisition completed after the start of the comparative
financial period.
● Rental only revenue: rental revenue excluding loss damage waiver,
environmental fees, erection and dismantling revenue and revenue from rental
equipment delivery and collection.
● Same-store: same-stores are those locations which were open at the start of
the comparative financial period.
● Segment profit: operating profit before amortisation and non-recurring costs
by segment.
● Suppressed availability: represents the amount on a given date that the asset
base exceeds the facility size under the terms of our $4.75bn asset-backed
senior bank facility.
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