Earnings per share of $1.16, missing the estimated $1.56.
Revenue was approximately $2.94 billion, falling short of the expected $3.79 billion.
Stock price dropped 12.4% following the earnings announcement and revised revenue growth forecast.
Ashtead Group PLC, trading under the symbol PNK:ASHTF, is a prominent equipment rental company. It operates primarily in the US and UK, providing a wide range of construction and industrial equipment. The company faces competition from firms like United Rentals and Herc Rentals. Despite its strong market presence, Ashtead recently faced financial challenges.
On December 10, 2024, Ashtead reported earnings per share of $1.16, missing the estimated $1.56. Revenue was approximately $2.94 billion, falling short of the expected $3.79 billion. This underperformance was discussed during the Q2 2025 earnings call, led by CEO Brendan Horgan and CFO Michael Pratt, with participation from major financial analysts.
Following the earnings announcement, Ashtead’s stock price dropped 12.4% to 5,492p. This decline was partly due to the company’s decision to switch its primary listing to the US, overshadowed by disappointing financial results. The company revised its revenue growth forecast to 3%-5%, down from 5%-8%, after a modest 2% increase in the first half.
Analyst Adam Vettese from eToro attributed Ashtead’s weaker performance to a sluggish construction market, impacted by prolonged high interest rates. This environment has negatively affected used equipment sales and increased depreciation costs. Despite the potential for “enhanced overall liquidity” from the US listing, the guidance downgrade dominated investor sentiment.
Ashtead’s financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 19.14, a price-to-sales ratio of 2.73, and an enterprise value to sales ratio of 3.72. Its debt-to-equity ratio is 1.08, indicating a moderate level of leverage. The current ratio of 1.17 suggests a reasonable ability to cover short-term liabilities.
