Ashtead reduces growth forecast
20 November 2023
Ashtead Group said a quiet hurricane season in North America and the film and TV strikes had led it to revise downwards its full-year guidance. Revenue growth is now expected to be in the 11-13% range rather than 13-16%, and EBITDA profit will be 2-3% lower than market expectations.
Ashtead, which owns Sunbelt Rentals in the US, Canada and the UK, said the impact of the writers and actors strike had a significant impact on its business in Canada and had continued beyond its second quarter, which ended on 31 October.
Its emergency response business, meanwhile, saw lower levels of activity because of a significantly quieter hurricane season and fewer events such as wildfires, which was also continuing into the third quarter.
Ashtead said that despite these issues it would maintain its capital expenditure for the full-year – US$3.9-4.3 billion – and would deliver record full-year results.
“Our end markets in North America remain robust, supported in the US by an increasing number of mega projects and recent legislative acts”, said the company in a stock exchange release, “This, combined with the substantial structural growth opportunities that we see for the business, enables the board to look to the future with confidence.”
The company will release its half-year results, for the six months to 31 October, on 5 December 2023.
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