(Corrects paragraph 2 to say the company missed estimates, not beat them, and remove reference to contracts and the U.S. market) Dec 9 (Reuters) - British construction equipment rental firm Ashtead on
Ashtead's Profit Miss Linked to High Costs and Low Hurricane Impact
Dec 9 (Reuters) - British construction equipment rental firm Ashtead missed analyst expectations for half-year adjusted pretax profit on Tuesday, pressured by high costs from internal repairs and lower hurricane activity in the second quarter.
The second-largest U.S. equipment rental firm kept its 2025 outlook and announced plans for a $1.5 billion share buyback programme, which would coincide with its primary listing moving to the New York Stock Exchange in March 2026.
"Tough underlying trading conditions confirmed by competitors, plus tough comparisons from a lack of hurricane activity, always meant Q2 was set to be a soggy quarter, with EBITDA margins down by greater than 100 basis points year-on-year," RBC Capital Markets analysts said in a note.
Shares in Ashtead, which operates under the name Sunbelt Rentals, swung between gains and losses in early trade on Tuesday and were last down 1%.
The firm logged $1.21 billion in adjusted profit before tax for the six months ended October 31, below $1.22 billion expected by analysts, according to a company-compiled poll.
It reported core profit margins of 46.1% for the first half of fiscal 2025, down from 47.4% a year earlier.
(Reporting by Simone Lobo in Bengaluru; Editing by Subhranshu Sahu)
