Ashtead Technology (AT) H1 2026 earnings summary

Executive summary

• Revenue grew 1.1% year-over-year to GBP 100.2 million, with strong European performance offsetting declines in the Middle East and Asia due to geopolitical tensions and project delays.

• Adjusted EBITA margin was 25.0%, down from 27.3% year-over-year, reflecting revenue mix changes and higher depreciation from recent investments.

• Net debt reduced to GBP 116.7 million (from GBP 131.9 million), with leverage at 1.4x and expected to decrease further.

• Strategic acquisitions, including Seadraulics in Australia and consolidation of UK mechanical solutions, enhanced global capabilities.

Financial highlights

• Adjusted EBITA of GBP 25.1 million (25.0% margin), down from GBP 27.0 million (27.3% margin) in prior year.

• Adjusted EPS of 20.6p, down 6% year-over-year.

• Operating cash flow conversion at 79%; free cash flow conversion reduced due to CapEx timing and higher tax.

• Return on capital at 20.5%, above cost of capital.

• Net cash from operating activities: GBP 20.4 million.

Outlook and guidance

• H2 revenue growth to be impacted by Middle East conflict and project slippages; some projects deferred to 2027.

• Long-term market fundamentals remain strong, with addressable market forecast to grow at 6% CAGR to $3.4 billion by 2029.

• Board expectations for full year remain in line with recent trading update.

• Continued selective investment in technology, people, and international capabilities.

• Offshore wind market expected to recover from 2027, with growth concentrated in Europe and Asia.