Ashtead Group recently announced a pretax profit decline for its fiscal third quarter, falling short of market expectations due to decreased activity in the North American market.
Quarter Overview
- Pretax Profit: $442 million for the quarter ended Jan. 31, down from $505.1 million the previous year.
- Revenue: Increased to $2.66 billion from $2.43 billion, surpassing market expectations.
- Rental Revenue: Saw a 7% rise to $2.36 billion, although slightly below consensus.
Market Challenges
The company attributed the revenue growth in North America to a lower level of emergency-response activity and delays caused by various strikes. However, the U.S. market remains strong, with promising demand driven by mega projects.
Future Outlook
Despite the challenges faced in the quarter, Ashtead Group remains optimistic about its performance. The rental revenue is expected to achieve mid to high single-digit percentage growth, accompanied by significant free cash flow generation.
Fiscal Projections
The company reported a pretax profit of $1.70 billion for the nine-month period ending Jan. 31, with revenue reaching $8.23 billion. Ashtead Group has adjusted its fiscal guidance for 2024, anticipating rental revenue growth to be on the lower end of the 11%-13% range.