Shares in Ashtead Group plc (LSE: AHT) fell 12% on Monday after the FTSE 100 equipment rental company said it expects to report “record results” for the first half of fiscal 2023 but lowered its full-year guidance due to recent slowdowns.
The company anticipates rental revenue growth of 13% and adjusted pre-tax profit growth of 5% to around $1.31 billion for the six months ended 31 October. Ashtead also forecasts a 15% growth in earnings before interest, tax, depreciation and amortisation to approximately $2.58 billion.
However, Ashtead revised its full-year outlook downwards, now expecting group and US rental growth between 11% and 13%, compared to prior guidance of 13% to 16%. This will cause EBITDA to fall 2-3% below market forecasts.
The company said revenue late in the second quarter and into the third was impacted by lower emergency response work and a slowdown in its Film & TV business due to industry strikes.
Despite the near-term headwinds, Ashtead said end markets remain “robust” in North America. The company also cited “substantial structural growth opportunities” that give the board confidence looking ahead.
Ashtead shares are down 1% year-to-date and 5% year-over-year.