By Anthony O. Goriainoff
Ashtead Group said it would launch a share buyback next year as it reported a fall in fiscal second quarter pretax profit on higher costs.
The equipment rental company on Tuesday said it would launch a $1.5 billion share buyback on March 2, coinciding with the move of its primary listing to the New York Stock Exchange.
For the three months ended Oct. 31, pretax profit fell to $571 million from $652.6 million in the year-earlier period. On an adjusted basis--which strips out exceptional and other on-off items--it fell 4% to $656 million.
Revenue rose to $2.96 billion from $2.94 billion, with rental revenue rising to $2.76 billion from $2.725 billion.
The board proposed an interim dividend of 37.5 cents a share, up from 36 cents last year.
Ashtead reiterated its guidance for fiscal 2026, expecting rental revenue growth in a 0% to 4% range, gross capital expenditure in a $1.8 billion to $2.2 billion range, and free cash flow in a $2.2 billion to $2.5 billion range.
"We continue to see positive leading indicators for local nonresidential construction activity," Chief Executive Brendan Horgan said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
12-09-25 0249ET
