Sparks

Ashtead Technology reported H126 revenue up 1.1% to £100.2m (H125: £99.1m), or 1.7% at constant currency, with oil and gas revenue up c 1.9% to £75.1m and renewables down c 1.6% to £25.0m. Adjusted EBITA fell 7.3% to £25.1m (H125: £27.0m) and the adjusted EBITA margin narrowed 225bp to 25.0%, against management’s high-20s target, reflecting a higher proportion of non-rental revenue and a £1.4m increase in depreciation to £12.8m following recent fleet investment. Reported operating profit fell 5.9% to £21.8m and reported PBT eased 1.5% to £17.5m, cushioned by net finance costs of £4.3m (H125: £5.4m). Adjusted basic EPS declined 5.9% to 20.6p (H125: 21.9p) and reported basic EPS fell 3.5% to 16.6p. Net debt reduced to £116.7m (H125: £131.9m), leverage was 1.4x (H125: 1.7x) and return on invested capital eased 369bp to 20.5%.

Europe grew 7.5% to £70.5m and the Americas rose 1.8% to £14.4m, offset by a 30.4% decline in Asia-Pacific to £8.1m, against a comparative that included the Tapti decommissioning project and slower offshore renewables activity in 2026, and a 7.3% decline in the Middle East to £7.2m due to conflict-related disruption. Equipment sales rose 40.3% to £15.0m while provision of equipment revenue fell 4.0% to £71.5m, driving the mix effect on margin. Front-loaded H1 capex of £25.9m (H125: £20.5m) contributed to a pre-exceptional free cash outflow of £1.4m (H125: £7.8m inflow), with operating cash conversion of 79% (H125: 75%). Ashtead acquired Perth-based ROV tooling business Seadraulics on 19 June, establishing an Australian footprint, and consolidated three UK mechanical solutions operations onto one site. No interim dividend was declared, consistent with the prior year.

The board’s FY26 expectations are unchanged from the 20 August trading update, with H2 revenue growth also guided to c 1% as Middle East disruption and the deferral of a small number of projects into 2027 persist. Management expects FY26 capex of c £35m and leverage to fall to c 1.3x by the year end.