Ashtead Group Q4 Earnings Beat Estimates, Revenues Decrease 4% Y/Y

Ashtead Group plc ASHTY reported adjusted earnings of 79 cents per share in fourth-quarter fiscal 2025 (ended April 30, 2025), 1% lower than the year-ago quarter. ASHTY’s earnings per American Depositary Receipt (ADR) were $3.15. The metric beat the Zacks Consensus Estimate of $3.13 per share. Each Ashtead Group ADR represents four ordinary shares.Ashtead Group Witnesses Higher Rental Revenues in Q4The company reported net revenues of $2.53 billion, down 4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.54 billion.Rental revenues increased 1% year over year to $2.33 billion. The sale of new equipment, merchandise and consumables declined 8.6% to $83 million. The sale of used rental equipment plunged 49.9% to $112 million.ASHTY’s Q4 Operating Profit DeclinesTotal operating costs slipped 6.4% year over year to $1.39 billion. The adjusted operating profit dipped 7% year over year to $523 million. The adjusted operating margin contracted 67 basis points to 20.7%. Adjusted EBITDA rose 1% year over year to $1.15 billion due to higher depreciation and amortization. The EBITDA margin was 45.4% compared with the year-ago quarter’s 43.4%.Ashtead Group’s Q4 Cash Position & Balance SheetThe company reported cash and cash equivalents of $21 million as of April 30, 2025, compared with $20.8 million as of April 30, 2024. It generated $2.17 billion in cash from operating activities in fiscal 2025 compared with $0.85 billion in the prior-year period. The free cash flow in fiscal 2025 was $1.78 billion compared with $0.22 billion in the prior-year period.ASHTY’s net debt was $10.33 billion at the end of the quarter, down from $10.65 billion at the end of the prior-year quarter. Ashtead Group’s net debt to adjusted EBITDA ratio was 2.1X as of April 30, 2025, compared with 2.2X as of April 30, 2024.ASHTY FY25 ResultsThe company reported adjusted earnings of $3.69 per share in fiscal 2025, 4% lower than the year-ago quarter. ASHTY’s earnings per ADR were $14.78. The metric missed the Zacks Consensus Estimate of $15.53 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The company reported net revenues of $10.79 billion, down 1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $12.38 billion. Record rental revenues were offset by the impacts of lower sales of used equipment.Ashtead Group’s FY26 GuidanceThe company expects total rental revenues to be flat to rise 4% in fiscal 2026. It expects the free cash flow to be $2-$2.3 billion.ASHTY Stock’s Price PerformanceThe company’s shares have lost 10.3% in the past year compared with the industry’s 1.3% decline. Image Source: Zacks Investment Research Ashtead Group’s Zacks RankAshtead Group currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ASHTY’s Peer PerformancesW.W. Grainger, Inc. GWW reported earnings per share of $9.86 in first-quarter 2025, beating the Zacks Consensus Estimate of $9.46. The bottom line improved 2% year over year.Grainger’s quarterly revenues rose 1.7% year over year to $4.31 billion. The top line missed the Zacks Consensus Estimate of $4.33 billion. Daily sales increased 3.3% from the prior-year quarter. We predicted daily sales to increase 2.7%. MSC Industrial Direct Company, Inc. MSM reported second-quarter fiscal 2025 (ended on March 1, 2025) adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate of 68 cents. The bottom line decreased 39% year over year.MSC Industrial generated revenues of around $892 million in the quarter under review, down 4.7% from $935 million in the year-ago quarter. MSM’s top line missed the Zacks Consensus Estimate of $899 million. Average daily sales fell 4.7% year over year in the quarter.Hillenbrand, Inc. HI posted second-quarter fiscal 2025 adjusted earnings per share of 60 cents, beating the Zacks Consensus Estimate of 54 cents. The bottom line decreased 21% year over year.HI generated revenues of around $716 million in the quarter under review, down 8.8% from $785 million in the year-ago quarter. Hillenbrand’s top line beat the Zacks Consensus Estimate of $691 million.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report Hillenbrand Inc (HI): Free Stock Analysis Report Ashtead Group PLC (ASHTY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks