US inventory market swap and UK restructuring price Ashtead $69m as financial slowdown hits building

Ashtead Group’s profits missed market expectations in the first half as the equipment rental giant faced higher costs from planned changes to its presence in the UK.

The group on Tuesday noted costs totalling $69million (£51.1million) as a result of its planned primary stock market listing switch to the US and the restructuring of its UK business.

This contributed to operating profits falling to just under $1.35billion over the six months to the end of October, compared to around $1.4billion at the same time last year.

Ashtead, which will maintain a secondary listing in London, plans move its primary listing to the US in March.

The group makes more than 90 per cent of its revenues in the US but, like other companies making the switch, it was also lured by the prospect of more attractive valuations and deeper pools of investor capital.

Ashtead is conducting an operational restructure of its UK business involving the consolidation of some regional operations and other cost cutting measures.

Ashtead saw weaker demand from hurricane clean-up activity 

The firm is looking to sell some ‘non-core assets’, having disposed of its UK hoist business in October 2025 for proceeds of $16million.

Chief executive Brendan Horgan also highlighted weaker demand from hurricane clean-up activity, down $55million to $60million year-on-year, as well as ‘continued moderation in our local non-residential construction markets’.

As a result, the firm posted a $1.21billion adjusted profit before tax for the half, slightly below the $1.22billion forecast by analysts.

But Horgan said ‘mega project activity’ had ‘gained momentum’ and Ashtead has also identified ‘positive leading indicators for local non-residential construction activity’.

Ashtead revealed a fresh share buyback programme of $1.5billion and reaffirmed profit expectations for this year.

Ashtead shares were down 0.9 per cent at 4.766p by late morning on Thursday, having lost 3.5 per cent since the start of the year. 

Garry White, chief investment commentator at Charles Stanley, said: ‘The slowdown in the US and UK economies is weighing on construction activity, a key driver for equipment rental demand, but Ashtead continues to offset this with strong performance in specialty rentals and disciplined cost control.

‘While margin pressures from inflation and higher interest costs remain a concern, the company’s $1.5bn buyback programme and plans for a US primary listing underline confidence in its long-term growth strategy despite near-term headwinds.’