Ashtead Group Signals Revenue Slowdown as US Construction Market Softens

British industrial equipment rental giant Ashtead Group has cautioned investors about slowing rental revenue growth in the current financial year, citing persistent weakness in the US construction market. The FTSE 100 company’s latest financial update reveals a mixed performance, with particular challenges in local non-residential construction projects.

The company’s rental revenue growth forecast now stands between flat and 4 per cent, marking a notable deceleration from the previous year’s 4 per cent growth to £9.98 billion. Total group revenue experienced a 1 per cent decline to £8.63 billion, impacted by reduced sales of used equipment, though adjusted earnings rose 3 per cent to £4 billion.

Chief Executive Brendan Horgan highlighted the company’s robust free cashflow of £1.44 billion, enabling significant business investment of £1.92 billion and record shareholder returns of £708 million through dividends and share buybacks. The results emerge as Ashtead prepares for its primary listing migration to New York in early 2026, following recent shareholder approval.

The company’s share price responded positively to the update, climbing 182p to close at £45.64, though it remains approximately 20 per cent lower than its position twelve months ago. The industry continues to face margin pressures from sluggish US commercial construction recovery, elevated interest rates, and ongoing supply chain complications.

While Ashtead’s American operations under the Sunbelt Rentals brand face headwinds, the company’s UK division reported a modest 2 per cent revenue increase to £725 million. Market analysts at Jefferies characterised the company’s outlook as “cautious, as largely expected,” reflecting broader market sentiment about the construction equipment rental sector.