Ashtead Technology Reports Strong HY25 Growth and Plans Main Market Move

HY25 results: growth holds up and profitability stays strong

Ashtead Technology has posted a solid first half given the headwinds. Revenue rose 23.2% to £99.1 million, driven mainly by acquisitions completed in late 2024. Adjusted EBITA reached £27.0 million, up 19.7%, with a robust margin of 27.3% despite a slight dilution from the mix of newly acquired businesses.

Profit before tax was broadly flat at £17.8 million, reflecting higher finance costs from the revolving credit facility used to fund the Seatronics and J2 Subsea deals. Adjusted basic EPS climbed 14.5% to 21.9p, underscoring the company’s focus on higher quality, repeatable rental earnings.

Key HY25 numbers investors should know

Metric	HY25	HY24	Change
Revenue	£99.1m	£80.5m	+23.2%
Adjusted EBITA	£27.0m	£22.6m	+19.7%
Adjusted EBITA margin	27.3%	28.1%	-81 bps
Operating profit	£23.2m	£20.6m	+12.3%
Profit before tax	£17.8m	£17.6m	+0.8%
Adjusted basic EPS	21.9p	19.1p	+14.5%
Net cash from operations	£21.1m	£9.7m	+117%
ROIC	24.2%	29.6%	-540 bps
Proforma leverage	1.6x	1.1x	+0.5x

Definitions in brief: Adjusted EBITA is operating profit before interest, tax and amortisation, and excludes FX and one-offs. ROIC is last twelve months adjusted EBITA divided by invested capital. Proforma leverage is net debt over last twelve months adjusted proforma EBITDA.

What drove the numbers: quality over quantity, plus quick M&A integration

Organic growth was modest at 1.3%, with acquisitions contributing 22.7% and FX shaving 0.8%. Management deliberately stepped away from lower margin activities such as cross-hire and third-party equipment sales in Seatronics, which lowered revenue but supported margins. The adjusted EBITDA margin for the Group was 38.7% and the adjusted EBITA margin came in at 27.3%.

Seatronics and J2 Subsea – both acquired in November 2024 – were integrated faster than expected, delivering higher synergies sooner. That matters because it underpins the earnings quality shift towards rental-led, higher margin activities and gives confidence in extracting further benefits in H2.

Oil and gas versus renewables: both sides contributed

The mix is healthy. Oil and gas delivered £73.7 million of revenue and renewables produced £25.4 million. The company’s portfolio is largely fungible across subsea construction, inspection and decommissioning, which lets management pivot to where utilisation is strongest.

Industry data cited in the RNS is supportive: Ashtead Technology’s total addressable market is forecast by Rystad to grow at an 8% CAGR from 2024 to 2028, with offshore wind at 15% CAGR and decommissioning at 14% CAGR. On the oil and gas side, activity is forecast to rise 4% with average annual sanctioned greenfield spend of $106 billion and 48% of 2028 subsea spend tied to projects already at FID. That backlog visibility is a helpful buffer against macro wobble.

Regional performance: Americas lagged, Norway shines

Europe grew 17%, Asia-Pacific surged 70% and the Middle East rose 44% despite trading interruption in June due to military activity. The Americas increased 15% year-on-year but fell significantly short of internal expectations. The reasons are clear in the statement – US policy shifts on offshore wind, new tariffs prompting pauses in investment decisions, and delayed customer decisions.

Operationally, the Group opened a new Mechanical Solutions facility in Houston to localise Lifting, Pulling and Deployment capabilities. In Norway, the Survey and Robotics business traded ahead of expectations and revenue more than doubled in HY25. These moves should improve utilisation and margins regionally as activity normalises.

Cash, debt and dividends: discipline with deleveraging in sight

Cash generation improved markedly. Net cash from operating activities rose to £21.1 million from £9.7 million. Working capital sat at 17% of proforma TTM revenue, up from 16% at December 2024, with higher stock tied to investment in manipulator repair and cable moulding following the acquisitions.

Net debt was £131.9 million, equating to 1.6x proforma leverage. Management is targeting around 1.4x by year end, supported by cash discipline. Finance costs stepped up to £5.4 million from £3.0 million because the acquisitions were funded through the revolving credit facility. Liquidity looks comfortable with a £170 million RCF, a £40 million accordion undrawn, and £29.3 million of headroom at 30 June 2025. Covenants are 3.0x leverage and 4:1 interest cover, and the Group is in compliance.

Capex totalled £19.4 million in HY25, mainly for Survey and Robotics technologies and development programmes in Mechanical Solutions and Asset Integrity. Full year capex is expected to be approximately £35 million. Consistent with prior periods, there is no interim dividend. The small progressive dividend policy remains intact, and the 2024 full year dividend was paid in May 2025.

Main Market move on 6 October 2025: why this matters

The Board intends to shift the listing from AIM to the Main Market on 6 October 2025. This is aimed at greater liquidity and broader access to international investors. In practical terms, Main Market status can widen the shareholder base, improve index eligibility over time, and typically reduces the cost of capital if the story keeps executing. There are professional fees in the period related to the move – part of the c. £0.6 million of exceptional costs.

Management’s take and my view

Management is frank about a slower seasonal ramp in Q2 caused by geopolitics, US policy shifts and FX. Crucially, projects delayed in HY25 have now mobilised, and customers report sustained record backlogs. That sets up H2 for growth with Board expectations unchanged from the July update.

On the positive side: resilient margins, strong cash generation, fast M&A integration, and a supportive medium-term market outlook. On the watch list: the Americas offshore wind pause, tariffs-driven uncertainty, higher finance costs, and ROIC slipping to 24.2% after the acquisitions – still well ahead of the cost of capital, but moving parts to monitor.

What to watch in H2 2025

• Mobilisation of delayed projects and the pace of revenue catch-up into Q3 and Q4.
• Deleveraging progress toward c.1.4x by year end and cash conversion versus the strong HY25 print.
• Synergy capture from Seatronics and J2 Subsea flowing through to margin and overheads.
• US policy and tariff impact on the Americas, and whether the new Houston facility helps offset some drag.
• Capex deployment – roughly £35 million expected for FY25 – and utilisation of the expanded technology fleet.
• Completion of the move to the Main Market on 6 October and any ensuing changes in the shareholder register.

Bottom line

Ashtead Technology has navigated a tricky backdrop and still delivered growth, margin resilience and better cash flow. The acquisitions are bedding in well, the pipeline looks supported by customer backlogs, and the Main Market move could be a catalyst for broader ownership. The risks are not trivial, especially in the Americas, but execution in H2 – particularly on mobilisation and cash – is the key swing factor. For long-term investors, the strategy remains coherent and the medium-term market fundamentals look favourable.