Ashtead Technology (AT) H2 2024 earnings summary

Executive summary

• Revenue grew 52% year-over-year to £168 million in 2024, driven by 14% organic and 39% inorganic growth, with major acquisitions completed late in the year.

• Adjusted EBITA/EBITDA margin reached 29.9%, with adjusted EPS rising 35% to 45.0p per share.

• The business model is highly diversified, with 85% of equipment fungible across oil & gas and renewables, and recent acquisitions further strengthening the portfolio.

• Record customer backlogs and strong Q1 2025 performance underpin confidence in continued growth and unchanged full-year expectations.

• Completed largest acquisition to date (Seatronics and J2 Subsea), expanding fleet and international reach.

Financial highlights

• Revenue of £168 million in FY2024, with 14% organic growth, 39% inorganic growth, and -1% FX headwind.

• Adjusted EBITA/EBITDA of £50.3 million, margin of 29.9%.

• Adjusted profit after tax of £36.1 million, up 35% year-over-year.

• Return on capital at 24.3%, above the four-year average.

• Pro forma leverage increased to 1.6x after acquisitions, with net debt rising to £128 million.

Outlook and guidance

• Confident in sustaining low double-digit organic revenue growth and resilient margins, with full-year expectations unchanged.

• Market growth forecast at 9% CAGR through 2028, with offshore wind expected to grow at 17% CAGR and oil & gas at 5% CAGR.

• CapEx planned at £40 million for 2025, maintaining guidance of 18% of revenue.

• Targeting leverage below 1.3x by year-end 2025.

• Board considering move to Main Market, pending further consultation.