Ashtead Group has released a handout photo showcasing an example of Sunbelt Rentals’ equipment for hire. The London-listed company has cited several reasons for its pessimistic outlook, including a quieter hurricane season and fewer naturally occurring events such as wildfires. Ashtead, which competes with United Rentals in the U.S., serves the construction, emergency response, and entertainment markets in the U.S., UK, and Canada, providing equipment ranging from diggers to construction tools.
The impact of the Hollywood actors’ and writer’s strikes affected Ashtead’s film and television business in Canada. While this had some effect on other Canadian, U.S., and UK businesses that rent into that space, it was not significant enough to offset the impact of lower emergency response activity and a more than $2 billion depreciation charge for the year.
As a result of these factors, Ashtead expects its annual profit to come in below market expectations. The company has lowered its annual group and U.S. rental revenue growth forecast and predicts net interest costs to amount to about $540 million for the year. Despite these challenges, Ashtead remains committed to providing high-quality equipment rental services to its customers across its global markets.