UK-based Ashtead Reports Lower-than-Expected Profits Amid $2 Billion Charge and Struggling US Operations

Ashtead Group recently released a handout photo showcasing an example of Sunbelt Rentals’ equipment hire services. The London-based company cited several reasons for its downbeat outlook, including a quieter hurricane season and fewer naturally occurring events such as wildfires. Despite this, the company continues to serve construction, emergency response, and entertainment markets in the United States, Canada, and the United Kingdom.

In the U.S., Ashtead operates under the name Sunbelt Rentals and competes with United Rentals. The company rents out equipment ranging from diggers to construction tools to customers in these markets. However, the impact of the Hollywood actors’ and writer’s strikes on its film and television business in Canada has affected other businesses that rent into that space as well.

Despite these challenges, Ashtead expects its annual profit to come in below market expectations due to lower emergency response activity and a more than $2 billion depreciation charge for the year. The company has also lowered its annual group and U.S. rental revenue growth forecast, with net interest costs expected to amount to about $540 million for the year.