Ashtead Technology Shares (LON:AT) Plunge to New Low, Steady’s Into Afternoon

Ashtead Technology shares (LON: AT) have sunk to new lows of 316p today, before steadying somewhat to trade at 343.5p at the time of writing, more than 7.5% off the intra-day low.

A rather dramatic 27.8% decline since the start of this week tells part of a longer story, with bears really taking charge of the stock over the past year. The chart below reads poorly for anyone taking a position recently, with AT down 58% in 12 months.

The latest decline comes on what appears to be a mixed bag of financial results for the first half of 2025. While revenue grew by a headline figure of 23% to £99 million, a deeper dive reveals a pro forma decline of 6%, unsettling investors and triggering the sell-off.

The crucial question now is whether this dip represents a temporary setback or a sign of deeper structural issues within the company.

The pro forma revenue decline comes from geopolitical uncertainties, disruptions in the vital US market, and a strategic shift away from lower-margin equipment sales and cross-hire activities. While this strategic move aims to improve overall profitability, the immediate impact on revenue has clearly spooked the market.

It's not all doom and gloom however. Ashtead Technology has managed to improve its margins, thanks to operational synergies arising from recent acquisitions and a better looking business mix. The adjusted EBITA margin, a key indicator of profitability, rose to 27.3%, demonstrating the effectiveness of these operational improvements.

Despite the revenue headwinds, Ashtead Technology maintains that its underlying full-year EBITDA is likely to be only slightly lower than previous forecasts. More importantly, pre-tax profit is still expected to align with market expectations of £49.2 million. This resilience in profitability provides a glimmer of hope and suggests that the company's cost management and operational efficiencies are paying off. The upcoming interim results, scheduled for release on August 26, will be crucial in providing further clarity on the company's financial performance and outlook.