Ashtead Technology Holdings plc (AIM: AT.) shares jumped more than 10% on Monday morning after the company released a trading update indicating a robust financial performance for the year ended December 31, 2025, with adjusted EBITA poised to surpass market expectations.
The subsea technology solutions provider anticipates full-year revenue of approximately £203 million, a 21% increase year-on-year compared to £168 million in 2024. Organic growth contributed 3% to this impressive figure.
The company's strong profitability is attributed to effective operational execution and a disciplined approach to revenue quality, despite ongoing geopolitical and business environment uncertainties. Second-half revenues are approximately 5% higher than the first half, demonstrating sustained momentum.
Ashtead Technology successfully integrated Seatronics and J2 Subsea following their acquisitions in Q4 2024, achieving synergies ahead of schedule. The integration also facilitated the reduction of lower-margin activities within the acquired businesses.
This, combined with improved business mix and a focus on operational efficiencies, is expected to drive adjusted EBITA margins towards the upper end of the Group's medium-term target.
The mobilization of previously delayed longer-term projects in the second half of 2025 provides improved visibility and further strengthens the company's business momentum as it enters 2026. Ashtead Technology's robust balance sheet provides a solid foundation for future growth initiatives.
Key Financial Highlights:
- Revenue: Expected £203 million (2024: £168 million), c. 21% increase
- Organic Growth: 3%
- Adjusted EBITA: Ahead of market expectations
- Net Debt/Leverage: Reduced to under 1.4x at year-end, expected to fall below 1.0x by the end of 2026
- Capital Expenditure: Planned investment of c. £35 million in 2026
Strong cash conversion has enabled the Group to reduce leverage to under 1.4x at the year-end, with further improvement anticipated to below 1.0x by the end of 2026.
The company plans to maintain its disciplined approach to capital allocation, earmarking approximately £35 million for capital expenditure in 2026 to support customers, drive returns, and fuel further growth.
Drivers of Success:
- Successful Integration: Achieving synergies from Seatronics and J2 Subsea acquisitions ahead of forecast.
- Business Mix Enhancement: Reducing lower-margin activities and focusing on higher-value services.
- Operational Efficiencies: Continued focus on improving efficiencies across the entire Ashtead Technology business.
Allan Pirie, Chief Executive Officer, stated, “We are pleased with our full-year financial performance through 2025 and have made significant progress in expanding our international footprint and widening and deepening the offering to our customers during the year.” He further commented that the company's strong balance sheet, diversified geographical footprint, differentiated service capability, and track record of providing innovative solutions position it well for the new financial year.
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