Ashtead Technology Shares Slump as Middle East Conflict and Project Delays Trigger Profit Warning

Shares in Ashtead Technology Holdings plc (LON: AT.) fell sharply on Thursday morning after the offshore energy services group warned that full-year profits would come in well below market expectations, citing the ongoing Middle East conflict and widening project delays.

The stock dropped as much as 14%, touching a low of 361p before recovering slightly to trade around 368p, down from Wednesday’s close of 428.5p — wiping out a significant chunk of the company’s market value.

In a trading update, the subsea technology specialist said that, unlike its 15 July statement — which had flagged that meeting full-year guidance depended on an easing of Middle East tensions — there had been no de-escalation. A number of projects earmarked for the region in the second half of 2026 have now slipped into 2027. Broader economic uncertainty and vessel scheduling changes have also caused delays to projects in Europe and the Americas.

As a result, the Board now expects full-year revenue roughly 5% below current analyst consensus of £214.2 million, with Adjusted EBITA seen around 15% below the consensus £59.2 million. Ashtead said the deferral of rental revenues would hit its 2026 revenue mix, and combined with operating leverage, would weigh further on margins.

Despite the downgrade, the company stressed its balance sheet remains robust, with leverage expected at around 1.3x net debt to EBITDA by year-end. Management pointed to a strong customer backlog and rising focus on energy security as reasons for confidence in its longer-term growth strategy, even as near-term profitability takes a hit.