Ashtead Technology Shares Jump on Strong 2025 Results

Shares of Ashtead Technology Holdings (LSE: AT.) climbed over 3% early on Tuesday following the release of its full-year 2025 results, which showcased robust financial performance and a confident outlook for continued progress throughout 2026.

The subsea technology solutions provider reported significant revenue growth, driven by strategic acquisitions and organic expansion, bolstering investor sentiment.

Ashtead Technology reported revenue of £203.2 million for FY25, a 21% increase compared to £168.0 million in FY24. Adjusted EBITA rose by 17.5% to £59.1 million, maintaining a strong margin of 29.1%. The company’s adjusted basic earnings per share also saw an increase of 9.8%, reaching 49.4 pence.

The financial results reflect Ashtead Technology’s successful integration of Seatronics and J2 Subsea, which contributed significantly to inorganic revenue growth of 19%. Organic revenue growth stood at 3%, demonstrating the company’s ability to expand its core business. Disciplined capital allocation has also led to a reduction in proforma net debt to Adjusted EBITDA leverage, now at 1.3x, providing the firm with greater strategic flexibility.

The company is proposing a final dividend of 1.3p per share, representing an 8.3% increase over the previous year. This commitment to shareholder returns underscores the company’s financial strength and confidence in its future prospects. Return on Invested Capital (ROIC) remains strong at 22.7%, significantly above the cost of capital, although slightly down from 24.3% in the prior year.

Driver Breakdown:

• Strategic Acquisitions: Successful integration of Seatronics and J2 Subsea added depth and scale to international locations.
• International Expansion: New facilities in the US and Norway enhance service delivery and expand operations outside of Europe, contributing to 33% of revenue.
• Innovation: Strategic deployment of £37m in capex to advance innovation in proprietary, in-house equipment.

Allan Pirie, Chief Executive Officer, said: “We delivered a strong performance in 2025, making significant financial, strategic and operational progress against a challenging and unpredictable geopolitical and market backdrop.” He further stated that the company’s strategy remains focused on internationalization, diversification, and expanding its global services platform.

The company highlighted that the addressable market within oil & gas and offshore renewables is forecast to grow at a 6% CAGR to $3.4 billion by 2029. While acknowledging potential uncertainties from the Middle East situation, the Board remains confident in delivering further progress in 2026. The company’s focus remains on delivering its strategy to create and capture more opportunities to grow and strengthen the Group.