Ashtead Group reported a 6% drop in first-quarter pretax profit as a slowdown in its core U.S. general tool rental business offset growth in its specialty equipment unit.
The industrial equipment rental company said on Wednesday that pretax profit for the three months ended July 31 fell to $512 million from $544 million a year earlier, while group revenue rose 2% to $2.8 billion.
The North American General Tool division, Ashtead's largest segment, saw its adjusted operating profit fall 7% to $520 million.
The company attributed the decline to higher costs for internal repairs and lower gains from the sale of used equipment.
In contrast, the North American Specialty business reported an 8% increase in adjusted operating profit to $301 million.
"Rental revenue increased 2.4% as mega project activity gained momentum, and we are seeing positive leading indicators for local non-residential construction activity," Chief Executive Brendan Horgan said in a statement.
Ashtead reaffirmed its revenue guidance for the full year and raised its forecast for free cash flow.
The company also said it is progressing with its plan to move its primary stock listing to the New York Stock Exchange, which is scheduled for March 2026.