Shares in Ashtead Technology Holdings PLC (AIM:AT.) fell 21% on Thursday after the subsea services group reported lower-than-expected revenues for the first half of 2025, despite maintaining profit guidance for the full year.
Revenue for the six months to 30 June came in at approximately £99 million, up 23% year-on-year on a reported basis but down 6% on a like-for-like basis.
The decline was attributed to geopolitical uncertainty, disruption in the US market, and a shift away from low-margin equipment sales and cross-hire activity.
Despite the revenue miss, adjusted EBITA margin rose to 27.3%, aided by a stronger business mix and faster-than-expected cost synergies from recent acquisitions.
The company said it expects full-year adjusted profit before tax to be in line with previous forecasts, though EBITA will be slightly lower.
Ashtead expects modest revenue growth in the second half and remains upbeat on long-term demand, citing strong customer backlogs and contract awards.
The shares fell 96.5p to 354p.