UK's Ashtead predicts flat to 4% annual rental revenue growth

(Reuters) -British construction equipment rental company Ashtead on Tuesday forecast annual rental revenue growth of between flat and 4%, saying large projects such as data centres were offsetting weakness in U.S. commercial construction.

High interest rates and supply chain challenges are impacting U.S. non-residential construction demand, even as some analysts expect a turnaround in activity as companies invest in the United States to bypass President Donald Trump's tariffs.

Ashtead operates under the Sunbelt Rentals brand to lease construction, industrial, general and speciality equipment and is the second-largest equipment rental firm in the U.S. by market share.

"While completions continue to outpace starts in local non-residential construction, mega project activity continues to be robust, particularly in the data centre, semiconductor and (liquid natural gas) space," Ashtead said in a statement.

The London-based company reported an annual adjusted pre-tax profit of $2.13 billion for the financial year ended April 30, slightly above a company-compiled average consensus estimate of $2.10 billion.

For the fiscal year ending April 2026, the group forecast rental revenue growth of between flat and 4%, compared to the 4% growth it logged for its financial year 2025.

In June, Ashtead obtained shareholder approval to move its primary listing to the United States, joining a wave of firms exiting London's stock market in search of stronger investor demand and higher valuations.

Ashtead, which earns most of its profits in the U.S., said on Tuesday that it was on track to shift its listing in the first quarter of 2026.

Shares of the company were down 1.4% at 0719 GMT in choppy trading.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Tasim Zahid and Joe Bavier)