Shares in Ashtead Technology tumbled 17% to 355.48p on Thursday after the company issued a trading update projecting a material shortfall in 2026 financial performance.
The London-listed provider of subsea equipment and services said full-year revenues are now expected to come in around 5% below analyst estimates, while adjusted EBITA is forecast to fall approximately 15% short of consensus. The stock opened at 385p and touched an intraday low of 353p, extending its retreat from a 52-week high of 536p.
The company attributed the downgrade to continued project deferrals driven by geopolitical and economic headwinds. Ongoing conflict in the Middle East—previously flagged as a risk in a July 15 update—has delayed several higher-margin rental projects from the second half of 2026 to 2027. Additional deferrals in Europe and the Americas, compounded by vessel scheduling disruptions, are expected to compress margins below prior targets.
Despite the weaker outlook, Ashtead noted its balance sheet remains robust, with leverage projected at roughly 1.3x by year-end. The company did not provide revised guidance ranges.
The broader market showed limited reaction, with the FTSE 100 down 0.6% as mining stocks weighed on sentiment. UK GDP data released earlier in the day showed economic growth slowed to 0.4% in Q2 from 0.6% in Q1, underscoring the challenging macro backdrop facing the sector.
