Ashtead Technology Group – cautiously optimistic AGM Update see shares fall 5% to 509p, TP 600p

Mark Watson-Mitchell – 22.05.2026  

Yesterday Ashtead Technology Holdings (LON:AT.), which is a leading provider of subsea technology solutions to the global offshore energy sector, held its AGM, ahead of which it issued a ‘cautiously optimistic’ Trading Update.

However, the market took a slightly pessimistic view, dropping its shares by nearly 5%, easing 24p to close at 509p.

But they have performed very well in share price terms since the beginning of this year, having risen almost 70% from 299.98p on Friday, 2^nd January.

The question investors now ask – will this strong performance continue or will the shares react backwards in profit-taking, before levelling off and then moving ahead again.

Trump’s War with Iran has unsettled matters generally, but it will not continue.

The Business

The £409m-capitalised Ashtead Technology is a subsea services and equipment rental company in the global offshore oil and gas and renewables industries, with 15 facilities across nine countries and a rental fleet of over 30,000 assets.

Its specialist equipment, engineered solutions, technical expertise and support services enable its customers to understand the subsea environment and manage offshore energy production infrastructure.

The group operates globally, servicing customers from its facilities located in key offshore energy hubs. 

The company has significantly expanded via eight acquisitions executed since 2017, most recently the £63m Seatronics/J2 deal in 2024.

Current Trading and Outlook

Trading through the first quarter of the year was in line with the Board's expectations.

The business has experienced some regional disruption since early March as a result of the ongoing conflict in the Middle East and continues to work closely with its customers to monitor and manage this situation.

Whilst the duration and impact of the conflict in the Middle East, and the potential secondary effect on our broader operations and markets, remains hard to predict, the Board is cautiously optimistic in the outturn for the year, and its performance expectations are unchanged.

This assumes a seasonally stronger second half, in keeping with prior years, and no sustained impact from the current geopolitical tensions.

With growing demand for energy and an increased acknowledgement of the importance of energy security around the world, Ashtead Technology's scaled, geographically diversified footprint and agile operating model positions it well to capitalise on the attractive long-term structural growth drivers across its end markets.

The group's highly cash-generative business model underpins its strong balance sheet, with net debt still expected to improve to below 1.0x by the end of 2026.

Analyst Views

At Zeus Capital, its analysts Daniel Slater and Alexander Hazel have a Buy recommendation out on the group’s shares, with a 600p Target Price.

They expect “M&A to continue as a focus for the company, but it is growing organically too, using its global sales network and relationships to make the most of its expanded offering.

Ashtead is also able to influence margins, via acquisition synergies but also adjustments to mix post its various deals.

The company’s markets continue to expand, as oil and gas CAPEX ramps up post the period of lower investment after 2015 and over covid, with companies increasingly focusing offshore in search of new fields and development projects.

Ashtead’s services and assets also apply equally to offshore renewables activities, giving a diversifier and potential additional source of growth.

Going forward we look for further acquisitions, additional organic growth, and potential margin improvement opportunities to all continue driving earnings progress, in what is a broadly supportive environment for an offshore company.

We have a Buy recommendation and 600p price target.”

The brokers are estimating that the current year, to end-December, could see sales of £213.4m (£203.2m), with adjusted pre-tax profits of £51.6m (£48.8m), earnings of 47.5p (48.9p) and paying a dividend of 1.4p (1.3p) per share.

For the 2027 year, they look for £228.1m sales, £56.1m profits, 51.4p earnings and 1.5p per share in dividend.

My View

In the absence of any further trading news, the next announcement from the group could well be in July when it is expecting to declare its First Half Trading Update.

Two months ago, I noted that:

“There really is a lot more to come from the shares, now 393p, as they reflect the group’s business potential, I see its shares rising back fairly soon over the 450p level and then going even higher.

With over 30,000 rental assets

However, after the recent rapid rise, it would be sensible to expect some profit-taking to provide a cheaper buying opportunity.”

Now at 508p, the shares could well take time out and gradually ease back to around the 450p level, before resting and then moving ahead again.

(Profile 26.08.25 @ 344p set a Target Price of 430p*)

(Profile 19.03.25 @ 393p set a Target Price of 450p*)