Construction equipment rental company Ashtead Plc cut its guidance for the year as fewer natural disasters means less clean-up and reconstruction business. The shares slumped the most in more than three years.

The company, which operates in the UK, the US and Canada, expects both group and US rental revenue to grow 11% to 13% from a previously guided range of 13% to 16%, which will result in earnings before interest, taxes, depreciation, and amortization being 2% to 3% below current market expectations, it said in a statement.

It also expects a full-year depreciation charge of around $2.12 billion and a net interest cost of around $540 million, which will drive adjusted profit before tax below current market expectations.

The company’s shares fell as much as 15% in London, the biggest drop since March 2020.

Ashtead said revenue late in its second quarter was affected by lower levels of emergency response activity. It was a significantly quieter hurricane season than seen in recent years and there were fewer wildfires, a trend that is continuing into its third quarter.

Ashtead has also continued to see the effects of the writers’ and actors’ strikes into the third quarter, which has “significantly” impacted its TV and Film business in Canada.

Author: Chloé Meley and Maggie Shiltagh