September 10, 2023
Sunbelt Rentals,
Fort Mill, S.C., reported total revenue of $2.3 billion during the 2023 fiscal first quarter, up 22 percent compared to $1.90 billion the year before. Rental revenue was $1.62 billion, up 16 percent compared to $1.39 billion the year before.
In the UK, Sunbelt Rentals reported $225 million in total revenue, up from $222.7 million the year before. Rental revenue increased 15 percent.
In Canada, Sunbelt Rentals’ total revenue was $159.7 million, up from $137.1 million the year before. Rental revenue increased 14 percent.
Ashtead Group, the parent company of Sunbelt, reported total revenue of $2.70 billion during the fiscal first quarter, up 19 percent compared to $2.26 billion the year before. Rental revenue was $2.38 billion, up 14 percent compared to $2.08 billion the year before.
During the first quarter, nine businesses were acquired. The acquisitions included:
- On May 17, 2023, Sunbelt US acquired the business and assets of Beattie Construction Services, a specialty business operating in Michigan.
- On May 24, 2023, Sunbelt US acquired the business and assets of West Coast Equipment, a general tool business operating in California.
- On May 24, 2023, Sunbelt US acquired the business and assets of Jones & Hollands, a general tool business operating in Michigan.
- On June 1, 2023, Sunbelt Canada acquired the entire share capital of Loue Froid, a specialty business operating in Quebec, Ontario, Alberta and British Columbia.
- On June 14, 2023, Sunbelt US acquired the business and assets of American Covers, a specialty business operating in Louisiana.
- On June 16, 2023, Sunbelt US acquired the business and assets of AGF Machinery, a general tool business operating in Alabama.
- On June 23, 2023, Sunbelt US acquired the business and assets of Miele Central Equipment, a general tool business operating in Pennsylvania.
- On June 28, 2023, Sunbelt US acquired the business and assets of J & J Equipment Rentals, a general tool business operating in Virginia.
- On July 31, 2023, Sunbelt US acquired the entire membership interest of Runyon Equipment Rental, a general tool business operating in Indiana.
Sunbelt Rentals expects U.S. rental revenue in 2023/2024 to increase 13 to 16 percent.
“The Group delivered another record quarter with revenue up 19 percent, rental revenue growth of 14 percent and adjusted profit before tax increasing 11 percent, both at constant currency. This strong performance is only possible through the dedication of our team members who deliver for all our stakeholders every day, while ensuring our leading value of safety remains at the forefront of all we do,” said Brendan Horgan, Ashtead CEO.
“We are executing well against all actionable components of our strategic growth plan, in end markets which remain robust. In the quarter, we invested $1.1 billion in capital across existing locations and greenfields and $361 million on nine bolt-on acquisitions, adding a combined 40 locations in North America. This significant investment is enabling us to take advantage of the substantial structural growth opportunities that we see for the business as we deliver our strategic priorities to grow our general tool and specialty businesses and advance our clusters.
“We are achieving all this while maintaining a strong and flexible balance sheet with leverage towards the lower end of our target range. Our business has clear momentum with robust end markets in North America, which are supported in the U.S. by the increasing number of mega projects and recent legislative acts. We are in a position of strength, with the operational flexibility and financial capacity to capitalize on the opportunities arising from these market conditions and ongoing structural change. Despite U.K. market conditions softening, we expect overall performance to be in line with our expectations and the board looks to the future with confidence.”
