Sunbelt Rentals reports revenue increase

Sunbelt Rentals, Fort Mill, S.C., reported total revenue of $2.48 billion during the fiscal second quarter, a 14 percent increase compared to $2.17 billion for the same period last year. Rental revenue was $2.25 billion, up from $2.01 billion the year before.

During the first half of the year, total revenue was $4.79 billion, an 18 percent increase compared to $4.07 billion the year before. Rental revenue was $3.38 billion, up 15 percent compared to $2.95 billion the year before.

In the UK, Sunbelt Rentals reported total revenue of $225 million during the fiscal second quarter, up 8 percent compared to $207 million the year before. Rental revenue was $187.2 million, up from $165.3 million the year before. Total revenue for the first six months of the year was $449.8 million, up from $430.1 million the year before.

In Canada, Sunbelt Rentals’ total revenue was $172 million during the fiscal second quarter, up 7 percent compared to $160 million the year before. Rental revenue was $146.3 million, up from $137.5 million the year before. During the first six months of the year, total revenue was $331.5 million, up from $297.1 million the year before.

Ashtead Group, the parent company of Sunbelt, reported total revenue of $2.88 billion during the fiscal second quarter, up 13 percent compared to $2.54 billion the year before. Rental revenue during the second quarter was $2.59 billion, up 11 percent compared to $2.31 billion the year before.

Total revenue for the first half of the year was $5.57 billion, up 16 percent compared to $4.80 billion. Rental revenue for the first half of 2023 was $4.96 billion, up 13 percent compared to $4.38 billion.

“The group continues to perform strongly with revenue up 16 percent and rental revenue growth of 13 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 Group CEO.

“We are executing well against all actionable components of our strategic growth plan, in end markets which remain robust. In the period, we invested $2.5 billion in capital across existing locations and greenfields and $705 million on 16 bolt-on acquisitions, adding a combined 74 locations in North America. This 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 in the middle of our target range,” Horgan continued.

“On 20 November, we issued a trading update lowering our revenue growth and earnings guidance for the full year to reflect the lower level of emergency response activity related to natural disasters in North America in late Q2 and into Q3 and the longer than anticipated actors’ and writers’ strikes, impacting both the film and TV business and adjacencies within our Canadian, U.S. and U.K. businesses.”

Horgan went on to say, “Notwithstanding these factors, our end markets in North America remain robust with healthy demand, 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. As we prepare our strategic plan, Sunbelt 4.0, the board looks to the future with confidence.”

Since the beginning of the second quarter, Sunbelt has acquired the following businesses:

• On Aug. 9, 2023, Sunbelt US acquired the business and assets of A-One Rental and Holmes A-One (together ‘A-One’). A-One is a general tool business operating in Wyoming.
• On Aug. 25, 2023, Sunbelt US acquired the business and assets of Caribbean Rentals & Sales and International Rental Services (together ‘CRS’). CRS is a general tool business operating in the Bahamas.
• On Aug. 30, 2023, Sunbelt US acquired the business and assets of Timp Rental Center, a general tool business operating in Utah.
• On Aug. 30, 2023, Sunbelt Canada acquired the business and assets of 688768 NB, trading as Modu-Loc Maritimes Fence Rentals. Modu-Loc Maritimes is a specialty business operating in Nova Scotia and New Brunswick.
• On Sept. 15, 2023, Sunbelt US acquired the business and assets of 2-C Equipment, a general tool business operating in Texas.
• On Sept. 22, 2023, Sunbelt US acquired the business and assets of Casale Rent-All, a general tool business operating in New York.
• On Oct. 25, 2023, Sunbelt Canada acquired the business and assets of Able Rental & Supply, a general tool business operating in Ontario.
• On Nov. 3, 2023, Sunbelt US acquired the business and assets of EFFEM Corp., trading as A to Z Equipment Rental & Sales, a general tool business operating in Arizona.
• On Nov. 3, 2023, Sunbelt UK acquired the entire share capital of Acorn Film & Video, a specialty business.
• On Nov. 8, 2023, Sunbelt US acquired the business and assets of Farmers Rental & Power Equipment, a general tool business operating in North Carolina.
• On Nov. 14, 2023, Sunbelt US acquired the business and assets of Southwest Ohio Temporary Heat, a specialty business operating in Ohio.
• On Dec. 1, 2023, Sunbelt Canada acquired the entire share capital of Nor-Val Rentals, a general tool business operating in British Columbia.