June 21, 2024
Sunbelt Rentals, Fort Mill, S.C., reported U.S. rental revenue of $8.3 billion for the fiscal year ending April 30, 2024, an 11 percent increase over last year. Sunbelt’s guidance for 2025 calls for 4 to 7 percent growth in rental revenue in the U.S.
Overall, Ashtead Group, the parent company of Sunbelt, reported total revenue of $10.86 billion in fiscal 2024, up 12 percent over last year, and rental revenue of $9.6 billion, up 10 percent, which includes results for Sunbelt in the U.S., Canada and the U.K.
“The Group’s operating performance continues to be strong with record revenue and operating profit, up 12 percent and 5 percent respectively, both at constant currency. After a higher interest expense, reflecting the interest rate environment and increased average debt levels, adjusted profit before taxation was slightly lower than last year at $2.230 billion [2023: $2.273 billion]. This 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.
The company invested $4.3 billion in capital across existing locations and greenfields and $905 million on 26 bolt-on acquisitions, adding a combined 113 locations in North America. “This investment is enabling us to take advantage of the substantial structural growth opportunities that we see for the business, while maintaining a strong and flexible balance sheet,” Horgan said.
In 2024, Sunbelt estimates that United Rentals, Stamford, Conn., now has a 15 percent market share compared to its 11 percent share, and predicts that in the future, two or three companies will have a combined market share of 50 percent.
The company also said it is entering its new strategic growth plan, Sunbelt 4.0.
“Through the actionable components of our new strategic growth plan, Sunbelt 4.0, we will drive long-term sustainable growth and returns for all stakeholders and the Board looks to the future with confidence,” Horgan said.
