Sunbelt Rentals Increases Rental Revenue in Fourth Quarter and Full Year Fiscal 2025
For its fiscal fourth quarter, ended April 30, Ashtead plc, including Sunbelt Rentals in the U.K., United States and Canada, reported $2,529 total million in revenue, compared to $2,628 million in revenue in the previous year’s fourth quarter, a 3.8-percent decrease. Rental revenue increased, however, from $2,313 million a year ago to $2,334 million in the recently concluded quarter, a 0.9-percent increase. Adjusted EBITDA grew slightly more than 1 percent from $1,141 million to $1,147 million.
For the full fiscal year, total revenue declined less than 1 percent, from $10,859 million to $10,792 million. Rental revenue increased from $9,630 million to $9,980 million, a 3.6-percent incline. Adjusted EBITDA also increased, from $4,893 million to $5,022 million, a 2.6-percent increase.
“The Group delivered record full year rental revenue and adjusted EBITDA, with growth of 4 percent and 3 percent respectively,” said Ashtead chief executive Brendan Horgan. “I’d like to thank the team for these results, while leading with our safety-first culture and Engage for Life program, which are continuing to drive improvements in our safety metrics. We demonstrated the through-cycle, cash generative power of our business, delivering near record free cash flow of $1.8 billion for the year. Combined with sustained levels of profitability, this enabled us to invest $2.4 billion of capital in our growth runway, alongside our highest ever level of shareholder returns totaling $886 million across dividends and share buybacks.
“We continue to take advantage of strong secular tailwinds and structural progression, within our $87 billion and growing industry. While completions continue to outpace starts in local non-residential construction, mega project activity continues to be robust, particularly in the data center, semi-conductor and LNG space, with the pipeline projected to grow from about $840 billion in the FY23 – FY25 timeframe, to more than $1.3 trillion in the FY26 – FY28 timeframe. This growth comes alongside our operational success in progressing rate, as we deliver value and solutions to our customers through Sunbelt’s extensive range of products, services and expertise.
“We remain focused on delivering our Sunbelt 4.0 growth strategy and, after our first year, we continue to realize momentum and extract benefits from the foundational investments made throughout Sunbelt 3.0. We added over 42,000 new customers in the year on top of the 118,000 accounts opened during Sunbelt 3.0. These new customers represent market share gains and combined generated more than $1.9 billion of revenue in the year. Our cross-selling effectiveness has expanded with almost 50 percent of our revenue coming from customers renting both General Tool and three or more Specialty lines of business. We are achieving margin progression by driving improved efficiencies and even better customer experience. Our 401 locations added during Sunbelt 3.0 delivered an incremental $1.9 billion in revenue, growing approximately 20 percent in the year, and about $900 million in EBITDA. We continue to invest in our businesses’ secular growth opportunities, and in our first year of Sunbelt 4.0, we added an additional 61 locations. I am proud of the team for driving world-class execution and positioning us for even more success.
“We are on track to move the Group’s primary listing to the U.S. in the first quarter of calendar year 2026, and I would like to thank shareholders for their engagement and approval at last week’s EGM. The strength of our foundation and growth strategy is reflected in our results and guidance today. I am excited for FY26 and what lies ahead as we continue to advance our great company.”
Specialty rental proved once again to be the company’s leading growth segment. Specialty rental revenue in North America during fiscal year 2025 increased from $3,250.4 million to $3,478.4 million, a 7 percent increase. General rental decreased from $6,720.7 million to $6,397.0 million, a 4.8-percent decline.
Overall revenue in the U.K. increased from $887.6 million to $907.3 million, a 2.2-percent uptick.
In the North America General Tool Segment, rental only revenue was $4,903 million up from $4,852 million a year ago, a 1-percent increase driven by volume and rate increase, which, Sunbelt said, showed the benefits of the company’s strategy of broadening its end markets.
Organic performance (same-store and greenfields) was flat, while bolt-ons since May 1, 2023, contributed 1 percent of rental only revenue growth. Rental revenue increased 1 percent to $5,890 million (2024: $5,826 million). Sunbelt estimates that hurricane response efforts contributed $25 million to $30 million to General Tool rental revenue in the year. This hurricane impact, in part, mitigated the moderating local commercial construction market.
North American General Tool total revenue, including new and used equipment, merchandise and consumable sales, was $6,397 million (2024: $6,721 million). As expected, this reflects a lower level of used equipment sales than last year ($338 million compared to $720 million in 2024) when Sunbelt took advantage of improving fleet deliveries and strong second-hand markets to catch up on deferred disposals.
North America Specialty a fast-growing segment
In the North American Specialty business, rental only revenue of $2,383 million (2024: $2,154 million) was 11-percent higher than the prior year, also driven by both volume and rate improvement, demonstrating the benefits of Sunbelt’s strategy of growing its Specialty businesses. Organic growth (same-store and greenfields) was 10 percent, while bolt-ons since May 1, 2023 contributed 1 percent of rental only revenue growth.
Sunbelt estimates that hurricane response efforts contributed $60 to $70 million to specialty rental revenue in the year.
Sunbelt invested $137 million in five bolt-on acquisitions during the year, as it continues to expand its footprint and diversify its end markets. In fiscal 2024, it spent $905 million on acquisitions.
