Sunbelt Rentals Increases Revenues 1.7 Percent in Fiscal First Quarter; 2.4 Percent in Rental
Ashtead plc, including Sunbelt Rentals U.S., Canada and U.K., posted $2.801 billion in revenue in its fiscal first quarter 2025, ended July 31, compared to $2.754 billion in the fiscal first quarter of 2024, a 1.7-percent increase. Rental revenue totaled $2.601 billion compared to $2.541 billion a year ago, a 2.4-percent jump.
“The Group delivered solid first quarter results with revenues, profits and free cash flow in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry,” said CEO Brendan Horgan. “Rental revenue increased 2.4 percent as mega project activity gained momentum, and we are seeing positive leading indicators for local non-residential construction activity. Our revenue growth combined with strong margins and disciplined capital deployment resulted in near record free cash flow in the quarter. In addition, we were able to complete $330 million of share buybacks in the quarter bringing our total to about $675 million under the current program, as well as paying down $91 million of long-term borrowings, with leverage of 1.6x. I would 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 are reaffirming our revenue and capex guidance for the year, while raising it for free cash flow. Lastly, we continue to progress our relisting on the New York Stock Exchange that is currently scheduled for March 2026.”
The geographical divisions posted revenue as follows:
• The North America General Tool segment declined slightly, from $1,661.1 million in the fiscal first quarter of 2024, to $1,648.9 million, a .072-percent decline. In the North American General Tool business, rental revenue of $1,535 million (2024: $1,524 million) was 1 percent higher than the prior period, driven by volume growth. Organic performance (same-store and greenfields) was flat, while bolt-ons since May 1, 2024 contributed 1 percent of rental revenue growth. With North American General Tool total revenue lower than the previous year, as expected, this reflects a lower level of used equipment sales than the comparable period last year ($71 million; 2024: $94 million).
• Sunbelt continues to focus on the cost base, which contributed to North America General Tool EBITDA of $871 million (2024: $900 million) and an EBITDA margin of 52.8 percent (2024: 54.2 percent). The margins reflect higher costs associated with internal repairs and repositioning of rental fleet to drive utilization improvements.
Specialty Rocks
• The North America Specialty Division, on the contrary, increased from $855.3 million a year ago, to $909.3 million this year, a 6.3-percent increase. In the North American Specialty business, rental revenue was $854 million (2024: $813 million), a 5-percent increase, driven by both volume and rate improvement. This performance combined with Sunbelt's focus on the cost base contributed to North American Specialty EBITDA of $436 million (2024: $410 million) and an EBITDA margin of 47.9 percent (2024: 48.0 percent). After higher depreciation on a larger fleet, this contributed to adjusted operating profit increasing by 8 percent to $301 million (2024: $279 million) with a margin of 33.1 percent (2024: 32.7 percent).
• U.K. revenue picked up a bit, from $237.3 million to $242.7 million, a 2.3-percent uptick. The UK business generated rental revenue of $212 million, up 4 percent compared to the prior year (2024: $204 million). Rental revenue growth has benefited from favorable foreign exchange movements, with rental revenue in local currency 2 percent lower than the prior year. In the UK, the focus remains on delivering operational efficiency and long-term, sustainable returns in the business, while rental rate achievement remains an area of focus. The UK generated EBITDA of $61 million (2024: $64 million) at a margin of 25.3 percent (2024: 26.9 percent) and adjusted operating profit of $16 million (2024: $22 million) at a margin of 6.7 percent (2024: 9.3 percent).
Sunbelt Rentals, No. 2 on the RER 100, is headquartered in Fort Mill, S.C. Parent company Ashtead plc has its head office in London.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.