Sunbelt Rentals’ rental revenue grew in its fiscal fourth quarter and full fiscal 2025, with rental rates and volume improving as megaproject activity remained strong.
Ashtead Group, Sunbelt Rentals’ London-based parent company, continues to experience change as rates continue to improve thanks to sustained megaproject activity, Chief Executive Brendan Horgan said during the company’s earnings call today.
“Run rates continue to progress year on year as utilization levels are improving across the industry. We anticipate continued discipline in our business as we deliver added value to our customers,” he said. “This is ongoing evidence of the progressing structural change in the business and leveraging our internal pricing tools and disciplined rate approach.”
Meanwhile, local, nonresidential construction activity continues to moderate, primarily affecting small- to mid-sized contractors, though strong momentum in megaprojects and infrastructure work is offsetting the slowdown, Horgan said.
Sunbelt Rentals’ strong presence in large, complex projects keeps it well positioned to capitalize on current megaproject trends and a future rebound in local commercial construction, he said.
By the numbers
While rising rental rates increased rental revenue slightly, total revenues fell for the Ashtead Group as the company reduced used-equipment sales in Q4, which ended April 30.
During the quarter, Ashtead Group reported:
- Global total revenue totaled $2.5 billion, down 3.8% year over year;
- North American total revenue grew to $2.3 billion, down 3.7% YoY;
- Global rental revenue rose to $2.3 billion, up 0.9% YoY;
- North American rental revenue increased to $2.1 billion, up 1% YoY;
- Global used-equipment sales landed at $111.7 million, down 49.9% YoY;
- North American used-equipment sales finished at $98.9 million, down 51.7% YoY;
For the full year, Ashtead Group reported:
- Global total revenue totaled $10.8 billion, down 0.6% YoY;
- North American total revenue grew to $9.9 billion, down 0.9% YoY;
- Global rental revenue rose to $10 billion, up 3.6% YoY;
- North American rental revenue increased to $9.2 billion, up 3.5% YoY;
- Global used-equipment sales landed at $467.3 million, down 45.6% YoY;
- North American used-equipment sales finished at $416.7 million, down 47.5% YoY;
- Last-12-month North American general tool rental dollar utilization declined to 48%, down 300 basis points YoY.
- Last-12-month North American specialty rental dollar utilization remained flat at 74%.
Market reaction
Following the company’s Q4 performance, Ashtead Group set its fiscal 2026 rental revenue guidance at between 0% and 4%, mostly carried by specialty rental, Chief Financial Officer Alexander Pease said during the earnings call.
“If you want to weigh specialty business versus the general tool, you’d find specialty probably in the mid-single-digit range, and then GT still positive, probably in the lower end of the single-digit range,” he said. “The U.K. probably looks a little bit more flattish year- over-year.”
Despite the decline in performance in Q4, Ashtead Group expects the construction market to remain strong, Horgan said.
Shares of Ashtead Group (OTCMKTS: ASHTY) were up 4.22% or $2.52 from market open to $62.17 as of market close today. Ashtead Group has a market capitalization of $25.76 billion.
