Sunbelt Rentals’ revenue grows despite mixed market conditions

Sunbelt Rentals’ revenue grew in the second quarter of fiscal 2026 as sustained megaproject activity made up for slow nonresidential construction and hurricane season activity.

Despite mixed construction markets, Ashtead Group, Sunbelt Rentals’ London-based parent company, reported 1% annual growth in revenue and rental revenue in its second quarter, which ended Oct. 31, according to today’s earnings release. Over the first six months of its fiscal 2026, Ashtead Group saw a 1.7% increase in rental revenue, which aligns with its 0% to 4% growth forecast made at the end of its fiscal 2025 on April 30, Chief Executive Brendan Horgan said during today’s earnings call.

“While our key construction end markets remain mixed, we’re seeing signs that the local nonresidential market is now an equilibrium in terms of completions and starts as well as continued positive momentum in many of our internal and external leading indicators,” he said. “Megaproject activity continues to be strong, and we’re winning share across our regional and national strategic customers.”

While the 2025 hurricane season had fewer hurricanes and less damage than 2024 and nonresidential recovery remains slow, the sustainability of megaproject activities such as data center construction enabled revenue growth, Horgan said.

Meanwhile, positivity in other leading indicators, such as the Dodge Momentum Index, which tracks nonresidential construction planning, and the Federal Reserve lowering the funds rate, indicated further growth ahead for Sunbelt and the rental industry, Horgan added.

“We remain cautiously optimistic that these trends in our business will continue and are early signs of the local nonresidential portion of our end markets recovering,” he said. “When they do, we will experience accelerated momentum and improved results.”

By the numbers

In Q2, the Ashtead Group reported:

Global total revenue of $3 billion, up 0.7% year over year;

North American total revenue was $2.7 billion, up 0.8% YoY;

Global rental revenue grew to $2.8 billion, up 1.2% YoY;

North American rental revenue rose to $2.5 billion, up 1.2% YoY;

Global used-equipment sales finished at $108.1 million, down 14.1% YoY;

North American used-equipment sales landed at $96.1 million, down 13.9% YoY;

Net financing costs were $133.3 million, down 7.2% YoY;

North American General Tool dollar utilization for the past 12 months dropped to 47%, down 200 basis points (bps) YoY; and

North American Specialty dollar utilization for the past 12 months declined to 74%, down 100 bps YoY.

Rental rate growth expected as fleets stabilize

Ashtead Group expects rental rates and pricing to grow after the company’s de-fleeting efforts over the past year amid industrywide over-fleeting, Horgan said.

“We think [over-fleeting] has largely corrected itself, and therefore, that leads to even more momentum and really expectation around pricing,” he said. “Overall, our expectations on rates are positive, and we do expect rate progression to be a feature of our growth for the years to come.”

As activity increases in the rental market and more companies introduce new rental rates, dealers and rental houses must remember that pricing is dynamic and discipline is key, Horgan said.

“Pricing does have a momentum element, and at this particular juncture, it has proven to be remarkably resilient,” he said. “Pricing is still very much strong, and we look to take further advantage, if you will, of this structural output to progress pricing that we expect to be a feature of our growth for years to come.”

Market Reaction

Shares of Ashtead Group (OTCMKTS: ASHTY) were down $3.43 or 1.33% from market open to $254.61 as of market close today. Ashtead Group has a market capitalization of $26.80 billion.

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