Ashtead plc, including Sunbelt Rentals in the United States, Canada and United Kingdom, totaled $2.628 billion in fiscal fourth quarter 2024 revenue compared to $2.444 billion in fiscal third quarter revenue, a 7.5-percent increase. Fourth quarter rental revenue grew 8.8 percent year over year, from $2.126 billion in fiscal Q423 to $2.313 billion.
For the full year, total revenue was $10,858.7 million ($10.859 billion) compared to $9,667.3 million a year ago, a 12.3-percent increase. EBITDA jumped from $4,411.8 million in fiscal 2023 to $4,892.6 million in fiscal 2024, a 10.9-percent increase.
In the United States, Sunbelt’s total revenue was $9,306.7 million compared to $8,222.4 million a year ago, a 13.2-percent hike. Sunbelt Canada increased from U.S. $622.1 million a year ago to $664.4 million, a 6.8-percent increase. And in the U.K., total revenue increased from U.S. $822.8 million to $887.6 million, a 7.9-percent incline.
"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,” said chief executive Brendan Horgan. “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 million (2023: $2,273 million).
“We completed Sunbelt 3.0 in April, executing well against all actionable components of that plan and developing a strong foundation for the next phase of our growth. During the year, we 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.
“Our end markets in North America remain robust with healthy demand, supported in the U.S. by the increasing proportion of mega projects and the ongoing impact of the legislative acts. We are in a position of strength, with the operational flexibility and financial capacity to capitalize on the opportunities arising from these market conditions and ongoing structural changes. 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."
The company said that rental-only revenue in the U.S. of $6.558 billion was a 12-percent increase, representing continued market outperformance and demonstrating the benefits of its strategy of growing its Specialty businesses and broadening its end markets. “Organic growth (same-store and greenfields) was 8 percent, while bolt-ons since May 1, 2022 contributed 4 percent of rental only revenue growth,” the company said in its report. “In the year, our General Tool business grew 11 percent, while our Specialty business grew 14 percent. Rental only revenue growth has been driven by both volume and rate improvement.”
Canada's rental only revenue increased 10 percent to C$605 million, compared to 2023’s C$548 million. Markets related to the major part of the Canadian business are growing in a similar manner to the U.S. with strong volume growth and rate improvement. However, the Writers Guild of America and Screen Actors Guild strikes, which were settled in December, had a significant impact on the performance of the Specialty Film & TV production rental business and some impact on the rest of the Canadian business, which rents into that space. Parts of the U.S. and UK businesses have been affected similarly. Following the settlement, activity levels recovered progressively in the fourth quarter. Rental revenue increased 10 percent to C $765 million (2023: C$696 million), while total revenue was C$897m (2023: C$827m).
The U.K. business generated rental only revenue of £466 million, up 9 percent compared to the previous year’s total (2023: £429 million). Bolt-ons since May 1, 2022 contributed 2 percent of this growth. Rental only revenue growth has been driven by both rate and volume improvement. Rental revenue increased 6 percent to £590 million (2023: £559m), while total revenue increased 3 percent to £706 million (2023: £685 million). This lower rate of total revenue growth reflects a higher level of ancillary and sales revenue associated with the work for the Department of Health last year, which did not repeat this year.
Sunbelt Rentals, headquartered in Fort Mill, S.C., is No. 2 on the RER 100. Ashtead is based in London.
