Sunbelt Rentals reports 30 percent revenue increase

Sunbelt Rentals, Fort Mill, S.C., today reported total revenue of $1.90 billion during the 2022 fiscal first quarter, up 30 percent compared to $1.47 billion the year before. Rental revenue was $1.39 billion, up 26 percent compared to $1.10 billion the year before.

In the UK, Sunbelt Rentals reported $222.7 million in total revenue, down from $265.7 million the year before. Rental revenue increased 5 percent.

In Canada, Sunbelt Rentals’ total revenue was $137.1 million, up from $121 million the year before. Rental revenue increased 18 percent.

Ashtead Group, the parent company of Sunbelt, reported total revenue of $2.26 billion during the fiscal first quarter, up 25 percent compared to $1.85 billion the year before. Rental revenue was $2.08 billion, up 26 percent compared to $1.67 billion.

During the first quarter, 12 businesses were acquired. The acquisitions included:

• On May 5, 2022, Sunbelt UK acquired the entire share capital of Movietech Camera Rentals and Movietech Cymru.
• On May 13, 2022, Sunbelt US acquired the business and assets of the power rental division of Filmwerks — a specialty business in North Carolina.
• On May 20, 2022, Sunbelt US acquired the business and assets of Mashburn Equipment — a general tool business in Georgia.
• On June 1, 2022, Sunbelt Canada acquired the entire share capital of MacFarlands — a general tool business in Nova Scotia and New Brunswick, Canada.
• On June 8, 2022, Sunbelt US acquired the business and assets of Amos Metz Rentals & Sales — a general tool business in California.
• On June 29, 2022, Sunbelt US acquired the business and assets of George’s Tool Rental — a general tool business in Pennsylvania.
• On July 7, 2022, Sunbelt UK acquired the entire share capital of PKE Lighting Holdings — a specialty business.
• On July 13, 2022, Sunbelt US acquired the business and assets of Milford Rent-All — a general tool business in Maine.
• On July 15, 2022, Sunbelt US acquired the business and assets of R&N Tool Rental — a general tool business in Indiana.
• On July 20, 2022, Sunbelt US acquired the business and assets of Chump Management, trading as Power Equipment Rental — a general tool business in Utah.
• On July 22, 2022, Sunbelt US acquired the business and assets of Harmar Contractors Equipment — a general tool business in Pennsylvania.
• On July 28, 2022, Sunbelt US acquired the business and assets of A-V Equipment Rentals — a general tool business in California.

Sunbelt Rentals expects U.S. rental revenue in 2022/2023 to increase 17 to 20 percent, compared to the previous guidance of 13 to 16 percent.

“The group has made a strong start to the financial year across all geographies with rental revenue up 26 percent at constant currency. This market outperformance across the business is only possible through the dedication of our team members who deliver for all our stakeholders every day, while ensuring our leading value of safety remains at the forefront of all we do,” said Brendan Horgan, Ashtead CEO.

“Our end markets remain strong and we continue to execute well across all actionable components of our strategic growth plan, Sunbelt 3.0. In the quarter, we invested $699 million in capital across existing locations and greenfields and $337 million on 12 bolt-on acquisitions, adding a combined 33 locations in North America. This significant investment is enabling us to take advantage of the substantial structural growth opportunities that we see for the business as we deliver our strategic priorities to grow our general tool and specialty businesses and advance our clusters. We are achieving all this while maintaining a strong and flexible balance sheet with leverage near the bottom of our target range,” he said.

“Our business is performing well with clear momentum in supportive end markets. We are in a position of strength and have the experience to navigate the challenges and capitalize on the opportunities arising from the market circumstances we face, including supply chain constraints, inflation, labor scarcity and economic uncertainty, all factors which we are convinced are drivers of ongoing structural change. The business is performing strongly, with revenue and operating profit ahead of our previous expectations. This performance is offset by increasing interest costs and therefore, we expect adjusted profit before taxation for the year to be in line with our previous expectations and the Board looks to the future with confidence,” Horgan added.