Ashtead profits down for fiscal ‘24, but results buoyed by Sunbelt Rentals’ strength

Ashtead Group’s full-year results for the fiscal year ending March 2024 showed profits down from expectations, however in the US, Sunbelt Rentals’ total revenue jumped 13.2% to $9,306.7 million, compared to $8,222.4 million a year ago. 

Group revenue increased 12% to $10.859 billion during the year, compared to $9,667 million a year ago. This revenue growth resulted in EBITDA increasing 11% to $4,893 million from $4,412 million in 2023.

In the US, rental only revenue of $6,558 million was 12% higher than the prior year total of $5,879 million, representing continued market outperformance and demonstrating the success of the company’s strategy to grow specialty businesses and broaden end markets, according to the company’s statement.

“The Group’s operating performance continues to be strong with record revenue and operating profit, up 12% and 5% respectively, both at constant currency,” stated Brendan Horgan, Ashtead’s chief executive. “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).”

Horgan added, “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.”

Horgan went on to say end markets in North America remain robust with healthy demand, supported in the US 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,” he said. “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.”