Weekly roundup: Trump win impact | Renta’s acquisition | H&E market insight

The United Rentals stand at the 2023 Utility Expo. (Photo: IRN)

Rental companies’ acquisitions and third-quarter results were in the spotlight this week.

Renta Group has acquired Tunnel Support AS and Tunnel Support Sverige AB, specialists in the rental of equipment to the mining and tunnelling industries in Norway.

The company, which is being sold by mining equipment OEM Andersen Mek Verksted AS, will be rebranded as Renta Infra AS and Renta Infra AB.

Large rental companies have mixed performance in their third-quarter earnings.

H&E Equipment Services reported softening fleet utilisation, lower rental rates and a “lingering modest oversupply” of equipment as it posted third quarter revenues down 4.0% year-on-year to US$384.9 million. EBITDA profit was 8.4% lower at $175.3 million.

The US rental business said industry demand was lower than the previous year, with average time utilisation of its fleet at 67.6% compared to 70.0% in the third quarter of 2023, and average rental rates down 0.1%, and 0.6% lower compared to the second quarter of this year.

Brazilian market

Mills, the largest rental company in Brazil, saw its net revenue reach a historic record of R$419.5 million (€69 million) in the third quarter of this year, up 20.6% from the same period of last year, thanks to the growth in its heavy business and incremental revenue from JM Empilhadeiras, a forklift truck rental company.

The company’s adjusted EBITDA grew 11.5% to R$199 million while net income surged 6.1% to R$70.8 million for the same period.

The company said the machines imported from China at more competitive prices than those charged by traditional manufacturers has led to slight pressure on prices and increased competition in the light business his year.

Trump election

Meanwhile, stock investors are speculating what the actual impact of the Trump administration will have on construction and the wider economy when it takes power.

Stock prices at the five largest publicly traded equipment rental businesses in the US have surged significantly on 6 November after Donald Trump declared victory.

Big rises were seen at the following businesses, with London-listed Ashtead Group included because its largest business Sunbelt Rentals is in the US:

• United Rentals: +10%
• H&E Equipment: +11%
• Ashtead (Sunbelt): +8.5%
• Herc Rentals: +13%
• WillScot: +10%

US-based manufacturer stocks linked to the equipment rental sector, including (Terex AWP), Oshkosh Corp (JLG Industries) and Caterpillar, also increased.

New power technology

Separately this week, AFC Energy said its joint venture with Speedy Hire - Speedy Hydrogen Solutions (SHS) – to rent fuel cell gensets was getting a “very positive” reception from customers. AFC’s full year revenues of approximately £4 million were largely driven by sales to SHS.

In a market update for its full year to the end of October, AFC said the SHS venture was now running an initial fleet of fuel cell generators, which SHS was also linking with Speedy’s battery energy storage systems (BESS).

Temporary power solutions Power Electrics said it has transitioned from a privately owned company to an Employee Ownership Trust (EOT).