Five things we learnt from Ashtead’s 2025 results

Ashtead Group blamed tough market conditions for a 5% slump in pre-tax profits in its annual profits last week despite an increase in rental revenues.

The parent company of Sunbelt Rentals reported a 1% fall in headline revenue for the financial year which the company said was mainly the result of lower used equipment sales.

Nonetheless, the UK-headquartered group, which is one of the largest rental companies in the world, said that its core rental operations continued to grow over the year, helping to offset the reversal.

The company, which has seen strong revenue growth in recent years, driven by a mixture of acquisitions and depot expansion, has long been viewed as a bellweather for the construction market - especially that of North America which accounts for the vast majority of the company’s revenues.

Here, International Rental News takes a look through the results to see what stood out. 

1. Rental revenues approach $10 billion, but group revenue is down

The company generated record rental revenues of $9.9 billion for the year – a 4% increase on FY2024.

Growth came despite what the company called a “softening” market in North America.

Overall group revenue declined slightly to $10.7 billion, largely due to a 30% drop in sales of new and used equipment, now totalling $801 million.

Adjusted EBITDA rose 3% to $5.02 billion, while operating profit was up 2% at $2.83 billion. CEO Brendan Horgan said the company had benefitted from a strong pipeline of mega projects.

He said, “While completions continue to outpace starts in local non-residential construction, mega project activity continues to be robust, particularly in the data centre, semiconductor and LNG space, with the pipeline projected to grow from c. $840bn in the FY23 – FY25 timeframe, to more than $1.3 trillion in the FY26 – FY28 timeframe.”

2. Specialty rental continues to grow, as does North America

Sunbelt’s specialty businesses in North America grew faster than its general tool divisions and now accounts for 29% of US rental revenue, up from 28% in the previous year and 26% in FY2023.

The company opened 26 specialty locations in North America during the year and said these divisions continued to grow strongly. This area remains a key growth driver for the company, aligned with Sunbelt 4.0’s focus on diversifying services and solutions across non-construction sectors.

Photo: Ashtead Group

Meanwhile, Sunbelt Rentals in the US, Ashtead’s largest business, saw rental revenues rise 5% to $8.9 billion, despite macroeconomic pressures and a quieter second half.

In Canada, the company recorded a 7% rise in rental revenue to $598 million.

By contrast, Sunbelt UK’s rental revenues dipped 2% to £503 million, reflecting lower volumes across construction and infrastructure markets. Overall, 91% of group revenue is now generated in North America.

3. Used equipment sales slumped 30%

Ashtead’s revenue from used equipment sales fell by 46% year-on-year to $467 million. That follows a 16% decline in the previous year, continuing a downward trend from the post-Covid highs of FY2023.

The company cited lower demand and pricing in the used equipment market, especially in the US, where most of its fleet is sold. New equipment sales also dropped by 23% to $138 million.

Total revenue from used and new equipment sales was $801 million in FY2025, down from $1.14 billion in FY2024 — a $336 million fall.

4. Sunbelt 4.0 is the next phase of growth

The company said that its Sunbelt 3.0 strategy continues through the current strategic cycle, adding 118,000 thousand customers and $1.4 billion in revenues since it was introduced.

Looking at Sunbelt 4.0, Horgan said it had added over 42,000 new customers in the first year since its introduction; “These new customers represent market share gains and combined generated more than $1.9bn of revenue in the year.

“Our cross-selling effectiveness has expanded with almost 50% of our revenue coming from customers renting both general tool and three or more specialty lines of business.”

Horgan said the company was “developing the next strategic growth plan” of 4.0, with a focus on areas like technology, sustainability, and further expansion of specialty services.

Although some other aspects of the new strategy are not yet released, the groundwork is clearly being laid. The company added 61 locations during the year, as well as five acquisitions, and expects that pattern to continue in 2026.

5. Growth will slow – but expansion continues

Looking ahead, Ashtead forecasts “modest” rental revenue growth for FY2026 of between 0%-4%. In the same period, the company plans gross capital expenditure of $1.8bn – $2.2bn , down from $4.2 billion in FY2025.

Free cash flow is expected to increase significantly to between $900 million and $1.1 billion, compared to $181 million in FY2025. This reflects the lower capital spend and an expected stabilisation of fleet investment.

Another thing to look out for in 2026 is the company’s planned listing on the New York Stock Exchange, which it expects to be finalised in the first quarter of 2026.