Marginal growth for Ashtead as specialty outperforms

Ashtead Group, the owner of Sunbelt Rentals, has reported flat revenues overall in the first quarter of its current financial year, contrasted by a stronger performance in its UK business, aided primarily by exchange rates, and continued growth in the specialty business. 

Photo: Sunbelt Rentals

Group revenue stood at $2,801 million during the quarter, marked by lower used equipment sales, and resulting in EBITDA decreasing by 1% to $1,276m. Rental revenue, however, saw a marginally higher increase of 2.4% as mega project activity gained momentum. “We are seeing positive leading indicators for local non-residential construction activity,” added the company. 

“We invested in the infrastructure of the business during Sunbelt 3.0 to support the growth of the business now and into the future,” Ashtead added. “Our intention is to leverage this infrastructure during Sunbelt 4.0 as we look to improve operating performance.”

Adjusted operating profit decreased 5% in the quarter to $683m, reflecting a depreciation charge which was 4% higher than the prior year. “The higher increase in the depreciation charge relative to revenue growth reflects the ongoing impact of life cycle fleet inflation, contributing to the decline in adjusted operating profit,” added the group.

Specialty growth continues 

In the North American General Tool business, rental revenue stood at $1,535 million, up 1% on the same period last year.

However, in the company’s specialty segment, rental revenue was 5% higher at of $854m, driven by increase in business and a growth in rental rates, “demonstrating the benefits of our strategy of growing our Specialty businesses,” said the company.

During the period the company invested $20m in two bolt-on acquisitions as it continued to diversify its end markets, as well as expanding its footprint. They included specialty business MPC Solutions in June 2025 and the acquisition by Sunbelt Canada of Québec-based general tool business Location de Beauce.

The company’s UK business saw higher than average growth in the group, generating rental revenue of $212m, up 4% on the previous year but that was thanks to favourable foreign exchange rates, with rental revenue in local currency 2% lower than the prior year. Nevertheless, total revenue in the UK was up 2% to $243m, falling in line with the rest of the group.

In the UK, the focus remains on operational efficiencies, sustainable returns, alongside an improvement in rental rates, said the group. 

Based on the quarter’s performance the group’s guidance remains unchanged with a forecasted rental revenue growth in the 2025/2026 financial year of between 0% - 4%, with capital expenditure remaining at $1.8bn - $2.2bn.

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