Strong half-year result for Sunbelt

Sunbelt Rentals has announced “a record performance” in the six months to 31 October 2021, and predicted that full-year results will exceed its previous forecast.

Highlights of the results included location expansion, strong capex of $1.2bn compared to $438m in 2020 and expansion of the group’s specialty rental activities.

Sunbelt Rentals continues to focus on environmental initiatives.

International equipment rental company Ashstead Group, which has networks in the US, UK and Canada, trading as Sunbelt Rentals, saw revenue grow by 18% to US$3.88bn in the half year and by 15% to US$2.03bn in the second quarter.

Rental revenue was up by 20% to US$3.54bn in the first half compared with last year.

In the US, it rose by 16% compared with last year. In the UK it was up 18% on the previous year, largely driven by the Department of Health’s Covid-19 response efforts.

Rental rate improvements were also “progressing better than anticipated” driven by high demand and supply constraints, a trend highlighted in the group’s first quarter revenue results. 

EBITDA rose by 18% to US$1.83bn in the first half and by 12% to US$972mn in the second quarter.

During the period, Sunbelt invested US$1.2bn in capital across its existing locations and greenfields. It added 10 bolt-on acquisitions, adding 58 locations in North America. It also invested $1.2bn in capital expenditure.

Meanwhile it said the recent acquisition of US company, Memphis, Tennessee-based portable accommodation specialist Mahaffey Temporary Structures announced early December, would create a strong basis for the group’s tenth specialty rental business.

The announcement also confirmed ongoing focus on the environmental element of the group’s Environmental, Social, and Governance (ESG) commitments through various initiatives.

These included pairing combustion engine products with battery or solar alternatives and worksite charging and partnering with existing manufacturers to electrify core products.

Sunbelt was also investing in start-up manufacturers focused on portable battery power, battery design and packaging; through direct investment, design and product procurement.

Looking ahead, Chief Executive Brendan Horgan said “known and forecast levels of demand coupled with supply constraints indicate strong markets for the years to come.” 

“We look to the future with great confidence and expect full year results to be ahead of expections.”