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Sunbelt Rentals Holdings Inc on Tuesday announced an annual earnings decline despite revenue edging up amid higher costs, as it expects earnings to pick up again in the new financial year. The London-based equipment rental company formerly known as Ashtead Group PLC, said pretax profit fell 13% to $1.80 billion in the financial year ended April 30, from $2.07 billion a year prior. Revenue grew 3.4% to $11.15 billion from $10.79 billion. Adjusted earnings before interest, tax, depreciation and amortisation declined 1.6% to $4.68 billion from $4.75 billion. Adjusted earnings per share contracted by 1.6% to $3.72 from $3.78. Adjusted operating profit fell 4.4% to $2.50 billion from $2.62 billion, while the adjusted operating profit margin was 22.4%, lower than 24.2% a year prior. Total cost of revenue increased 6.1% to $6.86 billion from $6.47 billion, with cost of equipment rentals, excluding depreciation, increasing by 8.0% to $4.39 billion from $4.07 billion. Net profit dove 15% to $1.33 billion from $1.55 billion. The company highlighted that on May 1, it closed the purchase of Reliant Asset Management for $650 million. Sunbelt Rentals expects the acquisition of the ‘market leader’ in modular space solutions to be accretive to growth and earnings per share. Sunbelt Rentals said: ‘Aligned with the Sunbelt 4.0 strategy, this acquisition furthers Sunbelt Rentals’ long-term commitment to investing in high-value Specialty markets. By expanding into a highly complementary Specialty vertical, we believe it strengthens our capacity to generate stockholder value and unlocks meaningful cross-sell opportunities across both new and existing markets and our broader customer base.’ Looking ahead, Sunbelt Rentals for financial year 2027 anticipates revenue growth of 4.5% to 7.5%, while adjusted Ebitda is expected to climb between 3.7% and 8.0% to between $4.85 billion and $5.05 billion. Chief Executive Officer Brendan Horgan said: ‘We are entering the year with strong top-line momentum. Our guidance reflects confidence in the underlying demand environment, the resilience of our structural growth and through-the-cycle free cash flow platform. We believe Sunbelt is well positioned to deliver a year of strong performance.’ Sunbelt Rentals shares fell 2.9% to 5,540.00 pence each on Wednesday morning in London, while in New York, it shares closed 9.4% lower at $75.41 on Tuesday, and in the pre-market on Wednesday morning were down 2.9% at $73.24. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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