Sunbelt Rentals Holdings (SUNB) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and operating profit, with group revenue up 12% year-over-year and US revenue up 13%, driven by strong North American markets and ongoing business execution.

• Completed Sunbelt 3.0, surpassing targets, and launched Sunbelt 4.0 to drive the next phase of growth.

• 113 new locations added in North America, including 66 greenfields and 47 acquisitions.

• $4.3bn invested in the business, with $905m spent on 26 bolt-on acquisitions.

• Maintained a world-class safety record, with best-ever incident rates.

Financial highlights

• Group revenue reached $10,859m, up 12% year-over-year; rental revenue was $9,630m, up 10%.

• EBITDA rose 11% to $4,893m; adjusted pre-tax profit was $2,230m, slightly down from $2,273m last year.

• EPS reached 386.5¢; operating profit up 5% to $2,770m.

• U.S. rental revenue grew 11% year-over-year; Canada up 10%; U.K. up 6%.

• EBITDA margins: U.S. 47.3%, Canada 40.5%, U.K. 28.2%.

Outlook and guidance

• Group rental revenue expected to grow 5–8% in FY25; U.S. 4–7%, Canada 15–19%, U.K. 3–6%.

• CapEx guidance for FY25: $3B–$3.3B, with $2.3B–$2.6B for new rental fleet.

• Free cash flow expected around $1.2B.

• Margins expected to progress, aided by lower used equipment sales and strong drop-through.

• North America rental revenue growth targeted at ≥1.5x the market rate, with group ROI of ≥20%.