Ashtead Group plc

For fiscal 2026, total revenue and equipment rental revenue both grew 3.4% to records of $11.2 billion and $10.3 billion, respectively. Adjusted EBITDA was $4.7 billion and the full-year margin was 41.9%, down 200 basis points year over year; excluding the U.K., North America margins were 43.4%. Adjusted EPS for the year was $3.72, and fourth-quarter adjusted EPS was $0.74, down year over year. Q4 total revenue grew 8.9% to a record $2.8 billion, with rental revenue up 8%; Q4 specialty rental revenue grew 15.1% and general tool rental revenue grew 4.4%. Full-year free cash flow was a record $2.1 billion, up 22.7%-23% year over year, and full-year CapEx was $2.2 billion. Net debt was $7.6 billion and leverage was 1.6x. For fiscal 2027, Sunbelt expects total revenue growth of 4.5%-7.5%, rental revenue growth of 5%-8%, adjusted EBITDA of $4.85 billion-$5.05 billion, net rental equipment CapEx of $2.05 billion-$2.45 billion, gross rental CapEx of $2.45 billion-$2.85 billion, and 55 greenfield openings.

Brendan Horgan said the business is benefiting from broad-based momentum, safety-driven execution, and a structurally growing rental market. He emphasized record revenues, expanding specialty breadth, strong mega-project activity, and the strategic addition of Reliant to create Sunbelt’s 13th specialty line, Modular Solutions. His tone was confident but measured: he repeatedly framed 2027 as a year to convert growth into better returns, with margin improvement expected later in the year.

Alex Pease focused on the mechanics behind revenue, margins, cash generation, and capital deployment. He said full-year revenue was $11.2 billion, adjusted EBITDA was $4.7 billion, adjusted EPS was $3.72, free cash flow was a record $2.1 billion, and net debt-to-EBITDA was 1.6x; he also noted $2.2 billion of full-year CapEx, $238 million spent on 13 bolt-on acquisitions, and $1.4 billion of share buybacks plus $464 million of dividends. On margin outlook, he said 2027 margins should be broadly flat because specialty growth, ancillary revenue mix, and Aries will offset improvement later in the year, but that dynamic customer pricing and operating excellence could help.

Analysts pressed management on why margins are still compressed despite healthy growth, and management said the main issues are the mix shift toward specialty, higher ancillary revenues such as E&D, fuel, and re-rent, and the lapping of a roughly $28 million receivables provision reversal from the prior year. They also asked about the 5%-8% rental growth guide relative to Q4’s 8% growth and the impact of the new Aries deal; management said about $70 million of event-related revenue is a one-time effect, Aries contributes just under 1% of the 2027 guide, and local non-res construction is stable but not inflecting. On local accounts, management said that segment remains benign/flat, while top 200 customers are growing 13%-14%, and they added that rate initiatives are early but positive in 15 markets.