Ashtead Group plc

For fiscal 2026, total revenue was $11.2 billion, up 3.4% year over year, and equipment rental revenue was $10.3 billion, also up 3.4%. Adjusted EBITDA was $4.7 billion, down 2% year over year, and adjusted EBITDA margin was 41.9%, down 200 basis points; North America margins were 43.4% excluding the U.K. Adjusted EPS was $3.72 for the year, and full-year free cash flow was a record $2.1 billion, up 22.7%-23% year over year. In Q4, total revenue was $2.8 billion, up 8.9%, rental revenue grew 8%, adjusted EPS was $0.74, and free cash flow was $627 million. For FY2027, management guided to 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 framed the year as evidence of Sunbelt’s structural growth engine, emphasizing safety, broad demand, and the benefits of scale, density, and specialty breadth. He said momentum accelerated into Q4, led by specialty, mega-projects, energy solutions, live events, and strategic accounts, and he pointed to positive leading indicators and a healthy supply-demand backdrop. He also highlighted the Reliant acquisition as a strategic fit with Sunbelt 4.0 and a way to deepen the company’s modular and site-services offering.

Alex Pease focused on the mechanics behind the margin pressure and the capital deployment profile. He cited the lapping of an approximately $28 million receivables provision reversal, higher ancillary revenue mix, and volume-related fleet repositioning costs as key drivers of the 2026 margin decline, while noting full-year depreciation was unchanged at $2.2 billion and interest expense was $387 million. He also highlighted net debt of $7.6 billion, leverage of 1.6x, and $1.9 billion returned to shareholders through $1.4 billion of buybacks and $464 million of dividends.

Analysts pressed management on what it will take to get margins growing again, how much of 2027 growth is already embedded, and whether specialty, ancillaries, and mega-project load-ins will continue to pressure margins. Management said the margin reset is largely mix-driven rather than structural, with early mega-project load-ins creating temporary compression, but they expect improvement in the back half of 2027 as operational initiatives and pricing take hold. They also said rental revenue guidance includes some positive rate and about $70 million of one-time event activity, and clarified that the Reliant acquisition contributes just under 1% of FY2027 revenue but will be a year-one margin drag. On local non-residential construction, they said conditions remain stable but flat, not inflecting meaningfully yet.