Sunbelt Rentals Holdings, Inc. · NYSE:SUNB
Sunbelt Rentals — Ashtead Group — FY2025 Earnings Presentation
47 slides from Sunbelt Rentals's earnings presentation, Jun 17, 2025
Slide 1: Full Year Results
FULL YEAR RESULTS 17 June 2025
Slide 2: Legal Notice
LEGAL NOTICE This presentation has been prepared to inform investors and Some of the factors which may adversely impact some of these prospective investors in the secondary markets about the Group forward-looking statements are discussed in the Principal Risks and does not constitute an offer of sec
Slide 3: FY25 Safety Results & Highlights
FY25 SAFETY RESULTS & HIGHLIGHTS FY25 Posted our lowest end of year injury ratings ever, continuing to lead the industry Safety Week 2025 May 12-16 .65 Total Recordable Incident Rate (TRIR) .10 Lost Time Rate 13th annual safety week, focused on practices and habits of a world class TOTAL RECORDABLE
Slide 4: Highlights
HIGHLIGHTS ▪ Record rental revenue with Group and North America 4% ahead of last year ▪ After planned lower year on year equipment sales proceeds of $391m, total revenues were down 1%, resulting in gains of $81m (2024: $223m) ▪ 3% increase in EBITDA¹ to $5,022m (2024: $4,893m) with strong fall-throu
Slide 5: Strategy Update
STRATEGY The New Nissan Stadium Estimated completion 2027 Future Home of the NFL’s Tennessee Titans I Nashville, TN UPDATE 5 Full year results | 30 April 2025
Slide 6: Sunbelt 4.0
SUNBELT 4.0 5 ACTIONABLE COMPONENTS UNDERPINNED BY STRONG FOUNDATIONAL ELEMENTS Actionable Components: CUSTOMER GROWTH PERFORMANCE SUSTAINABILITY INVESTMENT 1 2 3 4 5 Elevate our Grow General Tool Operate with Advance our position Disciplined capital obsession with and Specialty through greater effi
Slide 7: Sunbelt 4.0 Year One Highlights: Customer Growth
SUNBELT 4.0 YEAR ONE HIGHLIGHTS CUSTOMER 1 GROWTH 2 47% of FY25 rental revenue is from customers renting from 48 Greenfields* General Tool and 3 Lines of Business 61 • • 22 General Tool 26 Specialty 118,000 new customers added during 3.0 Locations Added Greenfields & Bolt-ons 13 General Tool locatio
Slide 8: Sunbelt 4.0 Year One Highlights: Performance
SUNBELT 4.0 YEAR ONE HIGHLIGHTS PERFORMANCE OUR TARGET: 3 3–5% LEVERAGING SG&A Driving improved efficiencies and better customer EBITDA MARGIN Extracting the value from our experience while reducing our centralised cost base Sunbelt 3.0 investments and delivering another year of growth IMPROVEMENT L
Slide 9: Market Logistics Operations Powered by VDOS Technology
MARKET LOGISTICS OPERATIONS POWERED BY VDOS TECHNOLOGY OPERATIONAL EXCELLENCE PERFORMANCE 3 MARKET CURRENT MLO FOOTPRINT NOTABLE IMPACTS ? LOGISTICS 16 clustered markets Improved days to pickup by >25% 4 markets with full year impact OPERATIONS Reduced third party freight costs by >40% (MLO) Scaling
Slide 10: Sunbelt 4.0 Year One Highlights: Sustainability and Investment
SUNBELT 4.0 YEAR ONE HIGHLIGHTS SUSTAINABILITY 4 INVESTMENT 5 Intensity Reduction Target Rental Cap Ex: $1.9bn 50% On track to deliver 2034 Non-Rental Cap Ex: $456m 2034 target GHG INTENSITY REDUCTION intensity reduction Investment in bolt-on TARGET Scope 1 & 2 acquisitions: $137m Giving Back Share
Slide 11: Financial Review
FINANCIAL REVIEW ALEX PEASE 11 Full year results | 30 April 2025
Slide 12: Update on US Primary Listing
UPDATE ON US PRIMARY LISTING ▪ Scheme of arrangement approved by shareholders at EGM on 10 June with 96% support ▪ US GAAP conversion on track for SEC submissions later this calendar year ▪ Sarbanes Oxley compliance work ongoing ▪ Primary listing expected to move to NYSE in Q1 CY2026 – secondary lis
Slide 13: Group
GROUP $m 2025 2024 Change1 Revenue 10,792 10,859 -1% ‐ of which rental 9,980 9,630 4% Operating costs (5,770) (5,966) -3% Adjusted EBITDA 5,022 4,893 3% Depreciation (2,335) (2,118) 10% Adjusted operating profit 2,687 2,775 -3% Net interest (559) (545) 3% Adjusted profit before tax 2,128 2,230 -5% A
Slide 14: Group: Impact of Used Equipment Sales
GROUP IMPACT OF USED EQUIPMENT SALES $m 2025 2024 Change1 Revenue 10,792 10,859 -1% Sales of used equipment sales (467) (859) -46% Revenue (excluding used equipment sales) 10,325 10,000 3% Adjusted operating profit 2,687 2,775 -3% Gains from sales of used equipment (81) (223) -64% Operating profit (
Slide 15: North America General Tool
NORTH AMERICA GENERAL TOOL $m 2025 2024 Change Revenue 6,397 6,721 -5% ‐ of which rental 5,890 5,826 1% Operating costs (2,919) (3,068) -5% Adjusted EBITDA 3,478 3,653 -5% Depreciation (1,385) (1,259) 10% Adjusted Operating profit 2,093 2,394 -13% Margins ‐ EBITDA 54.4% 54.4% ‐ Operating profit 32.7
Slide 16: North America Specialty
NORTH AMERICA SPECIALTY $m 2025 2024 Change Revenue 3,487 3,250 7% ‐ of which rental 3,313 3,062 8% Operating costs (1,815) (1,812) -% Adjusted EBITDA 1,672 1,438 16% Depreciation (537) (470) 14% Adjusted Operating profit 1,135 968 17% Margins ‐ EBITDA 47.9% 44.3% ‐ Operating profit 32.5% 29.8% Retu
Slide 17: UK
UK $m 2025 2024 Change Revenue 907 888 2% ‐ of which rental 778 742 5% Operating costs (667) (653) 2% EBITDA 240 235 2% Depreciation (171) (164) 5% Operating profit 69 71 -4% Margins ‐ EBITDA 26.4% 26.5% ‐ Operating profit 7.6% 8.0% Return on investment 6.5% 7.2% The results in the table above are t
Slide 18: Cash Flow
CASH FLOW $m 2025 2024 Adjusted EBITDA 5,022 4,893 Cash conversion ratio1 99% 93% Cash inflow from operations2 4,954 4,541 Rental and non-rental capital expenditure (2,707) (4,445) Rental equipment and other disposal proceeds received 523 879 Interest and tax paid (980) (759) Free cash flow 1,790 21
Slide 19: 2025/26 Guidance
2025/26 GUIDANCE Guidance Rental revenue growth1 0% – 4% Capital expenditure (gross)2 $1.8bn – $2.2bn - of which, rental fleet is: $1.4bn – $1.7bn Free cash flow2 $2.0bn – $2.3bn 1 Represents year-over-year rental revenue growth at constant currency 2 Current guidance stated at C$1 = $0.69 and £1 =
Slide 20: Group Fleet Plan
GROUP FLEET PLAN 2024 2025 2026 Actual Actual Guidance1 North America ($m) - rental fleet 3,405 1,807 1,260 – 1,610 - non-rental fleet 641 409 410 – 430 4,046 2,216 1,670 – 2,040 UK ($m) - rental fleet 219 138 110 – 130 - non-rental fleet 46 47 20 – 30 265 185 130 – 160 Group ($m) Capital plan (gros
Slide 21: Operational Review
OPERATIONAL REVIEW BRENDAN HORGAN 21 Full year results | 30 April 2025
Slide 22: North America Trading
NORTH AMERICA TRADING Rental revenue1 FY24 FY25 ▪ General Tool growth reflects moderating local Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY non-residential construction market offset by General Tool 13% 12% 8% 5% 9% 4% 2% -1% 1% 1% strength of mega project landscape Specialty 17% 13% 7% 12% 12% 17% 14% 9% 4% 11%
Slide 23: Construction Outlook
CONSTRUCTION OUTLOOK 2022 2023 2024 2025 2026 2027 2028 2029 US construction put in place ($bn) US Dodge construction starts 350 Indexed: 2000=100 Non-residential 642 764 815 877 882 905 952 1,022 300 Non-building 303 354 382 428 451 472 481 475 250 Construction (excl. resi) 945 1,118 1,197 1,305 1,
Slide 24: Mega Projects Endure
MEGA PROJECTS ENDURE A KEY FEATURE OF THE CONSTRUCTION LANDSCAPE ONGOING AND PLANNED PROJECTS FROM MAY 2022 THROUGH APRIL 20281 PLANNED MEGA PROJECT VALUE (NORTH AMERICA) $1,307bn $1,072bn $938bn $843bn 960 projects 813 projects FY23 - FY25 FY26 - FY28 November 2024 data May 2025 data • Current Mega
Slide 25: Major Non-Construction End Markets
MAJOR NON-CONSTRUCTION END MARKETS INCREASINGLY LARGE AND RESILIENT WITH VAST OPPORTUNITY FOR GROWTH MAINTENANCE, ENTERTAINMENT EMERGENCY STATE & LOCAL AGRICULTURE REPAIR & SPECIAL EVENTS RESPONSE GOVERNMENT Annual operating budget for crop and & OPERATIONS & RESTORATION livestock production Highly
Slide 26: Capital Allocation
CAPITAL ALLOCATION CONSISTENTLY APPLIED POLICY CONTINUES CLEAR PRIORITIES APPLICATION Organic fleet growth ▪ Same-store ▪ $2.4bn invested in the business ▪ Greenfields ▪ 48 greenfields opened in North America (22 General Tool and 26 Specialty) ▪ $137m spent on five bolt-ons, which added 13 General T
Slide 27: Summary
SUMMARY ▪ Record year of rental revenue and EBITDA ▪ Demonstrated the through-cycle cash generative power of our business, with strong free cash flow of $1.8bn, after $2.7bn cash capex investment ▪ Continue to take advantage of ongoing secular tailwinds and structural progression within this ever gr
Slide 28: Appendicies
APPENDICIES 28 Full year results | 30 April 2025
Slide 29: Divisional Performance: Fourth Quarter Results
DIVISIONAL PERFORMANCE FOURTH QUARTER RESULTS $m Rental revenue Revenue Adjusted EBITDA Profit 2025 2024 Change 2025 2024 Change 2025 2024 Change 2025 2024 Change North America General Tool 1,378 1,374 -% 1,498 1,600 -6% 802 856 -6% 452 523 -14% North America Specialty 768 751 2% 810 798 2% 384 352
Slide 30: Divisional Performance: Last Twelve Months
DIVISIONAL PERFORMANCE LAST TWELVE MONTHS $m Rental revenue Revenue Adjusted EBITDA Profit 2025 2024 Change 2025 2024 Change 2025 2024 Change 2025 2024 Change North America General Tool 5,890 5,826 1% 6,397 6,721 -5% 3,478 3,653 -5% 2,093 2,394 -13% North America Specialty 3,312 3,062 8% 3,488 3,250
Slide 31: Divisional Performance: Geographical Basis
DIVISIONAL PERFORMANCE LAST TWELVE MONTHS – GEOGRAPHICAL BASIS (HISTORICAL PRESENTATION) Rental revenue Revenue Adjusted EBITDA Profit 2025 2024 Change 2025 2024 Change 2025 2024 Change 2025 2024 Change Canada (C$m) 857 765 12% 948 897 6% 410 363 13% 159 138 16% UK (£m) 607 590 3% 708 706 -% 201 199
Slide 32: Cash Flow Funds All Fleet Investment
CASH FLOW FUNDS ALL FLEET INVESTMENT ($m) 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Adjusted EBITDA 5,022 4,893 4,412 3,609 3,037 3,008 2,748 2,319 1,947 1,769 1,452 1,098 817 607 444 409 597 730 593 399 316 Adjusted EBITDA margin 47% 45
Slide 33: Net Debt
NET DEBT Leverage (excluding impact of IFRS 16) $m 2025 2024 2.5 2.4 Opening net debt 10,655 8,960 Change from cash flows (661) 1,217 2.0 2.0 1.9 1.8 1.8 1.8 Translation impact 25 (10) 1.7 1.7 1.7 1.6 1.6 1.6 Debt acquired 28 154 1.5 1.4 1.5 New lease liabilities 274 325 Deferred debt raising cost a
Slide 34: Robust and Flexible Debt Structure
ROBUST AND FLEXIBLE DEBT STRUCTURE Debt maturity ▪ In November, increased $4.75bn ABL facility and extended $6,000m Undrawn maturity to November 2029 $5,000m Drawn Notes $4,000m $3,000m ▪ Borrowing facilities committed for average of six years at $2,000m a weighted average cost of 5% $1,000m $m FY25
Slide 35: $3,616m of Availability at 30 April 2025
$3,616M OF AVAILABILITY AT 30 APRIL 2025 Book value Borrowing base Senior debt $14,832m (April 24: $14,974m) $1,481m $11,182m (April 24: $11,466m) Calculation: $1,187m Inventory – 50% of book value Receivables – 85% of net eligible receivables $12,185m Fleet and vehicles – lower of 85% of net apprai
Slide 36: Debt and Covenants
DEBT AND COVENANTS Facility Interest rate Maturity $4.75bn first lien revolver SOFR / CORRA / SONIA + 125-137.5 bps November 2029 $550m senior notes 1.500% August 2026 $600m senior notes 4.375% August 2027 $600m senior notes 4.000% May 2028 Debt $600m senior notes 4.250% November 2029 $750m senior n
Slide 37: US Fleet Profile
US FLEET PROFILE $18bn $16bn ▪ Smooth fleet profile $14bn $12bn ▪ Benefits of prolonged cycle and our growth strategy $10bn ▪ Strong position providing optionality through the cycle $8bn ▪ Flexibility to turn replacement into growth and vice versa $6bn ▪ Strengthens partnership with suppliers throug
Slide 38: Realisation of Structural Progression
REALISATION OF STRUCTURAL PROGRESSION STRUCTURAL CHANGE OUTPUTS Shift from ownership to rental • Rental has become core rather than top up • Big getting bigger in a growing market Rental increasingly essential for • Larger and more diversified addressable market customer success • Pricing discipline
Slide 39: Benefit of Structural Progression
BENEFIT OF STRUCTURAL PROGRESSION RENTAL RATE DISCIPLINE AND PROGRESSION Major events 2008–09 2014–16 2020–21 2022–23 GREAT FINANCIAL OIL & GAS CRISIS COVID-19 PANDEMIC CRISIS Structural progression • Top 3 rental companies • Industry consolidation and big getting bigger • Top 3 rental companies ~10
Slide 40: A Broad and Diverse Customer Base
A BROAD AND DIVERSE CUSTOMER BASE POSITIONED TO INCREASE SHARE FROM THE LARGEST TO THE SMALLEST CUSTOMERS US CREDIT MEDIAN CUSTOMER $63 AVG. LINES Dollars spent with REVENUE 79% DECILE CUSTOMER OF BUSINESS CUSTOMER PERSONA Speciality, Revenue for comes every COUNT ($’ 000) USED $100 spent with from
Slide 41: Customer Annuity Value
CUSTOMER ANNUITY VALUE DEMONSTRATING GROWTH AND CONTINUED OPPORTUNITY RENTAL REVENUE GROWTH FROM FY21 US CREDIT CUSTOMERS1 ($M) NEW US CREDIT CUSTOMERS DURING 3.0 $4,578 $6,232 118,195 = $1.4bn New credit customers Rental revenue from added during 3.01 new customer accounts2 FY21 FY24 Rental revenue
Slide 42: Specialty Market Sizing, Rental Penetration & Share
SPECIALTY MARKET SIZING, RENTAL PENETRATION & SHARE REVENUE IS EXPECTED TO GROW BY ~$2 BILLION IN 4.0 WITH AMPLE OPPORTUNITY BEYOND CURRENT, PROJECTED AND ILLUSTRATIVE RENTAL REVENUE BY BUSINESS LINE ($M) LTM 31 January 2024 Line of business 4.0 growth Incremental illustrative Sunbelt potential tota
Slide 43: 3.0 Location Expansion Continues to Deliver
3.0 LOCATION EXPANSION CONTINUES TO DELIVER NORTH AMERICA GREENFIELD AND BOLT-ON LOCATIONS ADDED BETWEEN FY22 AND FY24 FY22 FY23 FY24 FY25 % Change Actual Actual Actual Actual FY25 vs FY24 Pure rental revenue 144 577 1,069 1,311 23% Total rental revenue 200 778 1,374 1,708 24% Total revenue 213 869
Slide 44: Connect360
CONNECT360 THE NEXT LEVEL OF SERVICE AND OPERATIONAL EFFICIENCY eCOMMERCE CONNECTED LOGISTICS CUSTOMER 360 SERVICE FRONTLINE • Enables self- • Asset-centric data • Purpose-built for • Comprehensive • Capturing machine • Purpose-built for service; create • Machine health Sunbelt view of customers dat
Slide 45: Our Pathway to Net Zero
OUR PATHWAY TO NET ZERO SCOPE 1 AND 2 2050 2024 Increasing use of HVO across 2030> West Coast Only EV purchased MEDIUM & HEAVY DUTY LIGHT DUTY NEARLY ALL ON-ROAD 2022 2026–2027 2035 FLEET IS EMISSION FREE EV trials – ~10% 2nd Near 100% EV 1st gen gen in fleet in fleet LIGHT DUTY LIGHT DUTY LIGHT DUT
Slide 46: The Rental Industry Landscape
THE RENTAL INDUSTRY LANDSCAPE THE BIG GETTING BIGGER IN A GROWING MARKET NA RENTAL MARKET SIZE1 ($BN) MARKET SHARE BREAKDOWN1,2 93.5 2023 Future 100 11% 77.0 87 20%+ 16% 56.5 Two or 48% All three have 55 others 50%+ of the 5% market 4% One 5% or two 8% others 21% 15% 2020 2025 2029 Sunbelt URI Herc
Slide 47: Important to Not Lose Sight of Through the Cycle Key Metrics
IMPORTANT TO NOT LOSE SIGHT OF THROUGH THE CYCLE KEY METRICS Group RoI Group EBITDA margin Group adjusted EPS 19 19 20 19 50 46 47 47 47 47 46 47 450 19 18 45 45 46 45 18 17 18 18 45 42 388 387 16 16 400 370 15 15 38 38 16 15 40 14 15 35 35 350 33 34 307 14 13 35 12 30 30 300 12 30 250 227222 10 10