Sunbelt Rentals’ third-quarter revenue rose by 2.73% to $2.6bn, driven by rental revenue growth of 2.6%. Underlying cash profit (EBITDA) was flat at $1.1bn.
Free cash flow rose from $0.8bn to $1.4bn over the first nine months, due to reduced capital spending. Net debt ended the period at $7.6bn.
A new $1.5bn buyback commenced on March 2, following completion of the existing $1.5bn programme in February. An interim dividend of $0.375 was also paid in February.
Guidance has been updated, with full-year rental revenue expected to grow by 2–3% (previously 0-4%), and free cash flow of around $2.0bn. Capex is now expected between $2.2-2.3bn (previously $1.8-2.2bn).
The shares were broadly flat following the release.
Our view
HL view to follow.
Sunbelt Rentals key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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