Sunbelt Rental’s fourth-quarter revenue rose 8.9% to $2.8bn, largely driven by rental revenue growth of 8.0%.
Underlying operating profit (EBITDA) fell by 1.3% to $1.1bn, due to an unfavourable shift in product mix, higher internal repair costs and repositioning of its fleet.
Free cash flow fell 29.8% to £0.6bn, largely due to increased purchases of rental equipment in the period. Net debt rose 1.0% to $7.6bn over the year.
For the year ahead, rental revenue is expected to grow by 5-8% (4.8% expected). Underlying operating profit is expected to grow from $4.7bn last year, to between $4.9-5.1bn ($4.9bn expected).
A final dividend of $0.75 per share was announced, taking the full-year total to $1.125, up $4%.
The shares fell 3.5% in pre-market trading.
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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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