Strong Start to Ashtead's Fiscal 2023; FVE Raised to Account for Weakness of the British Pound

Ashtead Group is the second-largest rental equipment business in the U.S., where it derives 90% of its profits, operating under the Sunbelt Rentals brand. Ashtead has grown its market share from 4% in 2007 to 12% in the United States through a combination of its “cluster” strategy and bolt-on mergers and acquisitions. High-capital intensity and price-sensitive customers who decide whether to rent or buy have resulted in Ashtead placing a lot of emphasis on a low-cost strategy to ensure it remains competitive.