In this piece, we will take a look at the twelve biggest leasing companies in the world. For more companies, head on over to 5 Biggest Leasing Companies in the World.
Leasing plays an integral part in the finance industry, just like lending does. The industry lets individuals and corporations avail facilities and services, and gain access to products that their limited capital might not allow them to do so. For instance, someone with a regular source of income but little funds could lease an apartment in an expensive area, or a company, such as an airline, could lease an aircraft and then use it for profit without having to lay out the large capital expenditure that comes with such equipment.
A little known fact about the leasing industry is that it is also one of the largest in the world, with a market value that rivals that of the crude oil industry. For example, a research report from The Business Research Company estimates that the industry was worth $1.35 trillion in 2021 and from then to the end of this year, it will grow at a compounded annual growth rate (CAGR) of 12.9%. The research firm also estimates that the industry will grow at a CAGR of 12% from 2022 to 2026 and be worth a whopping $2.4 trillion by the end of the forecast period. The same research firm also estimates that the crude oil market will be worth $1.47 trillion in 2026.
Another research report, this time from Fortune Business Insights, takes a look at the car leasing industry. It estimates that the sector will be worth $85 billion by the end of this year, and go on to grow at a CAGR of 6.9% to sit at an estimated $131 billion by the end 2029. The firm believes that the Internet of Things (IoT) gadgets will help leasing companies keep track of their assets and that the ongoing increasing interest in electric vehicles will spur the demand for automobile leasing.
With these details in mind, it’s time to take a look at the largest leasing companies in the world. The top firms on our list for you today are Ashtead Group plc (OTCMKTS:ASHTY), AMERCO (NASDAQ:UHAL), and WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC).
Our Methodology
We took a broad look at the leasing industry and identified the top players that are operating in it. The firms were then ranked according to their market capitalization. We focused more on equipment and vehicle leasing companies.
12 Biggest Leasing Companies in the World
12. Triton International Limited (NYSE:TRTN)
Market Capitalization as of November 13, 2022: $3.81 billion
Triton International Limited (NYSE:TRTN) serves the needs of the shipping and freight forwarding industry. The firm leases out containers and chassis to both manufacturers and other firms. It has more than four million containers and seven million twenty foot equivalent (TEU) containers in its portfolio.
Triton International Limited (NYSE:TRTN)’s third quarter saw the firm grow its revenue and net income by 6.1% and 7.8%, respectively. The firm also grew its asset base by a strong 30% last year, as it braced for the resumption of international trade in the wake of the disruption from the coronavirus pandemic.
Triton International Limited (NYSE:TRTN) pays a 70 cent dividend for a 4.23% yield. Its market capitalization is $3.81 billion.
Triton International Limited (NYSE:TRTN)’s largest investor is Edward Goodnow’s Goodnow Investment Group which owns 2 million shares that are worth $112 million.
Along with AMERCO (NASDAQ:UHAL), Ashtead Group plc (OTCMKTS:ASHTY), and WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Triton International Limited (NYSE:TRTN) is a large leasing company.
11. Herc Holdings Inc. (NYSE:HRI)
Market Capitalization as of November 13, 2022: $3.98 billion
Herc Holdings Inc. (NYSE:HRI) is a rental equipment company that provides air compressors, trucks, trailers, lighting, and earthmoving equipment alongside other services. The firm is headquartered in Bonita Springs, Florida.
Herc Holdings Inc. (NYSE:HRI) continues to grow its fleet, and during its third quarter, it grew both its equipment and utilization. The fleet size grew by 10% annually and utilization increased from 42.5% to 45.3%. During the same time period, the firm’s rental revenue also grew by 36%. Herc Holdings Inc. (NYSE:HRI) is slated to benefit from the growth in electric vehicle manufacturing and flood and hurricane devastation.
Herc Holdings Inc. (NYSE:HRI) pays a 57 cent dividend for a 1.69% yield. The firm’s latest market capitalization is $3.98 billion.
Herc Holdings Inc. (NYSE:HRI)’s largest investor is Carl Icahn’s Icahn Capital LP which owns four million shares that are worth $362 million.
10. Sixt SE (ETR:SIX2.F)
Market Capitalization as of November 13, 2022: $4.11 billion (1EUR=1.03USD)
Sixt SE (ETR:SIX2.F) is a German company that provides vehicle rental, mobility, ride hailing, and car sharing services through its subsidiary. The firm is headquartered in Pullach, Germany.
Sixt SE (ETR:SIX2.F) has 242,000 vehicles in its portfolio and serves through more than 2,000 stations in different regions. The firm brought in EUR2.2 billion in revenue in 2021. Additionally, Sixt SE (ETR:SIX2.F) surpassed this during the first nine months of 2022, by reporting EUR2.3 billion for a whopping 42.4% annual growth. Excluding the cars that are operated by Sixt SE (ETR:SIX2.F)’s franchises, the first three quarters of 2022 saw the company add 15,800 cars to its portfolio. This marked 13% annual growth. It also targeted the high end of car leasing, with 64% of the vehicles in its portfolio belonging to the premium car segment.
Sixt SE (ETR:SIX2.F)’s market capitalization is $4.11 billion through an exchange rate of 1EUR equaling $1.03.
9. Air Lease Corporation (NYSE:AL)
Market Capitalization as of November 13, 2022: $4.18 billion
Air Lease Corporation (NYSE:AL) buys and leases commercial aircraft all over the globe. It has a fleet of close to 400 aircraft, and the firm is headquartered in Los Angeles, California, the United States.
Air Lease Corporation (NYSE:AL) is currently navigating the persistent delays for new aircraft, particularly those from Boeing. These prevented the firm from selling any new planes during this year’s first half, but it expects to cumulatively sell $150 million worth of products this year and a whopping $700 million during the first half of next year.
Air Lease Corporation (NYSE:AL) pays a 20 cent dividend for a 2.12% yield. The firm’s latest market capitalization is $4.18 billion.
Andrew Wellington and Jeff Keswin’s Lyrical Asset Management is Air Lease Corporation (NYSE:AL)’s largest investor. It owns 2.9 million shares that are worth $97 million.
8. ALD S.A. (EPA:ALD.PA)
Market Capitalization as of November 13, 2022: $4.72 billion (1EUR=1.03USD)
ALD S.A. (EPA:ALD.PA) is a French service leasing company that provides fleet management services, service leasing, and outsourcing solutions, among others. The firm has close to two million vehicles in its portfolio. It is the car leasing entity of the French bank Société Générale Société anonyme (SCGLF).
ALD S.A. (EPA:ALD.PA) announced a massive deal in January 2022 through which it spent $5.54 billion to buy another leasing company. The deal expanded ALD S.A. (EPA:ALD.PA)’s vehicle portfolio to 3.5 million vehicles, and it aimed to target the growing consumer interest in electric vehicles.
ALD S.A. (EPA:ALD.PA)’s latest market capitalization is EUR4.59 billion. At an exchange rate of 1EUR=1.03USD this is equivalent to $4.72 billion.
7. BOC Aviation Limited (OTCMKTS:BCVVF)
Market Capitalization as of November 13, 2022: $5.2 billion
BOC Aviation Limited (OTCMKTS:BCVVF) is a Singaporean company that leases aircraft. The firm has more than 500 owned, managed, or on order aircraft in its portfolio. It offers its services through direct leases, operational leases, and leaseback, and the firm also provides technical and management services.
BOC Aviation Limited (OTCMKTS:BCVVF) announced in April 2022 that it had placed its largest order of aircraft to date, when it decided to add 80 Airbus A320neo planes to its portfolio. The decision came as the global travel industry started to recover from the coronavirus pandemic, and the delivery is scheduled between 2027 and 2029. The order came after BOC Aviation Limited (OTCMKTS:BCVVF) agreed to buy 11 Boeing 737 MAX 8 aircraft in March. The company’s market capitalization is $5.2 billion.
6. Avis Budget Group, Inc. (NASDAQ:CAR)
Market Capitalization as of November 13, 2022: $9.48 billion
Avis Budget Group, Inc. (NASDAQ:CAR) is an American company that provides car and truck rentals. The firm operates through the Avis, Budget Truck, and Zipcar brands. Through these, it provides luxury vehicle rentals, one way truck and car rentals, and ride sharing. Avis Budget Group, Inc. (NASDAQ:CAR) is headquartered in Parsippany, New Jersey.
Avis Budget Group, Inc. (NASDAQ:CAR) reported $1.5 billion in operating income during its third fiscal quarter, which marked 20% sequential growth. The figure also put the company’s year to September 2022 operating income at $3.5 billion, which was higher than the operating income of $2.4 billion that it had posted for the full year 2021. Avis Budget Group, Inc. (NASDAQ:CAR) serviced an eye popping 33 million rental days during the quarter, which was a new record for the company. Finally, the firm’s fleet size stood at 507,000 vehicles, making it one of the largest in the world, and throughout the year it demonstrated strong fleet size growth. Compared to Q1 2019, Avis Budget Group, Inc. (NASDAQ:CAR)’s fleet grew by 50%, and by 32% during the second quarter.
Avis Budget Group, Inc. (NASDAQ:CAR) has a $9.48 billion market capitalization.
Karthik Sarma’s SRS Investment Management is Avis Budget Group, Inc. (NASDAQ:CAR)’s largest investor through a $2.7 billion stake that comes courtesy of 18 million shares.
Ashtead Group plc (OTCMKTS:ASHTY), AMERCO (NASDAQ:UHAL), and WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) are met by Avis Budget Group, Inc. (NASDAQ:CAR) in our list of biggest leasing companies in the world.
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Disclosure: None. 12 Biggest Leasing Companies in the World is originally published on Insider Monkey.