Sunbelt Rentals Reports Record Q1 FY27 Results & Raises Full-Year Guidance
Sunbelt Rentals Holdings, Inc.
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Filing Summary
📊 Sunbelt Rentals Holdings, Inc. ($SUNB) Q1 FY2027 Earnings & Guidance Update
• Total Revenue: $3,115M (+11.2% YoY) • Rental Revenue: $2,927M (+12.5% YoY) • Adjusted EBITDA: $1,315M (+8.7% YoY, 42.2% margin) • Net Income / EPS: $438M / $1.07 (Adj. EPS: $1.18, +20.4% YoY) • FY2027 Guidance: Raised revenue growth to 6%–9% and Adj. EBITDA to $4.92B–$5.12B • Dividend: Declared $0.30/share quarterly dividend transition
Comprehensive Analysis
Financial Highlights & Overview
Sunbelt Rentals Holdings, Inc. filed Form 8-K (Item 2.02) to report record financial results for the fiscal first quarter ended July 31, 2026, and raised its full-year fiscal 2027 guidance.
Q1 Fiscal 2027 Financial Summary
- Total Revenue: $3,115 million, up 11.2% year-over-year.
- Rental Revenue: $2,927 million, up 12.5% year-over-year (boosted ~100 bps by the Reliant Asset Management acquisition and ~250 bps by the FIFA World Cup).
- Operating Income: $691 million (+15.9% YoY) with an operating margin of 22.2%.
- Adjusted Operating Profit: $759 million (+13.8% YoY) with margin expanding 60 bps to 24.4%.
- Adjusted EBITDA: $1,315 million (+8.7% YoY) at a margin of 42.2%.
- Net Income & EPS: Net income was $438 million (+17.4% YoY) and diluted EPS was $1.07 (+23.0% YoY). Adjusted EPS was $1.18 (+20.4% YoY).
Segment Performance
- North America General Tool: Rental revenue increased 7.4% to $1,648 million; Adjusted EBITDA grew 3.2% to $898 million (51.5% margin); dollar utilization held steady at 47%.
- North America Specialty: Rental revenue increased 25.3% to $1,070 million; Adjusted EBITDA rose 19.0% to $519 million (45.8% margin); dollar utilization expanded to 77% (vs. 74% prior year).
- UK: Rental revenue decreased 1.4% to $209 million; Adjusted EBITDA was $61 million (25.4% margin); dollar utilization increased to 54%.
Raised Full-Year Fiscal 2027 Guidance
- Total Revenue Growth: 6% to 9% (up from 4.5% to 7.5% prior).
- Rental Revenue Growth: 7% to 10% (up from 5% to 8% prior).
- Adjusted EBITDA: $4.92 billion to $5.12 billion (up from $4.85 billion to $5.05 billion prior).
- Gross Rental CapEx: $2.75 billion to $3.15 billion (up from $2.45 billion to $2.85 billion prior).
- Net Rental CapEx: $2.40 billion to $2.80 billion (up from $2.05 billion to $2.45 billion prior).
Capital Allocation & Dividends
- Declared a quarterly cash dividend of $0.30 per share payable October 2, 2026 (record date September 18, 2026), transitioning to a regular U.S. quarterly distribution schedule.
- Completed $1.2 billion senior notes offering ($450M at 4.950% due 2030 and $750M at 5.650% due 2036).
- Repurchased $56 million in common stock and invested $669 million across two bolt-on acquisitions during the quarter.
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