$SUNB · Sunbelt Rentals Holdings, Inc.
Sunbelt Rentals Holdings filed its Q1 FY2027 10-Q for the quarter ended July 31, 2026. Total revenue grew 11.2% YoY to $3.115B, with equipment rentals contributing $2.927B. Net income rose to $438M ($1.07 diluted EPS) from $373M ($0.87) a year ago. The company deployed $667M on three business acquisitions and $759M on rental fleet purchases. Long-term debt increased to $8.006B from $7.033B at fiscal year-end. A $0.30/share quarterly dividend was declared post-quarter.
- Revenue rose 11.2% YoY to $3.115B, driven by equipment rentals at $2.927B.
- Net income grew 17.4% to $438M; diluted EPS of $1.07 vs $0.87 a year ago.
- Gross margin expanded to 40.1% from 40.1% a year ago on lower cost of rental equipment sales.
- Operating income jumped 15.9% to $691M; operating margin reached 22.2%.
- Cash from operations was $840M; $667M deployed on acquisitions and $759M on rental fleet.
Stock fell 4.17% from filing-time price of $76.61 to $73.42 in the regular session, despite strong YoY earnings growth. The $30.1B market cap company's $667M in acquisition spending and $973M debt increase may be weighing on sentiment.
Sunbelt's first post-redomiciliation 10-Q shows aggressive capital deployment — $667M in M&A and $759M in fleet capex — funded by $973M in net new debt, signaling a growth-over-leverage posture.
Sunbelt's 11.2% rental revenue growth and 22.2% operating margin position it competitively against United Rentals (URI) and H&E Equipment Services (HEES) in the consolidating North American equipment rental market.
Long-term debt rose to $8.006B from $7.033B at April 30, 2026, with net interest expense up 12.6% to $107M. Foreign currency translation losses widened to $44M from $14M, reflecting international exposure risk.
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