Sunbelt Rentals Holdings (SUNB) Q1 2025 earnings summary

Executive summary

• Group rental revenue increased 7% year-over-year to $2,541m, with total revenue up 2% and EBITDA rising 5% to $1,288m, driven by growth in all regions and execution of the Sunbelt 4.0 plan.

• Adjusted profit before tax declined 7% to $573m, and adjusted EPS fell 9% to 97.4¢, mainly due to higher depreciation and interest costs.

• 33 new North American locations were added (22 greenfields, 11 acquisitions), with $855m invested in capital and $53m spent on two bolt-on acquisitions.

• Sunbelt 4.0 initiatives are progressing, focusing on customer service, growth, performance, sustainability, and investment.

• Leadership transition announced: Michael Pratt to retire as CFO in September 2025, with Alex Pease joining as CFO designate.

Financial highlights

• Group rental revenue grew 7% to $2,541m; EBITDA margin at 47%, operating profit margin at 26%.

• Adjusted pre-tax profit was $573m, down 7% year-over-year; adjusted EPS was $0.974.

• Net debt to EBITDA leverage at 1.7x (ex-IFRS 16), within the 1.0–2.0x target range; net debt at $10,761m.

• CapEx investment of $855m in Q1, supporting fleet growth and greenfield expansion.

• Return on investment declined to 15.6% from 19.0%.

Outlook and guidance

• Full-year guidance reaffirmed: group rental revenue growth of 5–8%; US 4–7%, Canada 15–19%, UK 3–6%.

• CapEx guidance unchanged at $3.0–3.3bn, expected at the lower end; free cash flow guidance around $1.2bn.

• Trading in August consistent with Q1, supporting maintained guidance.

• Board remains confident in the outlook, citing operational flexibility and financial capacity.