Sunbelt Rentals Holdings (SUNB) Q1 2026 earnings summary

Executive summary

• Group rental revenue grew 2.4% year-over-year, in line with guidance and expectations, reflecting solid performance despite mixed end markets.

• Free cash flow after CapEx reached $514 million, a record for the quarter, driven by disciplined capital deployment and lower CapEx.

• Mega project activity remains robust, with significant market share gains and positive leading indicators for local non-residential construction.

• Sunbelt 4.0 strategy execution is progressing, with reaffirmed guidance for rental revenue and CapEx, and increased free cash flow outlook.

• Progress on moving primary listing to NYSE by March 2026; Investor Day scheduled in New York.

Financial highlights

• Group total revenue increased 2% year-over-year to $2,801m; rental revenue up 2.4% to $2,601m.

• Adjusted EBITDA was flat to down 1% at $1,276m–$1.3bn, with a margin of 45.6%–46%.

• Adjusted profit before tax was $552m, down 4% year-over-year.

• Adjusted EPS was 95.3¢; trailing 12-month ROI at 14%.

• CapEx reduced 38% year-over-year to $532m; free cash flow surged 219% to $514m.

Outlook and guidance

• FY26 group rental revenue growth guidance unchanged at flat to +4%.

• CapEx guidance maintained at $1.8–$2.2 billion.

• Free cash flow guidance raised to $2.2–$2.5 billion, reflecting bonus depreciation tax benefit and new federal tax law.

• Positive leading indicators and planning activity expected to drive growth over the next 12–24 months.