Sunbelt Rentals Holdings (SUNB) Q1 2027 earnings summary

Executive summary

• Achieved record first quarter results with total revenue up 11.2% year-over-year to $3,115 million, driven by strong rental revenue growth, strategic acquisitions, and robust demand across diverse end markets and mega projects.

• Raised full-year fiscal 2027 guidance due to strong Q1 results and continued business momentum, with broad-based growth across segments and geographies, especially in North America Specialty and General Tool.

• Net income rose 17.4% to $438 million; adjusted EBITDA increased 8.7% to $1,315 million (margin 42.2%); adjusted EPS up 20.4% to $1.18.

• Completed two North America-Specialty acquisitions for $669 million, expanding specialty offerings and cross-selling opportunities.

• Focused on operational efficiencies, utilization, and fleet optimization to support growth.

Financial highlights

• Rental revenue rose 12.5% to $2,927 million; total revenue up 11.2% year-over-year to $3,115 million.

• Adjusted operating profit up 13.8% to $759 million (margin 24.4%); operating income increased 15.9% to $691 million (margin 22.2%).

• Free cash flow was $70 million, reflecting higher CapEx and timing of equipment landings.

• Gross margin at 40.1%; net income margin at 14.1%.

• Basic and diluted EPS were $1.07, up from $0.87 year-over-year.

Outlook and guidance

• Fiscal 2027 total revenue growth outlook raised to 6–9% (prior 4.5–7.5%); rental revenue growth to 7–10% (prior 5–8%).

• Adjusted EBITDA guidance increased to $4.92–$5.12 billion; full-year margins expected broadly consistent with prior year.

• Net rental equipment capital expenditures expected at $2.4–$2.8 billion; gross CapEx guidance $2.75–$3.15 billion.

• Management anticipates sufficient liquidity to fund operations, capital expenditures, and shareholder returns over the next 12 months.

• Ongoing investments in fleet and bolt-on acquisitions planned.