Sunbelt Rentals Holdings (SUNB) Q2 2025 earnings summary

Executive summary

• Announced intention to move primary listing to the U.S. to align with operational focus and enhance capital market access.

• Sunbelt 4.0 strategic plan execution underway, supporting growth across all geographies.

• Group rental revenue rose 6% and total revenue increased 2% year-over-year, with U.S. rental revenue up 5% despite local construction market softness.

• EBITDA grew 4% to $2,698m, with strong free cash flow of $420m, reversing a prior outflow.

• Adjusted pre-tax profit declined 4% to $1,255m, and EPS fell 5% to 213.6¢.

Financial highlights

• Group rental revenue up 6% and total revenue up 2% year-over-year for the first half; first half revenue $5,695m.

• EBITDA margin improved to 47.4%; operating profit margin at 27.1%.

• Net debt to EBITDA at 1.7x, within target range; net debt at period end $10,945m.

• Capital expenditure totaled $1.7bn, with 36–47 new locations opened in North America.

• Lower used equipment sales resulted in gains of $35m, down from $113m last year.

Outlook and guidance

• U.S. rental revenue growth guidance revised to 2–4% for the year; group guidance to 3–5%.

• CapEx guidance reduced to $2.5–2.7bn, down from previous $3.0–3.3bn.

• Free cash flow for the year expected around $1.2–1.4bn.

• No expectation for local construction market rebound before late 2025.

• Outlook remains positive, supported by mega projects and Sunbelt 4.0 initiatives.