Sunbelt Rentals Holdings (SUNB) Q2 2026 earnings summary

Executive summary

• Group rental revenue grew 2% in H1 and 1% in Q2, with underlying Q2 growth at 3% after adjusting for a quiet hurricane season, showing sequential improvement from Q1.

• Record free cash flow of $1.1 billion, up 164% year-over-year, enabled significant shareholder returns, including $1 billion via dividends and buybacks, and supported a new $1.5 billion buyback program to commence March 2026.

• Mega project and strategic account activity remains strong, with positive leading indicators for local non-residential construction and sector improvements.

• Full-year and FY2026 guidance for rental revenue, capex, and free cash flow reaffirmed.

Financial highlights

• Group revenue rose 1% to $5,763m; rental revenue up 2% to $5,357m year-over-year.

• Adjusted EBITDA was $2,657m at a 46% margin for H1; Q2 EBITDA margin was 47%.

• Adjusted profit before tax in H1 was $1,208m, down 4% year-over-year, impacted by $69m in non-recurring listing and restructuring charges.

• Adjusted EPS was 212.1¢ (down 1%); ROI on a trailing 12-month basis was 14%.

• Free cash flow reached a record $1.1bn in H1.

Outlook and guidance

• Full-year and FY2026 guidance reaffirmed: Group rental revenue growth 0–4%, capex $1.8–$2.2bn, free cash flow $2.2–$2.5bn.

• Positive internal and external leading indicators suggest recovery in local non-residential markets within 12–24 months.

• NYSE relisting and Investor Day scheduled for March 2026.