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, in line with expectations and guidance.

• 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 commencing March 2026.

• Mega project and strategic account activity remains strong, with positive leading indicators for local non-residential construction and reaffirmed full-year guidance.

• Strategic focus continues on safety, operational discipline, and advancing long-term plans, with a major safety assessment initiative planned for 2026.

Financial highlights

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

• Adjusted EBITDA was $2.7 billion at a 46% margin for H1; Q2 EBITDA margin was 47%.

• Adjusted pre-tax profit fell 4% year-over-year to $1,208m in H1 and $656 million in Q2, impacted by non-recurring U.S. listing and U.K. restructuring costs.

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

• CapEx investment totaled $1.3 billion in H1, focused on both replacement and growth.

Outlook and guidance

• Full-year guidance reaffirmed: Group rental revenue growth flat to +4%, CapEx $1.8–$2.2 billion, free cash flow $2.2–$2.5 billion.

• Positive internal and external leading indicators suggest local non-residential market equilibrium and potential acceleration in starts within 12–24 months.

• NYSE relisting and Investor Day scheduled for March 2026.

• Expect continued strong megaproject activity and robust M&A pipeline, especially in Specialty.