Sunbelt Rentals Holdings (SUNB) Q3 2025 earnings summary

Executive summary

• Group rental revenue increased 5% year-over-year, with U.S. rental revenue up 4%; total revenues were flat due to lower used equipment sales.

• Record EBITDA of $3.87 billion and PBT of $1.7 billion for the first nine months, with EBITDA margins of 47% at group level and 49% in the U.S.

• Free cash flow reached $858 million in nine months, a significant turnaround from a $463 million outflow in the prior year.

• 54 new North American locations added, including 43 greenfields and 11 via acquisitions.

• Initiated a new $1.5 billion share buyback program over 18 months.

Financial highlights

• Group revenue was $8.26 billion, flat year-over-year; rental revenue grew 5%.

• Adjusted EBITDA margin was 47% at group level, with U.S. at 49.2%, Canada at 44.6%, and U.K. at 28.6%.

• Adjusted pre-tax profit was $1.7 billion, down 5% year-over-year, mainly due to higher interest expense and lower gains on used equipment sales.

• Adjusted EPS for the nine months was 290.8¢, down 5% year-over-year.

• Cash conversion ratio improved to 96% from 89% year-over-year.

Outlook and guidance

• Full-year results are expected in line with previous expectations and December guidance.

• Group rental revenue growth guidance remains at 3%-5%; U.S. 2%-4%, Canada 9%-13%, U.K. at the low end of 3%-6%.

• CapEx guidance unchanged at $2.5-$2.7 billion; free cash flow expected to be at least $1.4 billion for the year.

• Fiscal 2026 capital and revenue guidance will be updated with FY25 results.

• Board expresses confidence in future performance, citing operational flexibility and financial strength.