Sunbelt Rentals Holdings (SUNB) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 rental revenue grew 2.6% year-over-year to $2,443 million, with total revenue up 2.7% to $2,637 million and sequential improvement from Q2.

• Record free cash flow of $1,428 million year-to-date, up 83% year-over-year, supporting $1.4 billion in shareholder returns.

• Mega project and strategic account activity remained robust, driving growth across construction and non-construction sectors.

• Completed NYSE primary listing and rebranding to Sunbelt Rentals; launched new $1.5 billion share buyback program after completing previous program.

• Updated full-year rental revenue growth guidance midpoint increased to 2–3%, reflecting confidence in end markets and operational momentum.

Financial highlights

• Q3 adjusted EBITDA was $1,082 million (margin 41.0%), with adjusted operating profit of $539 million (margin 20.4%).

• Adjusted EPS for Q3 was $0.78; year-to-date adjusted EPS was $2.98, consistent with prior year.

• Operating income for Q3 was $492 million (margin 18.7%), down from $532 million (20.7%) year-over-year.

• Depreciation flat at $543 million; interest expense $98 million; adjusted pretax profit $441 million.

• Free cash flow generation reached $1,428 million year-to-date, on track for a record full-year result.

Outlook and guidance

• Full-year rental revenue growth guidance narrowed and midpoint increased to 2–3%.

• Gross CapEx guidance for FY27 increased to $2.2–$2.3 billion, with $1.8–$1.9 billion for fleet, driven by Specialty growth and mega project wins.

• Free cash flow outlook for FY26 now expected at approximately $2 billion under U.S. GAAP.

• Transition to quarterly dividend planned for fiscal 2027.

• Positive leading indicators and pipeline activity support cautious optimism for further growth.