Sunbelt Rentals Holdings (SUNB) Q4 2025 earnings summary

Executive summary

• Achieved record rental revenues and EBITDA, with group and North America rental revenues up 4% year-over-year, and group EBITDA up 3% to $5,022m, with a margin of 47%.

• Strong free cash flow of $1.8 billion enabled $886 million in shareholder returns via dividends and buybacks.

• Sunbelt 4.0 strategy launched, focusing on customer, growth, performance, sustainability, and investment, with 42,000 new customers added and 61 new locations opened in North America.

• Safety performance reached record levels, with a total recordable incident rate of 0.65 and lowest ever end-of-year injury rates.

• Positive outlook supported by robust mega project pipeline and ongoing structural industry tailwinds.

Financial highlights

• Group rental revenue increased 4% year-over-year; total revenue down 1% due to lower used equipment sales.

• Adjusted EBITDA margin at 47%, operating profit margin at 25%.

• Adjusted pre-tax profit was $2.1 billion, down 5% year-over-year, mainly due to higher interest expense and lower gains on equipment sales.

• Adjusted EPS was 369.5¢, down 4%.

• Free cash flow reached $1.8 billion, exceeding guidance due to timing of fleet landings.

Outlook and guidance

• Fiscal 2026 group rental revenue growth expected between flat and +4%.

• Gross capital expenditure planned at $1.8–$2.2 billion; free cash flow guidance of $1.4–$2.3 billion.

• CapEx for North America: $1.3–$1.6 billion; U.K.: $110–$130 million, with focus on replacement and selective growth.

• Mega project pipeline and secular tailwinds expected to drive future growth.