Sunbelt Rentals Holdings (SUNB) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 and full-year revenues of $2.8B and $11.2B, up 8.9% and 3.4% year-over-year, with strong rental revenue momentum and robust free cash flow generation.

• Specialty segment led growth with Q4 rental revenue up 15.1% and full-year up 5.8%; General Tool grew 4.4% in Q4 and 2.1% for the year.

• Announced acquisition of Reliant Asset Management (Aries) for ~$650M, expanding specialty modular solutions and expected to be accretive to EPS in year one.

• Expanded footprint with 51 greenfield openings and 13–24 bolt-on acquisitions, adding new specialty lines.

• Returned $1.9B to shareholders via $1.4B buybacks and $464M dividends.

Financial highlights

• Full-year total revenue: $11.2B (+3.4%); rental revenue: $10.3B (+3.4%).

• Adjusted EBITDA: $4.68B–$4.7B (margin 41.9%, down 210bps); free cash flow reached $2.1B (+23%).

• Adjusted EPS: $3.72 for the year; Q4 adjusted EPS: $0.74, down year-over-year.

• CapEx: $2.2B for the year (down 18.5%); Q4 CapEx up 76% for specialty growth and mega-projects.

• Net debt: $7.55B–$7.6B; net debt/EBITDA leverage at 1.6x.

Outlook and guidance

• FY2027 revenue growth expected at 4.5%–7.5%; rental revenue growth 5%–8%, led by specialty.

• Adjusted EBITDA guidance: $4.85B–$5.05B, with margins broadly flat year-over-year.

• Net rental equipment CapEx planned at $2.05B–$2.45B; 55 new greenfield locations targeted.

• Margin improvement expected in the back half of FY2027 as operational initiatives gain traction.

• Transitioning to quarterly dividend payments in FY2027.