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 offerings and expected to be accretive to EPS in year one.

• Expanded footprint with 51 greenfield openings and up to 24 locations added via bolt-on acquisitions.

• Returned $1.88B to shareholders via $1.41B in buybacks and $464M in dividends.

Financial highlights

• Full-year total revenue and rental revenue both grew 3.4% to $11.2B and $10.3B, respectively.

• Adjusted EBITDA was $4.68B (margin 41.9%, down 210 bps year-over-year); free cash flow reached a record $2.1B, up 23%.

• Adjusted EPS for the year was $3.72; net income was $1,325M.

• Net debt at period end was $7.55B; net debt/EBITDA leverage at 1.6x.

• Return on investment was 14%.

Outlook and guidance

• Fiscal 2027 guidance: total revenue growth of 4.5%-7.5%, rental revenue growth of 5%-8%.

• Adjusted EBITDA expected between $4.85B-$5.05B, with margins broadly flat year-over-year.

• Net rental equipment CapEx planned at $2.05B-$2.45B; gross rental CapEx at $2.45B-$2.85B.

• Plan to open 55 greenfield locations (15 general tool, 40 specialty).

• Transitioning to a quarterly dividend structure in fiscal 2027.