Sunbelt Rentals Lifts Fiscal 2027 Revenue Outlook to 6%–9%
Rental revenue rose 12.5% to a record $2,927 million in the fiscal first quarter ended July 31, 2026.
Sunbelt Rentals Holdings (SUNB), a leader in the equipment rental industry, reported a sharp acceleration in rental growth and raised its full-year fiscal 2027 outlook after a record first quarter.
Total revenue increased 11.2% to $3,115 million. Rental revenue rose 12.5% to $2,927 million, after 8.0% growth in the fiscal fourth quarter ended April 30, 2026, and 2.6% in the fiscal third quarter ended January 31, 2026.
The acquisition of Reliant Asset Management, operating under the Aries brand and closed on May 1, 2026, contributed about 100 basis points to rental revenue growth. The FIFA World Cup added about 250 basis points.
North America Specialty rental revenue increased 25.3% to $1,070 million, after 15.1% growth in the prior quarter. Dollar utilization rose to 77% from 74% a year earlier. Reliant added about 300 basis points to Specialty rental revenue growth. Specialty adjusted operating profit increased 24.3% to $373 million at a 33.0% margin, consistent with the year-ago period. Adjusted EBITDA in the segment rose 19.0% to $519 million.
North America General Tool rental revenue increased 7.4% to $1,648 million, after 4.4% growth in the prior quarter. Dollar utilization was 47%, unchanged from a year earlier. General Tool adjusted operating profit was $539 million at a 30.9% margin, compared with 31.5% a year earlier. Adjusted EBITDA increased 3.2% to $898 million. The year-over-year adjusted EBITDA margin performance primarily reflected higher fuel costs, partially offset by rental rate improvement.
United Kingdom rental revenue was $209 million, down 1.4% from the year-ago period. Dollar utilization was 54%, compared with 53%. UK adjusted operating profit margin was 8.3%, up 10 basis points. Segment adjusted EBITDA was $61 million.
Operating income increased 15.9% to $691 million at a 22.2% margin, compared with 21.3% in the prior-year period. Adjusted operating profit increased 13.8% to $759 million, and the margin expanded 60 basis points to 24.4%. The margin expansion was primarily due to a reduction in depreciation expense as a percentage of revenue.
Net income increased 17.4% to $438 million. Earnings per share increased 23.0% to $1.07. Adjusted earnings per share increased 20.4% to $1.18. Adjusted EBITDA increased 8.7% to $1,315 million at a 42.2% margin. The adjusted EBITDA margin versus the year-ago period primarily reflected higher relative growth of ancillary revenues, partially offset by rate improvement.
Original cost of rental equipment at July 31, 2026, was $20,102 million, increasing 6.0% on average versus the prior year. Average fleet age was 52 months, compared with 50 months a year earlier.
The company raised full-year fiscal 2027 guidance. It now expects total revenue growth of 6% to 9%, rental revenue growth of 7% to 10%, and adjusted EBITDA of $4.92 billion to $5.12 billion. Prior ranges were 4.5% to 7.5% for total revenue, 5% to 8% for rental revenue, and $4.85 billion to $5.05 billion for adjusted EBITDA. Net rental equipment capital expenditure guidance was raised to $2.4 billion to $2.8 billion, and gross rental capital expenditure to $2.75 billion to $3.15 billion.
Chief Executive Officer Brendan Horgan said the upward revision signals confidence in the underlying supply and demand landscape, the durability of structural growth, and the strength of the through-the-cycle free cash flow platform.
Cash flow from operations was $840 million. Gross rental capital expenditures were $759 million and $682 million net of disposal proceeds. Free cash flow after capital expenditures was $70 million. Long-term debt was $8,006 million, net debt was $8,524 million, and net leverage was 1.8 times.
The company completed $1.2 billion of senior notes, repurchased $56 million of common stock, paid $307 million in dividends, opened 13 greenfield locations, and invested $669 million, including acquired borrowings, in two bolt-on acquisitions.
The board declared a quarterly cash dividend of $0.30 a share, payable October 2, 2026, replacing the prior UK distribution framework.