Sunbelt Rentals Holdings, Inc.

What they do

Sunbelt Rentals rents construction, industrial and general equipment, including mobile elevating work platforms, skid steers, forklifts, excavators and lighting equipment, from a fleet with an original cost of $19,231 million as of April 30, 2026. It complements core equipment with Specialty lines such as power and HVAC, climate control, scaffold services, flooring solutions, pump solutions, trench safety, film and television, and temporary structures. Customers range from multinational businesses and local contractors to government entities and do-it-yourselfers. Operations are organized into three reportable segments: North America General Tool, North America Specialty, and United Kingdom.

Revenue drivers

• North America General Tool — Provides general construction and industrial equipment in the U.S. and Canada, including limited Bahamas operations. It generated 58% of fiscal 2026 revenue and 59% of fiscal 2025 revenue.
• North America Specialty — Serves predominantly non-construction markets with product groups with comparatively low rental penetration in the U.S. and Canada. It generated 33% of fiscal 2026 revenue and 32% of fiscal 2025 revenue.
• United Kingdom — Delivers General Tool and Specialty products and services primarily across the U.K., with limited operations in Ireland, Germany and the Netherlands. It generated 9% of revenue in both fiscal 2026 and fiscal 2025.
• Rental revenue overall — Rental revenue is the primary revenue source; total revenue was $11,154 million in fiscal 2026 and $10,791 million in fiscal 2025, with rental revenue growing 12.5% to $2,927 million in the first quarter of fiscal 2027.

Recent performance

For the first quarter ended July 31, 2026, total revenue increased 11.2% to $3,115 million and rental revenue increased 12.5% to $2,927 million. North America General Tool rental revenue rose 7.4% and North America Specialty rental revenue rose 25.3%. Operating income increased 15.9% to $691 million at a 22.2% margin, adjusted operating profit rose 13.8% to $759 million at a 24.4% margin, and net income increased 17.4% to $438 million. Diluted EPS increased 23.0% to $1.07 and adjusted EPS increased 20.4% to $1.18. The acquisition of Reliant Asset Management (operating under the Aries brand), which closed May 1, 2026, contributed about 100 basis points to rental revenue growth, and the FIFA World Cup contributed an estimated 250 basis points.

Strategy

The company is pursuing growth through acquisitions and organic demand, having closed the Reliant Asset Management (Aries) acquisition on May 1, 2026. It is investing in its rental fleet: gross rental capital expenditures guidance for fiscal 2027 was raised to $2.75 billion to $3.15 billion, and net rental equipment capital expenditures to $2.4 billion to $2.8 billion. Management highlights a differentiated technology platform and leading scale as core to its value proposition. Following the June 2025 shareholder vote and the Scheme, Sunbelt Rentals Holdings became the new parent of Ashtead Group plc and listed its common stock on the New York Stock Exchange. The company also emphasizes disciplined execution and through-the-cycle free cash flow.

Risks

• Competitive pressure — The equipment rental industry is highly competitive, and competitive pressures could lead to a decrease in Sunbelt's market share or the prices it can charge.
• Economic and cyclical exposure — The industry is cyclical, and an economic slowdown or decrease in general economic activity could cause weakness in end markets and adversely affect revenue and operating results.
• Tariffs and trade policy — Changes in U.S. foreign trade policies, including additional tariffs and trade barriers, may materially and adversely affect the business, operations and financial condition.
• Fleet aging and maintenance costs — Rental operations subject the company to increased maintenance costs as rental equipment ages; the average fleet age was 52 months at July 31, 2026, up from 50 months a year earlier.

Outlook

Management raised full-year fiscal 2027 guidance to total revenue growth of 6% to 9% and rental revenue growth of 7% to 10%, up from prior outlooks of 4.5% to 7.5% and 5% to 8%, respectively. Adjusted EBITDA guidance was increased to $4.92 billion to $5.12 billion from $4.85 billion to $5.05 billion. The company cited strong momentum, confidence in the supply and demand landscape, structural growth, and its through-the-cycle free cash flow platform. CEO Brendan Horgan stated Sunbelt is well positioned for a year of strong performance.