SUNBEquipment rental
Sunbelt Rentals
Not investment advice. Kevin may own this stock. How we value stocks
By Kevin Amado
Updated
- Price
- $83.32
- Analysts view
- Bullish
- Discount category
- Close to intrinsic value
- Pick status
- Research only
- Next earnings
- Earnings Dec 9 · · estimated
- Market cap
- $34B
- Shares of Sep 4, 2026
- Dividend yield
- 1.3%
- Last 12 months, at the price of Nov 12, 2026
- P/E (trailing)
- 24.9
- Price of Nov 12, 2026
- EPS (trailing)
- $3.35
- 12 months to Jul 31, 2026
- Average volume
- 5.1M
- 3 months, to Nov 12, 2026
Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings
In short
- Thesis
- The market weighs whether construction and industrial demand stays strong while fleet spending rises, and steady rental rate gains with lower capital spending can lift its value.
- Gap
- Can close. The Q2 report in December 2026 and the full-year report in June 2027 show whether the guided EBITDA and free cash flow arrive.
Company guidance: FY2027 adjusted EBITDA $4.92B to $5.12B; revenue growth 6% to 9%; gross rental capex $2.75B to $3.15B (, Q1 fiscal 2027 results release (8-K))
Price history
About
Sunbelt Rentals Holdings, Inc. (Sunbelt) is an equipment rental company based in Fort Mill, South Carolina. It rents general tools and specialty equipment to construction, industrial, energy and event customers through 1,638 stores in the United States, Canada and the United Kingdom at July 31, 2026. It has about 26,000 employees. Until February 2026, its parent was Ashtead Group plc, a company in the United Kingdom.
A scheme of arrangement made Sunbelt the new parent, and its shares began to trade on the New York Stock Exchange on March 2, 2026, with a second listing in London. In the fiscal year that ended April 30, 2026, revenue was $11,154 million and net income was $1,325 million. The original cost of its rental fleet was $20,102 million at July 31, 2026. It has three segments: North America General Tool, North America Specialty and United Kingdom.
Brendan Horgan is Chief Executive Officer. It files 10-K and 10-Q reports with the SEC and reports in US dollars.
Thesis
The price of Sunbelt depends on whether rental demand stays strong while it spends more on fleet and acquisitions. In Q1 of fiscal 2027, revenue rose 11.2% to $3,115 million, rental revenue rose 12.5%, and adjusted EBITDA rose 8.7% to $1,315 million at a margin of 42.2%. Specialty rental revenue rose 25.3%, with help from the Aries acquisition and the FIFA World Cup, which the company says added about 250 basis points to rental revenue growth. General Tool rose 7.4%.
The company raised its guidance for fiscal 2027 to adjusted EBITDA of $4.92 billion to $5.12 billion, and it raised gross rental capital spending to $2.75 billion to $3.15 billion. Free cash flow was only $70 million in Q1. For the price to hold or rise, three things must be true. Specialty growth must continue when the World Cup help ends.
Rental rates in General Tool must keep rising to offset fuel and fleet costs. Net leverage, which was 1.8 times, must stay in the target range of 1 to 2 times while the company pays dividends and buys back shares. The next tests are the Q2 report in December 2026 and the full-year report in June 2027.
Checkpoints
- Dec 9, 2026 · est.PendingQ2 fiscal 2027 results: rental growth and guidanceThe company keeps or raises its guidance for adjusted EBITDA of $4.92 billion to $5.12 billion and rental revenue grows without the World Cup help, and this passes; a cut to guidance fails.
- Jun 2027 · est.PendingFiscal 2027 results and fiscal 2028 guidanceAdjusted EBITDA reaches the guided range and net leverage stays between 1 and 2 times, and this passes; lower EBITDA or leverage above 2 times fails.
Recent events
- October 27, 2026Sunbelt said in an 8-K that Lynne Fuller-Andrews stepped down as Executive Vice President, General Counsel and Corporate Secretary on October 23, 2026. She stays in a non-executive role until she retires on November 1, 2027. The company started a search for a new General Counsel.
- September 9, 2026Sunbelt reported Q1 fiscal 2027 results. Revenue rose 11.2% to $3,115 million, and net income rose 17.4% to $438 million. Adjusted EPS rose 20.4% to $1.18. It raised its guidance for fiscal 2027 to revenue growth of 6% to 9% and adjusted EBITDA of $4.92 billion to $5.12 billion.
- September 9, 2026Sunbelt declared its first quarterly dividend of $0.30 per share, payable on October 2, 2026. It replaces the semi-annual payments that came from its former UK practice.
Show 2 older eventsHide older events
- July 14, 2026Sunbelt issued $1.2 billion of senior notes: $450 million of 4.950% notes due August 2030 and $750 million of 5.650% notes due 2036. It plans to use the money to refinance debt, to buy equipment and for other business needs.
- May 1, 2026Sunbelt closed its purchase of Reliant Asset Management, which operates as Aries. In Q1 it spent $669 million, including borrowings that it took over, on two bolt-on acquisitions, and it opened 13 new locations.
Latest news and filings
- Last earnings
- September 9, 2026 (8-K on sec.gov)
- Next earnings
- Expected about December 9, 2026. The company has not confirmed the date.
- 8-KChange of directors or officersFiled · Read it on sec.gov
- 10-QQuarterly report for the period ended Jul 31, 2026Filed · snblt-20260731
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KShareholder vote resultsFiled · Read it on sec.gov
- 8-KNew material agreement and New debt or financial obligationFiled · Read it on sec.gov
- 8-KChange of directors or officersFiled · Read it on sec.gov
- 8-KOther company newsFiled · Read it on sec.gov
- 8-KChange of directors or officersFiled · Read it on sec.gov
- 10-KAnnual report for the period ended Apr 30, 2026Filed · snblt-20260430
- 8-KEarnings release and Other company newsFiled · Press release and exhibits
Risks
- Rental demand follows construction and industrial activity. The company says that mega projects, energy and live events helped Q1, and that the World Cup added about 250 basis points to rental revenue growth. Growth can slow when these end.
- Fleet spending is high. Gross rental capital spending is guided at $2.75 billion to $3.15 billion for fiscal 2027, and free cash flow was only $70 million in Q1. If demand falls, the company holds fleet that earns less.
- Margins face cost pressure. Adjusted EBITDA margin fell to 42.2% from 43.2%. General Tool margin fell to 51.5% from 52.8% because of higher fuel costs.
- Debt is large. Total debt was $8,556 million, of which 86% has a fixed rate, and the average cost is about 5%. Net leverage was 1.8 times. A rise in rates or a drop in EBITDA raises interest costs and leverage.
- The United Kingdom segment is weak. Its rental revenue fell 1.4% in Q1 and its adjusted operating margin was only 8.3%.
Balance sheet
At July 31, 2026, Sunbelt had total debt of $8,556 million and cash of $32 million, which is net debt of $8,524 million. Net leverage was 1.8 times adjusted EBITDA of $4,782 million for the last 12 months, in the target range of 1 to 2 times. Debt is the asset-based credit facility and eleven series of senior notes. The facility has $4,750 million of commitments until November 2029, and $1,217 million was used. 86% of the debt has a fixed rate. $550 million falls due within 12 months, including the 1.500% senior notes due in August 2026, which it repaid after the quarter. In July 2026, it issued $450 million of notes due 2030 and $750 million due 2036. Available borrowing under the credit facility was $3,512 million. Cash flow from operations was $840 million in Q1, and free cash flow was $70 million after $759 million of rental equipment purchases. The company repurchased $56 million of shares and paid $307 million of dividends in Q1. Its $1.5 billion buyback program, which began on March 2, 2026, had used $315 million.
Dividends
- Dividend yield
- 1.3% (last 12 months, at today’s price of $83.32)
- Paid per share
- $1.05 in the last 12 months (2 payments)
- Latest ex-dividend date
- September 18, 2026, $0.30 per share
Dividends per share by year
| 2016 | $0.00 | |
|---|---|---|
| 2017 | $0.00 | |
| 2018 | $0.00 | |
| 2019 | $0.00 | |
| 2020 | $0.00 | |
| 2021 | $0.00 | |
| 2022 | $0.00 | |
| 2023 | $0.00 | |
| 2024 | $0.00 | |
| 2025 | $0.00 |
Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.
Questions about Sunbelt Rentals
What does Sunbelt Rentals do?
Sunbelt Rentals Holdings, Inc. (Sunbelt) is an equipment rental company based in Fort Mill, South Carolina. Its market cap is $34B at the current price of $83.32.
When does Sunbelt Rentals report earnings next?
This is an estimate: Sunbelt Rentals may report on December 9, 2026. It last reported results on September 9, 2026.
Is Sunbelt Rentals stock below its intrinsic value?
Sunbelt Rentals stock is close to intrinsic value. This is general information, not advice.
What changed recently at Sunbelt Rentals?
The latest update is from October 27, 2026. Sunbelt said in an 8-K that Lynne Fuller-Andrews stepped down as Executive Vice President, General Counsel and Corporate Secretary on October 23, 2026.
What are the main risks for Sunbelt Rentals?
Rental demand follows construction and industrial activity. Fleet spending is high. Margins face cost pressure.
How much debt and cash does Sunbelt Rentals have?
At July 31, 2026, Sunbelt had total debt of $8,556 million and cash of $32 million, which is net debt of $8,524 million. This is as of July 31, 2026.
Does Sunbelt Rentals pay a dividend?
Yes. Sunbelt Rentals paid $1.05 per share in the last 12 months. That is a dividend yield of 1.3% at the current price of $83.32. The latest ex-dividend date was September 18, 2026.
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