SUNB changes
Pick any two versions below to diff them.
- Price
- $83.32
- Discount category
- Close to intrinsic value
- Next earnings
- Dec 9, 2026
- Next earnings is estimate
- Yes
- Company name
- added: Sunbelt Rentals
- Sector
- added: Equipment rental
- About
- added: 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
- added: 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.
- Risks
- added: 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
- added: 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. As of Jul 31, 2026.
- Checkpoints
- added: Dec 9, 2026 (estimate): Q2 fiscal 2027 results: rental growth and guidance. Pending. Watch: The 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 (estimate): Fiscal 2027 results and fiscal 2028 guidance. Pending. Watch: Adjusted 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
- added: Oct 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. She stays in a non-executive role until she retires on November 1, 2027. The company started a search for a new General Counsel. Sep 9, 2026: Sunbelt 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. Sep 9, 2026: Sunbelt 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. Jul 14, 2026: Sunbelt 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, 2026: Sunbelt 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.