Sunbelt Rentals posted $3,115 million ($3.115 billion) in total revenue during its fiscal first quarter of 2027 ended July 31, compared to $2,801 million in the fiscal first quarter of 2026, an 11.2-percent hike. Equipment rentals for the quarter totaled $2,927 million compared to $2,601 million for the same period a year ago, for a 12.5-percent growth clip.

Sales of used rental equipment dropped from $103 million to $85 million, while sales of new equipment, merchandise and consumables increased from $97 million in fiscal Q12026 to $103 million for the just concluded 

North America General Tool segment rental revenue increased 7.4 percent to $1,648 million, and dollar utilization in the quarter of 47 percent was consistent with the prior-year period. General Tool adjusted operating profit increased to $539 million and adjusted operating profit margin was 30.9 percent compared to the prior year period of 31.5 percent. Adjusted EBITDA increased 3.2 percent to $898 million, and adjusted EBITDA margin was 51.5 percent, compared to 52.8 percent in the prior-year period. The year-over-year adjusted EBITDA margin performance primarily reflects higher fuel costs, partially offset by rental rate improvements during the quarter.

Specialty segment stars again

North America Specialty segment rental revenue increased 25.3 percent to $1,070 million, and dollar utilization in the quarter increased to 77 percent compared to the prior-year period of 74 percent. The company’s acquisition of Reliant Asset Management added approximately 300 basis points to rental revenue growth in the quarter. Specialty adjusted operating profit increased 24.3 percent to $373 million and adjusted operating profit margin of 33 percent was consistent with the prior-year period. Adjusted EBITDA increased 19.0 percent to $519 million, and adjusted EBITDA margin was 45.8 percent, compared to 48.0 percent in the prior-year period. The year-over-year margin performance primarily reflects strong relative growth of ancillary revenues.

UK segment rental revenue of $209 million decreased 1.4 percent compared to the prior-year period, while dollar utilization in the quarter increased to 54 percent compared to the prior-year period of 53 percent. UK adjusted operating profit margin increased 10 basis points to 8.3 percent compared to 8.2 percent in the prior-year period reflecting improved operational efficiencies. Segment adjusted EBITDA was $61 million compared to $65 million in the prior-year period, and segment adjusted EBITDA margin was 25.4 percent compared to 26.7 percent in the prior-year period.

“I am proud of the team’s efforts in driving strong execution across all aspects of the business which delivered record first quarter results,” said Brendan Horgan, CEO. “Our obsession with the success of our customers, strong value proposition, differentiated technology platform and leading scale drove strong growth in the quarter as reflected in a 25 percent increase in rental revenues within our North America Specialty segment and 7 percent growth within our North America General Tool segment.

“Our performance was underpinned by disciplined execution and strong demand across a diverse range of end markets, including mega projects, energy, live events, industrial, and non-construction MRO, complemented by another quarter of stability and demand in our local non-residential construction markets. Growth in the quarter was geographically broad, spanning our General Tool segment as well as our Specialty business lines. Notably, rental revenue growth was present throughout our small and medium-sized customer base, with outsized growth from our large and strategic customers demonstrating the strength of our leading position, and breadth of expertise and solutions. This performance reflects the dedication, best-in-class execution and customer-obsessed mindset of our team members.”

Horgan expressed confidence in the company’s performance for the remainder of the fiscal year. 

“As we look toward the balance of fiscal 2027, we are seeing strong momentum throughout top-line and bottom-line performance,” he said. “The upward revision to our guidance signals our confidence in the underlying supply and demand landscape, the durability of our structural growth, and the strength of our through-the-cycle free cash flow platform. We believe Sunbelt is well positioned for a year of strong performance.”

Higher expectations

Sunbelt raised its guidance for total revenue from the previous expectation of between 4.5 percent to 7.5 percent to a range between 6 percent and 9 percent. The previous outlook was for rental revenue being in the range of 5 percent to 8 percent growth, but the company raised its expectations to a range of 7 percent to 10 percent growth.

Sunbelt Rentals is headquartered in Fort Mill, S.C., and is No. 2 on the RER 100.