Sunbelt Rentals Posts Modest Increases in Fiscal Third Quarter

Sunbelt Rentals posted $2.637 billion in fiscal third quarter 2026 revenue compared to $2.567 billion in the third quarter of fiscal 2025, a 2.7-percent increase. Equipment rental revenue rose from $2.381 billion to $2.443 billion, a 2.6-percent incline. It was Sunbelt’s first reported quarterly results since being listed on the NYSE.

In the fiscal third quarter, adjusted EBITDA was $1,082 million compared to $1,117 million in the prior-year period, and adjusted EBITDA margin was 41.0 percent, compared to 43.5 percent in the prior-year period. Consistent with prior quarters this year, the reduction in adjusted EBITDA margin compared to the prior-year period is primarily because of a combination of higher ancillary revenues, higher internal repair and fleet repositioning costs, and investments to support growth.

Return on investment of 14 percent was relatively consistent compared to the prior-year period of 15 percent. The reduction is primarily caused by lower adjusted operating profit combined with rental fleet inflation.

North America General Tool segment rental revenue of $1,410 million increased 1.6 percent compared to the prior-year period driven by volume growth. Dollar Utilization of 47 percent was relatively consistent with the prior-year period of 48 percent.

North America General Tool segment adjusted operating profit was $414 million compared to $451 million in the prior-year period, and adjusted operating profit margin was 27.1 percent, compared to 29.9 percent in the previous-year period. Segment adjusted EBITDA was $767 million, compared to $800 million in the prior-year period, and segment adjusted EBITDA margin was 50.3 percent, compared to 53.1 percent in the prior-year period. The margin performance primarily reflects higher costs associated with internal repairs and repositioning of rental fleet to drive utilization improvements.

North America Specialty segment rental revenue of $851 million increased 4.4 percent compared to the prior-year period, driven by volume improvement. The company estimates that rental revenue would have increased by approximately 7 percent excluding the reduction in rental revenue resulting from lower hurricane activity compared to the prior year. Dollar utilization of 74 percent was relatively consistent to the prior-year period of 73 percent.

UK increases

UK segment rental revenue of $182 million increased 2.2 percent compared to the prior-year period. Rental revenue growth has benefited from favorable foreign exchange movements, with rental revenue in local currency 4 percent lower than the prior year. Dollar utilization of 52 percent was relatively consistent with the prior-year period of 53.

“I want to recognize our team for another quarter of strong execution and their unwavering obsession with safety, and delivering best-in-class solutions for our customers,” said Brendan Horgan, CEO of Sunbelt Rentals. “Rental revenue in the quarter grew 2.6 percent over last year, marking a sequential improvement over the 1.2-percent pace experienced in Q2, and adjusted EBITDA was a healthy $1.1 billion. We invested $1.9 billion in rental fleet capex, greenfield expansion, and 10 bolt-on acquisitions fiscal year to date and generated a record $1.4 billion free cash flow while returning $1.05 billion to shareholders through share buybacks and another $307 million through dividends.”

“The growth and resilience demonstrated in the quarter was achieved in mixed end markets, with ongoing strength in mega projects and large strategic customer share gains as well as the vast non-construction markets. Local non-residential construction continues to be in a moderate state, although our internal leading indicators continued to trend positive in the quarter further supported by the Dodge Momentum Index.

“These trends enable us to confidently increase the midpoint of our rental revenue growth range and modestly increase our capital expenditures outlook. This incremental capex will fuel continued growth in our specialty segments, recent mega project wins, and advanced fleet replacement to provide maximum optionality to balance replacement investments while taking advantage of strengthening trends. I am also pleased to confirm the completion of our prior $1.5 billion share buyback program in February, and the commencement of our newly authorized $1.5 billion share buyback program on March 2.” 

For the first nine months of the fiscal year, Sunbelt Rentals posted $8.400 billion in total revenue compared to $8.262 billion for the first nine months of fiscal 2025, a 1.7-percent increase. Equipment rental revenue for the first nine months of fiscal 2026 was $7.800 billion compared to $7.646 for the first nine months of fiscal 2025, a 2-percent increase.

Sunbelt announced revised guidance for its full-year fiscal 2026 outlook, including rental revenue growth, gross capital expenditures, and free cash flow. Rental revenue growth expectations have been updated, with the prior range of 0 percent to 4 percent narrowed to a range of 2 percent to 3 percent. This reflects current momentum, visibility, and ongoing stability in market conditions including strong performance in mega projects and encouraging indicators across local non-residential construction markets.

The company is raising its gross capital expenditures outlook from $1.8 billion to $2.2 billion to a new range of $2.2 billion to $2.3 billion. This increase reflects expected landings late in the fourth quarter to support recent mega project wins and advanced equipment rental replacement capital expenditures anticipated in the spring of 2026.

As a result of these planned investments, the company now projects free cash flow of approximately $2 billion in accordance with GAAP.

Sunbelt Rentals is headquartered in Fort Mill. S.C.