Sunbelt Rentals (SUNB) Fiscal Q1 2027 Earnings Call: Guidance Raised
Source Tradingkey
Key Takeaways
- Sunbelt Rentals (SUNB) reported record fiscal Q1 2027 revenue, adjusted EBITDA, adjusted operating profit and adjusted EPS for the period ended July 31, 2026.
- Total revenue increased 11.2% year over year to $3.1 billion, while rental revenue rose 12.5% to $2.9 billion.
- Adjusted operating profit grew 13.8% to $759 million, with margin expanding 60 basis points to 24.4%. Adjusted EPS increased 20.4% to $1.18.
- North America Specialty led growth, with rental revenue up 25.3% and dollar utilization rising 300 basis points to 77%. North America General Tool rental revenue increased 7.4%.
- Management raised fiscal 2027 guidance to total revenue growth of 6%–9%, rental revenue growth of 7%–10% and adjusted EBITDA of $4.92 billion–$5.12 billion.
- Gross capital expenditure guidance increased to $2.75 billion–$3.15 billion as the company targets committed demand from mega projects, Specialty and energy opportunities.
Key Financial Data
| Metric | Fiscal Q1 2027 | Year-over-year change | Commentary |
|---|---|---|---|
| Total revenue | $3.1 billion | +11.2% | Broad-based General Tool and Specialty growth |
| Rental revenue | $2.9 billion | +12.5% | FIFA World Cup activity contributed about 250 basis points to growth |
| Adjusted EBITDA | $1.3 billion | +8.7% | Margin was 42.2%, versus 43.2% a year earlier |
| Adjusted operating profit | $759 million | +13.8% | Margin expanded 60 basis points to 24.4% |
| Adjusted EPS | $1.18 | +20.4% | Supported by higher operating profit and share repurchases |
| Depreciation | $556 million | — | Depreciation grew more slowly than rental revenue |
| Free cash flow | $70 million | — | Affected by higher CapEx and equipment-payment timing |
| Gross rental CapEx | $759 million | Nearly doubled | Directed toward existing project wins and fleet demand |
| Net rental CapEx | $682 million | +78% | Supported higher fleet utilization and the project pipeline |
| Trailing 12-month ROI | 14.6% | Improved from year-end | Management expects further progress during fiscal 2027 |
| Net leverage | 1.8x | — | Within the company’s long-term 1x–2x target range |
| Liquidity | Approximately $3.8 billion | — | Included additional financing flexibility |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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