Sunbelt Rentals’ stock rose 5.6% after the company delivered accelerating rental revenue growth and raised fiscal 2027 revenue, adjusted EBITDA and CapEx guidance. The quarter combined broad-based demand with higher operating profit and EPS, although the shift toward Specialty and ancillary revenue diluted adjusted EBITDA margin.
- Total revenue increased 11%, while rental revenue grew 13%; North America General Tool rose 7% and Specialty increased 25%.
- Adjusted operating profit grew 14%, with margin expanding to 24.4%; adjusted EBITDA increased 9%, but margin declined to 42.2% from 43.2% due to mix toward Specialty and ancillary revenue.
- Adjusted EPS rose 20.4% to a first-quarter record of $1.18, helped by higher operating profit and share repurchases.
- Management cited demand across mega projects, energy, live events, industrial MRO and stable local nonresidential construction, with higher fleet-on-rent levels, utilization and improving rate momentum.
- Fiscal 2027 guidance was raised for revenue, adjusted EBITDA and CapEx; management also reported balanced industry supply and demand and completed the Aries system integration in early August.
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