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Sunbelt Rentals Holdings, Inc.
🏹 Trader: 🎯 Near 52W High View all →
$32.3B
Market Cap
P/E
3.58
PEG
9.0%
ROCE
17.4%
ROE
1.37
D/E
19.6%
OPM
-12.7%
% from 52W High
31
α RS
🔍 SUNB is showing a high-conviction setup because it matches 4 of 37 tracked screener presets and it's within 12.7% of its 52-week high. Net: Partial signal stack, not a recommendation. ? Conviction 52W High
Sources
Conviction 4/37 · 12.7% from 52W high
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About

Sunbelt Rentals Holdings, Inc., together with its subsidiaries, engages in the construction, industrial, and general equipment rental business under the Sunbelt Rentals brand name in the United States, the United Kingdom, and Canada.

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📈 Growth Pattern
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3-Statement Financial Model
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Mixed quarter Investor Presentation One-Pager? Q4 2026
Revenue
$2.754B
+8.9% YoY
Operating Income
$410M
-20.5% YoY
Operating Margin
18.7% (adj.)
-2.9pp YoY
Net Income
$226M
-31.3% YoY
What Went Right
  • Q4 total revenue was a record $2.754B, up 8.9%, and rental revenue grew 8.0% — above the top end of March guidance
  • North America Specialty rental revenue accelerated 15.1% in Q4, with General Tool up 4.4% and Power & HVAC up nearly 30%
  • Full-year free cash flow hit a record $2.055B, up 22.7%, while the company returned $1.877B to shareholders
What to Watch
  • Q4 adjusted EBITDA margin fell 400bps to 38.7%, and adjusted operating margin fell 290bps to 18.7%, hit by volume-led repositioning costs and mix
  • Net income dropped 31.3% YoY and adjusted EPS fell 8.6%, partly due to lapping a $28M prior-year receivables reversal plus a higher tax rate
  • Local non-residential construction remains in equilibrium — guidance assumes stability, not an inflection point
Management Guidance
  • FY2027 total revenue growth of 4.5%-7.5%
  • FY2027 rental revenue growth of 5%-8%, driven by specialty and supported by steady General Tool growth
  • FY2027 adjusted EBITDA of $4.85B-$5.05B with broadly flat margins and expectations of back-half improvement
  • FY2027 net rental CapEx of $2.05B-$2.45B and gross rental CapEx of $2.45B-$2.85B, plus 55 greenfield openings
Investor Lens
The growth thesis is intact — Q4 rental revenue rose 8%, Specialty rose 15%, free cash flow hit a record $2.055B, and leverage stayed conservative at 1.6x. The Aries/Reliant acquisition adds a 13th specialty line with clear cross-sell and density runway in only 14 of Sunbelt's top 50 markets. Margin compression was driven more by mix and repositioning costs than structural deterioration, with management guiding toward back-half margin improvement. If dynamic pricing gains traction or local non-res inflects, there is upside beyond the flattish margin guide.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Record Q4 revenue up 8.9%, but margins compress 400bps
Revenue
Q4 total revenue rose 8.9% to $2.754B, with rental revenue up 8.0% to $2.520B. North America Specialty rental revenue grew 15.1% and General Tool grew 4.4%, while full-year revenue was a record $11.154B, up 3.4%.
Profitability
Q4 GAAP operating income fell 20.5% to $410M and net income fell 31.3% to $226M. Adjusted EPS was $0.74, down 8.6% YoY, with the prior year's $28M receivables reversal and higher tax rate combining to add $0.07 that did not repeat.
Margins
Q4 adjusted operating profit margin contracted 290bps to 18.7%, and adjusted EBITDA margin fell 400bps to 38.7%. Full-year adjusted EBITDA margin was 41.9%, down 210bps, driven by volume-led fleet repositioning, a higher mix of specialty and ancillary revenues, fuel surcharges, and the Aries deal's first-year drag.
Balance Sheet
Net debt ended at $7.6B, with leverage at 1.6x, comfortably within the 1-2x target range. Full-year free cash flow reached a record $2.055B, up 22.7%, while total CapEx declined 18.5% to $2.2B and $1.877B was returned to shareholders.
Key Risks
Management flagged that local non-residential construction remains stable but not inflecting, which keeps General Tool growth muted. Margins face continued pressure from specialty/ancillary mix and mega-project load-in costs, plus a first-year drag from Aries. Q1 2027 also includes lumpy one-time event revenue, such as World Cup activity, which distorts the comparison.
Outlook
For FY2027, Sunbelt guides total revenue growth of 4.5%-7.5%, rental revenue growth of 5%-8%, and adjusted EBITDA of $4.85B-$5.05B with broadly flat margins. Management expects margin progression to improve in the back half as operational excellence initiatives and pricing traction build.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-06-23
Record revenue and free cash flow were achieved, led by strong specialty growth and strategic acquisitions. Fiscal 2027 guidance calls for continued revenue and EBITDA growth, with margins expected to stabilize as specialty and mega-project activity remain key drivers.
Q3 2026 Q3 2026 2026-03-12
Q3 saw 2.6% rental revenue growth and record free cash flow, with strong Specialty and mega project performance. Guidance for full-year rental revenue growth was raised, CapEx increased, and market share gains continued amid positive leading indicators.
Q2 2026 Q2 2026 2025-12-09
Rental revenue and free cash flow grew despite a quiet hurricane season, with strong margins and robust shareholder returns. Guidance for revenue, CapEx, and cash flow is reaffirmed, supported by positive leading indicators and megaproject momentum.
Q1 2026 Q1 2026 2025-09-03
Rental revenue grew 2.4% year-over-year, with record free cash flow and strong execution of the Sunbelt 4.0 strategy. Mega project activity and leading indicators point to future growth, while margins reflect deliberate investments and higher repair costs. Guidance for revenue and CapEx is reaffirmed, with free cash flow outlook raised.
Q4 2025 Q4 2025 2025-06-17
Record rental revenues and EBITDA were achieved, with strong free cash flow and shareholder returns. Growth was driven by specialty and mega projects, while local construction remained moderate. Fiscal 2026 guidance anticipates flat to 4% rental revenue growth and continued margin improvement.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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