Sunbelt Rentals Reports Strong Q1 Earnings with Revenue Growth and Margin Expansion
Sunbelt Rentals (SUNB) reported strong first-quarter earnings for fiscal year 2027, driven by record rental demand in North America. Total revenue reached $3.1 billion, a 11.2% increase from the prior year, with rental revenue growing to $2.9 billion or 12.5%. Adjusted operating profit rose 13.8% to $759 million as margins expanded due to improved SG&A leverage and lower depreciation costs. The Specialty segment saw a significant boost of 25.3%, supported by the Aries acquisition and high-profile projects like the FIFA World Cup, which contributed an estimated 250 basis points to total rental revenue growth. The UK segment also showed improvement in adjusted EBITDA margin at 25.4%. Sunbelt raised its full-year guidance for both total and rental revenue as well as adjusted EBITDA due to strong performance and increased project activity. Despite a decline in the overall adjusted EBITDA margin from 43.2% to 42.2%, this was attributed to an increasing share of ancillary revenues, which grew at more than twice the rate of rental revenue growth.
Tickers: $SUNB
Topics: acquisition impact adjusted operating profit rental demand revenue