Sunbelt Rentals Holdings, Inc 10-Q for FY2027 Q1

Sunbelt Rentals Holdings, Inc. (SUNB)

10-Q 2026-09-09 For: 2026-07-31

Added on September 09, 2026

About this 10-Q

Sunbelt Rentals Holdings, Inc filed this 10-Q on September 9, 2026, covering the quarter ended July 31, 2026 (FY2027 Q1).

Headline figures

Quarter ended July 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.12B; up 11.2% from $2.8B a year earlier
Net income: $438M; up 17.4% from net income of $373M a year earlier
Diluted EPS: $1.07; up 23.0% from $0.87 a year earlier

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Delaware									33-3657151
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
1799 Innovation Pt
Fort Mill, SC									29715
(Address of Principal Executive Offices)									(Zip Code)


		Page
Part I.	Financial Information	3
Item 1.	Financial Statements	3
	Unaudited Condensed Consolidated Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Income	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income	5
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity	6
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36
Part II.	Other Information	37
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	37
	Signatures	39


(In millions, except share data)	July 31, 2026 (unaudited)		April 30, 2026
ASSETS
Cash and cash equivalents	$	32	$	29
Accounts receivable, net of allowance for credit losses of $119 and $105, respectively	1,929		1,669
Inventory	192		180
Prepaid expenses and other assets	420		354
Total current assets	2,573		2,232
Rental equipment, net	11,856		11,224
Property and equipment, net	2,094		2,063
Goodwill	3,778		3,476
Other intangible assets, net	383		338
Operating lease right-of-use assets	2,663		2,664
Other long-term assets	266		271
Total non-current assets	21,040		20,036
Total assets	$	23,613	$	22,268
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt and current maturities of long-term debt	$	550	$	550
Accounts payable	623		472
Accrued expenses and other liabilities	1,255		1,167
Operating lease liabilities	295		287
Total current liabilities	2,723		2,476
Long-term debt	8,006		7,033
Deferred taxes	2,463		2,394
Non-current portion of operating lease liabilities	2,572		2,577
Other long-term liabilities	402		379
Total non-current liabilities	13,443		12,383
Total liabilities	16,166		14,859
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock – $0.01 par value, 414,502,814 and 409,867,481 shares issued and outstanding, respectively, as of July 31, 2026, 413,965,587 and 410,272,086 shares issued and outstanding, respectively, as of April 30, 2026	4		4
Additional paid-in capital	235		204
Retained earnings	7,772		7,646
Treasury stock at cost – 4,635,333 and 3,693,501 shares as of July 31, 2026 and April 30, 2026, respectively	(334)		(259)
Common stock held by the ESOT – 0 and 0 shares as of July 31, 2026 and April 30, 2026, respectively	—		—
Accumulated other comprehensive loss	(230)		(186)
Total stockholders’ equity	7,447		7,409
Total liabilities and stockholders’ equity	$	23,613	$	22,268


(In millions, except per share amounts)	Three Months Ended July 31,
		2026		2025
Revenues:
Equipment rentals		$	2,927	$	2,601
Sales of rental equipment		85		103
Sales of new equipment, merchandise and consumables		103		97
Total revenues		3,115		2,801
Cost of revenues:
Cost of equipment rentals, excluding depreciation		1,265		1,072
Depreciation of rental equipment		470		458
Cost of rental equipment sales		70		90
Cost of sales of new equipment, merchandise and consumables		61		58
Total cost of revenues		1,866		1,678
Gross profit		1,249		1,123
Selling, general and administrative expenses		443		414
Non-rental depreciation and amortization		115		113
Operating income		691		596
Interest expense, net		107		95
Other income, net		(7)		(7)
Income before provision for income taxes		591		508
Provision for income taxes		153		135
Net income		$	438	$	373
Basic earnings per share		$	1.07	$	0.87
Diluted earnings per share		$	1.07	$	0.87


	Three Months Ended July 31,
(In millions)		2026		2025
Net income		$	438	$	373
Other comprehensive loss, net of tax:
Foreign currency translation adjustments(1)		(44)		(14)
Other comprehensive loss		(44)		(14)
Total comprehensive income		$	394	$	359


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended July 31, 2026
	Sunbelt Rentals Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Common stock held by the ESOT		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
							Amount		Amount
Balance as of April 30, 2026	$	4	$	204	$	7,646	$	(259)	$	—	$	(186)	$	7,409
Net income	—		—		438		—		—		—		438
Foreign currency translation adjustments	—		—		—		—		—		(44)		(44)

Dividends declared, $0.75 per share	—		—		(307)		—		—		—		(307)

Repurchase of common stock	—		—		—		(56)		—		—		(56)

Settlement of stock-based compensation	—		5		(5)		(19)		—		—		(19)
Stock-based compensation	—		26				—		—		—		26


Balance as of July 31, 2026	$	4	$	235	$	7,772	$	(334)	$	—	$	(230)	$	7,447


	Three Months Ended July 31, 2025
	Ashtead Share Capital		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Common stock held by the ESOT		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
							Amount		Amount
Balance as of April 30, 2025	$	82	$	46	$	9,103	$	(1,171)	$	(35)	$	(226)	$	7,799
Net income	—		—		373		—		—		—		373
Foreign currency translation adjustments	—		—		—		—		—		(14)		(14)






Repurchase of common stock	—		—		—		(332)		(18)		—		(350)
Stock-based compensation	—		(2)		(2)		—		30		—		26

Balance as of July 31, 2025	$	82	$	44	$	9,474	$	(1,503)	$	(23)	$	(240)	$	7,834


	Three Months Ended July 31,
	2026						2025
(In millions)	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
Equipment rentals	$	2,319	$	—	$	2,319	$	2,100	$	—	$	2,100
Other rental revenue:
Delivery and pick-up	—		257		257		—		230		230
Other	95		256		351		90		181		271
Total equipment rentals	2,414		513		2,927		2,190		411		2,601
Sales of rental equipment	—		85		85		—		103		103
Sales of new equipment, merchandise and consumables	—		103		103		—		97		97
Total revenues	$	2,414	$	701	$	3,115	$	2,190	$	611	$	2,801


(In millions)	Total
Accounts receivable (1)	$	33
Inventory	11
Rental equipment	265
Property and equipment	14
Operating lease right-of-use assets	11
Intangible assets	80
Total identifiable assets acquired	414
Accounts payable, accrued expenses and other liabilities	(51)
Deferred taxes	(2)
Operating lease liabilities	(11)

Total liabilities assumed	(64)
Net identifiable assets acquired	350
Goodwill	319
Net assets acquired	$	669


(In millions)	Fair value		Life (years)
Customer lists	$	77	10

Contract related	3		5
Total	$	80


	North America
(In millions)	General Tool		Specialty		United Kingdom		Total
Three Months Ended July 31, 2026
Equipment rentals	$	1,648	$	1,070	$	209	$	2,927
Sales of rental equipment	54		20		11		85
Sales of new equipment, merchandise and consumables	41		42		20		103
Total revenues	1,743		1,132		240		3,115
Cost of rental equipment sales	(46)		(16)		(8)		(70)
Staff costs(1)	(366)		(210)		(69)		(645)
Depreciation	(359)		(146)		(41)		(546)
Other segment items(2)	(433)		(387)		(102)		(922)
Adjusted segment operating profit	539		373		20		932
Reconciliation of Adjusted Segment Operating Profit to income before provision for income taxes:
Central costs(3)							(205)
Interest expense, net							(107)
Amortization of acquired intangibles							(29)
Income before provision for income taxes							$	591

Three Months Ended July 31, 2025
Equipment rentals	$	1,535	$	854	$	212	$	2,601
Sales of rental equipment	71		23		9		103
Sales of new equipment, merchandise and consumables	43		32		22		97
Total revenues	1,649		909		243		2,801
Cost of rental equipment sales	(61)		(23)		(6)		(90)
Staff costs(1)	(329)		(177)		(70)		(576)
Depreciation	(351)		(136)		(45)		(532)
Other segment items(2)	(389)		(273)		(102)		(764)
Adjusted segment operating profit	519		300		20		839
Reconciliation of Adjusted Segment Operating Profit to income before provision for income taxes:
Central costs(3)							(208)
Interest expense, net							(95)
Amortization of acquired intangibles							(28)
Income before provision for income taxes							$	508


(In millions)	July 31, 2026		April 30, 2026
Raw materials, consumables and spares	$	96	$	92
Goods for resale	96		88
Inventory	$	192	$	180


	July 31,
	2026	2025
Ashtead share capital, £0.10 ($0.18) par value:
Balance at beginning of period	—	451,354,833


Balance at end of period	—	451,354,833

Sunbelt Rentals common stock, $0.01 par value:
Balance at beginning of period	413,965,587	—

Settlement of stock-based compensation	537,227	—
Balance at end of period	414,502,814	—

Treasury stock:
Balance at beginning of period	3,693,501	20,111,957
Repurchase of common stock	725,000	5,425,460
Settlement of stock-based compensation	216,832	—
Balance at end of period	4,635,333	25,537,417

Common stock held by the ESOT:
Balance at beginning of period	—	534,660
Settlement of stock-based compensation	—	(461,036)

Repurchase of common stock	—	290,888
Balance at end of period	—	364,512


	Three Months Ended July 31,
(In millions)		2026		2025
Beginning balance		$	105	$	102
Amounts written off or recovered		(4)		(4)
Increase in allowance recognized		18		15
Ending balance		$	119	$	113


(In millions)	July 31, 2026		April 30, 2026
First priority senior secured bank debt	$	1,213	$	1,421
1.500% senior notes, due August 2026	550		550
4.375% senior notes, due August 2027	599		598
4.000% senior notes, due May 2028	598		598
4.250% senior notes, due November 2029	597		597
4.950% senior notes, due August 2030	444		—
2.450% senior notes, due August 2031	746		746
5.500% senior notes, due August 2032	741		741
5.550% senior notes, due May 2033	745		745
5.950% senior notes, due October 2033	745		745
5.800% senior notes, due April 2034	842		842
5.650% senior notes, due August 2036	736		—
Total debt	$	8,556	$	7,583
Less: short-term portion (1)	(550)		(550)
Total long-term debt	$	8,006	$	7,033


	Shares	Weighted-Average Grant Date Fair Value
Outstanding as of April 30, 2026	2,640,449	$	71.94
Granted	920,860	75.18
Exercised	(537,227)	72.20
Expired/lapsed	(45,501)	73.01

Outstanding and exercisable as of July 31, 2026	2,978,581	$	72.87


	Three Months Ended July 31,
(In millions)	2026		2025
Cash provided by (used in):
Operating activities	$	840	$	868
Investing activities	(1,438)		(422)
Financing activities	601		(444)
Effect of exchange rate changes	—		—
Net change in cash and cash equivalents	$	3	$	2


($ in millions, unless otherwise stated)	Three Months Ended July 31,
		2026			2025
Net income		$	438		$	373
Net income margin		14		%	13		%
EBITDA(1)		$	1,283		$	1,174
EBITDA margin (1)		41		%	42		%
Adjusted EBITDA(1)		$	1,315		$	1,210
Adjusted EBITDA margin(1)		42		%	43		%
Net cash provided by operating activities		$	840		$	868
Free cash flow(1)		70			468
Operating income		691			596
Adjusted operating profit(1)		759			667
Dollar utilization(2)
North America – General Tool		47		%	47		%
North America – Specialty		77		%	74		%
United Kingdom		54		%	53		%
Original equipment cost
North America – General Tool		$	13,361		$	12,542
North America – Specialty		5,277			4,582
United Kingdom		1,464			1,536


Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Dollar Amount of Shares That May Yet Be Purchased under the Program (1)
May 1, 2026 to May 31, 2026	300,000	$	76.08	300,000	$	1,221,067,397
June 1, 2026 to June 30, 2026	279,000	$	79.84	279,000	1,198,793,413
July 1, 2026 to July 31, 2026	146,000	$	72.70	146,000	1,188,179,914
Total	725,000			725,000


Exhibit Number			Exhibit Description
3.1			Amended and Restated Certificate of Incorporation of Sunbelt Rentals Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form 10 filed by Sunbelt Rentals Holdings, Inc. on February 13, 2026 (the “Form 10”)).


3.2			Amended and Restated Bylaws of Sunbelt Rentals Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Form 10).
4.1			Indenture, dated as of July 14, 2026, among Sunbelt Rentals Holdings, Inc., the guarantors party thereto, BNY Mellon Corporate Trustee Services Limited, as trustee, The Bank of New York Mellon, London Branch, as paying agent, and The Bank of New York Mellon SA/NV, Dublin Branch, as transfer agent and registrar (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by Sunbelt Rentals Holdings, Inc. on July 15, 2026).
10.1†#			Amended and Restated Employment Agreement, dated as of January 7 , 2026, by and among Sunbelt Rentals Holdings, Inc., Sunbelt Rentals, Inc. and Lynne Fuller-Andrews.
10.2†#			T he Executive Nonqualified Excess Plan of Sunbelt Rentals, Inc.
31.1#			Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2#			Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*			Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*			Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1#			Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language (“Inline XBRL”).
104#			Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101.1).


		Sunbelt Rentals Holdings, Inc.

Date: September 9, 2026	By:	/s/ Alex Pease
		Name: Alex Pease
		Title: Chief Financial Officer
		(Principal Financial Officer and Duly Authorized Officer)


EMPLOYEE
/s/ Lynne Fuller-Andrews						01/07/2026
Signature of Lynne Fuller-Andrews						Date


SUNBELT RENTALS HOLDINGS, INC.
/s/ Brendan Horgan						01/19/2026
Signature of Brendan Horgan Chief Executive Officer						Date


SUNBELT RENTALS, INC.
/s/ Brendan Horgan						01/19/2026
Signature of Brendan Horgan Chief Executive Officer						Date


Date:	September 9, 2026	/s/ Brendan Horgan
		Brendan Horgan
		Chief Executive Officer