01—Abstract
Summary
Summary of the 10-Q filed September 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Sunbelt Rentals Holdings, Inc. reported revenue of $3,115 milliona for the three months ended July 31, 2026, up from $2,801 million a year earlier, with operating income of $691 million (versus $596 million) and net income of $438 million (versus $373 million).
Diluted earnings per share were $1.07b, compared with $0.87. Equipment rentals revenue rose to $2,927 million from $2,601 million, driven mainly by rental volume growth in both North American segments and positive rental rate momentum. Adjusted EBITDA was $1,315 million, and free cash flow was $70 million, down from $468 million, as rental equipment purchases ($759 million) and acquisitions ($667 million) rose sharply.
The balance sheet grew over the quarter, with total assets of $23,613 millionc at July 31, 2026, versus $22,268 million at April 30, 2026. Total debt increased to $8,556 million from $7,583 million, including $450 million of 4.950% senior notes due 2030 and $750 million of 5.650% senior notes due 2036 issued on July 14, 2026. Stockholders' equity was $7,447 million.
The company paid $307 milliond in dividends and repurchased $56 million of common stock during the quarter. Subsequent to quarter-end, the Board declared a quarterly cash dividend of $0.30 per share, payable October 2, 2026.
The company also repaid its $550 million 1.500% senior notes on August 12, 2026, and completed three North American acquisitions for a total purchase price of $56 million. Management stated that existing cash sources, including operating cash flow and ABL Facility availability of $3,512 million, are sufficient for liquidity needs over the next 12 months.
02—Key points
Key Highlights
- Total revenues rose to $3,115 million from $2,801 million, with equipment rentals revenue up to $2,927 million from $2,601 million.
- Operating income increased to $691 million from $596 million, and net income increased to $438 million from $373 million.
- Diluted earnings per share were $1.07, compared with $0.87 in the prior-year quarter.
- Adjusted EBITDA was $1,315 million versus $1,210 million, and adjusted operating profit was $759 million versus $667 million.
- Free cash flow fell to $70 million from $468 million, as payments for rental equipment rose to $759 million from $394 million.
- Total debt increased to $8,556 million from $7,583 million after issuing $1,200 million of new senior notes during the quarter.
- The Board declared a quarterly dividend of $0.30 per share on September 9, 2026, payable October 2, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed September 9, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $701.00M$2.80B | −75.0% |
| Cost of Revenue | $1.87B$1.68B | +11.2% |
| Gross Profit | $1.25B$1.12B | +11.2% |
| SG&A Expenses | $443.00M$414.00M | +7.0% |
| Operating Income | $691.00M$596.00M | +15.9% |
| Net Income | $438.00M$373.00M | +17.4% |
| EPS (Basic) | $1.07$0.87 | +23.0% |
| EPS (Diluted) | $1.07$0.87 | +23.0% |
| Shares Outstanding (Basic) | 409.98M428.30M | −4.3% |
| Shares Outstanding (Diluted) | 411.31M429.03M | −4.1% |
05—Questions
Frequently Asked Questions
How did Sunbelt's revenue and profitability change in the quarter ended July 31, 2026?
Total revenues increased to $3,115 million from $2,801 million. Operating income rose to $691 million from $596 million, and net income rose to $438 million from $373 million. Diluted earnings per share were $1.07 versus $0.87. The filing attributes the equipment rentals increase mainly to rental volume growth in both North American segments and positive rental rate momentum.
Why did free cash flow decline significantly?
Free cash flow was $70 million compared with $468 million a year earlier. Payments for purchases of rental equipment increased to $759 million from $394 million, and net cash provided by operating activities decreased to $840 million from $868 million, primarily due to working capital movements, including higher accounts receivable and lower accounts payable.
How did the company change its debt position during the quarter?
Total debt rose to $8,556 million at July 31, 2026, from $7,583 million at April 30, 2026. In July 2026, the company issued $450 million of 4.950% senior notes due 2030 and $750 million of 5.650% senior notes due 2036. The ABL Facility had $4,750 million of commitments, of which $1,217 million was utilized, and the company stated it was in compliance with all debt covenants.
What capital returns did shareholders receive?
Dividends paid were $307 million during the quarter, and common stock repurchases totaled $56 million. Under the $1.5 billion repurchase program, $315 million had been repurchased as of July 31, 2026. After quarter-end, the Board declared a quarterly dividend of $0.30 per share, payable October 2, 2026, to holders of record as of September 18, 2026.
What acquisitions did the company make?
During the quarter, the company completed two North America – Specialty acquisitions with aggregate cash consideration of $669 million, resulting in goodwill of $319 million. After quarter-end, it completed three additional North American acquisitions with a total purchase price of $56 million.
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