Sunbelt Rentals Holdings Inc. raised its fiscal 2027 guidance after reporting first-quarter results that beat expectations, with rental revenue climbing 12.5% year over year to $2.93 billion.
The Fort Mill, South Carolina-based equipment-rental company said total revenue rose 11.2% to $3.12 billion for the quarter ended July 31, 2026. Operating income increased 15.9% to $691 million, reflecting a margin of 22.2%. Net income grew 17.4% to $438 million, and earnings per share rose 23% to $1.07.
Rental revenue growth was broad-based across segments. North America General Tool revenue climbed 7.4%, while the Specialty segment surged 25.3%. Growth benefited from two key factors: the May 2026 acquisition of Reliant Asset Management contributed roughly 100 basis points to rental revenue, and demand tied to the FIFA World Cup added approximately 250 basis points.
The company raised its full-year fiscal 2027 outlook. Total revenue growth is now expected to come in at 6% to 9%, up from the previous range of 4.5% to 7.5%. Rental revenue growth is projected at 7% to 10%, compared with prior guidance of 5% to 8%. Adjusted EBITDA is forecast at $4.92 billion to $5.12 billion, above the earlier estimate of $4.85 billion to $5.05 billion.
Net rental equipment capital expenditures were raised to $2.4 billion to $2.8 billion, up from a previously guided range of $2.05 billion to $2.45 billion, signaling continued investment in fleet expansion.
Sunbelt Rentals also announced a shift in its dividend structure, declaring a quarterly cash dividend of $0.30 per share. The new quarterly payout replaces the company’s prior semi-annual payment model. The dividend is payable October 2, 2026 to stockholders of record as of September 18, 2026.
During the quarter, the company completed a $1.2 billion senior notes offering, comprising $450 million of 4.950% notes due 2030 and $750 million of 5.650% notes due 2036.
As of July 31, 2026, Sunbelt Rentals reported net debt of $8.524 billion and a net leverage ratio of 1.8 times.
