NEW YORK, March 13, 2026, 14:57 (EDT)
- The stock gained roughly 3% in afternoon action Friday, rebounding after a 1.9% drop at Thursday’s close.
- Revenue climbed 2.7% in the third quarter, though net income slipped and the adjusted EBITDA margin tightened.
- Management narrowed its rental-revenue growth outlook for the full year to 2%-3% and rolled out a fresh $1.5 billion share repurchase plan.
Sunbelt Rentals Holdings stock added roughly 3% Friday afternoon, rebounding from Thursday’s drop after the equipment rental company bumped up its full-year rental-revenue forecast midpoint and announced plans for a new $1.5 billion share repurchase. Shares traded near $72 at 2:56 p.m. Eastern, compared with Thursday’s closing price of $69.84.
Sunbelt’s early bounce comes just days after it took over from Ashtead Group as the U.S. parent and moved its primary stock listing to New York. Investors now have a first look at results prepared under U.S. GAAP, scanning the numbers to see if big-ticket projects are enough to balance out a slowdown in smaller, local non-residential construction.
Revenue for the fiscal third quarter ended Jan. 31 came in at $2.637 billion, up 2.7%, with rental revenue climbing 2.6% to $2.443 billion. Net income dropped to $290 million, or 69 cents per share, compared with $325 million a year ago. Adjusted earnings slipped, too, landing at 78 cents, down from 81 cents.
Adjusted EBITDA margin dropped to 41.0%, down from 43.5%. Sunbelt blamed pricier repairs, shifting its fleet, and a greater slice of revenue coming from non-rental sources for the weaker profitability.
Chief Executive Brendan Horgan pointed to “ongoing strength in mega projects” during the quarter, but noted “local non-residential construction continues to be in a moderate state.” He also mentioned the company is making progress with large strategic customers. Sunbelt Rentals Holdings, Inc.
Management narrowed its rental revenue growth target for fiscal 2026 to a range of 2% to 3%, down from the earlier 0% to 4%. The company raised its gross capital spending forecast, now guiding for $2.2 billion to $2.3 billion instead of the previous $1.8 billion to $2.2 billion range. Free cash flow is pegged to come in around $2 billion—money left over after capital expenditures. Sunbelt also said it wrapped up its previous $1.5 billion buyback on Feb. 24, kicking off another $1.5 billion repurchase plan on March 2.
Sunbelt claims the No. 2 spot in North America’s equipment-rental market by rental revenue. That makes its latest update a key reference point for rivals like United Rentals—which bills itself as the world’s largest rental firm—and Herc Holdings, another publicly traded name in machinery rentals.
Analysts aren’t budging from a cautious stance. As of March 11, Reuters market data put the consensus at Hold among three analysts. JPMorgan’s Lush Mahendrarajah trimmed his price target on Friday—down to $74 from $78—but maintained a Neutral call, market reports showed.
Margins are the real sticking point here—not just sales. Even with a rosier sales forecast, earnings could struggle if commercial demand fails to recover or if repair and repositioning expenses stick around. Sunbelt’s North America general tool margin slid to 27.1% this quarter from 29.9%, and specialty margins also dipped, down to 30.2% from 31.5%.
Sunbelt, listed as SUNB on both the NYSE and London Stock Exchange, is set to outline more details on its Sunbelt 4.0 growth strategy when management meets with investors March 26. That investor day marks the next major checkpoint for shareholders following the shift to New York.
