Fort Mill, S.C., March 12, 2026, 4:39 PM EDT
Sunbelt Rentals slipped on Thursday, with shares losing $1.42, or nearly 2%, to $69.80 by 4:04 p.m. UTC, after the equipment rental company reported a weaker third-quarter profit and slimmer margins—even as it narrowed its full-year rental revenue guidance. That’s according to Reuters market data.
This marks the first quarterly update since Ashtead Group made the leap to a New York primary listing on March 2, adopting U.S. GAAP in the process—the standard for companies trading in the U.S. That shift puts the stock in step with its reporting currency and business footprint: nearly all operating profit comes out of North America. Now, with the Sunbelt Rentals Holdings, Inc. nameplate, investors are zeroed in on whether big-project demand can carry the load, as local commercial construction stays weak and repair bills edge up.
For the quarter ending Jan. 31, revenue ticked up 2.7% to $2.637 billion. Net income, though, came in at $290 million, sliding from last year’s $325 million. Adjusted earnings per share landed at 78 cents—those figures strip out certain items. MT Newswires, referencing FactSet, reported both revenue and adjusted EPS fell just short of expectations at $2.65 billion and 81 cents.
Adjusted EBITDA dropped to $1.082 billion, down from $1.117 billion, with margins slipping to 41.0% compared to 43.5%. Sunbelt pointed to cost pressures—more repairs, extra fleet repositioning, and a heavier tilt toward add-on service revenue—plus less hurricane-driven business. Chief Executive Brendan Horgan described the environment as “mixed end markets,” though he noted positives like big project work, strategic wins with customers, and steady demand outside construction. Sunbelt Rentals Holdings, Inc.
Management bumped up the midpoint for expected growth and tightened the forecast range. Sunbelt now sees its fiscal 2026 rental revenue rising 2% to 3%, a narrower band than the prior 0% to 4%. Gross capital spending is getting a boost too, with guidance climbing to $2.2 billion–$2.3 billion from the earlier $1.8 billion–$2.2 billion. Free cash flow should come in around $2 billion; that’s what’s left after those capital outlays. The company also stuck with the new $1.5 billion share buyback, which kicked off March 2 following the completion of its previous program in February.
The tougher issue: can a narrower revenue target make up for lagging profits? This week, Goldman Sachs analyst Suhasini Varanasi said Sunbelt would have to show “an acceleration in top line and EPS trends” before she’d get more bullish on the shares. Weakness in local commercial construction has pulled Sunbelt behind United Rentals, its nearest rival, Varanasi noted. Streetinsider
The big worry? Revenue may not pick up fast enough to outpace spending. Sunbelt described local non-residential construction as just moderate, with repair and repositioning bills still running high—if that sticks around, the company’s stepped-up fleet spending could keep margins under pressure, even if demand for major projects doesn’t fade. Sunbelt also pointed to several bigger-picture risks: heightened competition, interest rates, tariffs, supply-chain snarls, and geopolitical shocks.
Earlier this month, Sunbelt shifted its main listing to New York, holding onto a secondary line in London. The shares there slipped 0.9% Thursday. Reuters has called the company—once Ashtead—the No. 2 U.S. equipment rental player behind United Rentals.
