NEW YORK, March 13, 2026, 14:57 (EDT)
- Shares were up about 3% in Friday afternoon trading after closing down 1.9% on Thursday. 1
- Third-quarter revenue rose 2.7%, but net income fell and adjusted EBITDA margin narrowed. 2
- Management tightened full-year rental-revenue growth guidance to 2%-3% and started a new $1.5 billion buyback. 2
Sunbelt Rentals Holdings shares were up about 3% in afternoon trading on Friday, clawing back part of Thursday’s slide after the equipment-rental group lifted the midpoint of its full-year rental-revenue outlook and highlighted a fresh $1.5 billion share buyback. The stock was around $72 by 2:56 p.m. Eastern, versus a $69.84 close on Thursday. 1
The rebound matters because Sunbelt is only days into life as a New York-listed company after replacing Ashtead Group as the new U.S. parent and shifting its primary listing from London. Investors are using the first results filed under U.S. GAAP, the U.S. accounting standard, to judge whether demand from mega projects can offset softer local non-residential construction. 3
For the fiscal third quarter ended Jan. 31, revenue rose 2.7% to $2.637 billion and rental revenue increased 2.6% to $2.443 billion. Net income fell to $290 million, or 69 cents a share, from $325 million a year earlier, while adjusted earnings eased to 78 cents from 81 cents. 2
Adjusted EBITDA margin — the company’s measure of operating cash profit as a share of revenue — fell to 41.0% from 43.5%. Sunbelt said higher repair bills, fleet repositioning and a bigger mix of non-rental revenue hurt profitability. 2
Chief Executive Brendan Horgan said the quarter showed “ongoing strength in mega projects,” but added that “local non-residential construction continues to be in a moderate state.” He said the company was also gaining ground with large strategic customers. 2
Management tightened fiscal 2026 rental-revenue growth guidance to 2% to 3% from 0% to 4%, lifted gross capital spending guidance to $2.2 billion-$2.3 billion from $1.8 billion-$2.2 billion, and said it now expects about $2 billion of free cash flow, or cash left after capital spending. Sunbelt said its previous $1.5 billion buyback was completed on Feb. 24 and a new $1.5 billion program began on March 2. 2
Sunbelt has said it is the second-largest equipment-rental business in North America by rental revenue. That puts its update in focus for peers such as United Rentals, which describes itself as the largest rental company in the world, and Herc Holdings, another listed machinery-rental firm. 3
Analyst views are still guarded. Reuters market data showed a Hold consensus from three analysts as of March 11, and JPMorgan analyst Lush Mahendrarajah cut his target price to $74 from $78 on Friday while keeping a Neutral rating, according to market reports. 4
The risk is that margins, not sales alone, remain the harder fix. If local commercial demand stays subdued or repair and repositioning costs linger, the firmer sales outlook may do less for earnings than Friday’s bounce suggests. Sunbelt’s North America general tool margin dropped to 27.1% from 29.9% in the quarter, while specialty slipped to 30.2% from 31.5%. 2
Sunbelt now trades on both the NYSE and the London Stock Exchange under SUNB, and management is due to give investors a broader update on its Sunbelt 4.0 growth plan at an investor day on March 26. For shareholders, that is the next real test after the move to New York. 3
