Sunbelt Rentals Q1 Revenue Rises 11% on Raised Guidance

Sunbelt Rentals reported record fiscal first-quarter 2027 results, sending its stock up 3% as management raised full-year guidance for revenue, rental growth, and adjusted EBITDA following strong specialty rental and mega-project demand.

"I am proud of the team’s efforts in driving strong execution across all aspects of the business which delivered record first quarter results," said Brendan Horgan, Chief Executive Officer, in a statement reported by Investing.com.

Financial Performance and Segment Growth

For the first quarter of fiscal 2027, Sunbelt Rentals posted adjusted earnings per share of $1.18 on total revenue of $3.12 billion. This represents an 11.2% increase compared to the same period in the prior fiscal year.

The revenue expansion was supported by activity across North American operations. The North America Specialty segment grew rental revenue by 25.3%, while the North America General Tool segment posted a 7.4% increase.

Acquisitions and Event Catalysts

External catalysts and strategic additions contributed to the quarterly performance. The acquisition of Reliant Asset Management in May 2026 added approximately 100 basis points to rental revenue growth during the quarter, according to data compiled by ChartMill. Additionally, events surrounding the FIFA World Cup contributed roughly 250 basis points to the top-line metric.

Margin dynamics reflected shifting revenue mixes during the period. Chief Financial Officer Alex Pease addressed the margin changes during the earnings call.

"We estimate that roughly three-quarters of the year-over-year margin change reflected higher relative growth in ancillary revenue, partially offset by rate improvement," said Alex Pease, Chief Financial Officer.

Updated Fiscal 2027 Guidance

Fueled by the first-quarter outperformance, executive management revised its full-year fiscal 2027 outlook upward. Total revenue growth is now projected at 6% to 9%, an increase from the previous range of 4.5% to 7.5%.

Rental revenue growth expectations were similarly adjusted to a range of 7% to 10%, up from the prior forecast of 5% to 8%. Adjusted EBITDA guidance was lifted to a range of $4.92 billion to $5.12 billion, marking an increase from the previous guidance band of $4.85 billion to $5.05 billion.