SUNB NYSE Russell 1000 Earnings call
Sunbelt Rentals (SUNB) · Q1 2027 results and valuation
Share price: $83.32 · 2026-11-11
Results Q1 2027 vs Q2 2026 · previous quarter · published 9 Sep 2026 and 9 Dec 2025
Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
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No financial figures for this pair
Guidance raised
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Sunbelt Rentals raised gross capital expenditure guidance to between $2.75 billion and $3.15 billion and net rental capital expenditure guidance to between $2.4 billion and $2.8 billion for fleet investment.
Valuation
Is Sunbelt Rentals undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2026-04-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (the standard assumption), the model's fair value is $52.79 a share — the stock trades 58% above it. Today's price assumes 14.2% growth a year.
Current price
$83.32
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+14.2% for 10 yrs
Fair value / share
$52.79
Buy below
$39.59
Price vs fair value
Overvalued 58%
Price vs buy-below price
Overvalued 110%
Read between the lines
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Guidance ↑
The company raised its fiscal 2027 guidance for revenue, adjusted EBITDA, and CapEx.
Source quote
“And as a result of we are raising our fiscal '27 guidance for revenue, adjusted EBITDA and CapEx.”
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Guidance ↑
The company raised gross capital expenditure guidance to between $2.75 billion and $3.15 billion and net rental capital expenditure guidance to between $2.4 billion and $2.8 billion for fleet investment.
Source quote
“On fleet investment, we're raising gross capital expenditure guidance to between $2.75 billion to $3.15 billion and raising net rental capital expenditure guidance to between $2.4 billion and $2.8...”
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Figure
Adjusted EPS increased 20.4% to a first quarter record of $1.18 because of higher operating profit and the benefit of higher profit.
Source quote
“Finally, adjusted EPS increased 20.4% to a first quarter record of $1.18, driven by higher operating profit and the benefit...”
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Fading
Excess cash is returned to shareholders, but faster market growth means accelerating capital spending to capture opportunities and market share.
Source quote
“In all cases, we generate significant free cash flow in excess of our investments, which we return to shareholders in the form... When markets are growing more rapidly, we accelerate capital spending to capture opportunities and market share. You see this clearly in the fiscal years 2021 and 2025, and we have started this year strongly with $1.1 billion generated in the first half, a record and...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2027. Ring: Q2 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“With these increases to guidance, we continue to expect strong free cash flow generation throughout the year, while investment levels are increasing to support accelerating growth opportunities across the business.”
“Adjusted operating profit increased 14% with margins expanding to 24.4%, while adjusted EBITDA increased 9% at a margin of 42.2% compared with 43.2% last year.”
“Adjusted operating profit increased 24.3% with margins consistent with last year, supported by ancillary revenue growth of more than 40% with strong returns on capital.”
Topics
Most discussed now
- Adjusted operating profit increased 14% with margins expanding to 24.4%, while adjusted EBITDA increased 9% at a margin of 42.2%...
- The higher level of investment is supporting existing customer project wins, while Sunbelt Rentals is experiencing higher time utilization…
- Adjusted operating profit increased 24.3% with margins consistent with last year, supported by ancillary revenue growth of more than 40%...
- New One thing Sunbelt Rentals has been watching extraordinarily closely as it thinks about that local nonres market that it is talking about…
- Sunbelt Rentals will review its first quarter results for the period ended July 31, 2026, discuss its operating and financial...
Faded since Q2 2026
- Fading In line with the Q1 performance, the slight drop in margins primarily reflects the fact that top line growth is...
- Dropped Group total revenue and rental revenue both increased 1% in the quarter, reflecting the impact of the quiet hurricane season...
- Fading Two, Sunbelt Rentals is continuing to see positive leading indicators in its business activity levels and in its pipeline, coupled with…
- Fading After interest expense of $133 million, reflecting lower average debt levels, adjusted pretax profit was 4% lower than last year...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Results of operations · SEC 8-K