Sunbelt Rentals Posts $1.10B Net Income in Nine-Month Period FY2026
The equipment rental company reported net income of $1.10 billion for the nine months ending January 31, down 10% from $1.22 billion in the prior-year period, as operating income declined 11%.
Sunbelt Rentals Holdings, Inc., an international equipment rental company, reported net income of $1.10 billion for the nine months ending January 31, 2026, down from $1.22 billion in the same period a year earlier. The company posted total revenue of $8.40 billion, up 1.7% from $8.26 billion in the prior-year period. Read more earnings reports.
Operating income for the nine-month period fell 11% to $1.77 billion from $1.98 billion. The decline came as operating expenses rose faster than revenue, with cost of revenue climbing to $5.09 billion from $4.88 billion.
Q3 Performance
For the three months ending January 31, 2026, the company reported net income of $290 million, down 11% from $325 million in the same quarter last year. Revenue for the quarter reached $2.64 billion, up 2.7% from $2.57 billion.
Gross profit for the quarter was $984 million, down slightly from $990 million in the prior-year quarter, while operating income declined to $492 million from $532 million.
Balance Sheet and Cash Flow
Total assets stood at $22.31 billion as of January 31, 2026, up from $21.97 billion at the end of the prior fiscal year ending April 30, 2025. Property, plant and equipment remained the largest asset category at $11.26 billion.
The company carried $7.10 billion in long-term debt as of January 31, down from $7.50 billion at the prior fiscal year-end. Total liabilities increased to $14.70 billion from $14.17 billion, while stockholders' equity declined to $7.62 billion from $7.80 billion.
Cash from operations for the nine-month period totaled $2.83 billion, down slightly from $2.86 billion in the prior-year period. Cash used in investing activities was $1.54 billion, compared to $2.14 billion a year earlier. The company used $1.28 billion in financing activities, up from $708 million.
Financial Summary
| Metric | Nine Months FY2026 | Nine Months FY2025 | Change |
|---|---|---|---|
| Total Revenue | $8.40 billion | $8.26 billion | +1.7% |
| Operating Income | $1.77 billion | $1.98 billion | -10.7% |
| Net Income | $1.10 billion | $1.22 billion | -10.2% |
| Diluted EPS | $2.59 | $2.79 | -7.2% |
Diluted earnings per share for the nine-month period came in at $2.59, down from $2.79 in the prior-year period. The company had 423.5 million weighted average diluted shares outstanding, compared to 437.9 million a year earlier.
Labor and related expenses totaled $1.72 billion for the nine-month period, up from $1.63 billion, while selling, general and administrative expenses rose to $1.20 billion from $1.08 billion.