stockrowWhat it does
Sunbelt Rentals Holdings rents construction, industrial and general-purpose equipment to businesses, public bodies and individuals. Customers can rent a single item for a job or arrange a longer-term solution involving equipment, technical expertise and engineered design. The company operates under the Sunbelt Rentals name.
Its general equipment includes mobile elevating work platforms, skid steers, forklifts, excavators, lighting equipment and small tools. Its Specialty businesses provide equipment and services for needs such as temporary power and climate control, scaffolding, pumping, trench safety, flooring, filming, ground protection and temporary structures. Specialty equipment can require technical knowledge to operate and maintain; the company has in-house experts in each specialty line.
Customers use the equipment for construction, plant maintenance, repairs, facility management, events and emergency response. They range from multinational businesses and local contractors to people undertaking their own projects. Sunbelt also sells used rental equipment, new equipment, merchandise and consumables, and provides services that support rental customers.
The company operates through a network of stores in North America and the United Kingdom. Its North American operations are managed as General Tool and Specialty businesses, while its United Kingdom business offers both types of equipment. Brendan Horgan is chief executive officer. The company had 1,611 stores as of April 30, 2026.
How it makes money
Revenue for the fiscal year ended April 30, 2026 was $11,154 million; operating income was $2,181 million.
Sunbelt earns most of its revenue by renting equipment. Equipment rentals revenue was $8.3 billion in FY2026. Rental charges are recognized over the life of a contract, so a contract that runs across reporting periods contributes revenue in each period. Rental-related charges can also include fees for a loss damage waiver, which limits a customer’s financial loss if equipment is damaged or lost. The company also rents some equipment from third parties and re-rents it to customers.
Customers can pay for delivery and collection. Sunbelt recognizes those charges when it delivers or collects the equipment. It also sells used equipment from its rental fleet and sells new equipment, parts and supplies. The timing and amount of used-equipment sales can change with market conditions and the company’s fleet decisions.
The company reports three operating segments. North America General Tool rents general construction and industrial equipment; North America Specialty focuses on equipment with lower rental penetration, often for non-construction markets; and the United Kingdom segment offers both General Tool and Specialty products and services. In FY2026, General Tool revenue was $6.5 billion, Specialty revenue was $3.7 billion and United Kingdom segment revenue was $932.0 million.
Sunbelt uses dynamic pricing, and its sales staff can see fleet availability and pricing in real time. It also cross-sells General Tool and Specialty products to customers working across different stages of a project. The company says rental activity includes many relatively small transactions, alongside larger customers that use multiple services.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Equipment rentals | $8.3 billion | 71.3% | 3.14% |
| Delivery and pick-up | $875.0 million | 7.51% | 1.51% |
| Other | $800.0 million | 6.87% | 9.44% |
| Sales of rental equipment | $451.0 million | 3.87% | −3.43% |
| Sales of rental equipment | $451.0 million | 3.87% | −3.43% |
| Sales of new equipment, merchandise and consumables | $383.0 million | 3.29% | 11.3% |
| Sales of new equipment, merchandise and consumables | $383.0 million | 3.29% | 11.3% |
Customers and how it sells
Sunbelt serves construction and industrial customers, service and repair businesses, facility managers, emergency response organizations, event organizers and government entities. Construction customers rent equipment for new buildings, repairs and renovations. Industrial customers use it for routine plant maintenance and special projects. The company also serves individual do-it-yourselfers.
In the fiscal year ended April 30, 2026, Sunbelt served approximately 800,000 customers in the United States. Its top ten customers accounted for less than 10% of total revenue, and no single customer accounted for more than 1% of total revenues. Customers can rent from one business line or across several, and can use the company’s mobile apps and websites to manage accounts and track deliveries.
In North America, Sunbelt groups General Tool and Specialty stores in local markets. As of April 30, 2026, it operated 1,428 North American stores across all 50 U.S. states and eight Canadian provinces, including one store in the Bahamas. Its U.K. operation had 183 stores, including three in Ireland, Germany and the Netherlands. The company is moving its U.K. operation toward a model combining larger regional locations with smaller local ones.
In FY2026, the United States generated $9.5 billion of revenue, the United Kingdom $932.0 million and Canada $744.0 million.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $9.5 billion | 85.0% | 2.98% |
| United Kingdom | $932.0 million | 8.36% | 2.76% |
| Canada | $744.0 million | 6.67% | 9.41% |
Suppliers and costs
Sunbelt buys equipment from manufacturers and generally carries equipment from one or two suppliers in each product range, while limiting the number of models. It shares anticipated equipment needs with suppliers so they can plan production. The company believes it has sufficient alternative sources for the equipment it purchases in each product category and geography.
Its five largest North American equipment suppliers by original purchase cost were Avtron Power Solutions, Bobcat, JCB, JLG and MEC. Together they accounted for 42% of North American rental equipment capital expenditure in the fiscal year ended April 30, 2026. The five largest U.K. suppliers were Dingli Machinery, Energy Solutions U.K., Greenshields JCB, LCA and Press Metal; they accounted for 28% of U.K. rental equipment capital expenditure in the same year.
Rental equipment capital expenditure was $2,023 million in the fiscal year ended April 30, 2026. Staff costs were the company’s largest individual cost, at $2,616 million. Rental costs also include delivery and fuel, repairs, insurance, store rent and utilities. The company depreciates rental equipment over its estimated useful life. Maintenance and repair costs were $644 million in the fiscal year ended April 30, 2026, and most maintenance work is performed locally by Sunbelt technicians.
- Revenue$11.2B
- Cost of revenue−$6.9B
- Selling, general and administrative−$1.7B
- Other operating costs−$458.0M
- Operating income$2.2B
Competitive position
The equipment rental industry is fragmented and competitive in both North America and the United Kingdom. Sunbelt competes with large companies, regional businesses, independent operators and equipment vendors and dealers. Its largest national competitors in North America include United Rentals, Herc Rentals and EquipmentShare. In the United Kingdom, its largest competitors include Speedy Hire, HSS ProService and Vp.
Sunbelt believes it is the second-largest equipment rental business in North America and the largest in the United Kingdom by rental revenue. Its North American stores are grouped in clusters that combine General Tool and Specialty locations. The company says this lets it offer a range of equipment within a market, share spare parts and transfer fleet between locations. Its Specialty businesses add products and technical services to the general equipment it rents.
Our reading: The store network and mix of equipment provide a meaningful local service advantage, though the company faces competitors ranging from national operators to small independents.
Sunbelt says its purchasing volume helps it negotiate equipment pricing and warranties. Standardizing its fleet also allows bulk purchasing and reduces staff training requirements for maintenance. Its sales staff have real-time access to availability and pricing, and customers can use digital tools to manage accounts.
Our reading: Purchasing scale and fleet standardization can support costs, while the specialty range and service tools can help Sunbelt compete for customers needing several types of equipment; the evidence does not establish that these advantages prevent rivals from competing on price.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| United Rentals | North American equipment rentals | High |
| Herc Rentals | North American equipment rentals | High |
| EquipmentShare | North American equipment rentals | High |
| Speedy Hire | U.K. equipment rentals | High |
| HSS ProService | U.K. equipment rentals | High |
| Vp | U.K. equipment rentals | High |
Growth opportunities
Sunbelt’s growth plan, Sunbelt 4.0, focuses on customers, growth, performance, sustainability and investment. The company aims to grow its General Tool and Specialty businesses by adding equipment to existing locations, opening stores and making acquisitions. It also seeks to sell more than one business line to existing customers.
In North America, Sunbelt aims to add 300 to 400 greenfield locations during Sunbelt 4.0; 99 had been added as of April 30, 2026. Greenfield locations are new stores opened through organic expansion rather than acquisition. During the fiscal year ended April 30, 2026, the company added 75 North American locations, including 51 greenfield openings and 24 through bolt-on acquisitions.
Sunbelt believes that a shift from equipment ownership to rental in North America presents an opportunity. It also sees opportunities to increase rental use in non-construction markets, including maintenance, events, emergency response and government. The company says construction projects are becoming larger and longer, with major projects such as data centers and factories becoming a more important part of its project portfolio.
The company is investing in technology and coordinating logistics and service at the market level. Its Market Logistics Operations program combines dispatchers, trucks and drivers across stores, while its Market Service Operations program coordinates technician capacity. Sunbelt aims to use these programs to improve delivery efficiency, equipment availability and service capacity. In the United Kingdom, it also sees opportunities to use underused capacity and make targeted fleet investments.
- $10.9BFY2024
- $10.8BFY2025
- $11.2BFY2026
Structural risks
- Cyclical and seasonal demand. Revenue and operating results depend significantly on commercial construction activity, which tends to weaken in winter and during economic downturns. Project delays and changes in demand or rental prices can also affect results.
- Competition and pricing. Competitive pressures could reduce Sunbelt’s market share or the prices it can charge. Equipment cost increases caused by pressures on suppliers may not be fully passed on to customers.
- Fleet investment and maintenance. Equipment purchases and disposals affect results and cash flows. Maintenance costs and the risk of equipment being out of service typically increase as the fleet ages; a larger fleet also raises depreciation costs.
- Supply and operating costs. Supply-chain disruptions could restrict equipment availability or worsen purchasing terms. Inflation, tariffs, fuel costs, labor shortages and rising employee costs can also affect operations.
- Acquisitions and integration. Acquired businesses may have unknown liabilities, and Sunbelt may have difficulty integrating their operations, technology and personnel or realizing expected benefits. New locations also require management attention and investment.
- Regulation and financing. Environmental and safety requirements can lead to compliance or remediation costs, fines and penalties. Increases in interest rates or debt can raise interest expense and debt-service obligations.
Bottom line
Our reading
Our reading: Sunbelt is a capital-intensive rental business built around a broad fleet, local store clusters and customers with varied equipment needs. Its network and specialty services support its competitive position, but construction cycles, pricing pressure and the continuing costs of equipment, staff and maintenance can affect results. Expansion through new stores and acquisitions offers a route to growth while adding execution and integration demands.