Sunbelt spent nearly $1.70 on fleet purchases and acquisitions for every $1 its operations generated in cash during the three months ended July 31. That is the tangible version of the reported figures.
Revenue rose 18.1% to $3.1 billion, while operating income climbed 40.4% to $691 million. Net income rose 51% to $438 million, and operating margin widened to 22.2% from 18.7%.
The cash statement puts a different weight on that growth. Operating cash flow was $840 million, roughly flat with $868 million in the comparable period, while investing outflows reached $1.438 billion. Sunbelt paid $759 million for rental equipment and $667 million for acquisitions, versus $394 million and $20 million a year earlier.
Management attributes the stronger operating result partly to fleet size and life-cycle inflation. The company said:
"The increase was primarily due to a larger fleet size and the continued impact of life cycle inflation on our fleet."
Sunbelt Rentals Holdings, 10-Q, Sept. 9, 2026
That is a compact explanation for why gross profit grew 26.9%, faster than revenue. A larger fleet and life-cycle inflation on the fleet were cited as drivers of the increase, while gross margin rose to 40.1% from 37.3%.
The business also added sales without relying entirely on acquisitions. Sunbelt said:
"In the three months ended July 31, 2026, equipment rentals revenue attributable to same-store and greenfield sites increased by 19% compared to the three months ended July 31, 2025, while equipment rentals revenue attributable to bolt-on acquisitions since May 1, 2025 contributed a further 6% of equipment rentals revenue growth over the same period."
Sunbelt Rentals Holdings, 10-Q, Sept. 9, 2026
The split matters. Existing and newly opened locations supplied most of the equipment-rental growth, but acquisitions were still a meaningful part of the increase. The latest period therefore shows both operating momentum and a larger capital bill attached to it.
Working capital added another wrinkle. Accounts receivable rose 14.6% to $1.9 billion, and inventory increased 20.8% to $192 million. Sunbelt said the modest year-over-year decline in operating cash flow was primarily due to working-capital movements, including higher receivables and lower accounts payable, partly offset by improved operating income.
Debt helped bridge the spending gap. Financing activities provided $601 million, including $984 million of net debt proceeds, compared with $444 million of financing outflows in the comparable period. Cash ended at just $32 million, down from $39 million.
The company’s annual results show a smaller backdrop for the latest acceleration: revenue was $2.5 billion for the year ended April 30, up 4.4%. The three-month figures are running at a much faster pace, but they also carry a much heavier equipment and acquisition spend.
At the latest close, SUNB was $69.33, up 1.0% on Sept. 8. The unresolved question in Sunbelt’s next report is how much of the current revenue and margin expansion is still accompanied by the same combination of fleet investment, acquisitions, working-capital use, and debt funding.
Sunbelt’s latest report leaves growth strong and operating cash nearly flat against a much larger investment bill.