Sunbelt Rentals Holdings Inc (SUNB) experienced a sharp pre-market decline of 5.05% on Tuesday, following the release of its fiscal fourth quarter and full-year 2026 results.

The equipment rental company reported a significant drop in profitability, with fourth-quarter net income falling 31.3% year-over-year to $226 million. For the full fiscal year, net income declined 14.7% to $1.33 billion. While total revenue for the quarter rose 8.9% to $2.75 billion, operating income fell 20.5% to $410 million, and adjusted EBITDA edged down 1.3% to $1.07 billion with margins narrowing.

The company also provided its fiscal 2027 outlook, calling for revenue growth of 4.5% to 7.5% and adjusted EBITDA of $4.85 billion to $5.05 billion. Investors appeared to focus on the profit declines and margin compression, driving the stock lower in pre-market trading.