What guidance did United Rentals's management provide for the next earnings period?

What is the revenue and EPS growth rate for United Rentals year over year?

What factors drove the changes in United Rentals's revenue and profit?

What is the market's earnings forecast for United Rentals next quarter?

What does United Rentals do and what are its main business segments?

Did United Rentals beat or miss consensus estimates last quarter?

What is United Rentals's gross profit margin?

What were the key takeaways from United Rentals’s earnings call?

- **Revenue Growth**: Q3 total revenue up 5.9% YoY to $4.2 billion, driven by large projects and Specialty business (+11% YoY).
- **Margin Challenges**: 80bps margin drag from delivery costs and ancillary pass-throughs, despite record EBITDA of $1.9 billion.
- **CapEx Expansion**: 2025 CapEx increased to $4.0–$4.2 billion to support 5% YoY revenue growth, with 2026 outlook for healthy growth.
- **Free Cash Flow**: Year-to-date free cash flow $1.2 billion, with $2.1–$2.3 billion guidance, enabling $2.4 billion shareholder returns.

**【CEO Summary Section】**
- **Record Q3 Performance**: Total revenue reached $4.2 billion (5.9% YoY growth), with rental revenue at $3.7 billion (5.8% YoY). Adjusted EBITDA hit $1.9 billion (46% margin), and adjusted EPS was $11.70.
- **Growth Drivers**: Both General Rental (+5.8%) and Specialty (+11%) businesses expanded, driven by large projects and cold starts (47 year-to-date). Used equipment sales reached $619 million (54% recovery rate).
- **2025 Guidance Update**: Total revenue guidance raised to $16.0–$16.2 billion (5% YoY growth midpoint), with CapEx increased to $4.0–$4.2 billion.
- **2026 Outlook**: CEO expects another year of healthy growth, citing tailwinds from infrastructure, power, and onshoring trends.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Rental revenue growth (+5.8%) outpaced fleet productivity (+2%), offset by fleet inflation (+1.5%). Ancillary revenue grew over 10%, contributing $69 million.
- **Margin Dynamics**: Adjusted EBITDA margin of 46.0% reflected 150bps compression due to delivery costs (+20% YoY) and ancillary pass-throughs. Free cash flow year-to-date: $1.2 billion (guidance $2.1–$2.3 billion).
- **Balance Sheet**: Net leverage at 1.86x, with $2.45 billion liquidity. Share buybacks and dividends returned $2.4 billion year-to-date.

**【Q&A Key Highlights】**
- **CapEx Allocation**: $1.5 billion Q3 CapEx accelerated to meet large project demand; 2025 CapEx raised by $300 million to $4.0–$4.2 billion.
- **Ancillary Margins**: Delivery costs (thin margin) and installation services drove 80bps margin drag, but ancillary growth supports customer retention.
- **2026 Strategy**: Focus on fleet productivity, cold starts (50+ planned), and M&A pipeline to fill specialty gaps. Free cash flow expected to remain robust despite higher CapEx.
- **Risk Management**: Inflation and fleet repositioning costs managed through third-party haulage, with no pull-forward of 2026 CapEx.

United Rentals, Inc. (URI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

URI

URI fundamentals

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