United Rentals, Inc.
URI · NYSE
Next quarter
Expected to report Jan 27, 2027 — estimated from last year’s reporting date.
Consensus is $13.72 EPS for Dec 2026 across 7 estimates, ranging $12.73 to $14.95.
URI Sep 2026
- 12.44%
- +3.93%
- $13.83
- $15.55
- —
- $1.07B
Reported results
- $1.07B
- 191.57%
- $1.41B
- 131.93%
- $920.00M
- $14.77
Highlights
- Adjusted EPS was $15.55 versus consensus of $13.83, a 12.4% beat; GAAP diluted EPS was $14.77, up from $10.91 a year earlier.
- Total revenue reached a quarterly record $4.893 billion, up 15.7% year over year, led by rental revenue of $4.316 billion, up 17.8%.
- Rental growth combined 7.9% higher average fleet cost, 6.5% fleet productivity growth and a 4.9% contribution from ancillary and re-rent revenue.
- Net income rose 31.2% to a third-quarter record $920 million, with net margin up 220 basis points to 18.8%; adjusted EBITDA increased 19.8% to $2.331 billion and margin expanded 160 basis points to 47.6%.
- Specialty rentals grew 34.7% to $1.704 billion, while general rentals rose 8.8% to $2.612 billion; segment rental margins expanded 250 and 170 basis points, respectively.
- URI raised 2026 revenue guidance to $18.0–$18.2 billion from $17.5–$17.8 billion and adjusted EBITDA guidance to $8.3–$8.4 billion from $7.975–$8.125 billion.
- Year-to-date operating cash flow was $4.934 billion, up 25.4%; free cash flow was $1.421 billion, up 19.2%, after $4.339 billion of rental-equipment purchases.
- Year-to-date shareholder returns totaled $1.496 billion: $1.125 billion of repurchases and $371 million of dividends. Net leverage was 1.8x and liquidity $2.615 billion at quarter-end.
Analysis
United Rentals delivered a record third quarter, with adjusted EPS of $15.55 beating the supplied $13.83 consensus by 12.4%. GAAP diluted EPS was $14.77. Revenue of $4.893 billion increased 15.7% from $4.229 billion a year ago, while net income rose 31.2% to $920 million from $701 million. The growth was rental-led: equipment rental revenue climbed 17.8% to $4.316 billion, supported by fleet productivity and a larger fleet, and profitability improved as rental gross margins widened. Adjusted EBITDA reached $2.331 billion, up 19.8%, with margin expanding to 47.6% from 46.0%.
Specialty rentals were the standout growth engine, up 34.7%, while general rentals grew 8.8%; both segments also expanded margins. The company raised its full-year 2026 revenue and adjusted EBITDA ranges, signaling confidence in demand and large-project momentum. Cash generation increased year to date, though elevated fleet investment absorbed substantial capital: free cash flow was $1.421 billion after $4.339 billion of rental-equipment purchases. The supplied materials do not provide a comparable Q2 FY2026 result, so a reliable sequential-quarter comparison cannot be made. The quarter’s defining combination was stronger fleet productivity, broad-based rental growth and better margins, alongside increased investment and a higher full-year outlook.
Rental growth and productivity
Rental revenue rose 17.8% year over year to a quarterly record $4.316 billion. Average original equipment cost increased 7.9%, while fleet productivity—reflecting rates, utilization and mix—added 6.5%. Ancillary and re-rent revenue contributed another 4.9%; these lower-margin revenue streams supported growth but partly offset margin gains from operating efficiencies. For the first nine months, rental revenue was up 13.3%, with 6.9% fleet growth, 4.2% fleet productivity and a 3.7% contribution from ancillary and re-rent revenue.
Segment performance
- Specialty rentals: Revenue increased 34.7% to $1.704 billion. Rental gross profit rose 42.3% to $811 million and margin widened 250 basis points to 47.6%.
- General rentals: Revenue increased 8.8% to $2.612 billion. Rental gross profit rose 13.8% to $1.003 billion and margin expanded 170 basis points to 38.4%.
- Common drivers: Both segments benefited from efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery costs. Growth in lower-margin ancillary and re-rent revenue was a partial offset.
Record earnings and margins
Net income increased 31.2% to $920 million from $701 million in Q3 FY2025, lifting net margin by 220 basis points to 18.8%. Adjusted EBITDA rose 19.8% to $2.331 billion, with margin up 160 basis points to 47.6%; URI attributed the gain to stronger rental gross margin, lower SG&A as a share of revenue and a larger share of revenue from equipment rentals. GAAP diluted EPS was $14.77 versus $10.91 a year earlier. Adjusted EPS was $15.55, compared with $11.70 in the prior-year quarter and the supplied consensus of $13.83.
Raised 2026 outlook
- Revenue: New guidance is $18.0–$18.2 billion, raised from $17.5–$17.8 billion.
- Adjusted EBITDA: New guidance is $8.3–$8.4 billion, versus the prior $7.975–$8.125 billion range.
- Investment and cash flow: Net rental capital expenditures are now expected at $3.75–$4.05 billion after $5.2–$5.5 billion of gross purchases. Operating cash flow guidance is $6.25–$6.85 billion; free cash flow excluding restructuring payments remains $2.15–$2.45 billion.
Cash flow and capital allocation
For the first nine months of 2026, operating cash flow increased 25.4% to $4.934 billion and free cash flow, including restructuring payments, rose 19.2% to $1.421 billion. Rental-equipment purchases were $4.339 billion, compared with $3.576 billion a year earlier; gross rental capital expenditures reached $4.746 billion. URI returned $1.496 billion to shareholders year to date through $1.125 billion of repurchases and $371 million of dividends, and expects $1.5 billion of repurchases for full-year 2026. At September 30, net leverage was 1.8x, down from 1.9x at year-end 2025, and total liquidity was $2.615 billion.
