United Rentals, Inc.
URI · NYSE
Next quarter
Reports Oct 28, 2026.
Consensus is $13.68 EPS for Sep 2026 across 6 estimates, ranging $13.24 to $13.98.
URI Jun 2026
- 9.34%
- +10.11%
- $11.67
- $12.76
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Highlights
- Record quarter: Total revenue rose 11.8% year over year to $4.410 billion, rental revenue increased 12.7% to $3.849 billion, and adjusted EBITDA reached a record $2.056 billion.
- Earnings beat: Adjusted EPS was $12.76 versus consensus of $11.67, a 9.34% surprise; GAAP diluted EPS was $12.03 versus $9.59 a year ago.
- Profit growth: Net income increased 21.1% year over year to $753 million, although the result included a $37 million after-tax, or $0.58 per share, gain from selling part of the scaffolding business.
- Rental momentum: Average original equipment at cost increased 7.1%, while fleet productivity rose 3.4%; ancillary and re-rent revenue contributed another 3.7% to rental growth.
- Specialty-led growth: Specialty rental revenue grew 24.8% to $1.431 billion, while general rentals increased 6.6% to $2.418 billion.
- Mixed margins: Total equipment-rental gross margin expanded 30 basis points to 39.0%; general rentals improved 70 basis points to 35.8%, while specialty declined 140 basis points to 44.4% because of lower-margin ancillary and re-rent mix.
- Guidance raised: Full-year revenue guidance increased to $17.5 billion-$17.8 billion from $16.9 billion-$17.4 billion, and adjusted EBITDA guidance rose to $7.975 billion-$8.125 billion from $7.625 billion-$7.875 billion.
- Capital intensity and returns: Year-to-date operating cash flow was $3.305 billion and free cash flow was $1.149 billion after $2.720 billion of rental-equipment purchases; the company returned $998 million to shareholders and ended with 1.8x net leverage.
Analysis
United Rentals delivered a record second quarter, with adjusted EPS of $12.76 beating the $11.67 consensus by 9.34%. Total revenue increased 11.8% year over year to $4.410 billion, net income rose 21.1% to $753 million, and adjusted EBITDA increased 13.6% to $2.056 billion. Against the supplied prior-quarter figures, net income rose from $531 million in Q1 2026 and diluted EPS increased from $8.43 to $12.03. The comparison includes a $37 million after-tax gain from selling part of the scaffolding business, worth $0.58 per share; excluding that item, management said net income margin still improved 40 basis points year over year.
The print was defined by accelerating rental demand and a sharply stronger specialty business. Rental growth combined 7.1% fleet expansion with 3.4% productivity improvement, while specialty rentals grew 24.8%, more than offsetting 6.6% growth in general rentals. The trade-off was mix pressure: specialty rental gross margin fell 140 basis points to 44.4%, and adjusted EBITDA margin would have declined 40 basis points year over year excluding the business-sale gain. Management nonetheless raised full-year revenue and EBITDA guidance, citing large projects, customer backlogs and year-to-date momentum. Cash generation remained substantial, although free cash flow fell from $1.198 billion in the prior-year first half to $1.149 billion as rental capital spending increased.
Rental growth and productivity
The core rental business accelerated in the second quarter. Rental revenue rose 12.7% to $3.849 billion, with average OEC up 7.1%, fleet productivity up 3.4% and ancillary and re-rent revenue contributing 3.7% of growth. The result was stronger than the 10.8% rental growth recorded in the first half through June. Total revenue rose 11.8% to $4.410 billion, while used-equipment sales increased 4.1% to $330 million.
- General rentals: Revenue increased 6.6% to $2.418 billion, with rental gross profit up 8.7% to $865 million.
- Specialty rentals: Revenue increased 24.8% to $1.431 billion, with rental gross profit up 21.1% to $636 million.
- Fleet economics: The company realized a 52.9% OEC recovery rate on equipment sold, and used-equipment sales carried a 46.7% GAAP gross margin.
Margins and earnings quality
Profit growth outpaced revenue growth, but the headline margin benefit was partly helped by the scaffolding-business sale. Net income rose to $753 million from $622 million, and GAAP diluted EPS increased to $12.03 from $9.59. Adjusted EBITDA rose to $2.056 billion from $1.810 billion, lifting reported margin to 46.6% from 45.9%. Excluding the $49 million pretax gain, adjusted EBITDA margin declined 40 basis points year over year.
- General rentals margin: Rental gross margin expanded 70 basis points to 35.8%, helped by lower depreciation as a percentage of revenue.
- Specialty margin: Rental gross margin contracted 140 basis points to 44.4%, as growth in lower-margin ancillary and re-rent revenue outweighed lower labor and benefits costs as a percentage of revenue.
- Cost discipline: SG&A was $472 million, or 10.7% of revenue, unchanged from a year earlier; the quarter also included $6 million of restructuring charges.
Raised 2026 outlook
United Rentals raised its full-year revenue and adjusted EBITDA ranges for the second time in the supplied release, signaling confidence that demand from large projects and customer backlogs will persist. The company left its free-cash-flow outlook unchanged despite increasing the planned equipment investment envelope.
- Revenue: Guidance increased to $17.5 billion-$17.8 billion from $16.9 billion-$17.4 billion.
- Adjusted EBITDA: Guidance increased to $7.975 billion-$8.125 billion from $7.625 billion-$7.875 billion.
- Rental capital spending: Net rental capital expenditures are now expected at $3.4 billion-$3.8 billion, after gross purchases of $4.85 billion-$5.25 billion, versus the prior net range of $2.95 billion-$3.35 billion.
- Cash generation: Operating cash-flow guidance rose to $5.85 billion-$6.65 billion, while free cash flow excluding restructuring payments remained $2.15 billion-$2.45 billion.
Cash flow and fleet investment
The first-half cash profile shows United Rentals funding a larger fleet while preserving substantial cash generation. Operating cash flow increased 20.1% year over year to $3.305 billion, but free cash flow declined 4.1% to $1.149 billion as rental-equipment purchases rose to $2.720 billion from $2.121 billion. The prior-year period benefited from a $52 million H&E merger-termination benefit in operating cash flow and free cash flow.
- Fleet investment: Gross rental capital expenditures were $2.931 billion year to date, while rental-equipment purchases in the cash-flow statement were $2.720 billion.
- Working capital: Accounts receivable increased 11.4% from year-end to $2.797 billion, while accounts payable more than doubled to $1.610 billion, reflecting seasonal capital spending and business activity.
- Acquisitions and divestiture: The company spent $400 million on acquisitions and received $82 million from selling part of its scaffolding business.
Capital allocation and leverage
United Rentals continued to return capital while maintaining leverage at a manageable level for its stated framework. The company completed its prior $2.0 billion repurchase authorization in the first quarter and began using a new $5.0 billion program. It expects total 2026 repurchases of $1.5 billion.
- Shareholder returns: Year-to-date repurchases totaled $750 million and dividends paid totaled $248 million, for $998 million returned to shareholders.
- Dividend: The quarterly dividend was raised to $1.97 per share, payable August 26, 2026.
- Balance sheet: Total debt was $14.230 billion, net leverage was 1.8x versus 1.9x at December 31, 2025, and total liquidity was $2.999 billion, including $112 million of cash.
- Interest exposure: Variable-rate debt totaled approximately $4.1 billion; the filing estimates a one-percentage-point increase in rates would reduce annual after-tax earnings by approximately $30 million.
