United Rentals total revenue rises 7.2% in Q1
Rental revenue climbed 8.7% on higher rates, fleet productivity
United Rentals posted higher revenue in the first quarter as rental demand remained resilient across construction and industrial end markets.
Total revenue rose 7.2% year over year to $4 billion for the three months ended March 31, driven primarily by growth in rental activity, according to the company’s April 22 10-Q filed with the SEC. Rental revenue increased 8.7% YoY to $3.4 billion, supported by a 5.7% increase in fleet size and a 2.3% rise in fleet productivity, reflecting improved rates and utilization.
By the numbers
Stamford, Conn.-based United Rentals also reported the following Q1 results:
- Rental equipment sales fell 7.2% YoY to $350 million;
- New equipment sales increased 20% YoY to $84 million;
- Net income totaled $531 million, up 2.5% YoY; and
- Adjusted EBITDA increased 5.3% YoY to $1.8 billion.
Equipment rentals accounted for 86% of total revenue for the three months ended March 31, according to the 10-Q. United Rentals attributed rental growth to higher fleet investment and improved utilization, while sales of used equipment declined as more assets remained on rent.
Net income margin declined 60 basis points YoY to 13.3%, reflecting restructuring charges and operating expenses, despite overall earnings growth, according to the filing.
Looking ahead, the company expects steady demand from infrastructure, energy and large commercial projects, while monitoring potential headwinds tied to interest rates and economic uncertainty.
MARKET REACTION: Shares of United Rentals [NYSE: URI] were up 22.9% or $183.99 from market open to $986.78 as of market close today. It has a market capitalization of $50.5 billion.
The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston May 18-19. Learn more about the event and register here.
