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1. Company Snapshot

1.a. Company Description

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company.It operates in two segments, General Rentals and Specialty.The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.


The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space.This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies.It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services.


The company sells used equipment through its sales force, brokers, website, directly to manufacturers, and at auctions.The company operates a network of 1,360 rental locations in the United States, Canada, Europe, Australia, and New Zealand.United Rentals, Inc.


was incorporated in 1997 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on URI

United Rentals' recent performance was negatively impacted by margin pressure and softer demand. The company's Q3 earnings missed expectations, with a quarterly earnings per share of $11.7, below the estimated $12.49. Free cash flow guidance was also trimmed. Despite a strong balance sheet and ongoing buybacks, which have reduced the number of outstanding shares, valuation concerns remain. The specialty rental segment showed resilience, but both general and specialty margins faced pressure from inflation and softer equipment pricing.

1.c. Company Highlights

2. United Rentals' Q3 2025 Earnings: A Strong Performance

United Rentals reported a record revenue of $4.2 billion, a 5.9% year-over-year increase, with rental revenue growing 5.8% to $3.7 billion in Q3 2025. The company's adjusted EBITDA reached a record $1.9 billion, with a margin of 46%, and adjusted EPS was $11.70, slightly below estimates of $12.29. The strong financial performance was driven by growth across both General Rental and Specialty businesses, with Specialty rental revenue up 11% year-over-year. As CFO, Ted Grace, highlighted, the company's third-quarter results were records across total revenue, rental revenue, and EBITDA.

Publication Date: Oct -24

📋 Highlights
  • Record Revenue Growth: United Rentals achieved $4.2 billion in revenue, a 5.9% increase YoY, with rental revenue reaching $3.7 billion (up 5.8%).
  • Adjusted EBITDA & Margins: EBITDA hit $1.9 billion with a 46% margin, while adjusted EPS reached $11.70, reflecting strong operational efficiency.
  • Capital Allocation & Shareholder Returns: The company plans $4–4.2 billion in CapEx for 2025 and expects to return $2.4 billion to shareholders, supported by $1.2 billion in free cash flow YTD.
  • Specialty & General Rental Growth: Specialty rental revenue surged 11% YoY, driven by large projects, while General Rental and core markets showed sustained demand.
  • 2025 Guidance & Momentum: Revenue growth guidance raised to 5–6%, with leverage below 1.9x enabling disciplined M&A and continued focus on 2026 expansion amid stable project visibility.

Guidance and Outlook

The company raised its 2025 guidance, expecting total revenue growth of 5-6%, with rental revenue growth driven by large projects and key verticals. United Rentals plans to spend over $4 billion on fleet this year, with a focus on supporting customer demand. The updated guidance reflects stronger-than-expected demand, with an increased CapEx guidance of $4-4.2 billion. The company expects to maintain its momentum heading into 2026, with a focus on execution and delivering results.

Operational Highlights

The company's major projects have driven a higher win rate, leading to increased demand and a need for additional CapEx. Ancillary revenue, such as delivery and installation, has grown to 20% of rental revenue, but has lower margins. The fleet productivity number was 2% in Q3, driven by rate and time improvements, but mix was a challenge. Local markets are currently flat, but sentiment is improving with potential rate cuts.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 5.5%. With a current P/E Ratio of 23.38 and EV/EBITDA of 11.54, the market is pricing in a certain level of growth. The company's ROIC is 10.97%, indicating a decent return on invested capital. The Net Debt / EBITDA ratio is 2.27, which is relatively manageable. United Rentals is tracking well towards its 2028 goals, with a 7% annual compound growth rate, but achieving the implied margin and flow-through targets may be challenging.

Future Initiatives and Challenges

The company is addressing repositioning costs and fleet management through improved planning and partnerships with transportation providers. While there are no immediate plans for a large acquisition, the company maintains an active pipeline and will consider opportunities that meet its strategic, cultural, and financial criteria. Inflationary pressures, including tariffs and Section 232, may impact 2026 margins, but the company is managing costs and focused on profitable growth.

3. NewsRoom

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Choreo LLC Acquires 266 Shares of United Rentals, Inc. $URI

Nov -28

Source: defenseworld.net

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Advisors Asset Management Inc. Decreases Holdings in United Rentals, Inc. $URI

Nov -26

Source: defenseworld.net

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United Rentals Announces Redemption of 5½% Senior Notes due 2027

Nov -24

Source: businesswire.com

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United Rentals Announces Pricing of Private Offering of $1.5 Billion of 5.375% Senior Notes due 2033

Nov -24

Source: businesswire.com

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United Rentals Announces Proposed Private Offering of $1.5 Billion of Senior Notes Due 2033

Nov -24

Source: businesswire.com

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Banco Bilbao Vizcaya Argentaria S.A. Purchases 4,059 Shares of United Rentals, Inc. $URI

Nov -16

Source: defenseworld.net

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Financial Survey: Grafton Group (OTCMKTS:GROUF) versus United Rentals (NYSE:URI)

Nov -05

Source: defenseworld.net

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The Coiled Spring I'm Betting On - My Top Picks For America's Next Housing Boom

Oct -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.80%)

6. Segments

General Rentals

Expected Growth: 4.5%

As the construction industry continues to grow, the demand for general rentals will also rise, driving growth in this segment. Additionally, an increasing focus on sustainability is likely to lead to more rentals of equipment rather than purchases, further boosting growth.

Specialty

Expected Growth: 5.2%

The increasing complexity of construction projects is driving demand for specialty equipment, and the need for trench safety equipment is growing as construction projects become more sophisticated. These trends are expected to drive growth in the specialty segment.

7. Detailed Products

General Rental Equipment

United Rentals offers a wide range of general rental equipment, including aerial lifts, forklifts, generators, and more.

Specialty Rental Equipment

United Rentals provides specialty rental equipment, including trench safety, pump solutions, and power distribution equipment.

Trench Safety Equipment

United Rentals offers trench safety equipment, including trench boxes, shoring systems, and confined space equipment.

Power and HVAC Rental Equipment

United Rentals provides power and HVAC rental equipment, including generators, air conditioning units, and heating units.

Pump and Fluid Solutions

United Rentals offers pump and fluid solutions, including pumps, hoses, and filtration systems.

Tool and Equipment Rentals

United Rentals provides tool and equipment rentals, including hand tools, power tools, and equipment for specific trades.

Aerial Lift Rentals

United Rentals offers aerial lift rentals, including boom lifts, scissor lifts, and forklifts.

Fleet Management Services

United Rentals provides fleet management services, including equipment tracking, maintenance, and repair.

Used Equipment Sales

United Rentals sells used equipment, including aerial lifts, generators, and other construction equipment.

8. United Rentals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

United Rentals, Inc. has a low threat of substitutes due to the specialized equipment and services it provides to its customers. The company's equipment rental solutions are often tailored to specific customer needs, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

United Rentals, Inc. has a medium bargaining power of customers due to the presence of large and small customers. While large customers may have some bargaining power, the company's diverse customer base and wide range of equipment offerings mitigate this power.

Bargaining Power Of Suppliers

United Rentals, Inc. has a low bargaining power of suppliers due to its large scale of operations and diversified supplier base. The company's ability to negotiate prices and terms with suppliers reduces the bargaining power of suppliers.

Threat Of New Entrants

United Rentals, Inc. has a low threat of new entrants due to the high barriers to entry in the equipment rental industry. The company's established brand, large fleet of equipment, and extensive network of locations create significant barriers to entry for new competitors.

Intensity Of Rivalry

United Rentals, Inc. operates in a highly competitive industry with several established players. The company's rivalry with competitors such as Sunbelt Rentals and RSC Equipment Rental drives the intensity of rivalry in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.90%
Debt Cost 6.64%
Equity Weight 39.10%
Equity Cost 13.00%
WACC 9.13%
Leverage 155.74%

11. Quality Control: United Rentals, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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TransDigm Group

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Value: 3.0

Growth: 7.9

Quality: 6.7

Yield: 9.0

Momentum: 4.0

Volatility: 8.0

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Ryder System

A-Score: 6.3/10

Value: 7.5

Growth: 6.8

Quality: 3.1

Yield: 5.0

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PACCAR

A-Score: 6.0/10

Value: 3.7

Growth: 6.7

Quality: 6.1

Yield: 8.0

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Paychex

A-Score: 5.8/10

Value: 1.8

Growth: 5.8

Quality: 9.0

Yield: 6.0

Momentum: 3.0

Volatility: 9.3

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United Rentals

A-Score: 5.3/10

Value: 3.8

Growth: 8.0

Quality: 6.3

Yield: 1.0

Momentum: 6.5

Volatility: 6.3

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A-Score: 5.1/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

796.91$

Current Price

796.91$

Potential

-0.00%

Expected Cash-Flows