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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 driven by strong Q4 2025 earnings, despite missing estimates, and a positive outlook for 2026. The company's record revenue of $4.2 billion, up 2.8% year-over-year, and rental revenue of $3.6 billion, up 4.6%, are notable achievements. A $5 billion share buyback program, approved by the Board of Directors, is expected to enhance shareholder value. Additionally, a 10% dividend hike signals confidence in the company's growth prospects. Institutional investors, such as AGF Management Ltd., have also shown increased interest, with a 167.9% stake increase.

1.c. Company Highlights

2. United Rentals' Q4 2025 Earnings: A Strong Performance

United Rentals reported a robust fourth quarter, with total revenue growing 2.8% year-over-year to $4.2 billion, driven by a 4.6% increase in rental revenue to $3.6 billion, a record for the quarter. Adjusted EBITDA came in at $1.9 billion, resulting in a margin of 45.2%, while adjusted EPS was $11.09, slightly below estimates of $11.79. The company's strong financial performance was driven by growth across both its general rental and specialty businesses.

Publication Date: Feb -02

📋 Highlights
  • Revenue & Rental Growth:: Total revenue grew 2.8% YoY to $4.2B, with rental revenue hitting $3.6B (4.6% increase), a Q4 record.
  • Adjusted EBITDA & EPS:: Adjusted EBITDA reached $1.9B (45.2% margin), and adjusted EPS was $11.09.
  • Used Equipment Sales:: Q4 OEC sales of $769M (50% recovery rate); full-year sales of $2.73B, with 2026 guidance at $1.45B.
  • 2026 Guidance:: Total revenue of $16.8B–$17.3B (5.9% growth at midpoint), adjusted EBITDA of $7.575B–$7.825B, and free cash flow of $2.15B–$2.45B.

Business Segment Performance

The specialty business exhibited healthy and broad-based growth, with every vertical up in the quarter. The company's Matting business was affected by a pushout of a large pipeline project, but on a pro forma basis, it was up 30% in 2025. As Matt Flannery noted, "We're ahead of our goal to double the business within 5 years, and we're optimistic about the outlook for Matting."

Guidance and Outlook

United Rentals' 2026 guidance implies total revenue growth ex used of over 6%, supported by customer sentiment indicators, solid backlogs, and feedback from field teams. The company's guidance includes total revenue of $16.8 billion to $17.3 billion, implying full year growth of 5.9% at midpoint. Adjusted EBITDA is expected to be between $7.575 billion and $7.825 billion, with flat margins at midpoint year-over-year.

Valuation and Capital Allocation

With a P/E Ratio of 19.83 and an EV/EBITDA of 9.97, the market appears to be pricing in a reasonable growth trajectory for United Rentals. The company's return on invested capital of 11.7% remains comfortably above its weighted average cost of capital. United Rentals plans to repurchase $1.5 billion of shares in 2026 and increase its quarterly dividend by 10%, supported by a new $5 billion share repurchase program.

Cost Actions and Margin Progression

The company is focused on mitigating repositioning costs and taking hard cost actions to help protect its margins. As Matthew Flannery noted, "These actions are embedded within the guidance and will help protect our margins." The margin progression is expected to be more material in the back half of the year as the mitigation and repositioning costs take effect.

3. NewsRoom

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United Rentals, Inc. (NYSE:URI) Given Consensus Rating of “Moderate Buy” by Analysts

Feb -19

Source: defenseworld.net

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United Rentals Named One of America's Best-Managed Companies

Feb -17

Source: businesswire.com

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50% In Just 5 Stocks: Why I'm Willing To Invest Big In High-Quality

Feb -13

Source: seekingalpha.com

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Caprock Group LLC Makes New $5.57 Million Investment in United Rentals, Inc. $URI

Feb -12

Source: defenseworld.net

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Market Today: Jobs Beat Sways Stocks; MCD, WBD in Focus

Feb -11

Source: gurufocus.com

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First Look: Jobs Data Looms; WBD-NFLX Fight, Moderna Setback

Feb -11

Source: gurufocus.com

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United Rentals to Present at the Citi 2026 Global Industrial Tech and Mobility Conference

Feb -10

Source: businesswire.com

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Edgemoor Investment Advisors Inc. Has $67.68 Million Position in United Rentals, Inc. $URI

Feb -10

Source: defenseworld.net

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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United Rentals

A-Score: 5.1/10

Value: 4.4

Growth: 7.9

Quality: 6.2

Yield: 1.0

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Volatility: 6.3

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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

909.11$

Current Price

909.11$

Potential

-0.00%

Expected Cash-Flows