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STAMFORD, Conn. - United Rentals, Inc. (NYSE: URI), a prominent player in the Trading Companies & Distributors industry, reported strong financial results for the first quarter of 2025, with total revenue reaching $3.719 billion and rental revenue hitting $3.145 billion. The company’s net income was $518 million, translating to a net income margin of 13.9%. GAAP diluted earnings per share stood at $7.91, with adjusted EPS at $8.86. According to InvestingPro data, the company trades at a P/E ratio of 15.2x, suggesting a premium valuation relative to its near-term earnings growth.
Adjusted EBITDA for the quarter rose to $1.671 billion, marking a margin of 44.9%. Year-over-year fleet productivity saw an increase of 3.1%, or 1.9% on a pro forma basis. The company’s net cash provided by operating activities was $1.425 billion, with free cash flow at $1.082 billion after accounting for rental equipment purchases of $661 million. InvestingPro analysis reveals a strong Financial Health Score of 2.81 (labeled as "GOOD"), with particularly robust profit metrics. Subscribers can access 10+ additional ProTips and comprehensive financial health indicators.
United Rentals also announced a new $1.5 billion share repurchase program, approved by its Board of Directors. The program is expected to be completed by the end of the first quarter of 2026, with repurchases commencing in the second quarter of 2025. This continues management’s aggressive share buyback strategy, though InvestingPro data shows the stock has experienced significant volatility, falling about 31% over the past six months.
CEO Matthew Flannery commented on the company’s solid start to the year, highlighting strong demand across construction and industrial markets. Flannery emphasized the team’s customer-first approach, which led to record first-quarter revenue and adjusted EBITDA. He reaffirmed the company’s full-year guidance and expressed confidence in another year of profitable growth.
The company’s net leverage ratio was 1.7x as of March 31, 2025, with total liquidity at $3.345 billion. United Rentals returned $368 million to shareholders through $250 million in share repurchases and $118 million in dividends. The Board of Directors also declared a quarterly dividend of $1.79 per share, payable on May 28, 2025, to stockholders of record on May 14, 2025.
The financial results include the impact of a terminated acquisition of H&E Equipment Services, resulting in a break-up fee of $64 million. The net merger termination benefit was $39 million, contributing to the quarter’s net income and adjusted EBITDA.
United Rentals reaffirmed its 2025 outlook, projecting total revenue of $15.6 billion to $16.1 billion and adjusted EBITDA of $7.2 billion to $7.45 billion. Net rental capital expenditures are expected to be between $2.2 billion and $2.5 billion after gross purchases of $3.65 billion to $3.95 billion. The company anticipates net cash provided by operating activities to be between $4.5 billion and $5.1 billion, with free cash flow excluding merger and restructuring-related payments ranging from $2.0 billion to $2.2 billion.
This article is based on a press release statement from United Rentals.
In other recent news, United Rentals has been the focus of multiple analyst updates and corporate developments. Morgan Stanley upgraded United Rentals to an Overweight rating, citing strong pricing power and limited tariff exposure, despite lowering the price target to $702. Bernstein also upgraded United Rentals from Underperform to Market Perform, recognizing the significant growth potential in its Specialty Rental segment, though they reduced the price target to $666. Meanwhile, BofA Securities maintained a Buy rating on United Rentals but adjusted the price target to $750, reflecting a shift in valuation expectations due to perceived construction slowdowns.
In a separate development, United Rentals terminated its merger agreement with H&E Equipment Services. The mutual decision was accompanied by a termination fee of over $63 million, as outlined in an SEC filing. This decision also led to the termination of related financial commitments from institutions like Morgan Stanley and Wells Fargo. Additionally, Gildan Activewear filed key governance documents with the SEC, including its 2024 Annual Report, which provides a detailed overview of the company’s financial performance and governance practices. These documents are part of Gildan’s preparation for its upcoming annual meeting, where shareholders will make important decisions regarding the company’s future.
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