United Rentals raises 2025 guidance on strong Q2 results

STAMFORD - United Rentals, Inc. (NYSE:URI), a prominent player in the Trading Companies & Distributors industry with a market capitalization of $52.2 billion, raised its full-year 2025 guidance for total revenue, adjusted EBITDA, net cash from operations and free cash flow following solid second-quarter results, the company announced Wednesday. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The world’s largest equipment rental company reported second quarter revenue of $3.94 billion, with rental revenue increasing 6.2% year-over-year to $3.42 billion. Net income reached $622 million, representing a margin of 15.8%, while adjusted EBITDA grew 2.3% to $1.81 billion. The company maintains strong profitability metrics, with a gross profit margin of 39.9% and return on equity of 30% over the last twelve months.

Fleet productivity, a metric measuring the combined impact of rental rates, time utilization and mix, increased 3.3% compared to the same period last year.

"We are pleased with our solid second-quarter results, which reflect a continuation of the momentum we reported last quarter," said Matthew Flannery, chief executive officer of United Rentals.

The company now expects total revenue between $15.8 billion and $16.1 billion for 2025, up from its previous outlook of $15.6 billion to $16.1 billion. Adjusted EBITDA is projected to reach $7.3 billion to $7.45 billion. InvestingPro subscribers can access 8 additional key insights about United Rentals’ financial health and growth prospects, along with detailed valuation metrics and peer comparison analysis.

United Rentals also increased its planned share repurchases for 2025 by $400 million to $1.9 billion, supported by expected additional free cash flow generation.

The specialty rentals segment showed particularly strong performance, with rental revenue increasing 14.0% year-over-year to $1.15 billion, while general rentals segment revenue grew 2.7% to $2.27 billion.

The company maintained its net leverage ratio at 1.8x as of June 30, 2025, and declared a quarterly dividend of $1.79 per share, reflecting its strong financial position with an Altman Z-Score of 3.95 and an overall "GOOD" financial health rating from InvestingPro.

This article is based on a press release statement from United Rentals, Inc.

In other recent news, United Rentals announced that it has entered into a Fifth Amended and Restated Credit Agreement with Bank of America and other financial institutions. This agreement establishes a senior secured asset-based loan facility totaling $4.5 billion, replacing the previous arrangement. The facility allows for borrowings in multiple currencies, including U.S. dollars, Canadian dollars, euros, and sterling, with $175 million allocated exclusively for borrowers in Australia and New Zealand. Additionally, United Rentals has launched Workspace Ready Solutions, offering customizable accessory packages for mobile and container offices at construction sites, ensuring these spaces are fully equipped upon delivery.

In analyst updates, KeyBanc Capital Markets upgraded United Rentals’ stock rating from Sector Weight to Overweight and set a price target of $865. This upgrade followed a presentation by the company’s management on its business strategies and growth potential. JPMorgan also increased its price target for United Rentals to $920, maintaining an Overweight rating. This adjustment was made after the analyst attended the company’s Specialty Field Trip, which highlighted the Specialty segment’s significant contribution to rental revenues.

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