United Rentals, Inc. (NYSE: URI), the world’s largest equipment rental company, has reported strong financial results for the first quarter of 2025, reinforcing its full-year guidance and initiating a new $1.5 billion share repurchase program. This robust performance underscores United Rentals’ strategic execution amid dynamic construction and industrial markets.
Total revenue reached \(3.719 billion, with rental revenue comprising \)3.145 billion, marking a 7.4% year-over-year increase.
Net income stood at $518 million, corresponding to a net margin of 13.9%, reflecting slight year-over-year contraction influenced by merger termination impacts and cost pressures.
Adjusted EBITDA hit a first-quarter record of $1.671 billion with a margin of 44.9%.
Fleet productivity improved by 3.1% year-over-year (1.9% on a pro forma basis), evidencing enhanced rental rates and utilization.
Free cash flow surged 24.5% year-over-year to \(1.082 billion, even amidst gross payments of \)661 million towards rental equipment.
United Rentals’ net leverage ratio improved modestly to 1.7x, supported by liquidity of $3.345 billion as of March 31, 2025.
The firm returned \(368 million to shareholders through \)250 million in share repurchases and $118 million in dividends during the quarter.
General Rentals segment recorded rental revenue growth of 1.4% to $2.099 billion, with a gross margin of 32.3%, indicating slight cost inflation impacts.
Specialty Rentals segment experienced robust rental revenue growth of 21.8% to $1.046 billion, driven partially by the Yak acquisition, though margin compression by 600 basis points to 43.1% reflects increased depreciation and cost variability.
On April 23, 2025, United Rentals announced a new \(1.5 billion share repurchase authorization, anticipated to be completed by Q1 2026. Following the completion of a previous \)1.5 billion program, this move emphasizes the company’s commitment to strong capital allocation and shareholder value enhancement.
The termination of the H&E Equipment Services acquisition in early 2025 resulted in a net benefit of \(39 million, including a \)64 million breakup fee partially offset by transaction costs. This contributed \(0.45 per diluted share to the quarter's net income and a \)52 million benefit to adjusted EBITDA and operating cash flow.
Relating these results to the company’s recent financials, 2025 expectations include: - Total revenue projected between \(15.6 billion and \)16.1 billion. - Adjusted EBITDA forecasted at \(7.2 billion to \)7.45 billion. - Net rental capital expenditures anticipated in the range of \(2.2 billion to \)2.5 billion. - Net cash from operating activities estimated between \(4.5 billion and \)5.1 billion. - Free cash flow from \(2 billion to \)2.2 billion, excluding merger and restructuring related payments.
This outlook underpins confidence in sustained profitable growth driven by resilient demand in construction and industrial sectors.
Recent earnings calls have highlighted themes central to United Rentals’ success, such as disciplined capital management, fleet productivity enhancement, and strategic acquisitions like Yak Access. They emphasized navigating inflationary pressures and cost variability with a focus on customer-centric operations—a strategy reflected in Q1 2025’s solid financial performance.
United Rentals’ Q1 2025 results demonstrate strong operational execution, balanced capital management, and a robust financial position amid industry challenges. The new share repurchase program further signals management’s confidence in the company’s strategic direction and value proposition.
Source: United Rentals 8-K Filing - April 23, 2025
United Rentals Financial Report
Construction Equipment Rental
Q1 2025 Earnings
Share Repurchase Program
Fleet Productivity