Core Viewpoint - Investors can achieve market-beating returns by focusing on less flashy companies like United Rentals, which has outperformed the S&P 500 in 2024 and is expected to continue its growth into 2025 [1][2]. Company Performance - United Rentals has delivered a 40% total return in 2024, significantly outperforming the S&P 500, and is well-positioned for further growth in 2025 [2]. - The company operates over 1,600 global branch locations, primarily in North America, serving a diverse customer base across construction, industrial, energy, and mining sectors [3]. - Equipment rental sales, which account for 85% of total revenue, increased by 7.4% in the first nine months of 2024, while diluted earnings per share rose nearly 12% [4]. Growth Drivers - The Bipartisan Infrastructure Law, providing $550 billion for infrastructure investments through 2026, is a significant tailwind for United Rentals [5]. - Continued GDP growth, projected at 2.8% in 2025 by the OECD, will encourage private investments, benefiting United Rentals [9]. - The company is also exposed to growth in sectors such as semiconductor manufacturing, data centers, electric vehicles, and renewable energy investments [10]. Financial Health - United Rentals generated nearly $10 billion in free cash flow over the last five years, focusing on organic growth and strategic investments [11]. - The company's price-to-earnings (P/E) ratio is slightly over 20, below its last cyclical peak of 27.4, indicating reasonable valuation and potential for further stock appreciation [12].

Core Viewpoint - United Rentals reported mixed third-quarter 2024 results, with earnings and revenues missing estimates but showing year-over-year improvement. The company has narrowed its guidance for key financial metrics while reaffirming its 2024 forecast mid-points [2][11]. Financial Performance - Adjusted EPS was $11.80, missing the Zacks Consensus Estimate of $12.49 by 5.5%, but increased 0.6% from the prior year [3]. - Total revenues reached $3.992 billion, slightly below the consensus mark of $3.994 billion, but grew 6% year over year [3]. - Equipment Rentals revenues increased by 7.4% year over year to $3.46 billion, with fleet productivity up 3.5% [4]. Segment Performance - General Rentals segment saw a 0.9% year-over-year growth in rental revenues to a record $2.327 billion, though rental gross margin contracted by 20 basis points to 37.6% [6]. - Specialty segment rental revenues improved by 23.9% year over year to a record $1.136 billion, with a gross margin contraction of 210 basis points to 50% [7]. Margins and EBITDA - Total equipment rentals' gross margin contracted by 30 basis points year over year to 41.6%. Adjusted EBITDA grew 2.9% year over year to $1.9 billion, but the adjusted EBITDA margin decreased by 140 basis points to 47.7% [8]. Balance Sheet and Cash Flow - As of September 30, 2024, cash and cash equivalents were $479 million, up from $363 million at the end of 2023. Total liquidity stood at $2.87 billion, while long-term debt increased to $11.9 billion [9]. - Cash from operating activities improved by 6.3% year over year to $3.5 billion, and free cash flow grew by 4.7% to $1.21 billion [10]. 2024 Guidance - Total revenues are now expected to be in the range of $15.1-$15.3 billion, reflecting an improvement from $14.332 billion reported in 2023 [11]. - Adjusted EBITDA is projected to be between $7.115 billion and $7.215 billion, an increase from $6.857 billion reported in 2023 [11]. - Net rental capital expenditure is now projected to be in the range of $2.05-$2.25 billion, following gross purchases of $3.55 billion [12]. Estimates and Outlook - Estimates for the stock have trended downward over the past month, indicating a potential shift in market sentiment [14]. - United Rentals holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return from the stock in the coming months [16].

Financial Data and Key Metrics - Total revenue grew by 6% YoY to nearly $4 billion, with rental revenue increasing by over 7% to $3.5 billion, both setting third-quarter records [5] - Fleet productivity increased by 3.5%, supported by capital efficiency and industry discipline [5] - Adjusted EBITDA reached a third-quarter record of $1.9 billion, with a margin of nearly 48% [5] - Adjusted EPS grew YoY to $11.80, another third-quarter record [5] - Year-to-date free cash flow exceeded $1.2 billion, on track to achieve a free cash flow margin in the mid-teens for the full year [7] - The company returned nearly $500 million to shareholders in Q3 via share buybacks and dividends, with a target to return nearly $2 billion for the full year [8] Business Line Performance - Specialty rental revenue grew 24% YoY, or 15% excluding the Yak acquisition [6] - General rental and specialty businesses both saw growth, with 15 cold starts added in Q3, bringing the year-to-date total to 57 [6] - Growth was observed in both construction (led by non-residential) and industrial end markets, particularly in manufacturing [6] - The used equipment market remained healthy, with a record amount of OEC sold in Q3, generating $321 million in proceeds [13] Market Performance - The company saw strength in verticals such as data centers, airports, healthcare, and battery manufacturing [6] - The used equipment market showed strong demand, with adjusted margins and recovery rates remaining high at 49.5% and 54%, respectively [13] - The company spent nearly $1.3 billion on capex in Q3 to replace and expand fleet to meet customer needs [7] Strategic Direction and Industry Competition - The company is focused on being the partner of choice for customers, emphasizing safety, productivity, and sustainability [4] - Investments in next-generation telematics and customer-supporting technologies, such as ProBox OnDemand, demonstrate a commitment to innovation [9] - The company is well-positioned for growth in 2025, with tailwinds from large, complex projects still in early stages [8] - The company continues to deepen customer relationships by providing equipment and solving challenges, leveraging competitive advantages and a flexible business model [10] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of profitable growth, with updated guidance reaffirming expectations [4] - The company is optimistic about 2025, expecting another year of growth based on current trends and customer sentiment [8] - Management highlighted the importance of maintaining discipline in pricing and capital allocation to drive long-term shareholder value [10] Other Important Information - The company's balance sheet remains strong, with net leverage of 1.8x and total liquidity of nearly $2.9 billion [16] - Updated guidance for 2024 includes narrowed ranges for total revenue ($15.1B-$15.3B), adjusted EBITDA ($7.115B-$7.215B), and capex ($3.55B-$3.75B) [17] Q&A Session Summary Question: Growth momentum into 2025 and contributions from specialty vs. general rental - Management expects growth in 2025 to be driven by a combination of fleet carryover, large project pipelines, and potential interest rate stabilization [20][21] - Specialty rental is expected to continue growing, supported by mega projects and infrastructure tailwinds [22] Question: M&A landscape and attractiveness of the mobile modular space - The company is pleased with the General Finance acquisition and is ahead of schedule in doubling the size of that business [24] - The company continues to evaluate M&A opportunities, focusing on strategic, cultural, and financial fit [25] Question: Pricing power in a deflationary environment - Management believes the company can continue to drive rate increases, even in a deflationary environment, due to the need to offset past inflation and maintain industry discipline [27] Question: Fleet age and mix - The fleet age is just over 50 months, the lowest since pre-COVID, with headroom for growth if needed [29] Question: Fleet productivity trends - Fleet productivity is on track to match 2023 levels, with time utilization back to pre-COVID levels [32] Question: Capex cadence for 2025 - Management expects a similar capex cadence in 2025, with a return to normalized supply chain conditions [37] Question: Local market demand and fleet optimization - The company is not experiencing significant costs or efforts in moving fleet geographically, thanks to a dense network and fungible assets [39] Question: Specialty growth drivers - Power remains a strong growth area within specialty, with growth across all segments [40] Question: IT investments and payback - The company is making investments in AI and advanced telematics, with expected ROI over time, though some projects are still in early stages [43][45] Question: Path to improved incremental margins in 2025 - Improved incremental margins in 2025 will depend on growth, technology investments, and the impact of cold starts [49] Question: Local account demand stabilization - Management is optimistic about local market demand stabilization, supported by customer confidence and potential interest rate cuts [51] Question: Hurricane impact on margins - The impact of hurricanes on Q4 margins is expected to be minimal, with potential effects more likely in 2025 [54][55] Question: Industrial end market trends - Manufacturing remains strong, while petrochemicals face headwinds, with potential for improvement in 2025 [58][59] Question: Ancillary and re-rent revenue growth - Ancillary and re-rent revenue growth is expected to continue, driven by specialty growth, though Yak's contribution will anniversary [60] Question: Sourcing and fleet management - The company is leveraging technology to improve fleet management and sourcing efficiency, with a focus on predictive analytics [63] Question: New equipment pricing and supply trends - The company is pleased with vendor efforts to stabilize supply chains, with pricing reflecting past inflation and steady demand [68] Question: Cold start strategy and specialty growth - The company continues to open cold starts based on product and geographic opportunities, with significant headroom in specialty growth [71][72] Question: M&A prioritization and specialty vs. general rental - M&A prioritization is based on customer value, with a focus on new product offerings and capacity expansion [77][78] Question: New sales trends - New sales growth in Q3 was driven by the Yak acquisition, with underlying growth around 15% [80]

United Rentals, Inc. (URI) witnessed a 2.8% dip in its shares during the after-hours trading yesterday, following the release of its third-quarter 2024 results. The company’s earnings per share (EPS) and revenues fell short of the Zacks Consensus Estimate. Nonetheless, both metrics registered improvement on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Matthew Flannery, CEO of United Rentals, expressed satisfaction with the company’s record third-quarter res ...

United Rentals (URI) reported $3.99 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 6%. EPS of $11.80 for the same period compares to $11.73 a year ago.The reported revenue represents a surprise of -0.05% over the Zacks Consensus Estimate of $3.99 billion. With the consensus EPS estimate being $12.49, the EPS surprise was -5.52%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

United Rentals (URI) came out with quarterly earnings of $11.80 per share, missing the Zacks Consensus Estimate of $12.49 per share. This compares to earnings of $11.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.52%. A quarter ago, it was expected that this equipment rental company would post earnings of $10.48 per share when it actually produced earnings of $10.70, delivering a surprise of 2.10%.Over the last four qua ...

Exhibit 99.1 United Rentals, Inc. 100 First Stamford Place, Suite 700 Stamford, CT 06902 Telephone: 203 622 3131 unitedrentals.com United Rentals Announces Record Third Quarter Results and Reaffirms Mid-Points of 2024 Guidance 2 3 1 3 4 5 1 STAMFORD, Conn. – October 23, 2024 – United Rentals, Inc. (NYSE: URI) today announced financial results for the third quarter of 2024 and reaffirmed, at mid-point, its 2024 outlook, while narrowing the outlook ranges for revenue, adjusted EBITDA , rental capital expendit ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Presents the unaudited condensed consolidated financial information for United Rentals, Inc. and its subsidiary [Item 1. Financial Statements](index=6&type=section&id=Item%201%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=United%20Rentals%2C%20Inc.%20Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and equity, as of September 30, 2024, and December 31, 2023 | Metric | Sep 30, 2024 ($ millions) | Dec 31, 2023 ($ millions) | Change ($ millions) | Change (%) | | :--------------------------------------- | :------------------------ | :------------------------ | :------------------ | :--------- | | Cash and cash equivalents | $479 | $363 | $116 | 31.96% | | Accounts receivable, net | $2,396 | $2,230 | $166 | 7.44% | | Total current assets | $3,321 | $2,933 | $388 | 13.23% | | Rental equipment, net | $15,241 | $14,001 | $1,240 | 8.86% | | Goodwill | $6,853 | $5,940 | $913 | 15.37% | | Total assets | $28,412 | $25,589 | $2,823 | 11.03% | | Short-term debt and current maturities | $1,510 | $1,465 | $45 | 3.07% | | Accounts payable | $1,216 | $905 | $311 | 34.36% | | Total current liabilities | $4,026 | $3,637 | $389 | 10.70% | | Long-term debt | $11,884 | $10,053 | $1,831 | 18.21% | | Total liabilities | $19,831 | $17,459 | $2,372 | 13.59% | - Goodwill increased by **$913 million** (**15.37%**) from **$5.940 billion** at December 31, 2023, to **$6.853 billion** at September 30, 2024, primarily due to the Yak acquisition[11](index=11&type=chunk)[141](index=141&type=chunk) [Condensed Consolidated Statements of Income](index=7&type=section&id=United%20Rentals%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Income) Presents the company's revenues, expenses, and net income for the three and nine months ended September 30, 2024 and 2023 | Metric | Three Months Ended Sep 30, 2024 ($) | Three Months Ended Sep 30, 2023 ($) | Nine Months Ended Sep 30, 2024 ($) | Nine Months Ended Sep 30, 2023 ($) | | :------------------------------------ | :---------------------------------- | :---------------------------------- | :--------------------------------- | :--------------------------------- | | Equipment rentals ($ millions) | $3,463 | $3,224 | $9,607 | $8,945 | | Total revenues ($ millions) | $3,992 | $3,765 | $11,250 | $10,604 | | Gross profit ($ millions) | $1,648 | $1,585 | $4,512 | $4,251 | | Operating income ($ millions) | $1,122 | $1,099 | $2,978 | $2,764 | | Net income ($ millions) | $708 | $703 | $1,886 | $1,745 | | Basic earnings per share (per share) | $10.73 | $10.30 | $28.33 | $25.37 | | Diluted earnings per share (per share) | $10.70 | $10.29 | $28.25 | $25.30 | - Total Revenues for Q3 2024 increased by **$227 million** (**6.0%**) year-over-year to **$3.992 billion**, and for YTD Sep 2024 increased by **$646 million** (**6.1%**) year-over-year to **$11.250 billion**[14](index=14&type=chunk) - Net Income for Q3 2024 increased by **$5 million** (**0.7%**) year-over-year to **$708 million**, and for YTD Sep 2024 increased by **$141 million** (**8.1%**) year-over-year to **$1.886 billion**[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=United%20Rentals%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details net income and other comprehensive income components for the three and nine months ended September 30, 2024 and 2023 | Metric | Three Months Ended Sep 30, 2024 ($ millions) | Three Months Ended Sep 30, 2023 ($ millions) | Nine Months Ended Sep 30, 2024 ($ millions) | Nine Months Ended Sep 30, 2023 ($ millions) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net income | $708 | $703 | $1,886 | $1,745 | | Foreign currency translation adjustments | $55 | $(27) | $(9) | $(3) | | Comprehensive income | $763 | $676 | $1,877 | $1,741 | - Comprehensive Income for Q3 2024 increased by **$87 million** (**12.9%**) year-over-year to **$763 million**, driven by positive foreign currency translation adjustments[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=United%20Rentals%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Outlines changes in stockholders' equity, including net income, dividends, and stock repurchases, for the nine months ended September 30, 2024 | Metric | Balance at Dec 31, 2023 ($) | Net Income (YTD Sep 2024) ($) | Dividends Declared (YTD Sep 2024) ($) | Repurchase of Common Stock (YTD Sep 2024) ($) | Balance at Sep 30, 2024 ($) | | :------------------------------------ | :-------------------------- | :---------------------------- | :------------------------------------ | :-------------------------------------------- | :-------------------------- | | Common Stock Amount (actual) | $1 | — | — | — | $1 | | Additional Paid-in Capital ($ millions) | $2,650 | $79 (stock comp) - $43 (tax withholding) | — | — | $2,686 | | Retained Earnings ($ millions) | $11,672 | $1,886 | $(327) | — | $13,231 | | Treasury Stock Amount ($ millions) | $(5,965) | — | — | $(1,135) | $(7,100) | | Accumulated Other Comprehensive Loss ($ millions) | $(228) | $(9) (FX adj) | — | — | $(237) | - Retained Earnings increased by **$1.559 billion** from **$11.672 billion** at December 31, 2023, to **$13.231 billion** at September 30, 2024[20](index=20&type=chunk) - Common stock repurchases totaled **$1.135 billion** for the nine months ended September 30, 2024[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=United%20Rentals%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2024 and 2023 | Metric | Nine Months Ended Sep 30, 2024 ($ millions) | Nine Months Ended Sep 30, 2023 ($ millions) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $3,498 | $3,290 | | Payments for purchases of rental equipment | $(3,178) | $(3,078) | | Purchases of other companies, net of cash acquired | $(1,342) | $(406) | | Net cash used in investing activities | $(3,633) | $(2,539) | | Proceeds from debt | $9,729 | $6,718 | | Payments of debt | $(7,964) | $(6,175) | | Common stock repurchased | $(1,168) | $(806) | | Dividends paid | $(326) | $(305) | | Net cash provided by (used in) financing activities | $254 | $(568) | | Net increase in cash and cash equivalents | $116 | $178 | | Cash and cash equivalents at end of period | $479 | $284 | - Net cash provided by operating activities increased by **$208 million** (**6.3%**) year-over-year to **$3.498 billion** for the nine months ended September 30, 2024[23](index=23&type=chunk) - Net cash used in investing activities increased significantly by **$1.094 billion** (**43.1%**) year-over-year to **$3.633 billion**, primarily due to a substantial increase in purchases of other companies[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures for the financial statements, covering organization, acquisitions, debt, and other significant items - United Rentals, Inc. (Holdings) conducts operations primarily through its wholly-owned subsidiary, United Rentals (North America), Inc. (URNA), renting equipment to diverse customers in construction, industrial, and government sectors across North America, Europe, Australia, and New Zealand[25](index=25&type=chunk)[26](index=26&type=chunk) - On March 15, 2024, the company acquired Yak Access, LLC, Yak Mat, LLC, and New South Access & Environmental Solutions, LLC (collectively, "Yak") for **$1.158 billion**, providing entry into the matting market and enhancing exposure to energy and power verticals[57](index=57&type=chunk)[58](index=58&type=chunk) - Total debt increased to **$13.394 billion** at September 30, 2024, from **$11.518 billion** at December 31, 2023, driven by the issuance of **$1.100 billion** of **6 1/8%** Senior Notes due 2034 and amendments to existing credit facilities[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses the company's financial performance, condition, and operational results, covering economic impacts, strategic initiatives, and key financial metrics [Global Economic Conditions](index=28&type=section&id=Global%20Economic%20Conditions) Examines the impact of global economic factors, such as inflation and interest rates, on the company's operations and financial performance - Operations are impacted by global economic conditions, including inflation, interest rate fluctuations, and supply chain constraints[95](index=95&type=chunk) - Interest rates on debt instruments have increased; new senior notes in March 2024 were issued at **6 1/8%** compared to **3 ¾%** in August 2021. The weighted average interest rate on variable debt was **6.5%** for YTD Sep 2024, up from **1.4%** for FY 2021[95](index=95&type=chunk) [Executive Overview](index=28&type=section&id=Executive%20Overview) Provides a high-level summary of United Rentals' business, strategic focus areas, and operational footprint as the world's largest equipment rental company - United Rentals is the world's largest equipment rental company with **1,666 rental locations**, primarily operating in the United States and Canada[97](index=97&type=chunk) - Equipment rentals represented **85%** of total revenues for the nine months ended September 30, 2024[97](index=97&type=chunk) - Strategic focus areas include superior customer service (e.g., Total Control® software), optimization of customer and fleet mix, Lean management techniques, expansion of specialty and services products (e.g., Yak acquisition), and strategic acquisitions[98](index=98&type=chunk)[100](index=100&type=chunk) [Financial Overview](index=29&type=section&id=Financial%20Overview) Presents key financial metrics, including net income, EPS, EBITDA, and revenue breakdown, for the periods ended September 30, 2024 and 2023 - In 2024, the company issued **$1.1 billion** in senior notes, amended its term loan facility to increase size and extend maturity, and amended its accounts receivable securitization facility to increase size and extend maturity, enhancing financial flexibility and liquidity[101](index=101&type=chunk) - Available liquidity as of September 30, 2024, was **$2.866 billion**[101](index=101&type=chunk) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income ($ millions) | $708 | $703 | $1,886 | $1,745 | | Diluted earnings per share (per share) | $10.70 | $10.29 | $28.25 | $25.30 | | EBITDA ($ millions) | $1,865 | $1,801 | $5,131 | $4,867 | | Adjusted EBITDA ($ millions) | $1,904 | $1,850 | $5,260 | $5,048 | | Net income margin (%) | 17.7% | 18.7% | 16.8% | 16.5% | | Adjusted EBITDA margin (%) | 47.7% | 49.1% | 46.8% | 47.6% | | Revenue Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Q3 Change (%) | YTD 2024 ($ millions) | YTD 2023 ($ millions) | YTD Change (%) | | :-------------------------- | :------------------- | :------------------- | :------------ | :-------------------- | :-------------------- | :------------- | | Equipment rentals | $3,463 | $3,224 | 7.4% | $9,607 | $8,945 | 7.4% | | Sales of rental equipment | $321 | $366 | (12.3)% | $1,069 | $1,136 | (5.9)% | | Sales of new equipment | $77 | $52 | 48.1% | $186 | $166 | 12.0% | | Contractor supplies sales | $38 | $39 | (2.6)% | $116 | $110 | 5.5% | | Service and other revenues | $93 | $84 | 10.7% | $272 | $247 | 10.1% | | **Total revenues** | **$3,992** | **$3,765** | **6.0%** | **$11,250** | **$10,604** | **6.1%** | | **Equipment rentals variance components:** | | | | | | | | Year-over-year change in average OEC | | | 3.8% | | | 3.3% | | Assumed year-over-year inflation impact | | | (1.5)% | | | (1.5)% | | Fleet productivity | | | 3.5% | | | 4.1% | | Contribution from ancillary and re-rent revenue | | | 1.6% | | | 1.5% | | **Total change in equipment rentals** | | | **7.4%** | | | **7.4%** | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Analyzes the company's revenues, segment performance, gross margins, and operating expenses for the periods ended September 30, 2024 and 2023 - For Q3 2024, General Rentals equipment rentals increased **0.9%** year-over-year, while Specialty equipment rentals increased **23.9%** (**14.8%** excluding the Yak acquisition)[126](index=126&type=chunk)[127](index=127&type=chunk) - For YTD Sep 2024, General Rentals equipment rentals increased **1.4%** year-over-year, and Specialty equipment rentals increased **23.4%** (**16.6%** excluding the Yak acquisition)[128](index=128&type=chunk) - Sales of new equipment increased **48.1%** for Q3 2024 and **12.0%** for YTD Sep 2024, primarily due to the Yak acquisition[129](index=129&type=chunk) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total gross margin (%) | 41.3% | 42.1% | 40.1% | 40.1% | | Equipment rentals gross margin (%) | 41.6% | 41.9% | 39.9% | 39.4% | | Sales of rental equipment gross margin (%) | 45.2% | 49.5% | 47.2% | 49.9% | | SG&A expense as a percentage of revenue (%) | 10.4% | 9.9% | 10.7% | 10.7% | | Restructuring charge ($ millions) | $1 | $5 | $3 | $24 | | Interest expense, net ($ millions) | $178 | $163 | $511 | $474 | - Restructuring charges decreased significantly by **87.5%** year-over-year for YTD Sep 2024 to **$3 million**, reflecting reduced charges from the Ahern Rentals acquisition restructuring program, with no open programs as of September 30, 2024[136](index=136&type=chunk)[139](index=139&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's liquidity position, capital structure, debt obligations, share repurchase programs, and dividend payments - Available liquidity as of September 30, 2024, was **$2.866 billion**, comprising cash and cash equivalents, and availability under the ABL and accounts receivable securitization facilities[101](index=101&type=chunk)[144](index=144&type=chunk) - The company completed a **$1.25 billion** share repurchase program in Q1 2024 and initiated a new **$1.5 billion** program in January 2024, repurchasing **$875 million** through September 30, 2024[143](index=143&type=chunk) - Dividends paid for YTD Sep 2024 totaled **$326 million** (**$4.89 per share**), and a Q4 2024 dividend of **$1.63 per share** was declared[143](index=143&type=chunk) - The company was in compliance with all debt covenants as of September 30, 2024, and was not restricted in its ability to make share repurchases and dividend payments[149](index=149&type=chunk)[151](index=151&type=chunk) | Year | Debt and Finance Leases ($ millions) | Interest Due on Debt ($ millions) | Operating Leases ($ millions) | Purchase Obligations ($ millions) | Total ($ millions) | | :--------- | :--------------------------------- | :-------------------------------- | :---------------------------- | :-------------------------------- | :----------------- | | 2024 | $24 | $178 | $86 | $765 | $1,053 | | 2025 | $1,508 | $669 | $328 | $337 | $2,842 | | 2026 | $70 | $627 | $290 | $9 | $996 | | 2027 | $3,226 | $545 | $238 | — | $4,009 | | 2028 | $1,699 | $368 | $184 | — | $2,251 | | Thereafter | $6,939 | $845 | $381 | — | $8,165 | | **Total** | **$13,466** | **$3,232** | **$1,507** | **$1,111** | **$19,316** | - Free cash flow for the nine months ended September 30, 2024, was **$1.211 billion**, a slight increase from **$1.157 billion** in the prior year period[154](index=154&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details the company's exposure to market risks, primarily interest rate and foreign currency exchange rate fluctuations, and their potential financial impact - As of September 30, 2024, **$4.3 billion** of indebtedness bears variable interest rates. A **one percentage point** increase in these rates would decrease annual after-tax earnings by approximately **$32 million**[164](index=164&type=chunk) - Foreign subsidiaries accounted for **9%** of total revenue (**$987 million**) and **7%** of total pretax income (**$178 million**) for the nine months ended September 30, 2024. A **10%** change in exchange rates is not expected to have a material impact on earnings[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[169](index=169&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2024[170](index=170&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=44&type=section&id=Item%201%20Legal%20Proceedings) Refers to legal and regulatory matters discussed in financial statement notes, indicating no expected material adverse effect from ordinary course claims - Information on legal proceedings is incorporated by reference from Note 8 to the unaudited condensed consolidated financial statements[172](index=172&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A%20Risk%20Factors) Refers to comprehensive risk factors detailed in the company's Annual Report on Form 10-K, to be considered with the current report - Risk factors are described in the Annual Report on Form 10-K for the year ended December 31, 2023, and are incorporated by reference[173](index=173&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Provides details on common stock repurchases during Q3 2024 under the authorized share repurchase program - During Q3 2024, the company repurchased **539,888 shares** of common stock at an average price of **$697.76 per share**, with **$625 million** remaining under the current **$1.5 billion** program[174](index=174&type=chunk) - The company intends to repurchase a total of **$1.25 billion** under the **$1.5 billion** program in 2024 and complete the program by the end of Q1 2025[174](index=174&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205%20Other%20Information) Notes that officers or directors may engage in non-Rule 10b5-1 trading arrangements for tax withholding related to stock awards - Officers or directors may make elections to have shares withheld or sold back to Holdings to cover withholding taxes, which may constitute non-Rule 10b5-1 trading arrangements[175](index=175&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206%20Exhibits) Lists exhibits filed with the Form 10-Q, including various agreements, corporate documents, certifications, and XBRL data files - Exhibits include Asset Purchase Agreements, Merger Agreements, Certificates of Incorporation, By-Laws, Subsidiary Guarantors list, Rule 13a-14(a) Certifications by CEO and CFO, Section 1350 Certifications by CEO and CFO, and XBRL Instance Document and Taxonomy Extensions[177](index=177&type=chunk)[178](index=178&type=chunk) [Signatures](index=46&type=section&id=SIGNATURES) Contains official signatures of authorized representatives, confirming the filing of the report - The report was signed by Andrew B. Limoges, Vice President, Controller and Principal Accounting Officer for both United Rentals, Inc. and United Rentals (North America), Inc. on October 23, 2024[180](index=180&type=chunk)

Core Viewpoint - United Rentals, Inc. is expected to report its third-quarter 2024 results on October 23, with adjusted earnings projected to increase by 6.5% year-over-year, while revenues are anticipated to grow by 6.1% [1][2]. Revenue Estimates - The Zacks Consensus Estimate for third-quarter adjusted earnings is $12.49 per share, up from $12.46 over the past 60 days, compared to $11.73 per share in the same quarter last year [2]. - Revenue estimates for the third quarter are set at $3.99 billion, reflecting a 6.1% increase from the prior-year quarter [2]. Factors Influencing Quarterly Results - Growth in the Specialty business, which contributed 29.7% to total revenues in the second quarter, is expected to drive revenues, alongside disciplined capital allocation [3]. - Challenges in the General Rentals segment, which accounted for 70.3% of total revenues in the second quarter, are noted due to local market dynamics and normalization of used equipment margins [3][4]. Segment Performance - General Rentals revenues are projected to increase by 6.2% to $2.92 billion, while Specialty revenues are expected to rise by 6.7% to $1.08 billion [5]. - Equipment Rentals, which made up 85.2% of total revenues in the second quarter, is anticipated to see a 5.1% year-over-year revenue increase to $3.39 billion [5]. Earnings and Margins - Adjusted EBITDA is expected to grow by 3.3% year-over-year to $1.91 billion, although the adjusted EBITDA margin is projected to decline to 47.7% from 49.1% a year ago [7]. - Gross margin is anticipated to contract to 41.3% from 42.1% in the previous year [7]. Strategic Developments - The acquisition of Yak is likely to enhance United Rentals' position in the North American matting industry and boost the Specialty segment's performance [6]. - The company has shifted focus and capital expenditure towards its Specialty business, investing in fleet expansion to improve margins and growth opportunities [4][6]. Earnings Prediction - The model indicates a potential earnings beat for United Rentals, supported by a positive Earnings ESP of +0.51% and a Zacks Rank of 3 (Hold) [8].

Wall Street analysts forecast that United Rentals (URI) will report quarterly earnings of $12.49 per share in its upcoming release, pointing to a year-over-year increase of 6.5%. It is anticipated that revenues will amount to $3.99 billion, exhibiting an increase of 6.1% compared to the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Pr ...