Financial Data and Key Metrics Changes - Total revenue grew by 2.8% year-over-year to $4.2 billion, with rental revenue increasing by 4.6% to $3.6 billion, both setting fourth quarter records [4][11] - Adjusted EBITDA reached $1.9 billion, resulting in a margin of 45.2%, with adjusted EPS at $11.09 [4][14] - Free cash flow generation was $2.2 billion, translating to a free cash flow margin of 14% [6][16] Business Line Data and Key Metrics Changes - Growth was observed across both Gen Rent and Specialty businesses, with Specialty showing healthy and broad-based growth [5] - Rental revenue increased by $159 million year-over-year, supported by growth from large projects and key verticals [11] - Ancillary and re-rent revenue grew by over 9%, adding a combined $62 million [12] Market Data and Key Metrics Changes - The construction end market saw growth across both infrastructure and non-residential construction, while the industrial end market showed strength within power [5] - Data centers and power were significant drivers of growth, with a larger project pipeline than ever [6] Company Strategy and Development Direction - The company aims to be the partner of choice for customers, focusing on providing an unmatched experience through a one-stop shop of products and services [3] - Plans for 2026 include total revenue growth ex used of over 6%, supported by customer sentiment indicators and solid backlogs [8] - The company intends to repurchase $1.5 billion of shares in 2026 and increase its quarterly dividend by 10% [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand construct for 2026 being similar to 2025, driven by large projects and dispersed geographic demand [8][10] - The company is aware of the importance of profitability and margins, embedding cost actions to improve efficiency [8][17] - Management emphasized a culture of continuous improvement and commitment to operational excellence [9] Other Important Information - The company returned nearly $2.4 billion of excess cash flow to shareholders in 2025 through share buybacks and dividends [7][16] - The used market is expected to normalize, with healthy demand anticipated in 2026 [13] Q&A Session Summary Question: On ancillary services, what inning are you in regarding evolution? - Management indicated that it is hard to characterize the exact stage but emphasized the goal of providing as many solutions for customers as possible [21][23] Question: Can you discuss the M&A pipeline and recent activity? - The pipeline is robust with some chunky deals, and recent smaller acquisitions were made to fill out the product offering [24][26] Question: Can you elaborate on the growth trajectory for the matting business? - The matting business was affected by a project pushout but showed strong growth overall, with a 30% increase on a pro forma basis [30][33] Question: What drove the year-over-year improvement in fleet productivity? - Fleet productivity improved due to a combination of rate and time, with mix being a significant factor due to matting choppiness [41][42] Question: What actions are being taken to offset cost dynamics? - Management is focused on mitigating repositioning costs and implementing hard cost actions to protect margins [61][62] Question: How does the company view the local market demand for 2026? - Management expects local market demand to remain flattish, with growth primarily driven by large projects [54][94]

Fourth Quarter and Full Year 2025 Investor Presentation © 2023 United Rentals, Inc. All rights reserved. I 1 Introductory information Unless otherwise specified, the information in this presentation, including forward-looking statements, is as of our most recent earnings call held on January 29, 2026. We make no commitment to update any such information contained in this presentation. Certain statements in this presentation are forward-looking statements within the meaning of Section 21E of the Securities E ...

Core Insights - United Rentals (URI) reported revenue of $4.21 billion for the quarter ended December 2025, reflecting a year-over-year increase of 2.8% but a revenue surprise of -1.14% compared to the Zacks Consensus Estimate of $4.26 billion [1] - The earnings per share (EPS) for the quarter was $11.09, down from $11.59 in the same quarter last year, with an EPS surprise of -6.84% against the consensus estimate of $11.90 [1] Revenue Breakdown - Equipment rentals generated $3.58 billion, slightly below the average estimate of $3.59 billion, marking a year-over-year increase of 4.7% [4] - Sales of rental equipment totaled $386 million, significantly lower than the estimated $417.06 million, representing a year-over-year decline of 14.6% [4] - Service and other revenues were reported at $90 million, in line with the estimate of $90.88 million, showing a year-over-year increase of 4.7% [4] - Contractor supplies sales reached $43 million, exceeding the estimate of $40.63 million, with a year-over-year growth of 10.3% [4] - Sales of new equipment amounted to $108 million, surpassing the estimate of $104.26 million, reflecting a year-over-year increase of 12.5% [4] Gross Margin Analysis - Gross margin for equipment rentals was $1.35 billion, below the estimated $1.44 billion [4] - Gross margin from sales of rental equipment was $175 million, compared to the average estimate of $180.01 million [4] - Gross margin for sales of new equipment was $22 million, slightly above the estimate of $20.1 million [4] - Gross margin from contractor supplies sales was $16 million, exceeding the estimate of $15.47 million [4] - Gross margin for service and other revenues was $31 million, below the estimate of $32.57 million [4] - Gross margin by revenue for general rentals was $869 million, lower than the estimate of $899.66 million [4] - Gross margin by revenue for specialty rentals was $477 million, significantly below the estimate of $570.75 million [4] Stock Performance - Shares of United Rentals have returned +11% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of +0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - United Rentals reported quarterly earnings of $11.09 per share, missing the Zacks Consensus Estimate of $11.9 per share, and down from $11.59 per share a year ago, representing an earnings surprise of -6.84% [1] - The company posted revenues of $4.21 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.14%, compared to year-ago revenues of $4.1 billion [2] - United Rentals has surpassed consensus revenue estimates three times over the last four quarters, while it has only surpassed consensus EPS estimates once in the same period [2] 分组2 - The stock has gained approximately 12.1% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the coming quarter is $9.20 on revenues of $3.88 billion, and for the current fiscal year, it is $47.42 on revenues of $17.05 billion [7] - The Zacks Industry Rank for Building Products - Miscellaneous is currently in the bottom 29% of over 250 Zacks industries, indicating potential challenges for the stock's performance [8]

Financial Performance - Total revenue for Q4 2025 was $4.208 billion, with rental revenue of $3.581 billion, marking a 4.6% year-over-year increase[6] - Net income for Q4 2025 was $653 million, representing a net income margin of 15.5%, a decrease of 130 basis points year-over-year[12] - Adjusted EBITDA for Q4 2025 was $1.901 billion, with an adjusted EBITDA margin of 45.2%, down 120 basis points from the previous year[12] - Net income for the year ended December 31, 2025, was $2,494 million, compared to $2,575 million in 2024, indicating a decrease of 3.1%[25] - Diluted earnings per share for 2025 were $38.61, slightly down from $38.69 in 2024[25] - The gross profit for the year was $6,144 million, nearly unchanged from $6,150 million in 2024[25] - Net income for the three months ended December 31, 2025, was $653 million, a decrease of 5.2% from $689 million in the same period of 2024[29] - The company reported a diluted earnings per share of $10.27 for the three months ended December 31, 2025, down from $10.47 in 2024[37] Cash Flow and Liquidity - Full-year 2025 net cash provided by operating activities was $5.190 billion, with free cash flow of $2.181 billion[12] - Cash flow from operating activities increased 14.2% year-over-year, while free cash flow increased 6.0% from $2.058 billion to $2.181 billion[17] - Cash provided by operating activities for the year ended December 31, 2025, was $5,190 million, an increase from $4,546 million in 2024[29] - The forecast for net cash provided by operating activities in 2026 is estimated to be between $5,300 million and $6,100 million[52] - Projected free cash flow for 2026, excluding merger and restructuring related payments, is expected to be between $2,150 million and $2,450 million[52] Shareholder Returns - The company returned $2.364 billion to shareholders in 2025, including $1.9 billion in share repurchases and $464 million in dividends[12] - The company plans to repurchase $1.5 billion of common stock in 2026, supported by a new $5 billion share repurchase program[1] - The company declared dividends of $1.79 per share in Q4 2025, up from $1.63 in Q4 2024, marking a 9.8% increase[25] - The company repurchased common stock totaling $631 million during the three months ended December 31, 2025[30] Revenue Segments - Specialty rentals segment rental revenue increased 9.2% year-over-year to $1.183 billion, despite a decrease in rental gross margin[17] - Equipment rentals contributed $3,581 million to total revenues, up from $3,422 million year-over-year, reflecting a 4.6% growth[25] - Total equipment rentals revenue increased by 4.6% to $3,581 million for the three months ended December 31, 2025, compared to $3,422 million in 2024[35] - Specialty equipment rentals revenue grew by 9.2% to $1,183 million for the three months ended December 31, 2025, up from $1,083 million in 2024[35] Assets and Liabilities - Total assets increased to $29,866 million in 2025, up from $28,163 million in 2024, representing a growth of 6.0%[27] - Long-term debt rose to $12,652 million in 2025, compared to $12,228 million in 2024, reflecting an increase of 3.5%[27] - The net leverage ratio at year-end 2025 was 1.9x, with total liquidity of $3.322 billion[12] Restructuring and Charges - The company reported a restructuring charge of $1 million for the year ended December 31, 2025, compared to $3 million in 2024[25] - The company initiated a restructuring program in Q4 2025, with total restructuring charges incurred since 2008 amounting to $384 million[45] - The impact of the merger termination benefit associated with the terminated H&E acquisition was a net $52 million benefit for adjusted EBITDA in 2025[47] Depreciation and Equipment Costs - Total depreciation of rental equipment for 2025 was $2,670 million, an increase from $2,466 million in 2024[45] - The year-over-year change in average owned equipment cost (OEC) was 4.5% for the three months ended December 31, 2025[33]

Revenue and Financial Performance - Total revenues for 2025 reached $16,099 million, a 4.9% increase from $15,345 million in 2024[19] - Equipment rental revenues represented 86% of total revenues in 2025, with a year-over-year increase of 6.0%[156] - Adjusted EBITDA for 2025 was $7.328 billion, up 2.3% from 2024, with an adjusted EBITDA margin of 45.5%, a decrease of 120 basis points[172] - Net income for 2025 decreased by $81 million, or 3.1%, to $2.494 billion, with a net income margin of 15.5%, down 130 basis points[171] - The company reported a provision for income taxes of $844 million for 2025, compared to $813 million in 2024[169] - Interest expense for 2025 was $716 million, an increase from $691 million in 2024[169] - Total gross margin for 2025 was 38.2%, a decrease of 190 basis points from 2024, primarily due to reduced margins in the specialty segment[213] Equipment and Fleet Management - Equipment rental revenue accounted for 86% of total revenues in 2025, up from 85% in 2024[19] - The fleet OEC increased to $22.48 billion in 2025 from $21.43 billion in 2024[19] - The company has a total Original Equipment Cost (OEC) of $22.5 billion for rental equipment available on an hourly, daily, weekly, or monthly basis[49] - The average original equipment cost (OEC) increased by 3.9% year-over-year, contributing to improved fleet productivity, which rose by 2.2%[157] - The company operates a global branch network with 1,768 rental locations, primarily in the United States and Canada, serving a diverse customer base[40] - The company has a fleet of approximately 18,200 vehicles, with 45% leased and the remainder owned[145] Employee and Training Initiatives - In 2025, voluntary employee turnover was 10.8%, down from 11.9% in 2024[25] - The company enhanced employee skills through approximately 1.1 million hours of training in 2025[25] - The company has approximately 8,200 salaried employees and 20,300 hourly employees, with collective bargaining agreements covering about 1,800 employees[64] Market and Competitive Position - Estimated North American market share remained at approximately 15% as of December 31, 2025[29] - The company estimates a market share of approximately 15% in North America based on 2025 total equipment rental industry revenues, excluding party and event rentals[62] - The specialty reportable segment accounted for 31.7% of total revenues for the year ended December 31, 2025, up from 7.3% in 2013[120] Financial Risks and Liabilities - Total indebtedness as of December 31, 2025, was $14.2 billion, representing a significant financial risk for the company[74] - 29% of total indebtedness, amounting to $4.1 billion, bore interest at variable rates, exposing the company to interest rate fluctuations[75] - The company faces risks from economic conditions, including potential decreases in infrastructure spending and increased costs due to inflation[67][69] - The company’s ability to refinance its indebtedness may be constrained by prevailing economic conditions and financial performance[76] - The company may incur additional debt in the future, which could further exacerbate existing financial risks[77] Operational Challenges and Compliance - The company’s operations are subject to numerous environmental and safety regulations, which may incur ongoing expenses for compliance[63] - The company faces potential increases in operating costs due to aging rental fleet and rising maintenance costs, which could adversely affect earnings[107] - Labor shortages and disputes may impact operational efficiency and cost management strategies[101] - The company is subject to income tax laws in the U.S. and other jurisdictions, with potential changes adversely affecting tax liability and financial results[131] Shareholder Returns and Capital Management - The company has completed $1.65 billion of share repurchases under its $2.0 billion program as of December 31, 2025, and expects to complete the program in Q1 2026[97] - A new $5.0 billion share repurchase program was authorized on January 28, 2026, with plans to repurchase $1.15 billion in 2026[97] - The company paid dividends totaling $406 million in 2025, with a declared quarterly dividend of $1.97 per share for February 2026[162] Environmental and Regulatory Risks - The company faces risks related to potential climate change regulations that could impact fuel costs and operational activities[73] - Environmental regulations may lead to unforeseen compliance or remediation costs, adversely affecting liquidity and operating results[128] - The company may face challenges in meeting diverse stakeholder expectations regarding environmental and social issues, which could impact reputation and operational risks[118] Cybersecurity and Data Privacy - Cybersecurity risks could disrupt operations and lead to legal liabilities, affecting financial performance and reputation[111] - The company has invested in IT security to mitigate cybersecurity risks, including additional end-user training and AI for automated threat detection[140] - The Audit Committee conducts an annual review of the company's cybersecurity program, including management's actions to identify and respond to threats[141] Acquisitions and Goodwill - Future acquisitions will likely be financed through cash, capital stock, or additional debt, which may dilute existing shareholders[90] - The company conducts goodwill impairment tests annually, with significant judgments involved in estimating future cash flows and fair values[185] - The merger termination benefit from the H&E Equipment Services acquisition resulted in a net after-tax benefit of $29 million, or $0.45 per diluted share, for the year ended December 31, 2025[163]

Core Viewpoint - United Rentals, Inc. (URI) is expected to report its fourth-quarter 2025 results on January 28, with adjusted earnings per share (EPS) anticipated to show a year-over-year increase despite a recent miss in the previous quarter [1][3]. Financial Performance - In the last reported quarter, URI's adjusted EPS missed the Zacks Consensus Estimate by 6.3% and decreased by 0.8% year over year, while total revenues exceeded the consensus estimate by 1.7% and increased by 5.9% year over year [1][2]. - The Zacks Consensus Estimate for fourth-quarter adjusted earnings has risen to $11.90 per share, reflecting a 2.7% increase from the previous year's earnings of $11.59 per share [3]. - The consensus estimate for total revenues is projected at $4.26 billion, indicating a growth of 3.9% from the prior-year quarter [3]. Revenue Drivers - Revenue growth is expected to be driven by strong demand in public infrastructure and non-residential markets, supported by federal and state funding and lower interest rates [4]. - New project activity is anticipated to be broad-based, particularly in sectors such as data centers, semiconductors, LNG facilities, hospitals, and airports, indicating sustained demand across key industrial and construction markets [4]. - Specialty rentals, which offer higher margins, are expected to contribute to revenue growth through both organic means and cold-starts that expand capacity in new markets [5]. Operational Strategy - URI's diverse fleet management approach focuses on customer demand and optimizing utilization levels, which is expected to enhance service to large customers requiring a wide range of equipment [6]. - Strategic acquisitions and joint ventures are likely to have further catalyzed growth trends in the upcoming quarter [6]. Earnings Outlook - Year-over-year bottom-line growth is anticipated due to higher fleet productivity and disciplined rate management, alongside continued cost control measures [7]. - However, inflationary pressures and elevated delivery costs may partially offset these gains, limiting margin expansion [7]. Market Sentiment - Recent upward adjustments in EPS estimates signal cautious optimism ahead of the fourth-quarter earnings report [9]. - The combination of a positive Earnings ESP of +0.64% and a Zacks Rank of 3 (Hold) suggests a potential earnings beat for URI [10].

Core Viewpoint - United Rentals (URI) is expected to report quarterly earnings of $11.90 per share, reflecting a 2.7% increase year-over-year, with revenues projected at $4.26 billion, a 3.9% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.6% higher in the last 30 days, indicating analysts' positive reassessment of the company's performance [1][2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts predict 'Revenues- Equipment rentals' to be $3.59 billion, indicating a year-over-year increase of 5% [4]. - 'Revenues- Service and other revenues' are expected to reach $90.88 million, reflecting a 5.7% increase year-over-year [4]. - 'Revenues- Contractor supplies sales' are estimated at $40.63 million, showing a 4.2% increase from the prior year [4]. Specialty Revenue Insights - 'Revenues- Sales of new equipment' are projected to be $104.26 million, indicating an 8.6% year-over-year increase [5]. - 'Revenues- Sales of rental equipment' are expected to decline to $417.06 million, reflecting a 7.7% decrease from the previous year [5]. - 'Revenues- Specialty- Contractor supplies sales' are estimated at $18.26 million, indicating a 7.4% increase year-over-year [6]. - 'Revenues- Specialty- Equipment rentals' are projected to reach $1.18 billion, reflecting an 8.8% increase [6]. Additional Revenue Metrics - 'Revenues- Specialty- Sales of new equipment' are expected to be $34.11 million, indicating a significant 17.6% increase year-over-year [7]. - 'Revenues- Specialty- Sales of rental equipment' are projected at $49.96 million, reflecting a 12.4% decrease from the prior year [7]. - 'Revenues- Specialty- Service and other revenues' are estimated at $8.05 million, indicating a 0.6% increase year-over-year [8]. - Total revenues for 'General rentals' are expected to reach $2.95 billion, reflecting a 1.7% increase year-over-year [8]. - 'Revenues- General Rentals- Service and other revenues' are projected to be $84.30 million, indicating an 8.1% increase year-over-year [8]. Stock Performance - Shares of United Rentals have increased by 15.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.6% increase [9].

Group 1 - As of December 2025, Donald Trump's investments in municipal and corporate bonds include bonds from companies related to his government policies, totaling at least $51 million [1] - The bonds purchased include those from Netflix (NFLX.US), CoreWeave (CRWV.US), General Motors (GM.US), Boeing (BA.US), Occidental Petroleum (OXY.US), and United Rentals (URI.US), along with municipal bonds from various U.S. cities, school districts, utilities, and hospitals [1] - Trump completed 189 buy transactions and 2 sell transactions between November 14 and December 29, with the total value of sell transactions reaching at least $1.3 million [1] Group 2 - Since returning to the White House in January 2025, Trump has completed 690 transactions totaling at least $104 million, with further transactions in November and December amounting to $106 million, including three additional sell transactions worth $2 million [2] - A senior White House official stated that Trump and his family did not participate in investment decisions, and an independent financial manager used a recognized index replication investment strategy for bond purchases [2] Group 3 - Unlike previous presidents, Trump has not divested personal assets or placed them in a blind trust, with his business empire managed by his two sons, leading to potential conflicts of interest with presidential policies [3] - During foreign visits, Trump actively promoted Boeing aircraft and highlighted the company's successful sales to international airlines [3] - Trump emphasized General Motors' strategy to move production of popular models back to the U.S., claiming it demonstrates the effectiveness of his tariff policies in revitalizing American manufacturing [3]

Group 1 - As of December 2025, Donald Trump's investments in municipal and corporate bonds include bonds from companies related to his government policies, totaling at least $51 million [1] - The bonds purchased include those from Netflix (NFLX.US), CoreWeave (CRWV.US), General Motors (GM.US), Boeing (BA.US), Occidental Petroleum (OXY.US), and United Rentals (URI.US), along with municipal bonds from various U.S. cities and utilities [1] - Trump's trading record shows 189 buy transactions and 2 sell transactions between November 14 and December 29, with the total value of sell transactions reaching at least $1.3 million [1] Group 2 - Since returning to the White House in January 2025, Trump has completed 690 transactions totaling at least $104 million, with additional transactions in November and December amounting to $106 million [2] - A senior White House official stated that Trump and his family did not participate in investment decisions, and an independent financial manager executed the bond purchases [2] - Unlike previous presidents, Trump has not divested personal assets or placed them in a blind trust, leading to potential conflicts of interest due to overlaps between his business empire and presidential policies [3] Group 3 - During foreign visits, Trump actively promoted Boeing aircraft, highlighting successful sales to international airlines [3] - Trump emphasized General Motors' decision to move production of popular models back to the U.S. as evidence of the effectiveness of his tariff policies in revitalizing American manufacturing [3] - Netflix is currently in a competitive struggle with Paramount Global (PSKY.US) for Warner Bros. (WBD.US), which poses significant antitrust challenges for Trump's administration [3]