Financial Performance - Total revenues for 2024 reached $15,345 million, up from $14,332 million in 2023, representing a year-over-year increase of 7.1%[24] - Net income for the year ended December 31, 2024, increased by $151 million, or 6.2%, to $2.575 billion, with a net income margin of 16.8%[166][174] - Adjusted EBITDA for the year ended December 31, 2024, increased by $303 million, or 4.4%, to $7.160 billion, with an adjusted EBITDA margin of 46.7%[171][174] - The total gross margin for 2024 was 40.1%, a decrease of 50 basis points from 2023[218] - The effective tax rate for 2024 was 24.0%, a decrease of 50 basis points from 24.5% in 2023[220] Revenue Sources - Equipment rental revenue accounted for 85% of total revenues in 2024, compared to 84% in 2023[24] - Equipment rentals increased by 8.0% year-over-year, including the impact of the Yak acquisition[160] - Ancillary revenues represented approximately 17% of equipment rental revenue in 2024, with delivery and pick-up fees being the most significant component[178] - Industrial and other non-construction rentals accounted for approximately 49% of rental revenue, while commercial construction rentals represented about 46%[37] - Specialty rentals increased by 25.2% compared to 2023, primarily due to the impact of the Yak acquisition[210] Operational Efficiency - Fleet productivity improved by 4.1% in 2024, contrasting with a decline of 0.7% in 2023[24] - The average original equipment cost (OEC) increased by 3.5% year-over-year, a significant decrease from the 21.9% increase in 2023[24] - The company operates 1,686 rental locations across North America, serving a diverse customer base from Fortune 500 companies to small businesses[42] - The company utilizes a proprietary software application, Total Control, to help key customers manage their equipment needs effectively[59] - The company’s operational strategies aim to optimize field operations and improve productivity, though success is uncertain[107] Workforce and Employee Relations - The total number of employees rose to 27,900 in 2024, up from 26,300 in 2023, indicating a growth in workforce[24] - The voluntary employee turnover rate improved to 11.9% in 2024, down from 12.4% in 2023[31] - Approximately 1,800 employees are represented by unions, which could lead to higher labor costs or disruptions in service due to collective bargaining agreements[130] - The company employs around 27,900 individuals, with a mix of salaried and hourly employees, and maintains good employee relations[65] Acquisitions and Growth Strategy - The company completed the acquisition of Yak Access, LLC in March 2024, enhancing its service offerings in surface protection mats[27] - The acquisition of Yak in March 2024 and the pending acquisition of H&E Equipment Services, expected to close in Q1 2025, are part of the company's strategy for growth through strategic acquisitions[37] - The pending acquisition of H&E is expected to close in the first quarter of 2025, reflecting the company's growth strategy through acquisitions[92] - The company plans to acquire H&E for $92 per share, with a total enterprise value of approximately $4.8 billion, including $1.4 billion of net debt[158] Debt and Financial Risks - Total indebtedness as of December 31, 2024, was $13.4 billion, expected to increase by approximately $4.9 billion due to the pending acquisition of H&E[77] - 32% of total indebtedness, or $4.3 billion, bore interest at variable rates as of December 31, 2024[78] - Significant cash flow is required to service indebtedness, with potential impacts on operational flexibility and growth strategies[79] - The company may face challenges in refinancing its indebtedness on favorable terms, impacting liquidity and operational results[82] - A breach of covenants in debt agreements could result in an event of default, allowing debt holders to accelerate repayment[88] Market Conditions and Competition - The estimated North American equipment rental industry revenue grew by 8% in 2024, while the company's rental revenue also increased by 8.0% year-over-year[33] - The company may face increased competition in the equipment rental industry, which could lead to decreased rental volumes and pricing pressures[72] - Economic conditions, particularly in North America, could adversely affect end-market demand and operating results[71] - Fluctuations in oil and natural gas prices could impact exploration and production activity, affecting demand for services and products[73] Compliance and Regulatory Risks - Compliance with evolving data privacy laws may incur substantial costs and legal liabilities, impacting financial performance[114] - Environmental and safety regulations may impose unexpected compliance or remediation costs, adversely impacting liquidity and operating results[125] - The company faces various legal and regulatory risks, including potential claims related to personal injuries and property damage, which may not be fully covered by insurance[123] Technology and Cybersecurity - Disruptions in information technology systems could limit operational effectiveness and adversely affect operating results[111] - Cybersecurity threats pose risks to operational integrity and could result in significant financial losses and reputational harm[112] - The company has a comprehensive cybersecurity risk management program, leveraging the NIST framework to address emerging threats[134] - The Audit Committee and Board actively review the company's cybersecurity program, including quarterly reports on key performance indicators and recent threats[137] Shareholder Returns - The company has completed $1.25 billion of share repurchases under its authorized program of up to $1.5 billion as of December 31, 2024[99] - The first-ever quarterly dividend program was initiated in January 2023, with total dividends paid in 2024 amounting to $434 million ($6.52 per share)[164] - The company may require additional debt or equity financing for future acquisitions, which could lead to significant dilution for existing shareholders[94]

Core Viewpoint - United Rentals, Inc. is expected to report its fourth-quarter 2024 results on January 29, with mixed expectations regarding earnings and revenue growth, influenced by various market factors and operational efficiencies [1][3]. Revenue Expectations - The Zacks Consensus Estimate for fourth-quarter adjusted earnings has decreased to $11.77 per share, indicating a 4.5% increase from the previous year's earnings of $11.26 per share [3]. - Projected revenues for the fourth quarter are estimated at $3.94 billion, reflecting a growth of 5.7% from the prior-year quarter [3]. - Revenue growth is anticipated to be driven by strong demand in construction and industrial sectors, with specialty rentals contributing significantly [4][5]. Segment Performance - General Rentals revenues are expected to increase by 0.7% to $2.83 billion, while Specialty Rentals are projected to grow by 21.2% to $1.11 billion [9]. - Equipment Rentals, which accounted for 86.7% of total revenues in the third quarter, is expected to see a year-over-year increase of 7.3% to $3.35 billion [10]. Earnings and Margins - Adjusted EBITDA is expected to grow by 3% year over year to $1.86 billion, but the adjusted EBITDA margin is projected to decline by 120 basis points to 47.3% [12]. - Gross margin is anticipated to contract by 90 basis points to 41% [12]. - Margin pressures are likely due to the normalization of the used equipment market, cost inflation, and cold start investments [8]. Operational Efficiency - Fleet productivity improved by 3.5% in the third quarter, with expectations to maintain this momentum through the fourth quarter [6]. - The company is leveraging telematics and predictive analytics to optimize fleet allocation, indicating efficient equipment deployment [6]. Market Challenges - Seasonal factors may lead to a slight decline in fleet utilization compared to the third quarter due to colder weather affecting construction activity [7]. - Local market challenges in General Rentals and the normalization of used equipment margins present headwinds, but a strong pipeline of large projects provides confidence for continued growth [5]. Earnings Prediction - The model does not predict an earnings beat for United Rentals, with an Earnings ESP of -4.37% and a Zacks Rank of 4 (Sell) [13].

Core Viewpoint - United Rentals (URI) is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with earnings anticipated at $11.77 per share and revenues at $3.94 billion, reflecting increases of 4.5% and 5.7% respectively [3]. Earnings Expectations - The upcoming earnings report is scheduled for January 29, and the stock price may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 0.38% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for United Rentals is lower than the consensus estimate, resulting in an Earnings ESP of -4.37%, which indicates a bearish outlook [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. Historical Performance - In the last reported quarter, United Rentals had an earnings expectation of $12.49 per share but delivered only $11.80, resulting in a surprise of -5.52% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - United Rentals does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of the earnings release [16].

Core Viewpoint - United Rentals, Inc. is enhancing its market position through the acquisition of H&E Equipment Services, Inc. for $4.8 billion, which includes $1.4 billion in net debt, expected to close in Q1 2025, aiming to expand capabilities and market reach [1][11] Expansion of Fleet and Geographical Reach - The acquisition integrates H&E's fleet of over 64,000 units, valued at $2.9 billion, with an average age of under 41 months, providing a competitive edge and access to a wider range of equipment [2][3] - H&E's network of 160 branches across more than 30 states complements United Rentals' existing footprint, enhancing its geographical reach in high-demand areas [3][4] Financial and Operational Synergies - The purchase price of $4.8 billion represents a multiple of 6.9x H&E's trailing 12-month adjusted EBITDA of $696 million, improving to 5.8x when considering $130 million in targeted cost synergies and $54 million in tax attributes [5] - Expected synergies will materialize within 24 months, focusing on corporate overhead, operational efficiencies, and procurement savings, with anticipated annual revenue cross-sell synergies of $120 million within three years [5][6] Growth Drivers - United Rentals is leveraging technology adoption, including telematics and digital platforms, to enhance operational efficiency and customer experience [7] - The company is also benefiting from favorable macroeconomic trends, such as robust construction activity and increased infrastructure spending, positioning it to capitalize on government initiatives like the Infrastructure Investment and Jobs Act [8] Share Price Performance - United Rentals shares have increased by 30.1% over the past year, outperforming the Zacks Building Products - Miscellaneous industry's 15.2% rise, indicating strong market performance and reinforcing its leadership in the equipment rental industry [11]

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].

A month has gone by since the last earnings report for United Rentals (URI) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is United Rentals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. United Rentals Q3 Earnings & Revenues Miss E ...

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 ...