United Rentals (URI) shares soared 10.7% in the last trading session to close at $611.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.1% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, United Rentals shares soared, reflecting renewed investor optimism.This equipment rental company is expected to post quarterly earnings of $8.92 per share in its up ...

Group 1 - United Rentals (NYSE: URI) announced it will not increase its offer for H&E Equipment Services (HESS), indicating a disciplined capital allocation strategy that is viewed positively for its shareholders [1] Group 2 - Tomas Riba, an economist and former CFO, focuses on investing in high-quality companies with strong competitive advantages, operating in growing industries, and exhibiting expanding margins and low debt [2]

Group 1 - United Rentals, Inc. is positioned to benefit from a strong pipeline of mega-projects, with high demand in data centers, manufacturing, power, and construction markets [1] - The demand is driven by secular trends, particularly the reshoring of manufacturing [1] Group 2 - The company is expected to leverage its strengths in various sectors to capitalize on growth opportunities [1]

Core Viewpoint - United Rentals, Inc. (URI) reported mixed fourth-quarter 2024 results, with earnings per share (EPS) missing estimates while revenues exceeded expectations, both showing year-over-year improvement [1][4]. Financial Performance - Adjusted EPS for the fourth quarter was $11.59, missing the Zacks Consensus Estimate of $11.77 by 1.5%, but increased 2.9% from the prior year's adjusted figure of $11.26 [4]. - Total revenues reached $4.095 billion, surpassing the consensus mark of $3.942 billion by 3.9%, and grew 9.8% year-over-year [4]. - For the full year, total revenues were $15.345 billion, up 7.1%, and adjusted earnings were $43.17 per share, reflecting a 6% increase from 2023 [11]. Segment Performance - Equipment Rentals revenues increased 9.7% year-over-year to $3.422 billion, marking a record high for the fourth quarter [5]. - General Rentals segment saw a 2.2% year-over-year growth in rental revenues to $2.339 billion, with rental gross margin contracting 170 basis points to 37.4% [7]. - Specialty segment rental revenues improved 30.5% year-over-year to $1.083 billion, with a gross margin contraction of 170 basis points to 45.5% [8]. Margins and EBITDA - Total equipment rentals' gross margin contracted 130 basis points year-over-year to 40% [9]. - Adjusted EBITDA for the reported period grew 5% year-over-year to $1.9 billion, with an adjusted EBITDA margin contracting 210 basis points to 46.4% [9]. Cash Flow and Shareholder Returns - Net cash from operating activities decreased 3.4% year-over-year to $4.546 billion, while free cash flow fell 10.8% to $2.065 billion [13]. - The company returned $1.934 billion to shareholders in 2024, including $1.5 billion through share repurchases and $434 million in dividends [13]. - A 10% increase in the quarterly dividend was approved, with a declared dividend of $1.79 per share [13]. 2025 Guidance - Total revenues for 2025 are expected to be in the range of $15.1-$15.3 billion, with adjusted EBITDA anticipated between $7.115 billion and $7.215 billion [14]. - Net rental capital expenditure is projected to be between $2.2-$2.5 billion [14].

Fourth Quarter – Full Year 2024 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 30, 2025. 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 Exc ...

Core Insights - United Rentals (URI) reported revenue of $4.1 billion for the quarter ended December 2024, reflecting a year-over-year increase of 9.8% [1] - The earnings per share (EPS) for the quarter was $11.59, up from $11.26 in the same quarter last year, although it fell short of the consensus estimate of $11.77 by 1.53% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.94 billion, resulting in a positive surprise of 3.89% [1] Revenue Breakdown - Equipment rentals generated $3.42 billion, surpassing the six-analyst average estimate of $3.34 billion, with a year-over-year increase of 9.7% [4] - Service and other revenues amounted to $86 million, slightly above the average estimate of $84.13 million, marking a 3.6% year-over-year change [4] - Contractor supplies sales reached $39 million, exceeding the average estimate of $37.72 million, representing an 8.3% increase year over year [4] - Sales of new equipment were reported at $96 million, significantly higher than the average estimate of $56.41 million, showing an impressive year-over-year growth of 84.6% [4] - Sales of rental equipment totaled $452 million, above the average estimate of $422.76 million, with a year-over-year increase of 3.2% [4] - Specialty contractor supplies sales were $17 million, exceeding the estimated $15.49 million, reflecting a 21.4% year-over-year change [4] - Specialty equipment rentals generated $1.08 billion, surpassing the average estimate of $1.01 billion, with a year-over-year increase of 30.5% [4] - Specialty sales of new equipment reached $29 million, above the average estimate of $26.34 million, marking a 26.1% year-over-year increase [4] - Specialty sales of rental equipment were $57 million, exceeding the average estimate of $45.20 million, with a year-over-year growth of 46.2% [4] - Specialty service and other revenues were reported at $8 million, slightly above the estimated $7.48 million, but showing an 11.1% decrease year over year [4] - General rentals generated $2.90 billion, surpassing the two-analyst average estimate of $2.81 billion, with a year-over-year increase of 3.1% [4] - General rentals service and other revenues were $78 million, exceeding the average estimate of $65.25 million, reflecting a 5.4% year-over-year change [4] Stock Performance - United Rentals shares have returned +8.9% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - United Rentals reported quarterly earnings of $11.59 per share, missing the Zacks Consensus Estimate of $11.77 per share, but showing an increase from $11.26 per share a year ago, indicating a -1.53% earnings surprise [1] Financial Performance - The company posted revenues of $4.1 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.89%, compared to year-ago revenues of $3.73 billion [2] - Over the last four quarters, United Rentals has exceeded consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - United Rentals shares have increased approximately 8.9% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $9.22 on revenues of $3.59 billion, and for the current fiscal year, it is $46.06 on revenues of $15.76 billion [7] Industry Context - The Building Products - Miscellaneous industry, to which United Rentals belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Total revenue for Q4 2024 reached $4.095 billion, with rental revenue of $3.422 billion, marking a year-over-year increase of 9.7%[7] - Net income for Q4 2024 was $689 million, with a net income margin of 16.8%, reflecting a 1.5% increase year-over-year[13] - Adjusted EBITDA for Q4 2024 was $1.900 billion, with an adjusted EBITDA margin of 46.4%, a decrease of 210 basis points from the previous year[13] - Net income for the year ended December 31, 2024, was $2,575 million, compared to $2,424 million in 2023, reflecting a 6.2% increase[25] - Diluted earnings per share for Q4 2024 were $10.47, an increase from $10.01 in Q4 2023[25] - Diluted earnings per share for the year ended December 31, 2024, was $38.69, up from $35.28 in 2023, reflecting a 6.8% increase[36] - The net income margin for Q4 2024 was 16.8%, slightly down from 18.2% in Q4 2023[44] - The adjusted EBITDA margin for the year ended December 31, 2024, was 46.7%, compared to 47.8% in 2023[44] Revenue Breakdown - Equipment rentals contributed $3,422 million to revenues, up 9.7% from $3,119 million year-over-year[25] - Total equipment rentals revenue for the three months ended December 31, 2024, was $3,422 million, representing a 9.7% increase compared to $3,119 million in 2023[34] - Specialty equipment rentals revenue increased by 30.5% year-over-year for the three months ended December 31, 2024, reaching $1,083 million[34] Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was $4.546 billion, with free cash flow of $2.058 billion[7] - Net cash provided by operating activities for the year ended December 31, 2024, was $4,546 million, down from $4,704 million in 2023, a decrease of 3.4%[49] - Net cash provided by operating activities for Q4 2024 was $1,048 million, down from $1,414 million in Q4 2023, a decline of 26%[49] - Free cash flow for Q4 2024 was $847 million, a decrease from $1,149 million in Q4 2023, indicating a decline of 26.3%[49] Shareholder Returns - The company returned $1.934 billion to shareholders in 2024, including $1.500 billion in share repurchases and $434 million in dividends[7] - A 10% increase in the quarterly dividend was approved, resulting in a dividend of $1.79 per share payable on February 26, 2025[17] - The company declared dividends of $1.63 per share in Q4 2024, up from $1.48 in Q4 2023[25] Future Outlook - The 2025 outlook projects total revenue between $15.6 billion and $16.1 billion, with adjusted EBITDA expected to be between $7.2 billion and $7.45 billion[9] - The company plans net rental capital expenditures of $2.2 billion to $2.5 billion for 2025, after gross purchases of $3.65 billion[9] - The company expects free cash flow for 2025 to be between $2,000 million and $2,200 million, excluding merger and restructuring related payments[51] - Future outlook includes continued investment in new technologies and market expansion efforts[21] Asset and Debt Management - The company’s total assets increased to $28,163 million in 2024, up from $25,589 million in 2023[27] - Long-term debt rose to $12,228 million in 2024, compared to $10,053 million in 2023, indicating increased leverage[27] - The net leverage ratio at year-end 2024 was 1.8x, with total liquidity of $2.845 billion[17] Operational Efficiency - Fleet productivity increased by 4.3% year-over-year, with a 2.0% increase when excluding the impact of the Yak acquisition[7] - The company’s total equipment rentals gross profit for the year ended December 31, 2024, was $5,198 million, an 8.0% increase from $4,814 million in 2023[34] - The gross margin for total equipment rentals decreased by 130 basis points to 40.0% for the three months ended December 31, 2024[34] - The year-over-year change in average owned equipment cost (OEC) for the three months ended December 31, 2024, was 4.1%[32] Restructuring and Acquisitions - The company incurred total restructuring charges of $383 million since 2008, with no open restructuring programs currently[44] - The company is focused on closing the H&E acquisition and expects to increase its leverage ratio as part of this strategy[21]

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].