Core Insights - United Rentals reported revenue of $3.94 billion for the quarter ended June 2025, reflecting a 4.5% increase year-over-year, and EPS of $10.47, slightly down from $10.70 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $3.91 billion by 0.86%, while the EPS fell short of the consensus estimate of $10.54 by 0.66% [1] Revenue Breakdown - Equipment rentals generated $3.42 billion, surpassing the average estimate of $3.34 billion, marking a 6.2% year-over-year increase [4] - Sales of rental equipment totaled $317 million, below the average estimate of $358.01 million, representing a 13.2% decline year-over-year [4] - Service and other revenues reached $95 million, slightly below the average estimate of $96.27 million, with a year-over-year increase of 5.6% [4] - Contractor supplies sales amounted to $41 million, slightly below the average estimate of $41.45 million, reflecting a 2.4% decrease year-over-year [4] - Sales of new equipment were $75 million, exceeding the average estimate of $66.89 million, with a significant year-over-year increase of 23% [4] Gross Margin Analysis - Gross margin from sales of rental equipment was $146 million, below the average estimate of $161.38 million [4] - Gross margin from contractor supplies sales was $13 million, slightly above the average estimate of $12.76 million [4] - Gross margin from equipment rentals was $1.32 billion, in line with the average estimate of $1.3 billion [4] - Gross margin from service and other revenues was $39 million, exceeding the average estimate of $37.63 million [4] - Gross margin from sales of new equipment was $14 million, above the average estimate of $12.41 million [4] - Specialty equipment rentals gross margin was $525 million, surpassing the average estimate of $492.48 million [4] - General rentals gross margin was $796 million, slightly below the average estimate of $809.41 million [4] Stock Performance - United Rentals shares have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% 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 $10.47 per share, missing the Zacks Consensus Estimate of $10.54 per share, and showing a decrease from $10.7 per share a year ago, indicating an earnings surprise of -0.66% [1][2] Financial Performance - The company posted revenues of $3.94 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.86%, and showing an increase from $3.77 billion year-over-year [2] - Over the last four quarters, United Rentals has exceeded consensus revenue estimates three times [2] Stock Performance - United Rentals shares have increased approximately 12.3% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $12.30 for the coming quarter and $43.63 for the current fiscal year [7] - The Zacks Rank for United Rentals is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Building Products - Miscellaneous industry, to which United Rentals belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Exhibit 99.1 United Rentals, Inc. 100 First Stamford Place, Suite 700 Stamford, CT 06902 Telephone: 203 622 3131 unitedrentals.com United Rentals Announces Second Quarter 2025 Results, Raises Full-Year Guidance, and Increases Planned 2025 Share Repurchases by $400 Million to $1.9 Billion STAMFORD, Conn. – July 23, 2025 – United Rentals, Inc. (NYSE: URI) today announced financial results for the second quarter of 2025, raised its 2025 full-year guidance for total revenue, adjusted EBITDA , net cash provided ...

Financial Performance - Total revenues for Q2 2025 reached $3,943 million, a 4.5% increase from $3,773 million in Q2 2024[19] - Net income for the six months ended June 30, 2025, was $1,140 million, compared to $1,178 million for the same period in 2024, reflecting a decrease of 3.2%[19] - The company reported a gross profit of $1,533 million for Q2 2025, slightly up from $1,518 million in Q2 2024[19] - Total revenues for the six months ended June 30, 2025, reached $7,662 million, a 5.6% increase compared to $7,258 million in 2024[45] - The company reported a comprehensive income of $752 million for Q2 2025, compared to $623 million in Q2 2024, an increase of 20.7%[21] - Net income for the three months ended June 30, 2025, was $622 million, with diluted earnings per share of $9.59, while for the six months, net income was $1.14 billion, with diluted earnings per share of $17.48[120] Revenue Sources - Equipment rentals contributed $3,415 million to revenues in Q2 2025, up 6.2% from $3,215 million in Q2 2024[19] - Owned equipment rentals accounted for 69% of total revenues for the six months ended June 30, 2025, totaling $5,267 million, compared to $5,008 million in 2024[47] - Equipment rental revenue accounted for 77% of total revenues for the six months ended June 30, 2025, amounting to $2.368 billion in net accounts receivable[62][65] - Equipment rentals accounted for 86% of total revenues for the six months ended June 30, 2025[113] - Equipment rentals for the six months ended June 30, 2025, increased by $416 million, or 6.8%, totaling $6.560 billion, primarily due to a 3.5% increase in average OEC[138] Expenses and Liabilities - Total liabilities rose to $20,171 million as of June 30, 2025, up from $19,541 million at the end of 2024, an increase of 3.2%[16] - SG&A expenses increased by 8.3% year-over-year for the six months ended June 30, 2025, totaling $859 million[163] - Interest expense, net increased by 6.6% year-over-year for the six months ended June 30, 2025, primarily due to bridge financing fees associated with the terminated H&E acquisition[167] Cash Flow and Investments - Net cash provided by operating activities increased to $2,753 million, up 20.1% from $2,294 million in the same period last year[32] - Net cash used in investing activities decreased to $1,572 million from $2,466 million in the previous year, reflecting a reduction in capital expenditures[32] - Free cash flow for the six months ended June 30, 2025, was $1.198 billion, up from $1.065 billion in 2024, reflecting improved working capital activities[184] Shareholder Returns - The company declared dividends of $1.79 per share for Q2 2025, compared to $1.63 per share in Q2 2024[28] - Dividends paid during the six months ended June 30, 2025, totaled $235 ($3.58 per share), compared to $219 ($3.26 per share) in the same period of 2024, reflecting a 7.3% increase[117] - The company reported total cash used for share repurchases during the six months ended June 30, 2025, was $720 million, compared to $791 million in the same period of 2024[182] Assets and Capital Structure - Total assets increased to $29,206 million as of June 30, 2025, compared to $28,163 million at the end of 2024, marking a growth of 3.7%[16] - Cash and cash equivalents at the end of the period increased to $548 million from $467 million in 2024[32] - The company had available liquidity of $2.996 billion as of June 30, 2025, including cash and cash equivalents and availability under credit facilities[115] Strategic Initiatives - The company signed a merger agreement to acquire H&E in January 2025, but the agreement was terminated in February 2025[94] - The company expanded its specialty business through the acquisition of Yak Access, LLC and related entities in March 2024, enhancing its position as a total jobsite solutions provider[121] - The company aims to pursue strategic acquisitions to expand its core equipment rental business, as demonstrated by the acquisition of Ahern Rentals' assets in December 2022[121] Tax and Regulatory Matters - The effective tax rate applied to net income for the six months ended June 30, 2025, was 25.2%[122] - The company is currently evaluating the impact of new federal tax legislation enacted on July 4, 2025, which includes provisions for bonus depreciation and changes to international tax rates[170] Risk Management - The company does not engage in purchasing forward exchange contracts for speculative purposes, indicating a conservative approach to currency exchange risk[196] - The company has $4.3 billion in variable rate debt, with a potential annual after-tax earnings decrease of approximately $32 for each 1% increase in interest rates[194]

Company Overview - United Rentals (URI) is a leading equipment rental company with a vast fleet of construction and industrial equipment across North America and Europe [3] - The company has experienced significant growth, with its stock soaring 1,100% over the past decade, outperforming both the Zacks Construction Sector and the S&P 500 [4] Financial Performance - URI has averaged 16% revenue growth and 36% GAAP earnings expansion over the past four years [10] - The company is projected to see a slowdown in growth, with anticipated sales growth of 4% in 2025 and 5% next year, following a period of substantial growth [10] - Earnings are expected to expand by 1% this year and 10% next year, supported by upward EPS revisions [10] Market Position and Valuation - URI's stock is currently trading 13% below its November highs and at a 6% discount to the Construction sector, as well as 22% below the S&P 500, with a forward earnings multiple of 17.6X [5][7] - The company is positioned for potential breakout opportunities, especially ahead of its upcoming Q2 earnings report [7] Strategic Initiatives - United Rentals has announced a new $1.5 billion share repurchase program, indicating confidence in its financial health and commitment to returning value to shareholders [13] - The company also pays a dividend, adding to its attractiveness for long-term investors [13] Industry Context - The ongoing investment super cycle in energy infrastructure and manufacturing/reshoring is benefiting United Rentals, contributing to its strong performance relative to market benchmarks [4]

Core Viewpoint - Analysts forecast that United Rentals (URI) will report quarterly earnings of $10.54 per share, reflecting a year-over-year decline of 1.5%, with anticipated revenues of $3.91 billion, an increase of 3.6% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.4% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenues- Equipment rentals' to reach $3.34 billion, a change of +3.8% from the year-ago quarter [5]. - 'Revenues- Service and other revenues' are expected to be $96.27 million, indicating a +7% change from the prior year [5]. - 'Revenues- Contractor supplies sales' are estimated at $41.45 million, reflecting a -1.3% year-over-year change [6]. - 'Revenues- Sales of new equipment' are projected to be $66.89 million, showing a +9.7% change [6]. - 'Revenues- Sales of rental equipment' are expected to be $358.01 million, indicating a -1.9% change [6]. - 'Revenues- Specialty- Contractor supplies sales' are estimated at $18.21 million, reflecting a -4.2% change [7]. - 'Revenues- Specialty- Equipment rentals' are projected to reach $1.09 billion, indicating an +8.4% change [7]. - 'Revenues- Specialty- Sales of new equipment' are expected to be $33.08 million, reflecting a -2.7% change [8]. - 'Revenues- Specialty- Sales of rental equipment' are projected at $49.22 million, indicating a -5.4% change [8]. - 'Revenues- Specialty- Service and other revenues' are expected to be $10.08 million, reflecting an +11.9% change [9]. - 'Total Revenues- General rentals' are projected to reach $2.71 billion, indicating a +2% change [9]. - 'Revenues- General Rentals- Service and other revenues' are expected to be $93.63 million, reflecting a +15.6% change [9]. Stock Performance - Shares of United Rentals have increased by +14.6% in the past month, outperforming the +5.4% move of the Zacks S&P 500 composite [10].

Core Viewpoint - United Rentals, Inc. (URI) is expected to report its second-quarter 2025 results on July 23, with projected revenue growth driven by strong demand in construction and industrial sectors, despite margin pressures from lower-margin revenue sources [1][3][8]. Revenue Estimates - The Zacks Consensus Estimate for second-quarter adjusted earnings has decreased to $10.54 per share, indicating a 1.5% decrease from the previous year's earnings of $10.70 per share [2]. - The consensus estimate for revenues is pegged at $3.91 billion, reflecting a growth of 3.6% from the prior-year quarter [2]. Revenue Growth Drivers - Revenue growth is anticipated due to solid demand from large infrastructure and industrial projects, including developments in data centers, pharmaceuticals, airports, and industrial manufacturing facilities [3]. - Specialty rentals, which offer higher returns, are expected to contribute to revenue growth both organically and through new market expansions [4]. Segment Performance - General Rentals, contributing 70.7% to total revenues, is projected to see a revenue increase of 2.2% to $2.26 billion, while Specialty Rentals are expected to grow by 6.8% to $1.07 billion year-over-year [5]. - Equipment Rentals, accounting for 84.6% of total revenues, is likely to witness a 3.7% year-over-year increase to $3.33 billion [6][7]. Earnings and Margins - Despite expected revenue growth, margin pressures are likely due to a higher proportion of lower-margin revenue sources, including used equipment and new equipment sales [8]. - Adjusted EBITDA is expected to grow by 1.5% year-over-year to $1.8 billion, but the adjusted EBITDA margin is projected to decline by 110 basis points to 45.8% [9]. Earnings Prediction - The model predicts an earnings beat for United Rentals, supported by a positive Earnings ESP of +5.33% and a Zacks Rank of 2 (Buy) [10][11].

Core Insights - The report provides a comprehensive analysis of the North American Temporary Heating Market, focusing on market size, growth rates, and revenue forecasts from 2024 to 2031 for the United States and Canada [1][4]. Market Overview - The study includes market share splits by equipment type (steam, electric, ground thaw, indirect-fired, direct-fired, flameless, and hydronic surface heaters), country (United States and Canada), and end-user groups (construction, industrial, mining, oil & gas, emergency, events, and others) [2]. - The base year for the study is 2024, with projections extending to 2031 [4]. Market Segmentation - The report details segmentation by type of equipment, end-user, and application, providing insights into the distribution of market shares by revenue for rental providers [2][7]. - It includes analysis by output capacity, categorizing heaters into ranges such as less than 300k BTU/hr, 350k-750k BTU/hr, 750k-1 MBTU/hr, 1-2 MBTU/hr, and above 2 MBTU/hr [9]. Revenue Insights - The report presents revenue-based market share data for 2024, highlighting the end-user market share across various sectors including Construction, Oil & Gas, Industrial, Emergency, Events, Mining, and Others [9]. - It also provides insights into North American Temporary Heating revenues for the years 2022 and 2029 [11]. Market Dynamics - The report identifies key market drivers and restraints, offering a detailed analysis of overall market trends [8][9]. - It includes profiles of major companies in the market, such as Aggreko plc, CAT Dealership Network, Herc Rentals Inc., Resolute Industrial LLC, Sunbelt Rentals Inc., and United Rentals Inc. [9].

Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider United Rentals (URI) and Armstrong World Industries (AWI) for potential value investment opportunities [1] Valuation Metrics - URI has a forward P/E ratio of 18.29, while AWI has a forward P/E of 23.34, indicating that URI may be undervalued compared to AWI [5] - URI's PEG ratio is 1.95, which is lower than AWI's PEG ratio of 2.06, suggesting URI has a more favorable earnings growth expectation relative to its price [5] - URI's P/B ratio is 5.9, compared to AWI's P/B of 8.98, further supporting the notion that URI is a better value option [6] Analyst Outlook - URI currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while AWI has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for URI positions it as a superior value option in the current market [7]

Industry Overview - The Zacks Building Products - Miscellaneous industry is experiencing growth due to increased government infrastructure spending, which is driving demand for construction-related products and services [1] - Key players in the industry, such as United Rentals, Inc., Masco Corporation, Construction Partners, Inc., Hillman Solutions Corp., and Quanex Building Products Corporation, are well-positioned to capitalize on these trends [1] Current Challenges - The industry faces near-term challenges from high mortgage rates, affordability concerns, and inflation-related cost pressures, including tariffs on raw materials like iron, steel, and copper [2] - Despite these challenges, proactive cost management and pricing strategies are helping to mitigate headwinds [2] Industry Description - The industry comprises manufacturers, designers, and distributors of home improvement and building products, including ceiling systems, doors, windows, flooring, and metal products [3] - Companies also provide solutions for rehabilitating aging infrastructure and rent equipment to a diverse customer base [3] Future Trends - Strong global trends in infrastructure modernization and energy transition are expected to benefit industry players [4] - Improving residential construction markets are anticipated to drive growth, with builders cautiously optimistic for 2025 due to a lack of existing inventory [4] Operational Strategies - Industry participants are implementing cost-saving initiatives, including business consolidation and supply chain improvements, to boost profitability [5] - Strategic investments in new products and acquisitions are being pursued to supplement organic growth [5] Tariff Impact - U.S. tariff policies are increasing costs and disrupting supply chains, leading to heightened inflation [6] - Overall construction input prices were reported to be 1.1% higher in June compared to the previous year [6] Market Performance - The Zacks Building Products - Miscellaneous industry has underperformed the S&P 500 Composite and the broader Zacks Construction sector over the past year, losing 8.4% [12] - The industry is currently trading at a forward P/E ratio of 16.7X, lower than the S&P 500's 22.61X and the sector's 18.76X [15] Company Highlights - **Construction Partners**: Positioned for strong growth with a record project backlog of $2.84 billion and significant revenue growth from acquisitions [20][21] - **Quanex**: Benefiting from the acquisition of Tyman, contributing to a 67.3% year-over-year increase in consolidated sales [24][25] - **United Rentals**: Growth driven by strong demand in infrastructure projects and a stable customer sentiment, with a reaffirmed full-year guidance [27][28][29] - **Masco**: Facing a potential $400 million tariff headwind but expects to offset 50%-65% through pricing and cost reduction efforts [31][32] - **Hillman**: Aiming to reduce reliance on Chinese suppliers and maintain sales growth despite macroeconomic challenges [35][36]