Financial Data and Key Metrics Changes - Total revenue for Q4 2023 grew by 13% year-over-year to $3.7 billion, marking a record for the fourth quarter [6] - Rental revenue increased by 13.5%, with adjusted EBITDA rising almost 10% to over $1.8 billion, resulting in a margin of 48% [6][15] - Adjusted EPS grew by 16% to $11.26, while free cash flow exceeded $2.3 billion for the year [7][18] Business Line Data and Key Metrics Changes - Fourth quarter rental revenue reached a record $3.12 billion, up $372 million or 13.5% year-over-year, driven by diverse strength across end markets [13] - Adjusted EBITDA for the quarter was a record $1.81 billion, reflecting a year-over-year increase of $162 million or 10% [15] - Ancillary revenues within rental increased by 14.2%, consistent with rental revenue growth [16] Market Data and Key Metrics Changes - Industrial end markets saw healthy growth, particularly in industrial manufacturing and power, with solid growth in construction markets [8] - Geographically, rental revenue in specialty increased by 15% year-on-year, reflecting double-digit growth across all businesses [8] Company Strategy and Development Direction - The company plans to return nearly $2 billion of cash to shareholders in 2024, with a reduced leverage target of 1.5 to 2.5 times [9][24] - The focus remains on funding growth through attractive returns, both organically and via acquisitions, while also returning excess free cash flow to shareholders [22][24] - The company aims to achieve its 2028 aspirational goals, emphasizing operational excellence and customer-centric strategies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, supported by customer sentiment indicators and solid backlogs, despite a transition year with expected mid-single-digit growth [20][58] - The company remains confident in its ability to generate strong free cash flow throughout the cycle, which is seen as a hallmark of its business model [7][18] Other Important Information - The company returned over $1.4 billion to shareholders in 2023, including $1 billion through share repurchases and $406 million via dividends [19] - The net leverage ratio improved to 1.6 times at the end of the quarter, with total liquidity exceeding $3.3 billion [19] Q&A Session Summary Question: Fleet growth and productivity expectations for 2024 - Management indicated a planned fleet growth of about 4% to 5% for 2024, with expectations for positive fleet productivity despite inflationary pressures [26][28] Question: M&A landscape and capital allocation - Management confirmed that M&A remains a priority, with a robust pipeline and a high bar for acquisitions, while also focusing on returning cash to shareholders [30][31] Question: Incremental margins and investment impacts - Management acknowledged that incremental margins are expected to be lower than historical ranges due to ongoing investments in cold starts and technology [34][35] Question: Ahern integration and GFN growth - The integration of Ahern is complete, with efficiencies expected to continue, and GFN is ahead of schedule in its growth plan [50][51] Question: Cash taxes and potential tax legislation impacts - Management discussed a significant increase in cash taxes for 2024, with potential benefits if proposed tax legislation passes [71][72]

United Rentals, Inc.’s (URI) shares gained 4% in the after-hours trading session on Jan 24 after it reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity.Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwin ...

United Rentals (URI) reported $3.73 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.1%. EPS of $11.26 for the same period compares to $9.74 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.63 billion, representing a surprise of +2.76%. The company delivered an EPS surprise of +3.78%, with the consensus EPS estimate being $10.85.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

United Rentals (URI) came out with quarterly earnings of $11.26 per share, beating the Zacks Consensus Estimate of $10.85 per share. This compares to earnings of $9.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.78%. A quarter ago, it was expected that this equipment rental company would post earnings of $11.32 per share when it actually produced earnings of $11.73, delivering a surprise of 3.62%.Over the last four quart ...

United Rentals, Inc. (URI) is scheduled to report fourth-quarter 2023 results on Jan 24, after market close.In the last reported quarter, United Rentals’ adjusted earnings and revenues topped the Zacks Consensus Estimate by 3.6% and 2.3%, respectively. This largest equipment rental company’s third-quarter 2023 adjusted earnings and revenues grew 26.5% and 23.4% year over year, respectively.Markedly, its earnings surpassed expectations in two of the trailing four quarters and missed on other two occasions, w ...

Financial Performance - Total revenues for 2023 reached $14,332 million, a 23.1% increase from $11,642 million in 2022[24] - Net income for 2023 was $2.424 billion, an increase from $2.105 billion in 2022, with diluted earnings per share rising to $35.28 from $29.65[157] - Adjusted EBITDA for 2023 rose by $1.239 billion, or 22.1%, with an adjusted EBITDA margin of 47.8%, a decrease of 50 basis points year-over-year[163] - Revenues for the year ended December 31, 2023, reflected strong demand across end-markets, continuing the trend from 2021 through 2023[167] - For the year ended December 31, 2023, net income increased by $319 million, or 15.2%, with a net income margin of 16.9%, down 120 basis points from the previous year[163] Revenue Breakdown - Equipment rental revenue accounted for 84% of total revenues in 2023, down from 87% in 2022[24] - Full year rental revenue increased by 19.3% year-over-year, including the impact of the Ahern Rentals acquisition[32] - Specialty segment revenues accounted for 25.4% of total revenues for the year ended December 31, 2023, up from 7.3% in 2013[112] - Sales of rental equipment surged by 63.1% year-over-year, reflecting a normalization of volumes after a strategic sales hold in 2022[170] - Ancillary fees accounted for approximately 16% of equipment rental revenue in 2023, with delivery and pick-up revenue being the most significant component at 8%[169] Equipment and Fleet Management - Year-over-year change in average original equipment cost (OEC) was 21.9% in 2023, compared to 13.6% in 2022[24] - The fleet OEC as of December 31, 2023, was $20.66 billion, up from $19.61 billion in 2022[24] - The company has a large and diverse rental fleet, which allows it to serve substantial customers and improve performance, with industrial and non-construction rentals representing approximately 49% of rental revenue[33] - The company offers approximately 4,800 classes of rental equipment, including general construction and industrial equipment, available for hourly, daily, weekly, or monthly rental[48] - Equipment rentals for 2023 reached $12.1 billion, a 19.3% increase from 2022, driven by a 21.9% rise in average OEC[197] Market Position and Growth - The company maintained an estimated North American market share of approximately 15% as of December 31, 2023[32] - Estimated North American equipment rental industry revenue growth was 12% in 2023, compared to 14% in 2022[24] - The company estimates a 15% market share in the North American equipment rental industry based on 2023 total rental revenues, positioning it well against smaller competitors[58] - The company is focused on optimizing field operations to improve productivity and service capabilities, although success is uncertain[99] - The company has historically achieved growth through acquisitions and will continue to explore potential acquisitions selectively[83] Debt and Financial Risks - As of December 31, 2023, the company's total indebtedness was $11.5 billion, with $3.6 billion (31%) bearing interest at variable rates[70] - The company’s ability to generate cash flow from operations is critical for servicing its debt, which is subject to various economic and market factors[71] - The company may face challenges in refinancing its indebtedness on favorable terms, which could adversely affect liquidity and operational results[72] - Economic uncertainties, including public health crises and geopolitical conflicts, could negatively impact the company's business operations and financial condition[65] - The company may require additional debt or equity financing if cash generated from operations and existing borrowings are insufficient to meet capital requirements[82] Shareholder Returns - The company completed $1.0 billion in share repurchases under its $1.25 billion program as of December 31, 2023, with plans to complete the program in Q1 2024[91] - A new share repurchase program of $1.5 billion has been authorized, with intentions to purchase $1.25 billion in 2024 and complete it by the end of Q1 2025[91] - The company paid dividends totaling $406 million in 2023, marking the first dividend payments in its history, with a quarterly dividend of $1.48 per share[155] - A quarterly dividend program was initiated in January 2023, with total dividends paid in 2023 amounting to $406 million, equating to $5.92 per share[219] Operational Challenges - The company faces risks from economic conditions, particularly in North American construction and industrial activities, which could lead to decreased demand for equipment rentals[64] - Competitive pressures in the fragmented equipment rental industry may adversely affect the company's market share and pricing power[68] - The company faces potential supply chain disruptions that could adversely affect its ability to meet customer demand, impacting financial performance[101] - Aging rental fleet may lead to increased operating costs and decreased earnings if equipment is not replaced timely[102] - The company is exposed to cybersecurity risks, which could result in significant losses or liability if systems are compromised[108] Employee and Operational Metrics - Employee headcount grew to 26,300 in 2023, up from 24,600 in 2022[24] - The company employs around 26,300 individuals, with a mix of salaried and hourly employees, and maintains good employee relations through ongoing satisfaction surveys[60] - Approximately 1,800 employees are represented by unions, which could lead to higher labor costs or disruptions in service due to potential work stoppages[123] - The company has operations in multiple countries, exposing it to foreign currency fluctuations and compliance costs with local laws[114] - The company operates 1,584 rental locations, with 1,357 in the United States, 147 in Canada, 38 in Europe, and 42 in the Asia-Pacific region[133]

Wall Street analysts expect United Rentals (URI) to post quarterly earnings of $10.85 per share in its upcoming report, which indicates a year-over-year increase of 11.4%. Revenues are expected to be $3.63 billion, up 10.1% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earni ...

United Rentals (URI) closed the most recent trading day at $550.32, moving -1.93% from the previous trading session. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.Shares of the equipment rental company witnessed a loss of 2.28% over the previous month, trailing the performance of the Construction sector with its loss of 1.43% and the S&P 500's gain of 1.2%.Market participants will be closely following the financial results o ...

Wall Street expects a year-over-year increase in earnings on higher revenues when United Rentals (URI) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January ...

STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI), the world’s largest equipment rental company, today outlined ways companies can implement sustainable business practices that reduce equipment greenhouse gas (GHG) emissions while maintaining jobsite productivity and safety. United Rentals released a white paper, "Roadmap to Low-Emission and Zero-Emission Jobsites," which shares four practical steps to reduce emissions and the tools and equipment to make sustainability strategies a reality ...