United Rentals(URI) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 reached $3.719 billion, with rental revenue accounting for $3.145 billion, marking a year-over-year increase of 7.4%[7] - Net income for the quarter was $518 million, representing a net income margin of 13.9%, a decrease of 170 basis points year-over-year[13] - Adjusted EBITDA for Q1 2025 was $1.671 billion, with an adjusted EBITDA margin of 44.9%, down 60 basis points from the previous year[13] - Total revenues for the three months ended March 31, 2025, were $3,719 million, an increase of 6.7% compared to $3,485 million for the same period in 2024[27] - Net income for the three months ended March 31, 2025, was $518 million, a decrease of 4.4% from $542 million in the same period of 2024[27] - Diluted earnings per share for Q1 2025 were $7.91, compared to $8.04 in Q1 2024, representing a decline of 1.6%[27] - Adjusted EBITDA for the same period was $1,671 million, up from $1,587 million in 2024, reflecting a 5.3% increase[49] Cash Flow and Liquidity - Cash flow from operating activities rose by 38.5% year-over-year to $1.425 billion, while free cash flow increased by 24.5% to $1.082 billion[13] - Total liquidity as of March 31, 2025, was $3.345 billion, including $542 million in cash and cash equivalents[17] - Cash and cash equivalents at the end of the period were $542 million, an increase from $429 million at the end of Q1 2024[31] - For the three months ended March 31, 2025, net cash provided by operating activities was $1,425 million, an increase from $1,029 million in the same period of 2024, representing a 38.4% growth[49] - The company expects net cash provided by operating activities for 2025 to be in the range of $4,500 million to $5,100 million[54] - Free cash flow for the three months ended March 31, 2025, was $1,082 million, compared to $869 million in 2024, indicating a 24.5% increase[52] Revenue Segments - Specialty rentals segment rental revenue increased by 21.8% year-over-year to $1.046 billion, with a pro forma increase of 14.8%[13] - Equipment rentals revenue was $3,145 million, up from $2,929 million, reflecting a growth of 7.4% year-over-year[27] - Total equipment rentals revenue increased by 7.4% to $3,145 million in Q1 2025, compared to $2,929 million in Q1 2024[37] - Specialty equipment rentals revenue surged by 21.8% to $1,046 million, up from $859 million year-over-year[37] Financial Stability - The net leverage ratio improved to 1.7x as of March 31, 2025, down from 1.8x at the end of 2024[17] - Total liabilities decreased to $19,261 million from $19,541 million, indicating improved financial stability[30] - The company reported total assets of $28,050 million as of March 31, 2025, a slight decrease from $28,163 million at the end of 2024[30] Shareholder Returns - A new $1.5 billion share repurchase program was announced, expected to be completed by the end of Q1 2026[15] - The company declared dividends of $1.79 per share for Q1 2025, an increase from $1.63 per share in Q1 2024[27] Operational Insights - Fleet productivity increased by 3.1% year-over-year, with a pro forma increase of 1.9% when including the Yak acquisition[13] - The company has approximately 27,300 employees and operates 1,601 rental locations globally, with a fleet of equipment valued at $21.21 billion[21] - The company incurred a restructuring charge of $1 million in Q1 2025, consistent with the previous year[47] - Payments for purchases of rental equipment for the three months ended March 31, 2025, were $661 million, compared to $511 million in 2024, showing a 29.4% increase[52] - Cash paid for interest in the three months ended March 31, 2025, was $222 million, an increase from $195 million in 2024[49] - The company reported a gain on sales of rental equipment of $167 million for the three months ended March 31, 2025, compared to $187 million in 2024[49] Future Outlook - The company reaffirmed its 2025 full-year guidance, projecting total revenue between $15.6 billion and $16.1 billion[9] - The company anticipates challenges from global economic conditions, including inflation and supply chain constraints, which may impact future performance[23] - Adjusted EBITDA forecasts are provided, but the company cannot predict all components accurately due to external factors[20] - Projected free cash flow excluding merger and restructuring related payments for 2025 is estimated to be between $2,000 million and $2,200 million[54] - Total restructuring charges incurred since 2008 amount to $384 million, with no open restructuring programs currently[49]