United Rentals (URI) Reports Q2 Earnings: What Key Metrics Have to Say

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]