United Rentals(US:URI) ZACKS·2025-10-20 13:06Core Insights - United Rentals, Inc. (URI) is set to report its third-quarter 2025 results on October 22, with adjusted earnings per share expected to rise 5.9% year-over-year to $12.50, while revenues are projected to grow 4.1% to $4.16 billion [1][3][10]. Revenue Performance - The company is anticipated to experience revenue growth in Q3 2025, driven by strong demand in construction and industrial markets, particularly from large infrastructure projects [4]. - Specialty rentals, which are crucial for United Rentals' expansion strategy, are expected to contribute to revenue growth through both organic means and new market entries [5]. - Revenue from General Rentals is predicted to increase by 4.7% to $2.87 billion, while Specialty Rentals are expected to rise by 2% to $1.27 billion year-over-year [6]. Segment Analysis - Equipment Rentals, which constituted 86.6% of total revenues in Q2 2025, is projected to see a 2.2% increase in revenues to $3.54 billion [7][8]. - New Equipment Sales are expected to rise by 8.4%, while sales of Rental Equipment and Contractor Supplies are forecasted to increase by 13.8% and 6.7%, respectively [8]. Earnings and Margins - The company is expected to report improved margins and earnings due to higher fleet productivity and effective rate management, with adjusted EBITDA anticipated to grow 4.1% to $1.98 billion [9][11]. - The adjusted EBITDA margin is expected to increase by 10 basis points to 47.8%, and the gross margin is projected to expand by 30 basis points to 41.6% [11]. Earnings Estimates - The Zacks Consensus Estimate for adjusted earnings has remained stable at $12.50 per share, reflecting a 5.9% increase from the previous year [3][10]. - Despite the positive outlook, the model does not predict an earnings beat for United Rentals this quarter, as the Earnings ESP stands at 0.00% [12].