Here's What Key Metrics Tell Us About United Rentals (URI) Q4 Earnings

Core Insights - United Rentals (URI) reported revenue of $4.21 billion for the quarter ended December 2025, reflecting a year-over-year increase of 2.8% but a revenue surprise of -1.14% compared to the Zacks Consensus Estimate of $4.26 billion [1] - The earnings per share (EPS) for the quarter was $11.09, down from $11.59 in the same quarter last year, with an EPS surprise of -6.84% against the consensus estimate of $11.90 [1] Revenue Breakdown - Equipment rentals generated $3.58 billion, slightly below the average estimate of $3.59 billion, marking a year-over-year increase of 4.7% [4] - Sales of rental equipment totaled $386 million, significantly lower than the estimated $417.06 million, representing a year-over-year decline of 14.6% [4] - Service and other revenues were reported at $90 million, in line with the estimate of $90.88 million, showing a year-over-year increase of 4.7% [4] - Contractor supplies sales reached $43 million, exceeding the estimate of $40.63 million, with a year-over-year growth of 10.3% [4] - Sales of new equipment amounted to $108 million, surpassing the estimate of $104.26 million, reflecting a year-over-year increase of 12.5% [4] Gross Margin Analysis - Gross margin for equipment rentals was $1.35 billion, below the estimated $1.44 billion [4] - Gross margin from sales of rental equipment was $175 million, compared to the average estimate of $180.01 million [4] - Gross margin for sales of new equipment was $22 million, slightly above the estimate of $20.1 million [4] - Gross margin from contractor supplies sales was $16 million, exceeding the estimate of $15.47 million [4] - Gross margin for service and other revenues was $31 million, below the estimate of $32.57 million [4] - Gross margin by revenue for general rentals was $869 million, lower than the estimate of $899.66 million [4] - Gross margin by revenue for specialty rentals was $477 million, significantly below the estimate of $570.75 million [4] Stock Performance - Shares of United Rentals have returned +11% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of +0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]