Core Viewpoint - United Rentals reported mixed Q2 2025 results, with revenues exceeding estimates but earnings falling short, indicating strong demand in the construction and industrial sectors while facing margin pressures [2][3][5]. Financial Performance - Adjusted EPS was $10.47, missing the Zacks Consensus Estimate of $10.54 by 0.7%, and decreased 21% year-over-year from $10.7 [5]. - Total revenues reached $3.943 billion, surpassing the consensus mark of $3.909 billion by 0.9%, reflecting a year-over-year growth of 4.5% [5]. - Equipment Rentals revenues increased 6.2% year-over-year to $3.415 billion, marking a record high for the second quarter [6]. Segment Performance - General Rentals segment revenues grew 2.7% year-over-year to a record $2.268 billion, though rental gross margin contracted 120 basis points to 35.1% due to inflation and cost variability [8]. - Specialty segment revenues improved 14% year-over-year to a record $1.147 billion, but rental gross margin contracted 220 basis points to 45.8% due to higher depreciation expenses [9]. Margin Analysis - Total equipment rentals' gross margin contracted 130 basis points year-over-year to 38.7%, while adjusted EBITDA grew 2.3% year-over-year to $1.81 billion, with the adjusted EBITDA margin contracting 100 basis points to 45.9% [10]. Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents were $548 million, with total liquidity at $2.996 billion and long-term debt at $12.1 billion [11]. - Net cash from operating activities improved 20% year-over-year to $2.753 billion, and free cash flow grew 12.5% year-over-year to $1.198 billion [12]. 2025 Guidance - The company raised its 2025 revenue outlook to $15.8-$16.1 billion, up from the previous range of $15.6-$16.1 billion, indicating growth from $15.345 billion reported in 2024 [13]. - Adjusted EBITDA is now projected to be between $7.3 billion and $7.45 billion, an increase from the prior estimate of $7.2 billion to $7.45 billion [13]. - Free cash flow expectations have also been raised to a range of $2.4-$2.6 billion, up from $2-$2.2 billion [15].