United Rentals Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did URI Beat Earnings? Q4 2025 Results
United Rentals delivered a mixed fourth quarter for fiscal 2025, posting revenue that cleared Wall Street expectations while earnings fell short of the mark. The world's largest equipment rental company reported Q4 revenue of $4.21 billion, up 2.8% year-over-year and well ahead of the $3.90 billion consensus estimate, yet adjusted EPS of $11.09 missed the $11.80 analyst forecast by 6.05%, underscoring the margin pressure that defined the period. The shortfall traced most directly to cost headwinds in the specialty rentals segment, where depreciation from the matting business and fleet repositioning expenses drove rental gross margin down 520 basis points to 40.3%, even as specialty revenue grew a robust 9.2%. Net income fell 5.2% to $653 million, with the margin contracting 130 basis points to 15.5%. A director's open-market stock purchase following the results offered a quiet vote of confidence. Looking ahead, management guided 2026 total revenue of $16.80 billion to $17.30 billion, with a new $5.00 billion buyback authorization and a 10% dividend increase signaling continued shareholder returns.
- Fleet productivity increased 0.5% year-over-year in Q4 and 2.2% for the full year
- Average original equipment cost (OEC) increased 4.5% year-over-year in Q4
- Specialty rentals segment rental revenue grew 9.2% year-over-year driven by large projects and dispersed geographic demand
- Rental revenue growth of 4.6% year-over-year in Q4
- Full-year operating cash flow increased 14.2% year-over-year to $5.190 billion
“I am very pleased that the team's commitment to again double down on being the partner of choice for our customers in 2025 resulted in a year of record revenue and EBITDA. By working hand-in-hand with our customers to provide an unmatched experience across our one-stop-shop of general and specialty rental products and services, coupled with our industry-leading technology, we improved our customers' efficiency and productivity. This ultimately positioned us to outperform the market and generate strong shareholder returns.”
United Rentals CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, United Rentals guided total revenue of $16.8 billion to $17.3 billion, adjusted EBITDA of $7.575 billion to $7.825 billion, net rental capital expenditures after gross purchases of $2.85 billion to $3.25 billion (gross purchases of $4.3 billion to $4.7 billion), net cash provided by operating activities of $5.3 billion to $6.1 billion, and free cash flow (excluding merger and restructuring related payments) of $2.15 billion to $2.45 billion. Management expects large projects and dispersed geographic demand to drive most of the growth, similar to 2025. The company plans to return approximately $2 billion to shareholders in 2026, including $1.5 billion via share repurchases and increased dividends following a 10% quarterly dividend hike.
URI YoY Financials
URI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.