United Rentals Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.95%.
Did URI Beat Earnings? Q1 2026 Results
United Rentals posted a strong first quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as the equipment rental giant reported what it characterized as record Q1 figures across key metrics. Adjusted EPS of $9.71 came in 8.63% above the $8.94 consensus estimate, while revenue of $3.98 billion topped expectations by 2.85% and grew 7.2% year-over-year, lifted primarily by an 8.7% surge in rental revenue to $3.42 billion. Fleet productivity improvements of 2.3% and a 5.7% expansion in average original equipment cost were central to the beat, with General Rentals margin expanding 150 basis points even as $45.00 million in restructuring charges weighed on results. Institutional sentiment around the stock has been mixed in recent weeks, with some investors trimming positions, though the company's underlying momentum appears intact. Management raised full-year 2026 guidance, now targeting total revenue of $16.90 billion to $17.40 billion, and expects to complete $1.50 billion in share repurchases throughout the year.
- Fleet productivity increased 2.3% year-over-year
- Average OEC increased 5.7% year-over-year
- General Rentals rental gross margin improved 150 basis points to 33.8%
- Rental revenue grew 8.7% year-over-year to $3.419 billion
- SG&A expenses reduced as a percentage of revenue
- Interest expense declined as a percentage of revenue
- Specialty segment grew 13.8% driven by strong demand
“I am very pleased with our strong start to 2026, which again reflected our team's commitment to being the partner of choice for our customers. We reported first-quarter records in EPS, adjusted EBITDA and revenue, supported by healthy growth and solid execution across both our general rentals and specialty businesses. We remain confident that our focus on improving our customers' efficiency and productivity through our one-stop-shop approach, coupled with our industry-leading technology and world-class service, keeps us positioned to both outperform the market and generate strong shareholder returns.”
United Rentals CEO, on the earnings call
Forward Guidance & Outlook
United Rentals raised its full-year 2026 guidance across all key metrics. Total revenue is now expected at $16.9 billion to $17.4 billion (up from $16.8 billion to $17.3 billion). Adjusted EBITDA is expected at $7.625 billion to $7.875 billion (up from $7.575 billion to $7.825 billion). Net rental capital expenditures after gross purchases are projected at $2.95 billion to $3.35 billion, after gross purchases of $4.4 billion to $4.8 billion. Net cash provided by operating activities is expected at $5.4 billion to $6.2 billion. Free cash flow excluding restructuring related payments is expected at $2.15 billion to $2.45 billion. The guidance raise is supported by momentum heading into the busy season and growth opportunities in large projects and key verticals. The company expects to complete $1.5 billion in share repurchases during 2026.
URI YoY Financials
URI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.