United Rentals, Inc. (URI) is listed on NYSE and operates in the Rental & Leasing Services industry (Industrials sector).
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its cu...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 28 |
| Hold | 7 |
| Sell | 5 |
| Strong Sell | 0 |
United Rentals, Inc., established in 1997 and headquartered in Stamford, Connecticut, is a leading equipment rental company operating through its subsidiaries. The company functions in two primary segments: General Rentals and Specialty. The General Rentals segment offers a range of construction and industrial equipment, including earthmoving machinery, material handling equipment, aerial work platforms, and general tools. This segment caters to construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The Specialty segment provides specialized construction products, such as trench safety equipment, power and HVAC systems, fluid solutions, and mobile storage and modular office space. It primarily serves construction companies involved in infrastructure projects, municipalities, and industrial firms. United Rentals also sells equipment like aerial lifts, telehandlers, compressors, and generators, along with construction consumables, tools, and safety supplies. Additionally, the company offers repair and maintenance services and sells used equipment through various channels. United Rentals operates a network of 1,360 rental locations across the United States, Canada, Europe, Australia, and New Zealand.
Over the past three fiscal years, the company has demonstrated a consistent increase in revenue, growing at a compound annual growth rate (CAGR) of 6.0% from $14.33 billion in 2023 to $16.10 billion in 2025. Despite this top-line growth, profitability metrics have shown a consistent decline, with gross margin decreasing by 2.1 percentage points (pp) to 35.4%, operating margin declining by 2.2pp to 24.7%, and net margin compressing by 1.4pp to 15.5%. This margin compression suggests that the company faced rising costs or inefficiencies that outpaced revenue growth. Earnings per share (EPS) exhibited inconsistency, growing at a 4.6% CAGR, ending at $38.61 in 2025, indicating some volatility in earnings quality. Cash flow from operations (OCF) increased to $5.19 billion, while free cash flow (FCF) showed inconsistency, ending at $662 million with a margin of 4.1%, reflecting fluctuating capital expenditures or working capital needs. The company’s net debt position increased significantly, growing at a 14.1% CAGR to $16.02 billion, which may raise concerns about leverage and financial flexibility. Despite these challenges, the company executed a share buyback program, reducing its share count by 6.0%, which likely enhanced per-share value for existing shareholders. However, liquidity remains a concern with a current ratio below 1, indicating potential short-term financial constraints.
United Rentals (URI) recently reported its Q1 earnings, surpassing both earnings and revenue estimates, as announced on April 22. This positive financial performance comes amidst a backdrop of analyst activity, with the company receiving a "Moderate Buy" consensus from brokerages. Notably, Royal Bank of Canada and Citigroup have lowered their price targets to $1,123 and $1,090, respectively, while Truist Financial set a target of $972. In terms of institutional activity, Cardinal Capital Management Inc. increased its holdings in United Rentals, with its position valued at $33.8 million at the end of the most recent quarter. Additionally, Mirae Asset Global Investments Co. Ltd. and National Pension Service have also boosted their stakes, reflecting continued institutional interest. These developments indicate a strong market position for United Rentals, despite some downward adjustments in analyst price targets. The company's robust earnings performance and sustained institutional interest suggest confidence in its operational strategy and market prospects.