27.10.2022
Strong quarter for United
US based United Rentals has posted its third quarter results, showing strong revenue growth with a substantial increase in profits.
Year to date
Total revenues for the nine months to the end of September were $8.35 billion an increased of more than 20 percent compared to the same period last year. Growth was largely driven by higher rental proceeds, with sales of new and used equipment falling, while other revenues streams were relatively flat. Pre-tax profit for the period jumped 58 percent to $1.91 billion.
Moving onto the third quarter total revenues improved more than 18 percent to $3.05 billion, with a similar profile to the year to date numbers. Pre-tax profits for the period came in 48 percent higher at $816 million.
Outlook
The company has increased its full year projections slightly to revenues of between $11.5 and $11.7 billion while expecting capital expenditure to come in at around $3.25 to $3.45 billion.
chief executive Matthew Flannery said: “Our strong third quarter results reflect the momentum we’ve sustained throughout this year, and particularly in our busiest season. Once again, our team did an outstanding job meeting customer needs safely and efficiently as we continued to lean into growth. We’re guiding to higher full year revenue and adjusted EBITDA, as well as an increase in rental capex, based on the sustained demand we see in our end-markets and the strength of our core rental results.”
“While there are clearly cross currents in the economy, virtually all key non-residential construction indicators remain encouraging, including customer sentiment. In addition, we see substantial opportunities next year across federally funded infrastructure projects, industrial manufacturing, energy and power. We expect to deliver another year of profitable growth, strong cash flow, and attractive returns for our shareholders.”
Vertikal Comment
Another very strong performance from United which is not only benefiting from the buoyant market but is also getting the most out of its strengths, including market coverage, product range and availability and improving price discipline.
Comments