27.04.2023

Strong start for United

US rental company United Rentals has reported a strong upward surge in revenues for the first quarter, while profits grew at a slightly more modest pace.

Total revenues for the quarter were $3.28 billon, up 30 percent on the same period last year, thanks in part to the addition of the Ahern Rentals business in December. All areas of the business contributed to the growth , except for new equipment sales which were flat at best.
Pre-tax profit for the period increased 23 percent to $594 million, held back compared to revenue growth by a steep rise in interest costs and higher depreciation, as well as increased operating costs.
capex The company invested $797 million in new rental equipment during the three months, an increase of 66 percent on the $482 million spent last year.

United is now forecasting full year revenues of between $13.7 and $14.2 billion with capital expenditure on the rental fleet of between $3.3 and $3.55 billion.

Chief executive Matt Flannery said: “We are pleased with the start to 2023, as evidenced by the strength of our first quarter results across growth, profitability, and returns. As we enter our busy season, we are encouraged by the momentum we see throughout our business and our customers’ continued optimism. Our team remains focused on leveraging all of our competitive advantages to add value to both our customers and our investors.”

“Our first quarter results position us to reaffirm our full year guidance, supported by our visibility into our customers’ pipelines. The integrations of our recent acquisitions are on track, adding valuable capacity that will help us support our customers as they execute on a wide range of multi year opportunities across infrastructure, industrial manufacturing, energy and power. We remain confident in our ability to leverage the growth we see ahead while ensuring we have the flexibility to adapt to all operating environments.”

Vertikal Comment

The United numbers are always slightly mind boggling, but to see a company of this size post 30 percent revenue hikes, is truly amazing. It is also shows how strong the area of the economy that impacts rental. The next few years look very bright, given the strong an ongoing surge in North American infrastructure spending and investment.

It is encouraging to see such realistic optimism.