28.07.2023

Record quarter for United

US rental company United Rentals has posted a strong first half.

Total revenues for the six months to the end of June were 6.84 billion, up almost 30 percent on the same period last year. Increases came across all parts of the business but especially rental and equipment sales. Pre-tax profits jumped 25 percent to $1.37 billion.

In the second quarter revenues improved almost 29 percent to $3.55 billion, with a pre-tax profit of $772 million, up 27 percent on the same quarter last year.

The company has now increased its full year revenue forecasts to $14 to 14.3 billion with a capital expenditure of $3.35 to $3.55 billion,.

Chief executive Matt Flannery said: “I am pleased to share that our record second quarter results were supported by strong customer activity across our business. The integration of Ahern is on track, while our team’s outstanding execution drove solid margin expansion both sequentially and year-over-year. Looking at the balance of 2023, we remain encouraged by the momentum we are carrying into the busiest part of our season as well as our customers’ continued optimism.”

“The increases to our full year guidance speak to the strength of the current environment. As we look ahead, we continue to focus on ensuring that we are best positioned to serve our customers as they capitalise on the multi-year tailwinds we see across infrastructure, manufacturing, and energy and power. We remain confident in our ability to leverage these opportunities to deliver profitable growth, strong cash flow, and attractive returns for our shareholders.”

Vertikal Comment

Another strong performance from United as the Ahern acquisition bears fruit. The company appears to be holding on to much of the business it acquired, but one wonders what it will do next year to keep up the momentum. How long before we see a $15 billion rental company and is it possible to maintain such a massive organisation in the face of strong and possibly increasing competition?

A very positive result for the company and the industry.