24.04.2024

Profit surge for United

US based United Rentals has reported its first quarter results with profits rising and three times faster than revenues.

Total revenues for the three months to the end of March were $3.48 billion, up 6.3 percent on the same quarter last year’s record driven by the Ahern acquisition. All of the revenue gains came from rental, with a bigger fleet and higher ‘productivity’ - a combination of rate and utilisation than United uses.
Pre-tax profits jumped 17 percent to $695 million.

Capital expenditure in the first three months was $595 million a slow start given that its full year forecasts are for more than $3.5 billion.

OutlookThe company’s full year revenue forecast is $14.95 to $15.5 billion which would represent an increase of five to 7.5 percent over 2023.

Chief executive Matt Flannery said: “We're pleased with our start to 2024, which delivered first quarter records across revenue, adjusted EBITDA, and EPS. Our results are a testament to the team’s commitment to putting our customers at the centre of everything we do and efficiently leveraging our competitive advantages. Our acquisition of Yak last month provides another excellent example of our strategy to grow our specialty rental business, differentiate our one-stop-shop capabilities and capitalise on both secular growth and cross-selling opportunities.”

“2024 is playing out as we expected, with our updated full year guidance reflecting the addition of Yak. As we enter our busy season, we are excited by both the immediate opportunities we see, particularly on large projects, and the longer term outlook. We’ve built a resilient company with a well proven strategy that is positioned to continue driving profitable growth, strong free cash flow generation and compelling shareholder value.”