06.05.2026

Strong start for United

US based United Rentals has reported its first quarter results with higher revenues, with a slower increase in profits.

Total revenues for the three months to the end of March were $3.98 billion, up 7.1 percent on the same quarter last year. The revenue gains came mostly from rental, with other areas all up except for used equipment sales, which, once again, were slightly lower.

Pre-tax profit grew at slower pace rising 1.9 percent to $701million, flowing a dip last year. This is due to higher operating and admin costs as well as higher depreciation and a $44 million rise in restructuring costs, partly offset by lower interest costs.

Capital expenditure in the first three months was $874 million, almost 24 percent up on the same quarter last year. The company is forecasting a full year spend of up to $4.8 billion.

OutlookThe company has increased its full year revenue and capital expenditure forecasts by $100 million each. Revenues are now expected to fall within the range of $16.9 to $17.4 billion, which would represent an increase of up to 8.1 percent over 2025. At the same time, it has lifted its capital expenditure projections to between $4.4 and $4.8 billion.

Chief executive Matt Flannery said: “I am very pleased with our strong start to 2026, which again reflected our team’s commitment to being the partner of choice for our customers. We reported first-quarter records in Earnings Per Share and revenues, supported by healthy growth and solid execution across our general rentals and speciality businesses. We remain confident that our focus on improving our customers’ efficiency and productivity through our one-stop-shop approach, coupled with our industry leading technology and world class service, keeps us positioned to both outperform the market and generate strong shareholder returns.”

“The increases to our full year guidance are supported by the momentum we are carrying into our busy season and the growth opportunities our customers see on the horizon, particularly within large projects and key verticals. Longer term, the flexibility and resiliency of our business model, combined with the strength of our balance sheet and approach to prudent capital allocation, positions us to deliver industry leading growth, profitability and cash generation, which support shareholder value creation.”

Vertikal Comment

Another solid performance from United, which now claims to have a 15 percent share of the total US equipment rental market. But much a good slug of its growth this year has come from overseas, including the acquisition of aerial lift and general rental businesses of Australian rental company Alfasi Hire, which took United’s branch/depot network in Australia and New Zealand to 65, while it has 44 in Europe and 1,767 in North America. It is definitely getting more serious about the international market, while remaining cautious.

While looking at these results, it is easy to forget just how mind-boggling they are, for example, its four and a half billion dollar plus spend on new equipment is equivalent to almost 1.5 times JLG’s entire new machine output. While now generates more revenue in a typical work day than most large rental companies generate in a year, around $68 million!

As we have said before, when companies reach a fraction of this size, they tend to show growing pains, and everything suffers and decline sets in. You only need to look at some of the early consolidators to see that. Perhaps it is technology that has made the difference, although good management still plays a key role.

No matter what you might think of United, these are impressive numbers.