Summary
For the fiscal year ending December 31, 2018, United Rentals, Inc. (URI) demonstrated significant growth, driven by strategic acquisitions and a strong performance in its core equipment rental business. Total revenues reached $8.05 billion, a substantial increase from the previous year, primarily due to a 21.4% rise in equipment rental revenue. This growth was bolstered by the successful integration of acquisitions such as NES Rentals, Neff Corporation, BakerCorp, and BlueLine, which expanded the company's geographic reach and service offerings. United Rentals maintained its position as the largest equipment rental company globally, with a robust fleet and a strategic focus on customer service, operational efficiency, and profitability. The company's strong market position, significant purchasing power, and national account program contribute to its competitive advantages. Looking ahead to 2019, the company anticipates continued solid demand in its end markets, projecting industry revenue growth of approximately 6%, and plans to further optimize its fleet and customer mix while investing in specialty rental branches. Despite a substantial debt load, the company has taken steps to improve its financial flexibility, positioning it for continued growth and value creation.
Financial Highlights
52 data points| Revenue | $8.05B |
| Cost of Revenue | $4.68B |
| Gross Profit | $3.36B |
| SG&A Expenses | $1.04B |
| Operating Income | $1.95B |
| Net Income | $1.10B |
| EPS (Basic) | $13.26 |
| EPS (Diluted) | $13.12 |
| Shares Outstanding (Basic) | 82.65M |
| Shares Outstanding (Diluted) | 83.53M |
Key Highlights
- 1Total revenues increased by 21.2% to $8.05 billion in 2018, driven by strong equipment rental revenue growth.
- 2The company successfully completed four significant acquisitions (NES, Neff, BakerCorp, BlueLine) in 2017 and 2018, expanding its market presence and service capabilities.
- 3Equipment rental revenue grew by 21.4%, with a notable 18.8% increase in the volume of equipment on rent, indicating strong customer demand.
- 4Rental rates saw a 2.2% year-over-year increase, contributing positively to revenue growth.
- 5United Rentals maintained its market leadership, with an estimated North American market share of 13.3% in 2018, up from 11.4% in 2017.
- 6The company generated $2.85 billion in cash from operating activities, demonstrating strong operational cash flow generation.
- 7Strategic focus on increasing profitability and return on invested capital through operational efficiencies and customer optimization continues.