What were the key drivers of United Rentals' revenue growth in 2022?

United Rentals' revenue growth in 2022 was primarily driven by a 23.3% increase in equipment rental revenue, fueled by a larger fleet (represented by a 13.6% increase in Original Equipment Cost or OEC) and improved fleet productivity (up 9.4%). Acquisitions, specifically the General Finance acquisition in May 2021 and the Ahern Rentals acquisition in December 2022, also significantly contributed to the expanded fleet and revenue.

How did United Rentals manage inflationary pressures and rising interest rates?

United Rentals managed inflationary pressures by passing on a portion of cost increases to customers, particularly for fuel and delivery. To address rising interest rates, the company issued $1.5 billion in senior secured notes and also amended and extended its credit facilities, including an increase in its ABL facility size. The company also intentionally held back on equipment sales to ensure fleet availability for strong customer demand, which helped maintain rental capacity.

What is the significance of the Ahern Rentals acquisition?

The acquisition of Ahern Rentals in December 2022 was a significant strategic move that increased United Rentals' capacity in key geographies, expanded its high-demand aerial and material handling equipment offerings, and created cross-selling opportunities with an enlarged customer base. This acquisition contributed to United Rentals' estimated North American market share increasing to 17%.

What is the company's outlook for the equipment rental industry in 2023?

United Rentals projects that the North American equipment rental industry revenue will grow by approximately 4% in 2023, based on their analyses of industry forecasts and macroeconomic indicators.

URI 10-K FY2022 Annual Report — Revenue, Net Income, EPS

Summary

United Rentals, Inc. (URI) demonstrated robust growth in its 2022 fiscal year, reporting a significant increase in total revenues to $11.64 billion, up 19.8% from the previous year. This growth was driven by strong performance in equipment rentals, which saw a 23.3% increase, supported by a larger fleet (OEC up 13.6%) and improved fleet productivity. The company also successfully navigated economic headwinds such as inflation and rising interest rates by strategically managing its fleet capacity and passing on some cost increases to customers. The acquisition of Ahern Rentals in December 2022 further expanded URI's market presence and fleet, contributing to a 17% estimated North American market share. Despite increased debt levels to fund acquisitions, the company maintained strong liquidity and generated substantial free cash flow of $1.76 billion. The company also announced its intention to initiate a quarterly dividend, signaling confidence in its financial position and commitment to returning capital to shareholders.

Financial Highlights

50 data points

Beta

Revenue

$11.64B

0.4% Gross Margin

Net Income

$2.10B

0.2% Net Margin

EPS (Diluted)

$29.65

Total Assets

$24.18B

Cash & Equivalents

$106.00M

Free Cash Flow

$4.43B

Financial Statements

Beta

Revenue	$11.64B
Cost of Revenue	$6.65B
Gross Profit	$5.00B
SG&A Expenses	$1.40B
Operating Income	$3.23B
Net Income	$2.10B
EPS (Basic)	$29.77
EPS (Diluted)	$29.65
Shares Outstanding (Basic)	70.70M
Shares Outstanding (Diluted)	70.97M

Key Highlights

1Total revenues increased by 19.8% to $11.64 billion in 2022.
2Equipment rental revenue grew by 23.3%, driven by a 13.6% increase in fleet OEC and a 9.4% rise in fleet productivity.
3The company completed the acquisition of Ahern Rentals in December 2022, enhancing its market position and fleet.
4Free cash flow generation was strong at $1.76 billion for the year.
5United Rentals' estimated North American market share increased to 17% following the Ahern Rentals acquisition.
6The company ended the year with $2.896 billion in available liquidity.
7A quarterly dividend program was approved in January 2023, with the first dividend payable in February 2023.

UNITED RENTALS, INC. Annual Report, Year Ended Dec 31, 2022

Summary

Financial Highlights

Key Highlights

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