Summary
United Rentals, Inc. (URI) reported strong financial performance for the second quarter and first six months of 2018, demonstrating robust revenue growth and improved profitability. Total revenues increased significantly year-over-year, driven primarily by a substantial rise in equipment rentals, fueled by both increased rental volume and favorable rental rates. The company's strategic acquisitions, notably NES and Neff, are contributing positively to fleet size and market penetration, with management expecting further synergies and growth. Profitability also saw a healthy uptick, with net income and diluted earnings per share showing considerable improvement. This was supported by effective cost management, including reductions in SG&A as a percentage of revenue, and the benefits of the Tax Cuts and Jobs Act, which lowered the effective tax rate. The company's liquidity remains strong, with ample borrowing capacity and positive free cash flow generation, enabling continued investment in fleet, strategic acquisitions, and shareholder returns through ongoing share repurchases. Overall, URI presents a picture of a company successfully executing its growth strategy and delivering value to its shareholders.
Financial Highlights
51 data points| Revenue | $1.89B |
| Cost of Revenue | $1.11B |
| Gross Profit | $782.00M |
| SG&A Expenses | $239.00M |
| Operating Income | $470.00M |
| Net Income | $270.00M |
| EPS (Basic) | $3.22 |
| EPS (Diluted) | $3.20 |
| Shares Outstanding (Basic) | 83.46M |
| Shares Outstanding (Diluted) | 84.20M |
Key Highlights
- 1Total revenues for the six months ended June 30, 2018, increased by 22.5% to $3.625 billion, compared to $2.953 billion in the prior year period.
- 2Equipment rental revenue, the primary revenue driver, saw a significant increase of 22.0% for the six months ended June 30, 2018, to $3.090 billion, driven by a 20.6% increase in rental volume and a 2.4% increase in rental rates.
- 3Net income for the six months ended June 30, 2018, more than doubled to $453 million, from $250 million in the same period of 2017.
- 4Diluted earnings per share (EPS) for the six months ended June 30, 2018, rose to $5.34, a substantial increase from $2.92 in the prior year period, benefiting from lower effective tax rates due to the Tax Cuts and Jobs Act.
- 5The company's balance sheet shows total assets of $15.108 billion at June 30, 2018, a slight increase from $15.030 billion at December 31, 2017, with rental equipment, net, growing to $8.213 billion.
- 6Total liabilities were $11.944 billion at June 30, 2018, largely stable from $11.924 billion at December 31, 2017, with long-term debt at $8.086 billion.
- 7Free cash flow for the first six months of 2018 was $703 million, an increase from $614 million in the same period of 2017, reflecting operational improvements and capital management.