UNITED RENTALS, INC. Quarterly Report for Q2 Ended Jun 30, 2021

Summary

United Rentals, Inc. (URI) reported a strong second quarter for 2021, with total revenues increasing 17.9% year-over-year to $2.287 billion. This growth was primarily driven by a significant rebound in equipment rentals, up 18.8%, reflecting improved fleet productivity and a recovery from the pandemic's impact in the prior year. Net income saw a substantial rise of 38.2% to $293 million, resulting in diluted earnings per share of $4.02. The company also completed the significant acquisition of General Finance Corporation in May 2021 for $1.032 billion, expanding its presence in Australia and New Zealand and adding mobile storage and modular office solutions. While this acquisition incurred merger-related costs, it is expected to enhance cross-selling opportunities and differentiate URI's service offerings. Despite increased SG&A expenses and a higher effective tax rate, the company demonstrated robust operational performance and maintained strong liquidity.

Key Highlights

• 1Total revenues increased by 17.9% to $2.287 billion for the three months ended June 30, 2021, compared to the prior year.
• 2Net income significantly grew by 38.2% to $293 million, with diluted EPS reaching $4.02.
• 3Completed the acquisition of General Finance Corporation for $1.032 billion, expanding geographic reach and service offerings.
• 4Equipment rentals, the company's largest revenue source, increased by 18.8% driven by improved fleet productivity.
• 5Adjusted EBITDA increased by 11.1% to $999 million, although the adjusted EBITDA margin decreased slightly.
• 6The company maintained strong liquidity with $2.826 billion available at the end of the quarter.
• 7Capital expenditures significantly increased to $1.261 billion for the six months ended June 30, 2021, reflecting investment in fleet.

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