Summary
United Rentals, Inc. reported a strong third quarter of 2021, demonstrating significant revenue growth and improved profitability compared to the prior year. Total revenues increased by 18.7% to $2.6 billion, driven primarily by a robust rebound in equipment rentals, up 22.4%, reflecting recovery across key end-markets and the impact of strategic acquisitions. The company's net income more than doubled year-over-year to $409 million, and diluted earnings per share rose to $5.63. This performance highlights the company's successful navigation of the post-pandemic economic environment and the integration of recent acquisitions. The company's strategic focus on fleet productivity, customer service, and operational efficiencies continues to yield positive results. The acquisition of General Finance in May 2021 has expanded United Rentals' geographic reach into Australia and New Zealand and bolstered its specialty rental segment. Despite increased SG&A expenses related to improved profitability and higher bonus accruals, the company maintained strong gross margins, particularly in equipment rentals and used equipment sales, signaling effective operational management and favorable market conditions for its services.
Financial Highlights
48 data points| Revenue | $2.60B |
| Cost of Revenue | $1.49B |
| Gross Profit | $1.10B |
| SG&A Expenses | $326.00M |
| Operating Income | $679.00M |
| Net Income | $409.00M |
| EPS (Basic) | $5.65 |
| EPS (Diluted) | $5.63 |
| Shares Outstanding (Basic) | 72.46M |
| Shares Outstanding (Diluted) | 72.71M |
Key Highlights
- 1Total revenues surged by 18.7% to $2.6 billion for the three months ended September 30, 2021, compared to $2.2 billion in the prior year period.
- 2Equipment rental revenue increased by a significant 22.4% to $2.3 billion, driven by higher fleet productivity and increased average Original Equipment Cost (OEC) due to acquisitions.
- 3Net income more than doubled, reaching $409 million for the quarter, up from $208 million in the same period last year.
- 4Diluted earnings per share (EPS) increased to $5.63 from $2.87 in the prior year's third quarter.
- 5The acquisition of General Finance in May 2021 contributed to the growth, expanding the company's presence into Australia and New Zealand and strengthening its specialty segment.
- 6Adjusted EBITDA saw a slight increase of 14.1% to $1.23 billion, though the adjusted EBITDA margin decreased by 190 basis points to 47.5% due to higher SG&A expenses and rental equipment margins.
- 7The company maintained strong liquidity, with $2.611 billion in available liquidity at the end of the quarter, comprised of cash and credit facilities.