Summary
United Rentals, Inc. (URI) reported strong financial results for the nine months ended September 30, 2022, showcasing significant growth in revenues and net income compared to the prior year. Total revenues increased by 20.3% to $8.346 billion, driven primarily by a robust performance in equipment rentals, which grew by 25.0%. This growth was fueled by an increase in the average original equipment cost (OEC) and improved fleet productivity, reflecting a continued recovery in end-markets post-COVID-19. The company also demonstrated enhanced profitability, with net income soaring by 62.0% to $1.466 billion and diluted earnings per share reaching $20.56. This profitability improvement was supported by better gross margins, particularly in equipment rentals and sales of used rental equipment, alongside effective management of operating expenses. URI's strategic focus on optimizing its customer and fleet mix, coupled with operational efficiencies and potential strategic acquisitions, positions it favorably for continued growth. The company also continued its commitment to returning capital to shareholders, announcing a new $1.25 billion share repurchase program.
Financial Highlights
48 data points| Revenue | $3.05B |
| Cost of Revenue | $1.69B |
| Gross Profit | $1.37B |
| SG&A Expenses | $356.00M |
| Operating Income | $921.00M |
| Net Income | $606.00M |
| EPS (Basic) | $8.69 |
| EPS (Diluted) | $8.66 |
| Shares Outstanding (Basic) | 69.85M |
| Shares Outstanding (Diluted) | 70.05M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2022, increased by 20.3% to $8.346 billion, compared to $6.940 billion in the prior year.
- 2Equipment rentals revenue grew by 25.0% to $7.369 billion for the nine months ended September 30, 2022, indicating strong demand and market recovery.
- 3Net income for the nine months ended September 30, 2022, surged by 62.0% to $1.466 billion, up from $905 million in the same period last year.
- 4Diluted earnings per share (EPS) for the nine months ended September 30, 2022, was $20.56, a substantial increase from $12.45 in the prior year.
- 5Gross margin for equipment rentals improved to 41.3% for the nine months ended September 30, 2022, up from 39.1% in the prior year, driven by better fixed cost absorption.
- 6The company ended the period with $76 million in cash and cash equivalents and maintained strong liquidity, with $2.843 billion in available liquidity as of September 30, 2022.
- 7United Rentals announced a new $1.25 billion share repurchase program, demonstrating confidence in its financial position and commitment to shareholder returns.