01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
United Rentals, Inc. (URI) reported a solid first quarter for 2026, demonstrating continued revenue growth and operational strength.
Total revenues increased by 7.2% to $3.985 billiona, driven primarily by an 8.7% rise in equipment rentals, which benefited from a 5.7% increase in average original equipment cost (OEC) and improved fleet productivity. The company's strategic focus on revenue growth, margin expansion, and operational efficiencies continues to yield positive results, reflected in a year-over-year increase in net income to $531 million from $518 million. Key financial highlights include strong operating cash flow generation and a robust balance sheet.
While the company incurred $45 millionb in restructuring charges related to its 2025 cost savings program, its core rental business performance remained strong, with adjusted EBITDA increasing by 5.3% to $1.759 billion. United Rentals also continued its commitment to shareholder returns through significant share repurchases and dividend payments, underscoring its financial flexibility and confidence in its ongoing strategy.
02—Key points
Key Highlights
- Total revenues increased 7.2% year-over-year to $3.985 billion, driven by an 8.7% increase in equipment rentals.
- Net income rose to $531 million from $518 million in the prior year's comparable period.
- Adjusted EBITDA grew 5.3% to $1.759 billion, indicating strong operational performance.
- The company incurred $45 million in restructuring charges, primarily related to a program initiated in Q4 2025.
- Cash flow from operating activities was $1.514 billion, supporting significant capital expenditures and financing activities.
- United Rentals repurchased approximately $499 million of its common stock during the quarter under its new $5.0 billion share repurchase program.
- Total assets remained relatively stable at $29.888 billion, with rental equipment constituting the largest asset category at $16.164 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, United Rentals, Inc. kept $0.13.
- Revenue$3.98B100.0%
- Cost of revenue−$2.52B63.1%
- Gross profit$1.47B36.9%
- Operating costs−$600.0M15.1%
- Operating income$869.0M21.8%
- Interest, other & tax−$338.0M8.5%
- Net income$531.0M13.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.98B$3.72B | +7.2% |
| Cost of Revenue | $2.52B$2.36B | +6.5% |
| Gross Profit | $1.47B$1.36B | +8.3% |
| SG&A Expenses | $441.00M$437.00M | +0.9% |
| Operating Income | $869.00M$804.00M | +8.1% |
| Net Income | $531.00M$518.00M | +2.5% |
| EPS (Basic) | $8.44$7.92 | +6.6% |
| EPS (Diluted) | $8.43$7.91 | +6.6% |
| Shares Outstanding (Basic) | 62.93M65.33M | −3.7% |
| Shares Outstanding (Diluted) | 63.03M65.44M | −3.7% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the first quarter of 2026?
Revenue growth was primarily driven by a 8.7% increase in equipment rentals, which benefited from a 5.7% increase in the average original equipment cost (OEC) of the fleet and a 2.3% improvement in fleet productivity. This indicates strong demand and effective utilization of the company's rental assets.
How is the company managing its debt and what is its leverage?
Total debt decreased from $14.229 billion at year-end 2025 to $13.886 billion at March 31, 2026. The company remains in compliance with its debt covenants and has sufficient liquidity. While interest expense increased slightly due to higher average debt levels, the company's ability to meet its debt obligations appears strong.
What is the impact of the restructuring charges on the company's profitability?
The company recorded $45 million in restructuring charges in the first quarter of 2026, primarily related to its cost-saving initiatives. While these charges reduce reported net income, the underlying operational performance, as indicated by adjusted EBITDA growth of 5.3%, remains robust.
What is the outlook for capital expenditures and shareholder returns?
The company is investing in its fleet, with capital expenditures for rental equipment totaling $767 million in the quarter. United Rentals also demonstrates a commitment to shareholder returns, having repurchased approximately $499 million of its stock and paid $125 million in dividends during the quarter, supported by a new $5.0 billion share repurchase program.
06—Continue