United results show strong start to 2025

Photo: United Rentals

United Rentals has said that rental revenues for the first quarter of 2025 have increased by 7%, driven by demand across both construction and industrial end-markets.

Rental revenues reached $3.1 billion in the first three months of the year, compared to $2.9 billion in the same period in 2024. Total revenues increased by 6.7% to $3.7 billion. 

That includes a net $39 million merger termination benefit as a result of the now cancelled acqusition of H&E Rentals, which also saw the company receive a break-up fee of $64 million

Once again, its specialty segment was the fastest growing unit with an increase of 22%, reaching $1.04 billion in the process at a record for the company.

The company said its specialty division, which includes Power & HVAC, Fluid Management and Trench Safety, now accounts for roughly 33% of total revenues annually. 

Meanwhile, EBITDA was $1.6 billion, while CapEx for the period was $707 million.

At the same time, the company has announced that its Board of Directors has approved a new $1.5 billion share repurchase program that is expected to be completed by the end of the first quarter of 2026.

Under that, the company plans to begin repurchases under the program during the second quarter of 2025 and intends to complete $1.5 billion of share repurchases in 2025, with the remaining $250 million of the new authorisation carried into 2026.

Looking ahead, the company expects its full-year guidance for revenues to be in line with previous estimates at between $15.6 billion to $16.1 billion.

It said CapEx is expected to remain high at between $3.65 billion and $3.95 billion, which compares to $3.75 billion in 2024. 

Matthew Flannery, chief executive officer of United Rentals, said the results reflect strong demand across both its construction and industrial end-markets.

He said, “I’m pleased with the team’s commitment to putting our customers first, which ultimately translated to record first-quarter revenue and adjusted EBITDA. I’m also pleased to reaffirm our full-year guidance, based on both the momentum we’re carrying into our busy season and continued positive customer sentiment, which, together, reinforce our expectations for another year of profitable growth.”

“We remain laser focused on executing our unique and well-proven strategy. This allows us to capitalize on the opportunities ahead and to differentiate ourselves from the competition. Our resilient business model, combined with prudent capital allocation, including our new $1.5 billion share repurchase authorization, and balance sheet strength, allows us to continue driving profitable growth, strong free cash flow and compelling returns.”