Key takeaways
- Earnings per share in the first quarter came to $9.71, beating Wall Street estimates of $8.95
- Total revenue for the quarter was $3.99 billion, representing an 8.7% increase year over year and exceeding expectations of $3.87 billion.
- Annual revenue forecasts rose to a range of $16.9 billion – $17.4 billion, improving from the previous forecast of $16.8 billion – $17.3 billion.
- The expansion is driven by non-residential construction, infrastructure projects, the energy sector, and mining operations
- Bernstein maintained its Outperform rating as URI gained 37% in the trailing twelve months
The leading equipment rental company delivered an impressive first-quarter performance that exceeded top and bottom line analyst expectations, resulting in a rapid market response.
URI shares rose nearly 20% during Thursday’s trading session, reaching levels near $960, making them the strongest performer on the S&P 500 for the day. The stock is now up 32% in April alone and has gained 19% year to date.
Adjusted EPS for the first quarter was $9.71, beating analysts’ expectations of $8.95 by $0.76. This represents growth from the $8.86 per share recorded in the corresponding period last year. Total revenue was $3.99 billion, representing an 8.7% increase over the prior year’s figure of $3.72 billion and exceeding the consensus estimate of $3.87 billion.
Rental revenues – the company’s primary business segment – rose to $3.42 billion, compared to $3.15 billion in the first quarter of 2025, and set a new quarterly record for the period. Average original equipment cost rose 5.7%, while overall fleet productivity showed a 2.3% improvement.
CEO Matthew Flannery highlighted that the expansion came from multiple business sectors. On the construction front, non-residential construction and infrastructure projects boosted performance, while the industrial sector benefited from strength in energy, mining and minerals.
New construction activity at healthcare facilities, data centers, factories and infrastructure projects played a role in the strong performance this quarter.
The company raises its full-year forecast
united Rentals increased its annual revenue forecast to $16.9 billion to $17.4 billion, representing an upgrade from previous guidance of $16.8 billion to $17.3 billion. The revised midpoint of $17.15 billion slightly exceeds the Street consensus of $17.07 billion.
The company tightened its adjusted EBITDA guidance to $7.625 billion-$7.875 billion, compared to the previous range of $7.575 billion-$7.825 billion. Free cash flow forecasts remained steady at $2.15 billion-$2.45 billion.
During the analyst call, Flannery noted that the year is “going better than we expected just a few months ago,” stressing that feedback at the field level remains positive, particularly regarding large-scale projects.
The World Cup provides additional tailwinds
Flannery highlighted one notable opportunity in particular: the 2026 FIFA World Cup. The company expects to be a “key partner” of the international tournament starting in the second quarter.
Construction activities are currently progressing throughout the host cities in the United States, Mexico and Canada, including stadium modifications to meet FIFA specifications along with extensive infrastructure improvements.
Total first-quarter adjusted EBITDA was $1.76 billion, beating consensus expectations by 5%. The general rental segment posted gross margins of 33.8%, about 180 basis points higher than analysts’ expectations. Specialty segment gross margins came to 41.4%, down approximately 200 basis points from expectations, although specialty rental revenue still beat estimates by 5%.
Bernstein SocGen Group maintained an Outperform rating on the stock following the quarterly report, while maintaining a price target of $903. The current trading price near $960 puts shares well above that target after Thursday’s rally.
URI’s market cap now stands at nearly $50.5 billion, with the stock returning nearly 37% over the past year.
