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- Price
- $1128.17
- Discount category
- Pricey
- Next earnings
- 2027-01-27
- Next earnings is estimate
- Yes
- Company name
- United Rentals
- Sector
- Equipment rental
- About
- United Rentals is the largest equipment rental company in the world. It rents construction and industrial equipment, such as aerial work platforms, earthmoving equipment, forklifts and tools, to construction and industrial companies, utilities, municipalities and homeowners. The specialty segment rents trench safety, power and HVAC, fluid solutions, mobile storage and surface protection equipment. In the first nine months of 2026, the general rentals segment gave 65% of revenue, and the United States gave 91%. The company has 1,686 rental locations in North America, 44 in Europe, 47 in Australia and 18 in New Zealand, and its rental fleet had an original cost of $24.77 billion. In Q3 2026, total revenue was $4,893 million, including rental revenue of $4,316 million. United Rentals had about 28,600 employees. The head office is in Stamford, Connecticut. Matthew Flannery is Chief Executive Officer.
- Thesis
- United Rentals trades above its intrinsic value because investors pay for its strong growth from large construction and industrial projects, its high margins and its share buybacks. In Q3 2026, rental revenue rose 17.8% to $4,316 million, adjusted EPS rose 33% to $15.55, and the company raised its 2026 guidance for the third time, to total revenue of $18.0 billion to $18.2 billion and adjusted EBITDA of $8.3 billion to $8.4 billion. For the shares to keep this price, three things must be true. Large construction and industrial projects must keep demand for rental equipment high in 2027. Fleet productivity, which rose 6.5% in Q3 2026, must keep the margins high while the company buys more fleet. Net leverage must stay near 1.8 times while the company buys back about $1.5 billion of shares a year. The Q4 2026 report and the 2027 guidance, expected in late January 2027, are the next tests. A slowdown in construction can push the shares down quickly.
- Risks
- Rental demand follows construction and industrial activity. A recession or fewer large projects can lower rental rates and time utilization, and many costs are fixed. Total debt was $14,671 million at September 30, 2026. Higher interest rates raise the cost of new debt, and part of the debt has variable rates. Too much fleet in the rental industry can lower rental rates and the prices of used equipment, which gave $1,028 million of sales in the first nine months of 2026. Tariffs and inflation can raise the cost of new equipment and parts, which the company must buy to keep its fleet young. Acquisitions can be difficult to integrate, as the terminated merger with H&E Equipment Services in 2025 shows.
- Balance sheet
- Cash: $153M Debt: $14.7B Net debt: $14.5B EBITDA, last 12 months: $8.0B Net debt / EBITDA: 1.8× (low) Interest cover: 6.3× Undrawn credit line: $2.4B Debt due within 12 months: $1.6B Last debt due: 2034 Ratings: Moody's Ba1 (positive outlook), S&P BBB- (stable outlook) United Rentals funds itself with senior notes, an asset-based revolving credit facility (ABL), an accounts receivable securitization facility and cash flow. At September 30, 2026, total debt was $14,671 million, including $370 million of finance leases, and $1,607 million was due within 12 months. Cash and cash equivalents were $153 million. The company states a net leverage ratio of 1.8 times, with adjusted EBITDA for the last 12 months. The $4.5 billion ABL facility expires in 2030, and $2,436 million of it was available. The accounts receivable securitization facility runs to June 18, 2027. Total liquidity was $2,615 million. On October 29, 2026, the company issued $2.5 billion of notes due 2029, 2031 and 2036 and repaid its term loan. Moody's rates the company Ba1 with a positive outlook, and S&P rates it BBB- with a stable outlook. Interest cover is operating income divided by net interest expense for the first nine months of 2026 ($3,416 million against $538 million). The quarterly dividend is $1.97 per share, and there were 61,916,588 shares on October 19, 2026. As of 2026-09-30.
- Checkpoints
- Oct 21, 2026: Q3 2026 results: rental growth and guidance. Passed. Watch: Rental revenue growth of 10% or more and a confirmed or higher 2026 guidance pass; a guidance cut fails. Outcome: Rental revenue rose 17.8%, and the company raised its 2026 guidance for the third time. Jan 27, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2026 adjusted EBITDA of $8.3 billion or more and 2027 guidance for revenue growth pass; guidance for lower revenue fails. Apr 21, 2027 (estimate): Q1 2027 results: fleet productivity. Pending. Watch: Positive fleet productivity and rental revenue growth pass; a fall in fleet productivity fails.
- Recent events
- 2026-10-29: United Rentals (North America) issued $2.5 billion of senior notes: $700 million at 5.550% due 2029, $800 million at 5.750% due 2031 and $1.0 billion at 6.200% due 2036. It used the money to repay its $975 million term loan and to reduce borrowings under its ABL facility. 2026-10-21: United Rentals reported Q3 2026 results. Total revenue rose 15.7% to $4,893 million, and rental revenue rose 17.8% to $4,316 million. Net income rose 31.2% to $920 million, diluted EPS was $14.77, and adjusted EPS was $15.55. Adjusted EBITDA rose 19.8% to $2,331 million. The company raised its 2026 guidance to total revenue of $18.0 billion to $18.2 billion and adjusted EBITDA of $8.3 billion to $8.4 billion. 2026-07-22: United Rentals reported Q2 2026 results. Total revenue was $4,410 million, and adjusted EPS was $12.76, including a gain of $0.58 per share from the sale of part of its scaffolding business. It raised its 2026 guidance for the second time. 2026-04-22: United Rentals reported Q1 2026 results. Total revenue was $3,985 million, diluted EPS was $8.43, and adjusted EPS was $9.71. It raised its 2026 guidance for the first time. 2026-01-28: United Rentals reported 2025 results. Total revenue was $16,099 million, adjusted EPS was $42.06, and adjusted EBITDA was $7,328 million. The board approved a new $5.0 billion share repurchase program and raised the quarterly dividend by 10% to $1.97 per share. The company plans to repurchase $1.5 billion of shares in 2026.