Key Highlights
- United Rentals delivered Q1 earnings per share of $9.71, surpassing analyst expectations of $8.95
- First-quarter revenue reached $3.99 billion, marking an 8.7% increase year-over-year and exceeding the $3.87B forecast
- The company elevated its full-year revenue projection to $16.9B–$17.4B from the previous $16.8B–$17.3B estimate
- Momentum came from nonresidential construction, infrastructure projects, power generation, and mining operations
- Bernstein maintained its Outperform rating, with URI stock posting a 37% gain over the trailing twelve months
United Rentals delivered an impressive first-quarter performance that exceeded Wall Street’s projections on both the top and bottom lines, sending shares sharply higher.
Shares of URI skyrocketed approximately 20% on Thursday, reaching the $960 level and claiming the title of best performer within the S&P 500 index for the trading session. The stock has now climbed 32% during April and stands 19% higher for the year.
Adjusted earnings per share for the first quarter registered at $9.71, exceeding analyst projections of $8.95 by $0.76. This represents growth from the $8.86 per share reported during the comparable quarter last year. Total revenue landed at $3.99 billion, representing an 8.7% jump from the prior-year figure of $3.72 billion and surpassing the Street’s $3.87 billion forecast.
Rental revenue—the company’s primary revenue stream—rose to $3.42 billion from $3.15 billion in the first quarter of 2025, establishing a new record for the opening quarter. The average original equipment cost increased by 5.7%, while overall fleet productivity saw a 2.3% improvement.
CEO Matthew Flannery noted that expansion was widespread across business segments. Nonresidential construction and infrastructure dominated on the construction front, while power generation, mining, and minerals drove strong results in the industrial category.
New construction activity in sectors including healthcare facilities, data centers, manufacturing plants, and infrastructure development all played a role in the quarterly outperformance.
Revenue Outlook Gets an Upgrade
United Rentals increased its full-year revenue forecast to a range of $16.9 billion to $17.4 billion, representing an upward revision from the earlier $16.8B to $17.3B projection. The updated midpoint of $17.15 billion slightly surpasses Wall Street’s consensus estimate of $17.07 billion.
The company tightened its adjusted EBITDA guidance to $7.625B–$7.875B, compared to the prior $7.575B–$7.825B range. Free cash flow expectations remained steady at $2.15B–$2.45B.
Flannery informed analysts that the year is “unfolding more favorably than we anticipated just a few months back,” noting that field-level feedback continues to be positive, particularly regarding major project activity.
World Cup Preparations Provide Tailwind
Flannery highlighted one specific catalyst: the 2026 FIFA World Cup. United Rentals anticipates serving as “a key partner” for the global sporting event beginning in the second quarter.
Construction activity is already in progress throughout host cities in the United States, Mexico, and Canada, encompassing stadium renovations to meet FIFA standards and extensive infrastructure enhancements.
First-quarter adjusted EBITDA totaled $1.76 billion, coming in 5% above analyst consensus. Gross margins in the General Rentals segment reached 33.8%, approximately 180 basis points higher than street forecasts. Specialty segment gross margins of 41.4% came in roughly 200 basis points below expectations, although Specialty rental revenues still exceeded estimates by 5%.
Bernstein SocGen Group reaffirmed its Outperform rating on URI after reviewing the quarterly results, keeping its price target at $903. Following Thursday’s surge, the stock’s current trading level around $960 has pushed it above that target.
URI currently commands a market capitalization of approximately $50.5 billion, with shares delivering roughly 37% in total returns over the past year.
