NYSE$URI

United Rentals Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced record second quarter results and raised its full-year 2023 guidance.

United Rentals reported record second quarter results, supported by strong customer activity across the business. The integration of Ahern is on track, and the company's outstanding execution drove solid margin expansion. The company also raised its full-year guidance.

  • Total revenue of $3.554 billion, including rental revenue of $2.981 billion.
  • Net income of $591 million, at a margin of 16.6%, with GAAP diluted earnings per share of $8.58, and adjusted EPS of $9.88.
  • Adjusted EBITDA of $1.695 billion, at a margin of 47.7%.
  • Year-to-date net cash provided by operating activities of $2.228 billion; free cash flow of $818 million, including gross rental capital spending of $2.048 billion.

Headline financials

Total Revenue

$3.55B

Previous: $2.77B+28.3%
EPS (adj)

$9.88

Previous: $7.86+25.7%
Adjusted EBITDA Margin

47.7%

No prior period
Net Leverage Ratio

1.8

No prior period
Return on Invested Capital

13.4%

No prior period
Fleet Productivity

-2.0%

Previous: 11.3%-117.7%
Net Income Margin

16.6%

No prior period
Free Cash Flow

$591M

Previous: $493M+19.9%
Net Income

$591M

Previous: $493M+19.9%
Operating Income

$925M

Previous: $715M+29.4%
Gross Profit

$1.43B

Previous: $1.15B+23.9%
Cash & Equivalents

$227M

Previous: $68M+233.8%
Total Assets

$25.5B

Previous: $20.8B+22.5%
Stock-Based Comp

$25M

Previous: $36M-30.6%

Revenue & EPS history

United Rentals · Revenue · Quarterly

$3.55B

Q2 2023+28.3%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

United Rentals · $3.22B total across 2 segments · Q3 2023

  • General Rentals
    $2.31B+18.8%
  • Specialty Rentals
    $917M+16.1%

Forward guidance

The company has raised its 2023 outlook.

Tailwinds

  • Total revenue is expected to be $14.0 billion to $14.3 billion.
  • Adjusted EBITDA is expected to be $6.75 billion to $6.9 billion.
  • Net rental capital expenditures are expected to be $1.9 billion to $2.1 billion, after gross purchases of $3.35 billion to $3.55 billion.
  • Net cash provided by operating activities is expected to be $4.5 billion to $4.8 billion.
  • Free cash flow (excluding merger and restructuring related payments) is expected to be $2.3 billion to $2.5 billion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.7%

Avg return

30 days after

70%

46 / 66 earnings

Positive

+25.8%

Q1 2026

Best reaction

-19.9%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+25.8%+19.9%+16.9%
Q4 2025-7.9%-12.2%-7.0%
Q3 2025-7.8%-11.7%-19.3%
Q2 2025-1.4%-2.1%+1.8%
Q1 2025+9.9%+7.0%+18.8%
Q4 2024+2.1%-0.6%-15.3%
Q3 2024-2.7%-2.7%+0.2%
Q2 2024+1.4%+0.1%+0.1%
Q1 2024+4.5%+7.8%+1.8%
Q4 2023+12.7%+12.1%+13.9%
Q3 2023-0.6%+1.1%+15.0%
Q2 2023-2.0%+3.2%-0.2%
Q1 2023-5.3%-4.2%-7.1%
Q4 2022+9.6%+8.9%+14.4%
Q3 2022+1.2%+7.0%+21.7%
Q2 2022+10.4%+15.7%+10.9%
Q1 2022+5.4%+1.6%-1.6%
Q4 2021+3.7%+3.8%+2.6%
Q3 2021+2.8%+7.3%+1.4%
Q2 2021-1.3%-0.1%+8.7%
Q1 2021+0.8%-0.9%+2.8%
Q4 2020+2.2%+2.0%+19.8%
Q3 2020-0.9%+10.2%+33.2%
Q2 2020-0.9%+0.8%+15.3%
Q1 2020+10.3%+0.2%+19.2%
Q4 2019-5.9%-7.3%-12.0%
Q3 2019+6.0%+7.4%+27.9%
Q2 2019-12.0%-14.2%-21.5%
Q1 2019+7.9%+7.5%+0.2%
Q4 2018+4.3%+5.5%+15.7%
Q3 2018-16.4%-18.6%-18.6%
Q2 2018+2.9%-1.9%-1.1%
Q1 2018-5.2%-7.8%-4.3%
Q4 2017-2.1%-2.9%-3.6%
Q3 2017+0.7%-1.3%+4.7%
Q2 2017+4.3%+0.8%-4.8%
Q1 2017-5.5%-5.3%-8.1%
Q4 2016+11.8%+13.3%+9.3%
Q3 2016+3.5%+0.2%+19.0%
Q2 2016+12.2%+15.3%+18.1%
Q1 2016+6.1%
Q4 2015-19.9%
Q3 2015+11.6%
Q2 2015-15.0%
Q1 2015-3.1%
Q4 2014+1.8%
Q3 2014+7.8%
Q2 2014+2.2%
Q1 2014+5.6%
Q4 2013+2.2%
Q3 2013+7.9%
Q2 2013+7.9%
Q1 2013+1.1%
Q4 2012+0.5%
Q3 2012+17.3%
Q2 2012-13.4%
Q1 2012+10.4%
Q1 2011+13.5%
Q4 2009+0.6%
Q4 2011+0.6%
Q3 2010+14.7%
Q3 2011+14.7%
Q4 2010+11.3%
Q2 2010+11.3%
Q2 2011+11.3%
Q1 2010+16.6%

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