NYSE$URI

United Rentals Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced fourth quarter 2020 results and introduced 2021 outlook, reflecting a return to growth.

United Rentals' fourth quarter results exceeded expectations, driven by stronger rental volume and robust used equipment sales. The company is encouraged by the momentum this gives them going into 2021.

  • Total revenue was $2.279 billion, including rental revenue of $1.854 billion.
  • Net income was $297 million, implying a net income margin of 13.0%. GAAP diluted earnings per share was $4.09, and adjusted EPS of $5.04.
  • Adjusted EBITDA was $1.037 billion, implying an adjusted EBITDA margin of 45.5%.
  • Free cash flow was $2.440 billion, including gross rental capital spending of $961 million.
  • Year-end net leverage ratio of 2.4x, with total liquidity of $3.073 billion.

Headline financials

Total Revenue

$2.28B

Previous: $2.46B-7.2%
EPS (adj)

$5.04

Previous: $5.60-10.0%
Fleet Productivity

-3.8%

No prior period
Capital Expenditures

$52M

Previous: $61M-14.8%
Free Cash Flow

$2.44B

Previous: $484M+404.1%
Net Income

$297M

Previous: $338M-12.1%
Operating Income

$510M

Previous: $599M-14.9%
Gross Profit

$869M

Previous: $965M-9.9%
Cash & Equivalents

$202M

Previous: $52M+288.5%
Total Assets

$17.9B

Previous: $19B-5.8%
Stock-Based Comp

$24M

Previous: $16M+50.0%

Revenue & EPS history

United Rentals · Revenue · Quarterly

$2.28B

Q4 2020-7.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

United Rentals · $1.85B total across 2 segments · Q4 2020

  • General Rentals
    $1.43B-11.1%
  • Specialty Rentals
    $422M-6.6%

Forward guidance

The company provided the following outlook for 2021. Total revenue $8.625 billion to $9.025 billion. Adjusted EBITDA $3.925 billion to $4.125 billion. Net rental capital expenditures after gross purchases $1.15 billion to $1.45 billion, after gross purchases of $2.0 billion to $2.3 billion. Net cash provided by operating activities $2.95 billion to $3.45 billion. Free cash flow (excluding merger and restructuring related payments, such payments were $14 million in 2020) $1.65 billion to $1.85 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 Q4 2020

Historical avgQ4 2020

+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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