United Rentals, Inc. (URI) Q3 2025 Financial Results Summary
United Rentals, Inc. (NYSE: URI) announced its financial results for the third quarter of 2025 on October 22, 2025, reporting strong performance and raising its full-year guidance.
Third Quarter 2025 Highlights
- Total Revenue: $4.229 billion, up 5.8% year-over-year.
- Rental Revenue: $3.665 billion.
- Net Income: $701 million, representing a 1.0% decrease year-over-year.
- Net Income Margin: 16.6%, down by 110 basis points.
- GAAP Diluted Earnings Per Share (EPS): $10.91, an increase from $10.70.
- Adjusted EPS: $11.70, down from $11.80.
- Adjusted EBITDA: $1.946 billion, up 2.2% year-over-year.
- Adjusted EBITDA Margin: 46.0%, a decrease of 170 basis points.
- Fleet Productivity: Increased by 2.0% year-over-year.
- Year-to-Date Net Cash Provided by Operating Activities: $3.934 billion; Free Cash Flow: $1.192 billion (decreased 1.6% from $1.211 billion).
- Rental Capital Expenditures: $3.760 billion year-to-date.
Shareholder Returns
- The company returned $1.633 billion to shareholders year-to-date.
- Share Repurchases: $1.283 billion.
- Dividends Paid: $350 million.
- Quarterly Dividend Declared: $1.79 per share, payable on November 26, 2025, to stockholders of record as of November 12, 2025.
Financial Performance Metrics
- General Rentals Segment:
- Rental Revenue: Increased by 3.1% year-over-year to a record of $2.400 billion.
-
Rental Gross Margin: Decreased by 90 basis points to 36.7%.
-
Specialty Rentals Segment:
- Rental Revenue: Increased by 11.4% year-over-year to a record of $1.265 billion.
- Rental Gross Margin: Decreased by 490 basis points to 45.1%.
Cash Flow and Leverage
- Net Leverage Ratio: 1.86x with total liquidity of $2.452 billion.
- Cash Flow Details:
- Cash from operating activities increased by 12.5% year-over-year.
- Capital Expenditures: Exceeded gross payments for rental equipment purchases.
2025 Outlook
- Total Revenue Guidance: Revised to $16.0 billion to $16.2 billion, increased from the prior estimate of $15.8 billion to $16.1 billion.
- Adjusted EBITDA Guidance: Revised to a range of $7.325 billion to $7.425 billion, slightly up from the previous guidance.
Summary
Overall, United Rentals, Inc. demonstrated strong growth and resilience amidst the evolving market landscape. The company’s focus on fleet productivity and capital management, alongside robust shareholder returns, positioned it favorably moving forward into the remainder of the fiscal year.
| Revenues: | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Equipment rentals | $3,665 | $3,463 | $10,225 | $9,607 |
| Sales of rental equipment | 333 | 321 | 1,027 | 1,069 |
| Sales of new equipment | 95 | 77 | 240 | 186 |
| Contractor supplies sales | 43 | 38 | 120 | 116 |
| Service and other revenues | 93 | 93 | 279 | 272 |
| Total revenues | 4,229 | 3,992 | 11,891 | 11,250 |
| Cost of revenues: | ||||
| Cost of equipment rentals, excluding depreciation | 1,530 | 1,392 | 4,351 | 3,958 |
| Depreciation of rental equipment | 684 | 629 | 1,972 | 1,819 |
| Cost of rental equipment sales | 186 | 176 | 567 | 564 |
| Cost of new equipment sales | 75 | 65 | 192 | 152 |
| Cost of contractor supplies sales | 32 | 26 | 86 | 80 |
| Cost of service and other revenues | 57 | 56 | 169 | 165 |
| Total cost of revenues | 2,564 | 2,344 | 7,337 | 6,738 |
| Gross profit | 1,665 | 1,648 | 4,554 | 4,512 |
| Selling, general and administrative expenses (1) | 442 | 416 | 1,301 | 1,209 |
| Restructuring charge | — | 1 | 1 | 3 |
| Non-rental depreciation and amortization | 109 | 109 | 331 | 322 |
| Operating income | 1,114 | 1,122 | 2,921 | 2,978 |
| Interest expense, net (1) | 178 | 178 | 533 | 511 |
| Other income, net (1) | -1 | -5 | -76 | -12 |
| Income before provision for income taxes | 937 | 949 | 2,464 | 2,479 |
| Provision for income taxes | 236 | 241 | 623 | 593 |
| Net income (1) | $701 | $708 | $1,841 | $1,886 |
| Diluted earnings per share (1) | $10.91 | $10.70 | $28.37 | $28.25 |
| Dividends declared per share | $1.79 | $1.63 | $5.37 | $4.89 |
(1) The results above for the nine months ended September 30, 2025 include the impact of the merger termination benefit associated with the termination of the H&E Equipment Services, Inc. d/b/a H&E Rentals (“H&E”) merger agreement. The merger termination did not impact the results for any other period above. For further information on this merger termination benefit, see the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 filed with the SEC.
| ASSETS | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $512 | $457 |
| Accounts receivable, net | 2,579 | 2,357 |
| Inventory | 234 | 200 |
| Prepaid expenses and other assets | 458 | 235 |
| Total current assets | 3,783 | 3,249 |
| Rental equipment, net | 16,405 | 14,931 |
| Property and equipment, net | 1,075 | 1,034 |
| Goodwill | 6,884 | 6,900 |
| Other intangible assets, net | 531 | 663 |
| Operating lease right-of-use assets | 1,326 | 1,337 |
| Other long-term assets | 61 | 49 |
| Total assets | $30,065 | $28,163 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Short-term debt and current maturities of long-term debt | $1,548 | $1,178 |
| Accounts payable | 1,276 | 748 |
| Accrued expenses and other liabilities | 1,387 | 1,397 |
| Total current liabilities | 4,211 | 3,323 |
| Long-term debt | 12,600 | 12,228 |
| Deferred taxes | 2,971 | 2,685 |
| Operating lease liabilities | 1,064 | 1,089 |
| Other long-term liabilities | 219 | 216 |
| Total liabilities | 21,065 | 19,541 |
| Common stock | 1 | 1 |
| Additional paid-in capital | 2,691 | 2,691 |
| Retained earnings | 15,304 | 13,813 |
| Treasury stock | -8,773 | -7,478 |
| Accumulated other comprehensive loss | -283 | -405 |
| Total stockholders’ equity | 9,000 | 8,622 |
| Total liabilities and stockholders’ equity | $30,065 | $28,163 |
