United Rentals, Inc.
United Rentals, Inc. is the world's largest equipment rental company with a store network nearly three times the size of any other provider and locations in 49 states and ten Canadian provinces.
Employees: 24,600
Revenue: $11.64B for FY2022
HQ Location: Stamford, Connecticut, United States
What they do:
They are the world’s largest rental partner.
They have an integrated network of rental locations:
1,462 in North America, operating in 49 states and every Canadian province
13 in Europe
27 in Australia
19 in New Zealand
Their employees serve construction and industrial customers, utilities, municipalities, homeowners, and others.
Their products and services include:
Equipment Rental. They offer for rent approximately 4,300 classes of rental equipment on an hourly, daily, weekly or monthly basis. The types of equipment that they offer include general construction and industrial equipment; aerial work platforms; trench safety equipment; power and HVAC equipment; fluid solutions equipment; mobile storage equipment and modular office space; and general tools and light equipment.
Sales of Rental Equipment. They routinely sell used rental equipment and invest in new equipment in order to manage repair and maintenance costs, as well as the composition and size of their fleet. They also sell used equipment in response to customer demand for the equipment.
Sales of New Equipment. They sell equipment such as aerial lifts, reach forklifts, telehandlers, compressors and generators from many leading equipment manufacturers. The type of new equipment that they sell varies by location.
Contractor Supplies Sales. They sell a variety of contractor supplies including construction consumables, tools, small equipment and safety supplies.
Service and Other Revenues. They offer repair and maintenance services and sell parts for equipment that is owned by their customers.
Their purpose:
To build a better future together
They work with their customers, communities, and employees to find solutions with a shared commitment to service and safety.
Financial and Business Goals
“Our guidance reflects our expectations for another year of strong growth, and our ability to convert this growth into compelling returns. The introduction of our dividend program reflects the strength and resiliency of our operating model and our ability to generate cash across the cycle while continuing to invest in growth. Combined with the restart of our share repurchase program, we expect to return approximately $1.4 billion of cash to our shareholders this year as we continue to drive long-term value creation.” - Matthew Flannery, CEO of United Rentals, said about looking forward to 2023.
To summarize, maximize value creation across the cycle by balancing growth, margins, and free cash flow to drive returns
Their ongoing strategy
Things to know right now
United Rentals have acquired Ahern Rentals
This acquisition is hoped will bolster United Rentals’ position as a leader in the North American rental industry while also augmenting its presence with local and mid-sized customer segments in select markets.
Ted Grace is named as CFO of United Rentals.
His position came into effect in November 2022.
Share Re-Purchase Programme
On October 24, 2022, the company's Board of Directors authorized a new $1.25 billion share repurchase program. The program was subsequently paused through the initial phase of the integration of the $2.0 billion Ahern Rentals acquisition, which closed in December 2022. The company plans to begin repurchases under the program in the first quarter of 2023 and intends to repurchase $1.0 billion of common stock during 2023.
Business Segments:
United Rentals serves its customers as a single-source solution, provided through two business segments:
General Rentals - this segment offers construction, industrial, and homeowner equipment for rent, and related services.
Specialty Rentals - this segment includes the rental of equipment and tools for underground construction, temporary power, climate control, fluid solutions, disaster recovery, onsite tool management, and related services.
Their Competitors
McGrath Rentcorp
Sunbelt Rentals
BlueLine Rentals
Their financial calendar
Q1: January-March - Earnings 27th April 2022
Q2: April-June - Earnings 27th July 2022
Q3: July-September - Earnings 26th October 2022
Q4: October-December - Earnings 25th January 2023
Next Earnings Report:
Around 27th April 2023
Positives from the last earnings report:
Rental revenue for the quarter was a record $2.747 billion, reflecting an increase of 18.8% year-over-year. The increase reflects the broad-based strength of demand across the end markets served by the company. Year-over-year, fleet productivity increased by 5.9% while average original equipment at cost increased by 14.2%.
Used equipment sales in the quarter increased 26.2% year-over-year. These sales generated $409 million of proceeds at a GAAP gross margin of 58.9% and an adjusted gross margin of 61.6%; this compares with $324 million at a GAAP gross margin of 49.4% and an adjusted gross margin of 52.2% for the same period last year. The gross margin increases were primarily due to strong pricing on used equipment sales and an improved channel mix.
Net income for the quarter increased 32.8% year-over-year to $639 million, while the net income margin increased to 19.4%. Both net income and net income margin were fourth-quarter records. The year-over-year improvements primarily reflected higher gross margins from rental revenue and used equipment sales, and a reduction in non-rental depreciation and amortization as a percentage of revenue, partially offset by higher interest and income tax expenses.
General rentals segment had an increase of 19.1% year-over-year in rental revenue to a fourth-quarter record of $2.023 billion primarily due to better-fixed cost absorption on higher revenue.
Specialty rentals segment rental revenue increased 18.1% year-over-year to a fourth-quarter record of $724 million primarily due to better cost performance and fixed cost absorption on higher revenue.