Key Highlights
- The equipment rental company reported first-quarter earnings per share of $9.71, surpassing analyst expectations of $8.95
- First-quarter revenues reached $3.99 billion, representing an 8.7% increase from the prior year and exceeding the $3.87B forecast
- Annual revenue projections upgraded to a range of $16.9B–$17.4B from the previous $16.8B–$17.3B estimate
- Expansion fueled by nonresidential building activity, infrastructure investments, energy sector demand, and mining operations
- Bernstein maintained its Outperform recommendation, with the stock delivering 37% gains over twelve months
The nation’s largest equipment rental company delivered an outstanding first-quarter performance, exceeding analyst projections for both profits and revenues, sending shares soaring.
Shares of URI skyrocketed approximately 20% during Thursday’s trading session to reach the $960 level, claiming the position of best-performing stock in the S&P 500 index. The equipment rental leader has now gained 32% during April and posted a 19% advance since the start of the year.
Adjusted earnings per share for the first quarter registered at $9.71, exceeding the Wall Street consensus forecast of $8.95 by $0.76. This represents an improvement from the $8.86 per share reported during the corresponding quarter last year. Total revenues reached $3.99 billion, marking an 8.7% climb from the $3.72 billion generated a year earlier and surpassing the analyst estimate of $3.87 billion.
Rental revenues — representing the company’s primary business segment — expanded to $3.42 billion, up from $3.15 billion in the first quarter of 2025, establishing a new quarterly record for the period. The average original equipment cost increased by 5.7%, while overall fleet productivity showed a 2.3% improvement.
Chief Executive Officer Matthew Flannery noted that expansion was broad-based across multiple sectors. Nonresidential construction activity and infrastructure development provided the strongest momentum on the construction front, while energy generation, mining operations, and mineral extraction stood out as the primary drivers within the industrial category.
New construction initiatives spanning healthcare facilities, data processing centers, manufacturing plants, and infrastructure modernization all played a role in driving the quarter’s strong results.
Company Elevates Financial Projections
United Rentals increased its full-year revenue forecast to a range of $16.9 billion to $17.4 billion, representing an upgrade from the earlier projection of $16.8B to $17.3B. The midpoint estimate of $17.15 billion slightly surpasses the Street consensus of $17.07 billion.
Projections for adjusted EBITDA were refined to $7.625B–$7.875B, compared to the prior range of $7.575B–$7.825B. The company maintained its free cash flow guidance at the previously established range of $2.15B–$2.45B.
Flannery informed analysts that the current year is “unfolding more favorably than our expectations from several months ago,” noting that input from field operations continues to reflect positive sentiment, particularly regarding large-scale projects.
Global Soccer Tournament Presents Opportunity
One specific catalyst Flannery highlighted during the earnings discussion: the upcoming 2026 FIFA World Cup. The company anticipates serving as “a key partner” for the international soccer championship beginning in the second quarter.
Construction activities are currently in progress across host cities throughout the United States, Mexico, and Canada, encompassing stadium modifications to meet FIFA specifications and comprehensive infrastructure enhancements.
Adjusted EBITDA during the quarter totaled $1.76 billion, coming in 5% above consensus projections. General Rentals segment gross profit margins reached 33.8%, approximately 180 basis points higher than analyst estimates. Specialty segment gross margins of 41.4% fell roughly 200 basis points short of expectations, although Specialty rental revenues still exceeded forecasts by 5%.
Bernstein SocGen Group confirmed its Outperform rating on URI after reviewing the quarterly results, keeping its price objective at $903. The current stock price near $960 positions it considerably above that analyst target following Thursday’s sharp advance.
URI’s market capitalization currently stands at approximately $50.5 billion, with the stock generating roughly 37% returns for investors over the trailing twelve-month period.
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