URI

Industrials

United Rentals

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2010–2025(16yr)

Revenue

Net Income

Free CF

Metric	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.2B	$2.6B	$4.1B	$5.0B	$5.7B	$5.8B	$5.8B	$6.6B	$8.0B	$9.4B	$8.5B	$9.7B	$11.6B	$14.3B	$15.3B	$16.1B	+4.9%
Gross Profit	$658.0M	$898.0M	$1.6B	$2.0B	$2.4B	$2.5B	$2.4B	$2.8B	$3.4B	$3.7B	$3.2B	$3.9B	$5.0B	$5.8B	$6.2B	$6.1B	-0.1%
Gross Margin	29.4%	34.4%	38.5%	40.1%	42.8%	42.6%	41.7%	41.7%	41.8%	39.2%	37.3%	39.7%	42.9%	40.6%	40.1%	38.2%	-1.9pp
Operating Income	$197.0M	$396.0M	$591.0M	$1.1B	$1.4B	$1.5B	$1.4B	$1.5B	$2.0B	$2.2B	$1.8B	$2.3B	$3.2B	$3.8B	$4.1B	$4.0B	-2.3%
Operating Margin	8.8%	15.2%	14.4%	21.8%	24.5%	26.1%	24.6%	22.7%	24.2%	23.0%	21.1%	23.4%	27.8%	26.7%	26.5%	24.7%	-1.8pp
Net Income	-$26.0M	$101.0M	$75.0M	$387.0M	$540.0M	$585.0M	$566.0M	$1.3B	$1.1B	$1.2B	$890.0M	$1.4B	$2.1B	$2.4B	$2.6B	$2.5B	-3.1%
Net Margin	-1.2%	3.9%	1.8%	7.8%	9.5%	10.1%	9.8%	20.3%	13.6%	12.6%	10.4%	14.3%	18.1%	16.9%	16.8%	15.5%	-1.3pp
Free Cash Flow	$424.0M	$576.0M	$624.0M	$1.4B	$1.7B	$1.9B	$1.9B	$2.1B	$2.7B	$2.8B	$2.5B	$491.0M	$743.0M	$840.0M	$416.0M	—	—
FCF Margin	19.0%	22.1%	15.2%	29.2%	29.6%	32.5%	32.3%	31.8%	33.2%	30.0%	28.9%	5.1%	6.4%	5.9%	2.7%	—	—
EPS (Diluted)	$-0.44	$1.38	$0.79	$3.64	$5.15	$6.07	$6.45	$15.73	$13.12	$15.11	$12.20	$19.04	$29.65	$35.28	$38.69	$38.61	-0.2%

Total Debt$14.3B

Cash & Equiv.$459.0M

Net Debt$13.8B

3 min read

1. THE BIG PICTURE

United Rentals has successfully transitioned from a simple equipment provider into a "single source provider of total jobsite solutions," using its $16.1 billion revenue scale to command the highest operating margins among its industrial peers. However, this dominant market position is built on a $14.2 billion debt foundation that leaves United Rentals highly vulnerable to the very economic cycles it seeks to outrun.

2. WHERE THE RISKS HIT HARDEST

The "largest and most comprehensive fleet in the industry" (10-K Item 1) is a double-edged sword; in an economic downturn, these high fixed costs threaten to compress margins because revenues are "highly sensitive" to North American construction and industrial activity (Risks). Furthermore, the "National Account Program," which targets large multi-regional customers, is vulnerable to United Rentals’s $14.2 billion debt load. This indebtedness could "constrain capital expenditures" (Risks) required to maintain the modern fleet that these premium, Fortune 500 customers demand. Finally, the strategy of growth through acquisitions is threatened by United Rentals's reliance on its ABL facility, where a reduction in the value of rental equipment could limit the "access to these funds" (Risks) necessary to identify and integrate new targets.

3. WHAT THE NUMBERS SAY TOGETHER

While total revenue grew 4.9% (XBRL), a divergence is emerging between business lines: Specialty Rentals is the primary engine, growing revenue 9.2% year-over-year, while General Rentals grew just 2.5% (8-K). This shift toward specialty services explains why United Rentals maintains a 24.7% operating margin—the highest in its peer group—outperforming Caterpillar (18.0%) and Fastenal (20.5%) (Peer Benchmarking). However, this growth comes with rising costs; Specialty Rental gross margins fell by 520 basis points to 40.3% due to higher depreciation and delivery expenses (8-K). Short interest stands at 3.2% of the float, suggesting a segment of the market remains skeptical that United Rentals can maintain this margin leadership as it "doubles down" on a more complex, service-heavy mix (8-K).

4. IS IT WORTH IT AT THIS PRICE?

At 14.6x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~6.7% long-term growth (CAPM analysis). This represents a significant discount to the peer median of 25.7x, making United Rentals appear attractively valued given it leads the group in both operating margins and buyback yield (4.0%). United Rentals’s 2026 revenue guidance of $16.8 billion to $17.3 billion (8-K) supports this implied growth trajectory, especially when paired with a aggressive share retirement program. However, the valuation is highly sensitive to macro conditions: if growth slows to a GDP-pace of 2.5%, the justified multiple would drop to 9.0x, representing nearly 40% downside from current levels (CAPM analysis). The primary risk that could force investors to pay less is the $4.1 billion in variable-rate debt, which makes United Rentals's valuation more sensitive to interest rate hikes than its less-leveraged peers like Fastenal.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if interest rates rise significantly, as United Rentals's $14.2 billion debt load and variable-rate exposure would increase debt service requirements and "reduce liquidity for operations" (Risks).
Constructive if Specialty Rental gross margins—which recently declined to 40.3% (8-K)—stabilize or expand, proving that the "one-stop-shop" model can successfully absorb higher delivery and maintenance costs.

6. BOTTOM LINE

Structural Advantage: Massive scale-driven purchasing power combined with proprietary "Total Control" software that integrates United Rentals directly into customer supply chains.

Bottom Line: United Rentals is a high-margin industrial leader trading at a significant discount to peers, though its heavy debt load makes it a high-beta play on the North American construction cycle.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Economic Sensitivity: United Rentals' revenues and operating results are highly sensitive to North American construction and industrial activity. Weakness in these end-markets leads to lower demand and reduced rental rates, which, combined with United Rentals's fixed costs, compresses operating margins.
Indebtedness: With $14.2 billion in total debt as of December 31, 2025, United Rentals faces risks including reduced liquidity for operations, restricted ability to fund acquisitions, and vulnerability to interest rate hikes on its $4.1 billion of variable-rate debt.
Competitive Pressures: The equipment rental industry is highly fragmented. United Rentals faces competition from small independent businesses, regional operators, and large global firms, which can lead to market share loss and downward pressure on pricing.
Strategic Integration: A significant portion of United Rentals' growth is driven by acquisitions. Failure to integrate these businesses, realize anticipated synergies, or identify suitable targets could harm United Rentals's financial condition and stock price.
Capital Access: United Rentals relies on its ABL facility and accounts receivable securitization facility for liquidity. Access to these funds is tied to periodic borrowing base valuations of collateral; a reduction in the value of rental equipment or accounts receivable could limit available credit.

2. Company-Specific Risks

Specialty Segment Expansion: The specialty reportable segment grew to 31.7% of total revenues in 2025 (up from 7.3% in 2013). This expansion into complex services like scaffolding design and electrical pump systems introduces new operational and legal liabilities.
Fleet Residual Value: United Rentals faces residual value risk upon the sale of used equipment. If market prices for used equipment fall below depreciated values, United Rentals incurs negative impacts on its results of operations and cash flows.
Fuel Price Volatility: Because United Rentals relies on the mobility of its fleet, significant increases in fuel prices or supply disruptions raise the costs of transporting equipment between branches.
Goodwill Impairment: As of December 31, 2025, United Rentals held $7.1 billion in goodwill. Negative industry trends or underperformance relative to projections could trigger impairment charges that negatively impact operating results.

3. Regulatory/Legal Risks

Environmental Compliance: United Rentals is subject to laws governing wastewater, hazardous waste, and air quality. United Rentals uses hazardous materials to clean equipment and stores petroleum products in above-ground tanks; future stricter regulations or the discovery of contamination could necessitate significant remediation costs.
Data Privacy: United Rentals collects sensitive data on employees and customers. Failure to comply with evolving global privacy laws, such as the GDPR or various U.S. state laws, could result in substantial fines and regulatory enforcement actions.
Labor Relations: Approximately 1,800 employees are covered by collective bargaining agreements. Union organizing efforts or strikes could disrupt operations, while withdrawal from underfunded multiemployer pension plans could trigger material financial liabilities.
AI Governance: The integration of AI into operations and products exposes United Rentals to new legal, ethical, and security risks, including potential regulatory scrutiny and increased compliance costs.

4. Financial Impact Map

Economic Downturn → Operating Margins → Fixed costs remain constant while revenues decline during market weakness. Significant Indebtedness → Cash Flow → Substantial cash flow must be devoted to debt service, reducing funds available for capital expenditures and acquisitions. Competitive Pricing Pressure → Rental Revenues → Increased competition can depress the rates United Rentals is able to charge for equipment. Acquisition Integration Failure → Goodwill → Impairment charges may be recorded if acquired assets underperform or fail to meet synergy targets. Borrowing Base Fluctuations → Liquidity → Access to credit under the ABL facility is limited by the periodic valuation of rental equipment collateral.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Jan 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—