United Rentals (URI) investor relations material

Demand and macro backdrop

• U.S. demand exceeded January expectations; large-project activity accelerated, while local markets remained stable, prompting a July guidance increase.

• Demand remained resilient despite diesel above $5/gal and debate over interest rates; customer confidence showed no change in outlook through the prior week.

• Management cited multiple growth drivers ahead, including data centers, Power & HVAC and emerging LNG activity; petrochemicals remained soft.

Strategy and rental penetration

• Long-standing focus on major contractors and projects, seven specialty business units and vertical strategies supports complex megaproject needs and growth ahead of broader market data.

• Rental penetration was in the high 50s, possibly 59%, up 5–6 points in five years; management views the trend as secular and the addressable market as above ARA’s $80B estimate.

• Power was the largest and fastest-growing specialty segment; Trench and Power have sustained double-digit growth, with organic specialty growth expected to remain double digit for the foreseeable future.

Supply, pricing and operating execution

• Management described industry supply-demand as disciplined, citing competitor CapEx reductions in 2023–24 and positive industry rental rates despite negative time utilization in that period.

• Industry time utilization was positive YoY every month in 2025 and remained positive through 2026 YTD, supporting positive asset economics.

• Labor productivity, repair and maintenance efficiency, and delivery controls supported margins; Q2 rental revenue rose 12.7% YoY versus delivery expense growth of 11.7%.

• Diesel averaged $5.34/gal YTD versus $3.66/gal a year earlier; Q2 margin expansion was 70 bps, or 40 bps excluding a one-time gain and adjusting for ancillary and re-rent mix.