United Rentals (URI) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $3.719 billion, up 6.7% year-over-year, and adjusted EBITDA of $1.671 billion (44.9% margin), driven by strong demand across construction, industrial, and specialty end markets.

• Net income for Q1 2025 was $518 million (13.9% margin), with adjusted EPS of $8.86 and a $29 million after-tax benefit from the terminated H&E merger.

• Specialty segment revenue grew 21.8%–22% year-over-year, representing 33.4% of 2024 revenue, with continued expansion and strong demand.

• Completed a $1.5 billion share repurchase program and authorized a new $1.5 billion program, with $368 million returned to shareholders in Q1 2025 via buybacks and dividends.

• Reaffirmed full-year 2025 guidance and announced a quarterly dividend of $1.79 per share.

Financial highlights

• Rental revenue rose 7.4% year-over-year to $3.145 billion, with fleet productivity up 3.1% and average original equipment cost up 3.3%.

• Free cash flow increased to $1.082–$1.083 billion, up 24.5% year-over-year, and operating cash flow was $1.425 billion.

• Used equipment sales were $377 million at a 47.2% adjusted margin and 51% recovery rate, though gross margin declined due to market normalization.

• Net income margin decreased to 13.9% from 15.6% in Q1 2024, mainly due to lower margins and higher SG&A and interest expense.

• Net leverage ratio improved to 1.7x, with total liquidity of $3.345 billion at quarter-end.

Outlook and guidance

• Reaffirmed 2025 total revenue guidance of $15.6–$16.1 billion and adjusted EBITDA of $7.2–$7.45 billion.

• 2025 free cash flow expected at $2.0–$2.2 billion, with net rental capital expenditures of $2.2–$2.5 billion.

• Plans to repurchase $1.5 billion in shares in 2025, with $250 million to carry into 2026.

• 2028 aspirational targets: ~$20 billion revenue, ~$10 billion adjusted EBITDA, 15%+ ROIC.

• Customer confidence and project backlogs support a positive outlook for the remainder of the year.