United Rentals (URI) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenue reached $3.943 billion, with rental revenue at $3.415 billion, net income of $622 million at a 15.8% margin, and adjusted EBITDA of $1.81 billion (45.9% margin), reflecting strong operational execution and margin discipline.

• Specialty segment drove growth, representing 33.4% of total revenue and up 14% year-over-year, with aggressive expansion and 21 new cold starts in Q2.

• Free cash flow for the first half of 2025 was $1.201 billion, with full-year guidance raised to $2.4–$2.6 billion, supported by tax reform and robust capital allocation.

• Shareholder returns totaled $902 million year-to-date, with a $400 million increase in planned 2025 repurchases to $1.9 billion and a new quarterly dividend of $1.79 per share.

• Digital initiatives contributed to 76% of revenue being digitally enabled, with online revenue up 22% year-over-year.

Financial highlights

• Rental revenue grew 6.2% year-over-year to $3.415 billion, driven by a 3.3% increase in fleet productivity and a 3.6% rise in average original equipment cost.

• Adjusted EPS for Q2 was $10.47; diluted EPS was $9.59.

• Free cash flow for the first six months was $1.198 billion, up from $1.065 billion in the prior year.

• Used equipment sales generated $317 million at a 46.1%–48.3% margin, with sales down 13.2% year-over-year.

• SG&A rose $18 million year-over-year but remained flat as a percent of sales (10.7%).

Outlook and guidance

• 2025 total revenue guidance raised to $15.8–$16.1 billion, with adjusted EBITDA guidance increased to $7.3–$7.45 billion, reflecting a $52 million merger termination benefit.

• Free cash flow guidance raised to $2.4–$2.6 billion, with a margin of 15.7% at midpoint.

• CapEx guidance unchanged at $3.65–$3.95 billion; net rental capital expenditures expected at $2.2–$2.5 billion.

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

• New federal tax legislation expected to decrease 2025 cash income tax liability and increase deferred tax liability.