Another record quarter for United Rentals
27 July 2023
For its second quarter to June 30 United Rentals saw record results across the board, reporting total revenues up 28% year-on-year to $3.554 billion and rental revenues 21.1% higher at $2.981 billion.
As a result of strong market demand and continued momentum, United has upped its full-year guidance with total revenues expected of $14.0 to $14.3 billion, up from $13.7 to $14.2 billion.
The more than 20% increase in rental revenue also reflected the impact of the Ahern Rentals acquisition, which was completed in December last year. On a pro-forma basis, including the pre-acquisition results of Ahern for the second quarter of 2022, rental revenue growth was 12.4%
“The increases to our full-year guidance speak to the strength of the current environment,” said Matthew Flannery, chief executive officer of United Rentals.
“As we look ahead, we continue to focus on ensuring that we are best positioned to serve our customers as they capitalize on the multi-year tailwinds we see across infrastructure, manufacturing and energy and power.”
The company’s used equipment sales and general rentals segment both benefitted from United’s acquisition of Ahern Rentals in December 2022, with used equipment sales leaping 132.9% year-over-year, generating $382 million of proceeds.
General rentals revenues, excluding its Specialty activities, increased 22.5% year-over-year for a total of $2.189 billion. That increase was 10.7% on a pro forma basis, including the pre-acquisition revenues from Ahern.
“I’m pleased to share that our record second quarter results were supported by strong customer activity across our business,” Flannery said.
“The integration of Ahern is on track, while our team’s outstanding execution drove solid margin expansion both sequentially and year-over-year. Looking at the balance of 2023, we remain encouraged by the momentum we are carrying into the busiest part of our season as well as our customers’ continued optimism.”
Specialty rentals segment rental revenue increased 17.3% year-over-year to a second quarter record of $792 3 million. Year-over-year, United’s fleet productivity decreased -2.0% as reported, however on a pro forma basis, increased 2.1%. United noted fleet productivity is reflected by the combined impact of changes in rental rates, time utilization and mix on owned equipment rental revenue, as well the Ahern acquisition.
As of June 30, United’s fleet totaled $20.6 billion with roughly 1,010,000 units. Average fleet age, the company said, is roughly 52 months.
Customer mix has nearly evened out for the rental company, with 48% representing industrial/other and 47% consisting of non-residential construction customers.