Mar 31, 2021

United Rentals Q1 2021 Earnings Report

Announced first quarter 2021 results and raised 2021 guidance following strong start to year.

Key Takeaways

United Rentals announced strong first quarter results with total revenue of $2.057 billion and net income of $203 million. The company raised its full-year 2021 guidance, reflecting expectations for stronger growth in its core rental business and increased used equipment sales.

Total revenue of $2.057 billion, including rental revenue of $1.667 billion.

Net income of $203 million, implying a net income margin of 9.9%. GAAP diluted earnings per share of $2.80, and adjusted EPS of $3.45.

Adjusted EBITDA of $873 million, implying an adjusted EBITDA margin of 42.4%.

$758 million of net cash from operating activities; free cash flow of $725 million, including gross rental capital spending of $295 million.

Total Revenue
$2.06B
Previous year: $2.13B
-3.2%
EPS
$3.45
Previous year: $3.35
+3.0%
Gross Profit
$714M
Previous year: $727M
-1.8%
Cash and Equivalents
$278M
Previous year: $513M
-45.8%
Free Cash Flow
$739M
Previous year: $606M
+21.9%
Total Assets
$17.5B
Previous year: $18.9B
-7.0%

United Rentals

United Rentals

United Rentals Revenue by Segment

Forward Guidance

The company has updated its full-year outlook, including the contribution from the acquisition of Franklin Equipment but does not include the impact of the pending acquisition of General Finance Corporation.

Positive Outlook

  • Total revenue between $9.05 billion and $9.45 billion
  • Adjusted EBITDA between $4.1 billion to $4.3 billion
  • Net rental capital expenditures after gross purchases between $1.25 billion to $1.45 billion, after gross purchases of $2.2 billion to $2.4 billion
  • Net cash provided by operating activities between $3.1 billion to $3.5 billion
  • Free cash flow (excluding the impact of merger and restructuring related payments) between $1.7 billion to $1.9 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income