Mar 31, 2023

United Rentals Q1 2023 Earnings Report

Announced record first quarter results and reaffirmed its full-year 2023 guidance.

Key Takeaways

United Rentals reported record first quarter results with total revenue of $3.285 billion, net income of $451 million, and adjusted EPS of $7.95. The company reaffirmed its full-year 2023 guidance, supported by customer optimism and the integration of recent acquisitions.

Total revenue reached $3.285 billion, including rental revenue of $2.740 billion.

Fleet productivity increased 2.0% as reported and 5.9% on a pro forma basis.

Net income was $451 million, with a margin of 13.7%, and GAAP diluted earnings per share of $6.47.

Adjusted EBITDA was $1.503 billion, with a margin of 45.8%.

Total Revenue
$3.29B
Previous year: $2.52B
+30.2%
EPS
$7.95
Previous year: $5.73
+38.7%
Adjusted EBITDA Margin
45.8%
Previous year: 45.1%
+1.6%
Gross Profit
$1.24B
Previous year: $992M
+25.1%
Cash and Equivalents
$99M
Previous year: $101M
-2.0%
Free Cash Flow
$478M
Previous year: $572M
-16.4%
Total Assets
$24.6B
Previous year: $20.2B
+22.1%

United Rentals

United Rentals

United Rentals Revenue by Segment

Forward Guidance

The company has reaffirmed its 2023 outlook.

Positive Outlook

  • Total revenue is expected to be between $13.7 billion to $14.2 billion
  • Adjusted EBITDA is projected to be $6.6 billion to $6.85 billion
  • Net rental capital expenditures after gross purchases are anticipated to be $2.0 billion to $2.25 billion, after gross purchases of $3.3 billion to $3.55 billion
  • Net cash provided by operating activities is estimated to be $4.4 billion to $4.8 billion
  • Free cash flow (excluding merger and restructuring related payments) is forecasted to be $2.1 billion to $2.35 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income