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Sep 30, 2020
United Rentals Q3 2020 Earnings Report
Announced third quarter results and raised full-year guidance.
Key Takeaways
United Rentals announced strong third quarter results, driven by cost performance and improved fleet absorption, and raised its full-year 2020 guidance for revenue, profitability and free cash flow.
Total revenue of $2.187 billion, including rental revenue of $1.861 billion.
Fleet productivity decreased 8.0% year-over-year, but improved sequentially by 560 basis points.
Net income of $208 million, with GAAP diluted earnings per share of $2.87, and adjusted EPS of $5.40.
Adjusted EBITDA of $1.081 billion, implying an adjusted EBITDA margin of 49.4%.
Revenue by Segment
Forward Guidance
The company raised its full-year 2020 outlook for revenue, profitability and free cash flow.
Positive Outlook
- Total revenue between $8.35 billion and $8.45 billion.
- Adjusted EBITDA between $3.825 billion to $3.875 billion.
- Net rental capital expenditures after gross purchases between $100 million to $150 million, after gross purchases of $900 million to $950 million.
- Net cash provided by operating activities between $2.45 billion to $2.55 billion.
- Free cash flow (excluding the impact of merger and restructuring related payments) between $2.2 billion to $2.3 billion.
Challenges Ahead
- Uncertainty regarding the length of time it will take to slow the spread of COVID-19.
- The extent to which businesses in and associated with the construction industry continue to be deemed “essential”.
- The impact of global economic conditions and public health crises and epidemics, such as COVID-19, on us, our customers and our suppliers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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