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Sep 30
United Rentals Q3 2025 Earnings Report
United Rentals reported strong third-quarter 2025 results, driven by robust customer demand, and subsequently raised its full-year guidance for revenue and capital spending.
Key Takeaways
United Rentals delivered a strong third quarter in 2025, with total revenue reaching $4.229 billion and net income at $701 million. The company saw significant growth in both general rentals and specialty segments, leading to an increase in fleet productivity. Adjusted EBITDA also hit a record high, and the company maintained a healthy liquidity position while returning substantial capital to shareholders.
Total revenue for Q3 2025 reached $4.229 billion, with rental revenue contributing $3.665 billion.
Net income for the quarter was $701 million, resulting in a GAAP diluted EPS of $10.91 and an adjusted EPS of $11.70.
Adjusted EBITDA for Q3 2025 was a record $1.946 billion, with a margin of 46.0%.
The company increased its full-year 2025 guidance for total revenue and capital spending, reflecting strong customer demand and expected continued momentum.
United Rentals
United Rentals
United Rentals Revenue by Segment
Revenue by Segment
General Rentals Revenue
CapyFin.comSpecialty Rentals Revenue
CapyFin.com Forward Guidance
United Rentals has updated its full-year 2025 outlook, raising guidance for total revenue and capital spending, reflecting strong customer demand. The company expects continued growth and robust cash generation.
Positive Outlook
- Total revenue guidance raised to $16.0 billion to $16.2 billion (from $15.8 billion to $16.1 billion).
- Adjusted EBITDA guidance updated to $7.325 billion to $7.425 billion (from $7.3 billion to $7.45 billion).
- Net rental capital expenditures after gross purchases increased to $2.55 billion to $2.75 billion (from $2.2 billion to $2.5 billion).
- Gross purchases of rental equipment expected to be $4.0 billion to $4.2 billion (from $3.65 billion to $3.95 billion).
- Net cash provided by operating activities outlook remains strong at $5.0 billion to $5.4 billion.
Challenges Ahead
- Free cash flow excluding merger and restructuring related payments guidance reduced to $2.1 billion to $2.3 billion (from $2.4 billion to $2.6 billion).
- The reduction in free cash flow outlook reflects additional rental capital expenditures to support customer demand.
- Used equipment sales adjusted gross margin declined year-over-year, reflecting normalization of the used equipment market.
- Rental gross margin decreased in both general rentals and specialty segments due to inflation and normal cost variability, particularly in delivery costs.
- Specialty rentals segment rental gross margin decreased significantly due to higher depreciation expense and increased delivery costs for fleet repositioning.
Revenue & Expenses
Visualization of income flow from segment revenue to net income