United Rentals third-quarter net income rises to $920 million and raises 2026 outlook

United Rentals, Inc. (URI) said Wednesday in a press release that net income for the third quarter rose 31.2% to $920 million from a year earlier, and that it raised its full-year 2026 guidance.

The release was furnished with a Form 8-K filed with the Securities and Exchange Commission. It covers the quarter ended Sept. 30.

Here's how the company did:

• Net income: $920 million vs. $701 million a year earlier
• Diluted earnings per share: $14.77 vs. $10.91 a year earlier
• Adjusted earnings per share: $15.55 vs. $11.70 a year earlier
• Total revenue: $4.893 billion vs. $4.229 billion a year earlier
• Adjusted EBITDA: $2.331 billion vs. $1.946 billion a year earlier

Rental revenue rose 17.8% from a year earlier to a quarterly record of $4.316 billion, the company said.

The increase was driven mainly by a 7.9% rise in average original equipment at cost, or OEC, the company said.

Fleet productivity, which the company defines as the combined impact of rental rates, time utilization and mix on owned equipment rental revenue, rose 6.5%.

Ancillary and re-rent revenue contributed 4.9% to rental revenue growth.

Margins and costs

Net income margin increased 220 basis points to 18.8%, primarily due to higher rental gross margin, the company said.

Adjusted EBITDA margin rose 160 basis points to 47.6%. Adjusted EBITDA is a non-GAAP measure of earnings before interest, taxes, depreciation and amortization, adjusted to add back restructuring charges, stock compensation expense and the fair value mark-up of acquired fleet.

The company also cited a lower ratio of selling, general and administrative expenses to revenue, and a larger share of revenue from equipment rentals.

The company recorded a $15 million restructuring charge in the quarter, compared with none a year earlier. For the nine months, restructuring charges totaled $66 million. The filing said they were primarily severance and branch closure costs under a program started in the fourth quarter of 2025 to consolidate certain common functions.

The nine-month results included a pre-tax gain of $53 million from the sale of part of the company’s scaffolding business. After tax, the gain was $39 million, or $0.63 per diluted share.

Segment results

General rentals rental revenue rose 8.8% to a quarterly record of $2.612 billion. Rental gross margin in that segment increased 170 basis points to 38.4%.

Specialty rentals rental revenue rose 34.7% to a quarterly record of $1.704 billion. Rental gross margin in that segment increased 250 basis points to 47.6%.

Used equipment sales increased 4.5% from a year earlier and generated $348 million of proceeds. The GAAP gross margin on those sales was 44.8%, compared with 44.1% a year earlier. The company realized a 51.4% OEC recovery rate on fleet sold in the quarter.

Guidance

The company raised its 2026 outlook on several measures. Total revenue is now expected at $18.0 billion to $18.2 billion, up from $17.5 billion to $17.8 billion.

Adjusted EBITDA is now projected at $8.3 billion to $8.4 billion, from $7.975 billion to $8.125 billion. Net cash provided by operating activities is now projected at $6.25 billion to $6.85 billion, from $5.85 billion to $6.65 billion.

Net rental capital expenditures after gross purchases are now $3.75 billion to $4.05 billion, after gross purchases of $5.2 billion to $5.5 billion. The prior outlook was $3.4 billion to $3.8 billion, after gross purchases of $4.85 billion to $5.25 billion. Free cash flow excluding restructuring related payments was unchanged at $2.15 billion to $2.45 billion.

CEO Matthew Flannery said: “As we look ahead, we believe we are uniquely positioned to outperform the industry through our broad footprint, unmatched one-stop-shop offering, exceptional levels of service, leading technology and unwavering commitment to safety.” He added: “Our raised guidance reflects this, and is supported by our customers’ confidence, their backlogs, and the momentum we see across large projects.”

Capital returns

The company completed its $2.0 billion share repurchase program and started a new $5.0 billion program during the first nine months, according to the filing. It repurchased $1.125 billion of common stock under these programs in that period and expects to complete $1.5 billion of repurchases in 2026.

Its board declared a quarterly dividend of $1.97 per share, up from $1.79 a year earlier. The dividend is payable Nov. 25 to stockholders of record on Nov. 11.

The net leverage ratio was 1.8x at Sept. 30, compared with 1.9x at Dec. 31, 2025. Total liquidity was $2.615 billion, including $153 million of cash and cash equivalents.

Net cash provided by operating activities rose 25.4% to $4.934 billion for the first nine months. Free cash flow, including restructuring related payments, rose 19.2% to $1.421 billion over the same period.

The company said its return on invested capital was 12.3% for the 12 months ended Sept. 30. Purchases of other companies, net of cash acquired, totaled $527 million for the nine months, against $22 million a year earlier.

The release describes United Rentals as the largest equipment rental company in the world, with 1,686 rental locations in North America and about 28,600 employees.