United Rentals (URI) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter total revenue of $3.985 billion, up 7.2% year-over-year, with net income of $531 million (13.3% margin) and adjusted EBITDA of $1.759 billion (44.1% margin), driven by strong equipment rentals and increased fleet productivity.

• Free cash flow for Q1 2026 was $1.067 billion (26.8% margin), reflecting strong cash generation and operational efficiency.

• Maintains industry leadership with a diverse portfolio, robust digital tools, and a focus on specialty solutions, which now represent 36.5% of total revenue.

• Strategic capital allocation includes continued investment in organic growth, disciplined M&A, and returning excess cash to investors through dividends and share repurchases.

• Raised full-year 2026 guidance for revenue and adjusted EBITDA, reflecting strong momentum and customer optimism.

Financial highlights

• Equipment rentals revenue grew 8.7% to $3.419 billion, representing 86% of total revenues; total revenue grew 7.2% to $3.985 billion.

• Adjusted EBITDA reached $1.759 billion, with a margin of 44.1%, up 60 basis points year-over-year (excluding one-time items).

• Adjusted EPS was $9.71, up 10% year-over-year; GAAP EPS was $8.43.

• Free cash flow was $1.054 billion, stable year-over-year, with over $1.05 billion for the quarter.

• Gross profit improved to $1.469 billion, with total gross margin up 40 basis points to 36.9%.

Outlook and guidance

• 2026 total revenue guidance raised to $16.9–$17.4 billion; adjusted EBITDA guidance raised to $7.625–$7.875 billion.

• Free cash flow for 2026 projected at $2.15–$2.45 billion, excluding restructuring payments.

• Gross CapEx guidance raised to $4.4–$4.8 billion, with net CapEx of $2.95–$3.35 billion.

• Plan to return $2 billion to shareholders in 2024 and $1.5 billion in 2026 via dividends and share repurchases.

• 2028 aspirational targets: ~$20 billion total revenue, ~$7 billion specialty revenue, ~$10 billion adjusted EBITDA, and 15%+ ROIC.