Wed, Apr 23, 8:28 PM (25 days ago)
**United Rentals, Inc. (URI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $3.719 billion, up 6.7% YoY, driven by a 7.4% increase in equipment rentals and a 45.8% increase in sales of new equipment. - **Net Income:** $518 million, down 4.4% YoY, including a $29 after-tax benefit from the H&E merger termination. - **Earnings per Share (EPS):** $7.91 diluted, down from $8.04 YoY. - **Adjusted EBITDA:** $1.671 billion, up 5.3% YoY, including a $52 benefit from the H&E merger termination. - **Gross Margin:** 36.5%, down 210 basis points YoY, primarily due to reduced margins in the specialty segment and the normalization of the used equipment market. - **Cash Flow from Operations:** $1.425 billion, up from $1.029 billion YoY, including the H&E merger termination benefit. - **Free Cash Flow:** $1.082 billion, up from $869 million YoY. **Segment Performance:** - **General Rentals:** Equipment rentals increased 1.4% YoY, with a slight decrease in gross margin due to inflation and cost variability. - **Specialty:** Equipment rentals increased 21.8% YoY, driven by the Yak acquisition and increased average original equipment cost (OEC). Gross margin decreased due to higher depreciation, ancillary revenues, and cost variability. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $542 million, up from $457 million at the end of 2024. - **Liquidity:** $3.345 billion, comprised of cash and cash equivalents, and availability under the ABL and accounts receivable securitization facilities. - **Share Repurchases:** Completed a $1.5 billion share repurchase program in Q1 2025 and authorized a new $1.5 billion program, with $1.25 billion planned for 2025. - **Dividends:** Paid $118 million in dividends, with a quarterly dividend of $1.79 per share declared for Q2 2025. **Debt and Financial Covenants:** - **Total Debt:** $12.922 billion, with $11.502 billion in long-term debt. - **Interest Expense:** $184 million, up 15.0% YoY, due to bridge financing fees and increased average debt. - **Compliance:** In compliance with all debt covenants as of March 31, 2025. **Uncertainties and Future Operations:** - **Economic Conditions:** Inflation, interest rates, and supply chain constraints may impact operations and profitability. - **Industry Trends:** The cyclical nature of the rental industry and competition from existing and new competitors pose risks. - **Strategic Initiatives:** Focus on customer segmentation, rate management, fleet optimization, and strategic acquisitions to drive growth and profitability. **Ticker:** URI