GenRent vs. Specialty Growth
Q: Will GenRent revenues decline in H2 while Specialty offsets?
A: Management does not expect GenRent revenues to go negative in the second half, although GenRent is more impacted by local market dynamics. Specialty is growing strongly, both organically and with the Yak acquisition, and they have invested most of their growth CapEx into Specialty this year. Specialty's broader offerings and customer demand are driving its growth, helping to offset any challenges in GenRent. "

Margins and Incremental Margins
Q: What environment is needed to reach target incrementals?
A: Various factors affect incremental margins, including growth rate and composition (rate vs. volume). While it's hard to specify exact growth needed, management emphasizes their focus on efficient operations to drive attractive profitability. They are delivering mid-single-digit growth and are committed to strong cost discipline. "

M&A Pipeline and International Expansion
Q: Has the M&A pipeline changed, especially internationally?
A: The M&A pipeline remains robust domestically, with activity in both Specialty and GenRent. Internationally, they recently closed a deal in Australia to broaden their product offering, but significant international expansion is not a primary focus currently. "

Fleet Productivity and Utilization
Q: Any changes to fleet productivity expectations?
A: Management expects fleet productivity to remain positive for the year, with time utilization neutral and rate positive. They are matching last year's time utilization and continue to see good rate growth, all embedded in their guidance. " , "

Used Equipment Margins
Q: How are used equipment margins trending?
A: Margin normalization continues as recovery rates return to historical norms after the extraordinary conditions of 2022. Demand remains strong, with a record amount of OEC sold in Q2, and recovery rates are stabilizing. "

Mega Projects and Multi-year Tailwinds
Q: How active is the bid pipeline for large projects?
A: Large projects provide a multiyear tailwind, with equipment on projects started in 2022. Management is well-positioned due to customer relationships and product offerings, but specifics on the bid pipeline are not disclosed. " , "

Impact of Macroeconomic Factors
Q: Are you seeing incremental weakness in non-res construction?
A: The year is unfolding as expected, without significant concerns. Despite negative data points, customers remain positive, and they effectively utilize their scale to move fleet where needed, supporting projects efficiently. " , "

Infrastructure Bill Impact
Q: Are you seeing benefits from the Infrastructure Bill?
A: They continue to see growth in their infrastructure business and expect more work to come. While funding timing is hard to track, they feel positive about infrastructure opportunities and believe they're in the early innings. "

Yak Acquisition Integration
Q: How is the Yak integration progressing?
A: The integration is going well, with Yak's strong team benefiting from United Rentals' network and resources. They are supporting Yak's growth and have encountered no negative surprises. "

Specialty Growth Drivers
Q: What is driving the 18% organic growth in Specialty?
A: Growth is broad-based across all Specialty offerings, with mobile storage and power showing strong growth. Cross-selling on large projects and with large customers significantly contributes to this growth. "

Capital Expenditure and Fleet Age
Q: Why maintain CapEx despite ability to age fleet?
A: They have no goal to age the fleet and are maintaining CapEx because fleet productivity is positive, and demand is as expected. CapEx is warranted for growth prospects, with significant investment in replacements and Specialty growth. "

Outlook on Dollar Utilization
Q: Is there headroom for dollar utilization expansion?
A: Management doesn't focus on dollar utilization specifically but manages rate and time aggressively. Mix, including assets like Yak, contributes to dollar utilization, but they concentrate on individual components to drive returns. "