United Rentals, Inc. (URI) is the largest equipment rental company in the world, primarily operating in the United States and Canada, with a limited presence in Europe, Australia, and New Zealand. The company rents out approximately 5,000 classes of equipment to a diverse customer base, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities **[0001067701-24-000037_uri-20240930.htm:30]** **[0001067701-24-000037_uri-20240930.htm:9]**. URI's business is divided into two main segments: general rentals and specialty rentals, with equipment rentals representing a significant portion of its revenue **[0001067701-24-000037_uri-20240930.htm:30]**. The company also sells new and used rental equipment, contractor supplies, parts, and services **[0001067701-24-000037_uri-20240930.htm:9]**.

1. **General Rentals** - Provides construction, aerial, industrial, and homeowner equipment for rent, serving a wide range of customers from construction companies to individual homeowners.
2. **Specialty Rentals** - Offers trench safety equipment, power and HVAC equipment, fluid solutions, mobile storage, modular office space, and surface protection mats, focusing on cross-selling and geographic expansion for growth opportunities **[0001067701-24-000037_uri-20240930.htm:39]** **[0001067701-24-000037_uri-20240930.htm:20]** **[URI_3401485_9]**.

0a44d59b0cd87dd027f487fc5bd8cffe74826e74634fc8849ab1f2712053cc42

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Total Revenue            | N/A     | **3,300**  **[URI_3247682_0]**  | **3,600**  **[URI_3255783_0]**  | **3,800**  **[URI_3362357_0]**  | **3,700**  **[URI_3370906_0]**  | **3,500**  **[URI_3381027_0]**  | **3,800**  **[URI_3394545_0]**  | **3,992**  **[0001067701-24-000037_uri-20240930.htm:40]**  |
| Rental Revenue           | **2,740**  **[URI_3178211_0]**  | **2,740**  **[URI_3247682_2]**  | **2,980**  **[URI_3255783_2]**  | **3,200**  **[URI_3362357_2]**  | **3,120**  **[URI_3370906_2]**  | **2,930**  **[URI_3381027_2]**  | **3,200**  **[URI_3394545_0]**  | **3,463**  **[0001067701-24-000037_uri-20240930.htm:40]**  |
| Specialty Rental Revenue | N/A     | **24% YoY increase**  **[URI_3247682_0]**  | N/A     | **16% YoY increase**  **[URI_3362357_0]**  | N/A     | **Double-digit growth**  **[URI_3381027_0]**  | **18% YoY increase**  **[URI_3394545_0]**  | **1,136**  **[0001067701-24-000037_uri-20240930.htm:40]**  |
| Used Equipment Sales     | N/A     | **388**  **[URI_3247682_2]**  | **382**  **[URI_3255783_2]**  | N/A     | N/A     | **383**  **[URI_3381027_2]**  | N/A     | **321**  **[0001067701-24-000037_uri-20240930.htm:40]**  |
| General Rentals          | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | **Flat growth**  **[URI_3394545_4]**  | **2,327**  **[0001067701-24-000037_uri-20240930.htm:40]**  |

57e35dd725f055bcceef4b4c542cc48c6cbbfd1e37618e3a7e8d5213787b20bf

1. "Given that equipment pricing may soften in 2025, how confident are you in your ability to continue driving rental rates higher to offset inflation, especially if the industry enters a more deflationary environment?"  **[URI_3403888_6]** 

2. "Your updated guidance maintains the midpoints but narrows the ranges; with the ongoing normalization of used equipment margins and the impact of fleet inflation, what factors could pressure your margins going forward, and how do you plan to mitigate them?"  **[URI_3403888_7]** **[URI_3403888_0]** 

3. "With new sales up significantly this quarter, partly due to acquisitions like Yak, how sustainable is this growth, and what strategies do you have to drive organic growth without relying on further acquisitions?"  **[URI_3403888_23]** **[URI_3403888_0]** 

4. "You mentioned not needing to be number one in every specialty category but aiming to be number one with your customers; how does this strategy affect your competitive positioning and ability to capture market share in the Specialty Rentals space?"  **[URI_3403888_23]** 

5. "Considering that your fleet age is at its lowest since pre-COVID, how are you balancing the need for capital efficiency with the risks of investing heavily in fleet CapEx, especially given potential shifts in demand between mega projects and local markets?"  **[URI_3403888_6]** 

79428d47b7fdbe7530bf220f8b3bb32b31c3b9341243b9b26c1b46d6c91d46dd

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Revenue**: $15.1 billion to $15.3 billion
  - **Adjusted EBITDA**: $7.115 billion to $7.215 billion
  - **Gross Capital Expenditures (CapEx)**: $3.55 billion to $3.75 billion
  - **Net Capital Expenditures (CapEx)**: $2.05 billion to $2.25 billion
  - **Return to Shareholders**: $1.9 billion, translating to almost $30 per share or a return of capital yield of about 3.6%  **[URI_3403888_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Revenue**: $15.05 billion to $15.35 billion
  - **Adjusted EBITDA**: $7.09 billion to $7.24 billion
  - **Gross CapEx, Net CapEx, and Free Cash Flow**: Unchanged
  - **Return to Shareholders**: $1.9 billion, translating to almost $30 per share or a return of capital yield of about 4%
  - **Used Sales Proceeds**: Approximately $1.5 billion on about $2.5 billion of Original Equipment Cost (OEC) sold
  - **Free Cash Flow**: Over $2 billion  **[URI_3394545_3]** **[URI_3394545_0]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Revenue**: $14.95 billion to $15.45 billion
  - **Adjusted EBITDA**: $7.04 billion to $7.29 billion
  - **Gross and Net CapEx**: $3.5 billion to $3.8 billion and $2 billion to $2.3 billion, respectively
  - **Free Cash Flow**: $2.05 billion to $2.25 billion
  - **Return to Shareholders**: Over $1.9 billion, translating to about $29 per share or a return of capital yield of roughly 4.5%
  - **Used Sales Guidance**: Roughly $1.5 billion  **[URI_3381027_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Revenue**: $14.65 billion to $15.15 billion
  - **Used Sales Guidance**: Roughly $1.5 billion, down mid-single digits year-on-year
  - **Adjusted EBITDA**: $6.9 billion to $7.15 billion
  - **Gross CapEx**: $3.4 billion to $3.7 billion
  - **Net CapEx**: $1.9 billion to $2.2 billion
  - **Free Cash Flow**: $2 billion to $2.2 billion
  - **Dividend**: Increasing the quarterly payment by 10% to $1.63 per share or $6.52 per share annualized
  - **Share Repurchase**: Plan to repurchase $1.5 billion of common stock
  - **Return to Shareholders**: Over $1.9 billion, equating to almost $30 per share or a return of capital yield of over 5%
  - **Leverage Ratio**: Targeted full cycle leverage range lowered to 1.5x to 2.5x  **[URI_3370906_3]** .

8864f32957cc41be0f2d6d19645039dcddd851aaebfd86eca0283e53f4ab1891

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

5641272acba492deb17071f1fc7cb2832e56602282736f78745a7328a52fd357

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

General Rentals

- Equipment Rentals

- Sales of Rental Equipment

- Sales of New Equipment

- Contractor Supplies Sales

- Service and Other

Specialty

Equipment Rentals

Sales of Rental Equipment

Sales of New Equipment

Contractor Supplies Sales

Service and Other

Total Revenue

f25ec59a35973bfd8ea5aceb759a5b144ab8664ed59a7e9fd7a94fd2e8293b1d

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Matthew J. Flannery   | President and Chief Executive Officer                                    | May 2019         | Matthew J. Flannery is the **President and CEO** of United Rentals. He joined the company in **1998** and has held various senior management positions, including Executive Vice President and COO from **April 2012** to **March 2018**  **[0000950170-24-037181_uri-20240327.htm:21]** **[0000950170-24-031492_uri-20240314.htm:21]** **[0000950170-23-009176_uri-20230316.htm:23]** **[0000950170-23-007276_uri-20230310.htm:23]** . |
| Michael D. Durand     | Executive Vice President and Chief Operating Officer                     | September 2023   | Michael D. Durand joined United Rentals in **2002** and has held roles such as district manager and regional sales director. He became Executive Vice President and COO in **September 2023**  **[0000950170-24-031492_uri-20240314.htm:27]** **[0000950170-24-037181_uri-20240327.htm:27]** .                                           |
| William E. (Ted) Grace| Executive Vice President and Chief Financial Officer                     | November 2022    | William E. (Ted) Grace joined United Rentals in **2016** and became CFO in **November 2022** after serving as Interim CFO starting in **July 2022**. He has over 20 years of experience in financial services  **[0000950170-24-031492_uri-20240314.htm:27]** **[0000950170-24-037181_uri-20240327.htm:27]** **[0000950170-23-009176_uri-20230316.htm:29]** **[0000950170-23-009176_uri-20230316.htm:56]** **[0000950170-23-007276_uri-20230310.htm:29]** **[0000950170-23-007276_uri-20230310.htm:56]** **[0000950170-24-031492_uri-20240314.htm:78]** **[0000950170-24-037181_uri-20240327.htm:78]** **[0000950170-23-009176_uri-20230316.htm:55]** **[0000950170-23-007276_uri-20230310.htm:55]** **[0000950170-23-009176_uri-20230316.htm:86]** **[0001067701-24-000037_uri-9302024xex32b.htm:0]** **[0000950170-23-007276_uri-20230310.htm:86]** **[0000950170-23-009176_uri-20230316.htm:6]** **[0000950170-23-007276_uri-20230310.htm:6]** **[0000950170-23-009176_uri-20230316.htm:67]** . |
| Craig A. Pintoff      | Executive Vice President and Chief Administrative Officer                | March 2017       | Craig A. Pintoff joined United Rentals in **2003** and became Executive Vice President and Chief Administrative Officer in **March 2017**. He leads HR, Safety, IT, and Legal functions  **[0000950170-24-037181_uri-20240327.htm:27]** **[0000950170-24-031492_uri-20240314.htm:27]** **[0000950170-23-009176_uri-20230316.htm:29]** **[0000950170-23-007276_uri-20230310.htm:29]** .                                           |
| Joli L. Gross         | Senior Vice President, Chief Legal & Sustainability Officer, Corporate Secretary | January 2024 (expected) | Joli L. Gross has been with United Rentals since **2002**. She became Senior Vice President, Chief Legal & Sustainability Officer, and Corporate Secretary in **January 2024**  **[0000950170-24-031492_uri-20240314.htm:28]** **[0000950170-24-037181_uri-20240327.htm:28]** .                                                        |
| Anthony S. Leopold    | Senior Vice President - Strategy & Digital                               | August 2021      | Anthony S. Leopold joined United Rentals in **September 2010** and became Senior Vice President - Strategy & Digital in **August 2021**. He has held various leadership roles in business development and innovation  **[0000950170-24-031492_uri-20240314.htm:28]** **[0000950170-24-037181_uri-20240327.htm:28]** .                    |
| Andrew B. Limoges     | Vice President, Controller and Principal Accounting Officer              | October 2018     | Andrew B. Limoges joined United Rentals in **2017** and was promoted to Vice President, Controller, and Principal Accounting Officer in **October 2018**. He is a certified public accountant  **[0000950170-24-031492_uri-20240314.htm:28]** **[0000950170-24-037181_uri-20240327.htm:28]** **[0000950170-23-009176_uri-20230316.htm:30]** **[0000950170-23-007276_uri-20230310.htm:30]** .                                    |

f462362f61a31c6f9965adb2f8787221aeb3f804298f7080d900371eaa8e13e3

| Program Details            | Program 1                      | Program 2                      |
|----------------------------|--------------------------------|--------------------------------|
| Approval Date              | October 2022  **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]**             | January 2024  **[0001067701-24-000037_uri-20240930.htm:57]** **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]**          |
| End Date/Duration          | Completed Q1 2024  **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]**        | Expected Q1 2025  **[0001067701-24-000037_uri-20240930.htm:57]** **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]**      |
| Total Additional Amount    | $1.25 billion  **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]**            | $1.5 billion  **[0001067701-24-000037_uri-20240930.htm:57]**                |
| Remaining Authorization    | N/A                            | $625 million  **[0001067701-24-000037_uri-20240930.htm:57]**                |
| Details                    | N/A                            | Enhance shareholder value  **[0001067701-24-000037_uri-20240930.htm:46]** **[0001067701-24-000037_uri-20240930.htm:32]** **[0001067701-24-000037_uri-20240930.htm:57]**  |

d3894cac0324540e11979a6076d69fbe166897d29823ff5b3c53fff1cd4be6dc

**Annual guidance for FY 2024:**
- **Total Revenue**: $15.1B to $15.3B  **[URI_3403888_3]**  (no change from $15.05B to $15.35B  **[URI_3394545_3]** **[URI_3394545_0]** )  
- **Adjusted EBITDA**: $7.115B to $7.215B  **[URI_3403888_3]**  (no change from $7.09B to $7.24B  **[URI_3394545_3]** **[URI_3394545_0]** )  
- **Gross Capital Expenditures (CapEx)**: $3.55B to $3.75B  **[URI_3403888_3]**  (no prior guidance)  
- **Net Capital Expenditures (CapEx)**: $2.05B to $2.25B  **[URI_3403888_3]**  (no prior guidance)  
- **Return to Shareholders**: $1.9B, about $30 per share or 3.6% yield  **[URI_3403888_3]**  (no change from $1.9B, about $30 per share or 4% yield  **[URI_3394545_3]** **[URI_3394545_0]** )  

54bcf0258b882dec6575edf93d86d18cee2203f9dce49c1d0a055f5a64e968df

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1997  **[0001067701-24-000007_uri-20231231.htm:84]**  | Present  | Current auditor   |

c89c88165e77b45fe0c9d2a68e2bf50638dd7628288efe3a21c1a6378647edbd

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

974716940e8257c7922c697642658efe5d033f7af6fd71083b0c898d00a4656c

2b642494189d0aac4b16372b33506db163dff6dff9d797bafb330267729d4066

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

a381f9a0423f00a5288807104f4037d9da7d2420863101ded70ae1b17a1b9476

cfb173ef8c3e7c9ecf34756bb47969546491e6e1214ef6b85bce497c4b60365c

- **Specialty rental revenue grew over 30% year-over-year**, and even **18% excluding Yak Access**, driven by solid same-store sales growth and **15 new cold-starts**, indicating strong growth potential in this high-return segment.  **[URI_3413719_7]**
- The company has a **healthy pipeline of large projects**, with ongoing demand from existing projects and new projects planned for 2025, supporting future growth.  **[URI_3413719_5]**
- Investments in **cold-starts and technology** are expected to drive long-term growth and improved margins, with the company focusing on being the best rental company in the industry.  **[URI_3413719_4]**

86dcdcd4d2f5fce61f8a88525194239278accae16e92929b6320e5a6b74baeda

- **United Rentals expects lower recovery rates on used equipment sales in 2025, with recovery rates declining from the mid-50% range in 2024 to the low 50% range**, potentially reducing profit margins.  **[URI_3413719_3]**
- **Adjusted EBITDA margins are expected to compress by approximately 50 basis points in 2025**, with flow-through in the 30% range, partly due to lower margins from used equipment sales and ongoing investments in cold-starts and technology that are currently dragging on margins. The company acknowledges operating in a slower growth phase of the cycle.  **[URI_3413719_3]** **[URI_3413719_4]**
- **General rental revenue growth is expected to remain soft in 2025, similar to 2024**, which may limit overall revenue growth since gen rent constitutes a significant portion of the business.  **[URI_3413719_15]**

d9402c49bc31b6576d7850ab83278c97cc190d049f4d642e7fed4d3f2955b721

1. **Margin Outlook and Flow-Through**  
   **Q:** What needs to happen to get flow-through back above 50%?  
   **A:** Management explained that they're in a slower growth phase, affecting fixed cost absorption, but expect acceleration in **'25**, which will improve flow-through.  **[URI_3413719_4]**  Excluding used equipment sales, flow-through would be in the **mid-40%** range, with **flat margins**, which they view as strong performance despite ongoing inflation pressures.  **[URI_3413719_4]**  They emphasized investments in cold-starts and technology that, while marginal drags now, offer excellent ROI.  **[URI_3413719_4]** 

2. **CapEx Plans and Fleet Growth**  
   **Q:** Where are you growing OEC and any pullbacks in CapEx?  
   **A:** They plan no pullbacks, expecting similar demand and strong fleet utilization.  **[URI_3413719_11]**  Gross CapEx will be up slightly, with about **$500 million** allocated for growth CapEx, much of it supporting specialty growth and cold-starts.  **[URI_3413719_11]**  They intend to sell around **$2.8 billion** of OEC and replace it with about **$3.3 billion**, due to higher replacement costs.  **[URI_3413719_11]** 

3. **Specialty Segment Growth**  
   **Q:** How did specialty grow and which lines outperform?  
   **A:** Specialty grew **30%**, or **18%** organically excluding Yak.  **[URI_3413719_7]**  Growth is strong across all lines, notably in products from recent acquisitions like General Finance's Pac-Van and Yak, both ahead of schedule to double business in five years.  **[URI_3413719_8]**  They expect to add over **50 cold-starts** in **2025** to continue this momentum.  **[URI_3413719_7]** **[URI_3413719_8]** 

4. **Customer Sentiment and Demand Outlook**  
   **Q:** How is customer optimism translating to activity?  
   **A:** Customer sentiment is positive, with expectations for growth over the next 12 months improving.  **[URI_3413719_13]**  While it's sentiment-based, this optimism supports their guidance.  **[URI_3413719_13]**  Factors like expectations of accommodative monetary policy and a pro-growth government contribute to a positive outlook.  **[URI_3413719_12]** 

5. **M&A Impact on Growth**  
   **Q:** What is the revenue contribution from recent M&A deals?  
   **A:** They completed about **$300 million** in deals late in the quarter, contributing modestly to growth.  **[URI_3413719_10]**  The acquisitions span general rental and specialty, but aren't significantly impactful to the **2025** guidance.  **[URI_3413719_10]**  All M&A contributions are embedded within their guidance.  **[URI_3413719_10]** 

6. **Fleet Productivity and Inflation**  
   **Q:** Can you exceed 1.5% inflation in fleet productivity?  
   **A:** Management believes they can exceed inflation, aiming to grow rent revenue faster than fleet growth.  **[URI_3413719_9]**  They maintained high time utilization in **2023** and expect a constructive rate environment to continue, necessary to offset fleet inflation absorbed over recent years.  **[URI_3413719_9]**  Mix effects are variable but expected to be positive.  **[URI_3413719_9]** 

7. **Pipeline of Large Projects and Infrastructure**  
   **Q:** How does the large project pipeline compare to last year?  
   **A:** The pipeline is very similar, with added demand from ongoing projects and new ones starting. They feel good about serving this segment, with the overall demand environment akin to **2024**.  **[URI_3413719_5]**  Infrastructure spending remains a growth area, supported by unallocated **$300 billion** from IIJA funds, and they expect it to continue benefiting their business.  **[URI_3413719_17]** 

8. **General Rental Revenue Outlook**  
   **Q:** Does guidance assume similar growth for general rental?  
   **A:** Yes, they anticipate a similar growth profile in **2025** for general rental.  **[URI_3413719_15]**  They have flexibility in their **$3.8 billion** CapEx budget to allocate assets where needed and will continue supporting specialty growth and cold-starts.  **[URI_3413719_15]**  No significant shift in mix is expected compared to **2024**.  **[URI_3413719_15]** 

9. **Power Business and Renewables**  
   **Q:** How significant is renewables in your power segment?  
   **A:** Power represents about **10%** of total revenue, with solar and wind being a small fraction that doesn't significantly impact the segment.  **[URI_3413719_6]**  Regardless of political factors, there's ongoing need for grid upgrades, and they feel confident about growth in this area.  **[URI_3413719_6]** 

10. **Demand Between National and Local Accounts**  
    **Q:** How is demand and rate between national and local accounts?  
    **A:** Demand dynamics are competitive across both national and local accounts. While national accounts may leverage their spend, the company actively participates at all levels.  **[URI_3413719_16]**  There's no significant differentiation in rate challenges between customer segments, and they continue to drive positive fleet productivity.  **[URI_3413719_16]** 

11. **M&A Pipeline and Future Plans**  
    **Q:** Will there be more sizable M&A before year-end?  
    **A:** Currently focusing on integrating a significant acquisition and reducing leverage to target levels.  **[URI_3413719_18]**  While always working the M&A pipeline, they are prioritizing absorbing the recent deal.  **[URI_3413719_18]**  They may consider attractive tuck-in acquisitions with new product lines but will make decisions based on strategic fit.  **[URI_3413719_18]** 

5e8fddfb4561f58514033f51bfa8f5e0224bb6f2b9bea3025e3dcbb9bd88144f

URI's specialty rental soared 30% y/y (18% ex-Yak) in Q4, driven by same-store growth & 15 new cold-starts. Management sees robust project pipelines but notes lower used equipment recovery in '25 could weigh on margins. Specialty remains the high-return bright spot.

682ef9ebff31ce934ee11f895a99446323164cff48c9b22a5f482fed7b4c275b

c78b88a76afd7ef8d1e782fa581f2e8c973b5cd5ea6c5cd3a3b060346e3ab2d6

**Annual guidance for FY 2025:**  
- **Total Revenue**: $15.6B to $16.1B  **[URI_3413719_3]**  (raised from $15.1B to $15.3B  **[URI_3403888_3]** )  
- **Adjusted EBITDA**: $7.2B to $7.45B  **[URI_3413719_3]**  (raised from $7.115B to $7.215B  **[URI_3403888_3]** )  
- **Gross CapEx**: $3.65B to $3.95B  **[URI_3413719_3]**  (raised from $3.55B to $3.75B  **[URI_3403888_3]** )  
- **Net CapEx**: $2.2B to $2.5B  **[URI_3413719_3]**  (raised from $2.05B to $2.25B  **[URI_3403888_3]** )  
- **Used Sales Guidance**: $1.45B  **[URI_3413719_3]**  (no prior guidance)  
- **Core Rental Revenue**: mid-single-digit  **[URI_3413719_3]**  (no prior guidance)  
- **Maintenance CapEx**: $3.3B  **[URI_3413719_3]**  (no prior guidance)  
- **Free Cash Flow**: $2.0B to $2.2B  **[URI_3413719_3]**  (no prior guidance)  
- **Recovery Rate for Used Equipment Sales**: low 50% range  **[URI_3413719_3]**  (no prior guidance)  
- **Leverage Reduction**: from 2.3x on a pro forma basis to ~2x  **[URI_3413719_3]**  (no prior guidance)  
- **Quarterly Dividend**: $1.79 per share  **[URI_3413719_3]**  (no prior guidance)  

52b95e4f98c21a25f657ae82047e91dbf79d5011e6d48edc202f4b8cddc83cea

d068b7966df5de96eae9d61f91b7edd117e8eaf678ed594be79cc06fb9ff5b68

12c1b73b8dfddb535505616f95317319ddc92fb1be0cf38a039a7fdcf746e971

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2025     | $1,178  **[0001067701-25-000008_uri-20241231.htm:87]** **[0001067701-25-000008_uri-20241231.htm:77]**             | Accounts Receivable Facility, Finance Leases **[0001067701-25-000008_uri-20241231.htm:117]** | 5.4 **[0001067701-25-000008_uri-20241231.htm:117]**            | 8.8% = (1,178 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]** **[0001067701-25-000008_uri-20241231.htm:87]**                                      |
| 2027     | $3,499 **[0001067701-25-000008_uri-20241231.htm:117]**               | ABL Facility, Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]** | 5.5, 3.875 **[0001067701-25-000008_uri-20241231.htm:117]**     | 26.1% = (3,499 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                            |
| 2028     | $1,667 **[0001067701-25-000008_uri-20241231.htm:117]**               | Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]**              | 4.875 **[0001067701-25-000008_uri-20241231.htm:117]**          | 12.4% = (1,667 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                            |
| 2029     | $1,490 **[0001067701-25-000008_uri-20241231.htm:117]**               | Senior Secured Notes **[0001067701-25-000008_uri-20241231.htm:117]**      | 6 **[0001067701-25-000008_uri-20241231.htm:117]**              | 11.1% = (1,490 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                            |
| 2030     | $1,491 **[0001067701-25-000008_uri-20241231.htm:117]**               | Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]**              | 5.25, 4 **[0001067701-25-000008_uri-20241231.htm:117]**        | 11.1% = (1,491 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                            |
| 2031     | $2,076 **[0001067701-25-000008_uri-20241231.htm:117]**               | Term Loan Facility, Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]** | 3.875 **[0001067701-25-000008_uri-20241231.htm:117]**          | 15.5% = (2,076 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                            |
| 2032     | $745 **[0001067701-25-000008_uri-20241231.htm:117]**                 | Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]**              | 3.75 **[0001067701-25-000008_uri-20241231.htm:117]**           | 5.6% = (745 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                               |
| 2034     | $1,090 **[0001067701-25-000008_uri-20241231.htm:117]**               | Senior Notes **[0001067701-25-000008_uri-20241231.htm:117]**              | 6.125 **[0001067701-25-000008_uri-20241231.htm:117]**          | 8.1% = (1,090 / 13,406) * 100 **[0001067701-25-000008_uri-20241231.htm:117]**                                             |

91967c49cae001b96cb829b29abbad5cbb4d4d645730ec88d9c23859932705ca

- **United Rentals is poised for another year of growth in 2025**, driven by strong momentum and tailwinds from large complex projects, positioning them as the partner of choice for customers.  **[URI_3403888_1]**
- **Successful integration of acquisitions like General Finance and Yak Access** has expanded their Specialty offerings and platforms, allowing for significant growth opportunities, particularly in the mobile modular and power sectors.  **[URI_3403888_5]** **[URI_3403888_23]**
- **Continued focus on innovation and leveraging technology**, such as investing in next-generation telematics and predictive analytics for fleet management, is enhancing customer value and operational efficiency, supporting their ability to drive rental rates even in a deflationary environment.  **[URI_3403888_1]** **[URI_3403888_19]** **[URI_3403888_6]**

582cfe8682fc414e97c5b322d3dc401317c89ac2574f874be43f1f258c6c8e15

1. **Fleet Growth & Productivity**  
   **Q:** What's the 2024 outlook for fleet growth and productivity?  
   **A:** United Rentals plans approximately **4–5% fleet growth** in 2024, with **$550 million** of net growth after replacements. They feel confident due to supply chain improvements and strong positioning. They expect **positive fleet productivity** in 2024, driven by a positive rate environment and industry discipline, despite some inflationary pressures.  **[URI_3370906_4]** 

2. **Capital Allocation & M&A**  
   **Q:** How will you balance capital allocation between shareholder returns and M&A?  
   **A:** United Rentals intends to return a large majority of free cash flow to shareholders, but M&A remains a priority. With **$7 billion** of capacity even after shareholder returns and lower leverage, they are open to acquisitions that add value and new products. Excess capital will be used to augment shareholder value without compromising M&A opportunities.  **[URI_3370906_5]** **[URI_3370906_7]** 

3. **Used Equipment Sales Impact**  
   **Q:** How will used equipment sales normalization affect margins?  
   **A:** As recovery rates normalize from previous highs (from **$0.74** on the dollar in 2022 to an expected **$0.60** in 2024), margins will be impacted. United Rentals anticipates **flat margins year-over-year excluding used equipment**, due to this normalization and investments in growth initiatives.  **[URI_3370906_25]** 

4. **Free Cash Flow Sustainability**  
   **Q:** Is $2 billion the new baseline for free cash flow?  
   **A:** While not providing specific long-term guidance, management feels confident in sustaining strong free cash flow generation similar to recent years, reflecting the cash-generative nature of the business and normalized free cash margin.  **[URI_3370906_12]** 

5. **Manufacturing & Industrial Outlook**  
   **Q:** What is the outlook for manufacturing and industrial sectors in 2024?  
   **A:** United Rentals expects these sectors to continue being strong growth drivers in 2024, supported by ongoing mega projects, including those in **semiconductors**, **EVs**, and upcoming **LNG opportunities**. Industrial manufacturing was the **largest growing vertical** in Q4 2023.  **[URI_3370906_18]** 

6. **Dividend Growth Policy**  
   **Q:** How will dividends grow over time?  
   **A:** The company aims to grow dividends in line with long-term earnings growth, aspiring to join the "dividend aristocrats." While not following a strict formula, they intend to support a growing dividend consistent with the company's earnings power.  **[URI_3370906_8]** 

7. **Investments Impacting Margins**  
   **Q:** How will investments in growth initiatives affect margins?  
   **A:** Investments in **50+ cold-starts** in Specialty and technology will weigh on incrementals in 2024, resulting in flow-through in the **40% range**. These are strategic, long-term investments with strong ROIs that management won't forgo to meet short-term margin targets.  **[URI_3370906_6]** **[URI_3370906_17]** 

8. **Tax Legislation Impact**  
   **Q:** How will potential tax changes affect cash taxes?  
   **A:** If the proposed restoration of **100% bonus depreciation** passes, it could provide several hundred million dollars of incremental cash flow, even retroactively for 2023. Without it, cash taxes are expected to increase by about **$200 million** in 2024 due to the expiration of prior benefits.  **[URI_3370906_15]** 

9. **Ahern & GFN Integration**  
   **Q:** What's the status of Ahern and GFN integration plans?  
   **A:** The Ahern integration is complete, with targeted synergies achieved ahead of schedule. There is minimal margin uplift expected in 2024 from it. For GFN, they are ahead of plan to double the business in five years, expecting to achieve it sooner than initially projected.  **[URI_3370906_9]** 

10. **Rental Rates & Industry Discipline**  
    **Q:** How are rental rates expected to hold up in 2024?  
    **A:** Management feels rental rates will remain positive due to continued industry discipline, rising equipment prices, and a mature market environment. They believe declining rates are neither feasible nor likely, supporting positive fleet productivity.  **[URI_3370906_23]** 

11. **Fleet Age & CapEx Plans**  
    **Q:** What's your fleet age and CapEx outlook?  
    **A:** Fleet age is back to pre-COVID levels at just over **52 months**, adjusted for longer-lived assets. They plan to invest **$3.5 billion** in CapEx in 2024, with an expected **$2.5 billion** in fleet disposals, which will further improve fleet age and provide operational flexibility.  **[URI_3370906_13]** 

12. **Infrastructure Bill Influence**  
    **Q:** Are infrastructure funds flowing and projects starting?  
    **A:** While major projects from the infrastructure bill are in early stages, United Rentals has seen awards made in 2023 and expects more **shovel-ready work ahead**. They anticipate infrastructure spending to contribute to growth over the next few years, with projects like airports and roadways already underway.  **[URI_3370906_24]** 

13. **Cold-Starts Focus Areas**  
    **Q:** What Specialty areas are targeted for cold-starts?  
    **A:** The **50 cold-starts** planned for 2024 will focus on **Reliable Onsite Services**, **Fluid Solutions**, and **Mobile Storage**. These areas are expected to drive continued double-digit growth in Specialty, capitalizing on market opportunities.  **[URI_3370906_10]** 

14. **Mega Projects Progress**  
    **Q:** Are mega projects moving forward as expected?  
    **A:** Mega projects are progressing, with some of the largest projects already underway and utilizing equipment. United Rentals is optimistic about multiyear tailwinds from projects in sectors like **LNG**, infrastructure, and manufacturing, seeing minimal cancellations or delays.  **[URI_3370906_20]** 

15. **Customer Confidence & Demand**  
    **Q:** What are customers saying about future demand?  
    **A:** Surveys indicate continued positive sentiment, especially among larger customers. While growth in local markets has slowed to mid- to low-single digits, overall customer confidence remains strong, with an exceptionally small fraction expecting declines.  **[URI_3370906_24]** 

de9f9a381684a9b49803c7830b61c3c7f3b7014f75abb27b841c9a4114638bba

1. **2025 Growth Outlook**  
   **Q:** What's your view on 2025 growth drivers?  
   **A:** We see continued momentum into 2025, with growth in both Specialty and General Rentals. Demand remains strong with a good pipeline of large projects, and we aim to drive fleet productivity by growing revenue more than fleet size. Specialty has been growing over **20% each year for over 8 years**, and we believe it has significant opportunities ahead, especially with tailwinds from megaprojects and infrastructure.  **[URI_3403888_4]** 

2. **Pricing Power in Deflation**  
   **Q:** Can you maintain rate increases if equipment prices soften?  
   **A:** Absolutely, we can continue to drive rates even in a deflationary environment. It's about delivering value to customers and offsetting ongoing cost inflation, including significant past fleet inflation and regular expenses like employee raises. Industry discipline supports price increases, as everyone needs to absorb inflation.  **[URI_3403888_6]** 

3. **M&A Strategy**  
   **Q:** How are you approaching M&A opportunities?  
   **A:** We're pleased with our acquisition of General Finance, on track to double its size in five years. We aim to grow off that platform but don't need to be the largest provider overall—just the biggest with our customers. Our M&A pipeline is active, but the bar is high; we require strategic fit, cultural alignment, and financial viability. When something is imminent, we'll let you know.  **[URI_3403888_5]** **[URI_3403888_23]** 

4. **Fleet Productivity and Inflation**  
   **Q:** How is fleet productivity trending amid inflation?  
   **A:** Time utilization is holding steady at 2023 levels, which is an achievement back to pre-COVID levels. Rate remains positive, and although we're absorbing extra fleet inflation above our 1.5% peg—around **2.5% to 3%** this year—we're pleased with the team's execution. The tail of fleet inflation will last a couple more years as we layer in equipment purchases over multiple years.  **[URI_3403888_8]** **[URI_3403888_9]** 

5. **Capital Deployment in 2025**  
   **Q:** Will you adjust CapEx timing next year?  
   **A:** We expect a similar CapEx cadence in 2025, returning to a more normalized pattern as the supply chain is nearly fully repaired. We'll discuss specifics after our budgeting process is complete, but we're in good shape and anticipate following a cadence similar to this year.  **[URI_3403888_10]** 

6. **Technology Investments**  
   **Q:** What's the plan for your technology investments?  
   **A:** We're making additional investments in areas like AI and advanced telematics to improve efficiency and customer experience. These initiatives involve proof of concepts, pilots, and change management, aiming for attractive returns. Despite slower growth, we're not holding back on long-term investments, as they are crucial for our future success.  **[URI_3403888_13]** **[URI_3403888_19]** 

7. **Profit Margin Prospects**  
   **Q:** Can margins improve next year?  
   **A:** Margin improvement in 2025 depends on several factors, including growth rate, ongoing investments, and costs like cold starts. We've opened **57 cold starts** this year, exceeding 2023's total, which initially burden costs before revenue scales up over two years. We'll provide guidance in January, but overall, we're pleased with how 2024 has played out.  **[URI_3403888_14]** 

8. **Local Market Demand**  
   **Q:** Are you optimistic about local market demand?  
   **A:** Yes, our customer confidence index remains positive. With interest rates pivoting, customers are considering new projects. While we can't quantify when sentiment turns into actual work, our flexible business model allows us to react quickly to demand shifts.  **[URI_3403888_15]** 

9. **Specialty Growth in Power**  
   **Q:** What's driving growth in Specialty, particularly power?  
   **A:** Power remains a very strong area for us, with growth across all Specialty segments. We're introducing additional products and deepening offerings to existing customers, which allows us to enter new verticals. The team's innovation and focus on penetration rather than just expansion are fueling this growth.  **[URI_3403888_12]** **[URI_3403888_22]** 

10. **Industry Pricing Discipline**  
    **Q:** How is industry discipline on rental rates?  
    **A:** The industry has matured, and there's broader recognition that absorbing inflation without pricing adjustments isn't sustainable. Across the market, including independents, there's improved discipline in maintaining rental rates, which is crucial for delivering value and sustaining our businesses.  **[URI_3403888_20]** 

11. **Fleet Age and Growth Capacity**  
    **Q:** Is your fleet ready to support growth?  
    **A:** Our fleet age is a little over **50 months**, the lowest since pre-COVID, even after incorporating longer-lived assets from recent acquisitions. We feel really good about our position, with plenty of headroom to support future growth without needing significant changes.  **[URI_3403888_7]** 

12. **Cold Starts Impact**  
    **Q:** How do cold starts affect margins?  
    **A:** Cold starts initially burden margins as the new branches carry full costs before revenue ramps up over about two years. This year, we've opened **57 cold starts**, more than in 2023. While they impact flow-through in the short term, they are strategic investments for future growth, particularly in Specialty where we see significant headroom.  **[URI_3403888_14]** **[URI_3403888_21]** 

13. **Industrial End Markets**  
    **Q:** What trends are you seeing in industrial markets?  
    **A:** We've faced headwinds in petrochemical sectors—upstream, midstream, refining, and chemical processing have been down, likely due to timing and deferred maintenance. However, industrial manufacturing remains very strong for us, balancing out the challenges in other industrial areas.  **[URI_3403888_17]** 

14. **Ancillary Revenue Growth**  
    **Q:** Will ancillary revenue growth continue?  
    **A:** Ancillary and re-rent revenue was up **15%** in the quarter, partly due to the Yak acquisition. As we anniversary Yak, that tailwind will lessen, but ongoing growth in Specialty should continue to contribute positively to ancillary revenues.  **[URI_3403888_18]** 

15. **Hurricanes Impact**  
    **Q:** Are hurricanes affecting your guidance?  
    **A:** The storms, while devastating locally, have a minimal financial impact at our scale. There's no change to our guidance due to hurricanes, and any potential rebuilding efforts would likely influence 2025, though even then, the effect would be modest.  **[URI_3403888_16]** 

dc75aa7674e2591dcdcbad218dabf33760f66ef9c6780da82121d1b701037faf

- United Rentals anticipates **positive fleet productivity in each quarter of 2024**, supported by a **constructive rate environment** and **industry discipline**.  **[URI_3381027_11]**
- The company expects to **double the size of the Yak business within the next five years**, indicating significant growth potential from the recent acquisition, with **returns well above the hurdle rate**.  **[URI_3381027_7]**
- United Rentals is experiencing **double-digit growth across all lines of its Specialty business**, with plans to continue expanding its product offerings and seeing **significant opportunities for growth** in areas such as mobile storage and rental equipment.  **[URI_3381027_11]** **[URI_3381027_9]**

ccdd52d8ccc4ec929a1560375394d9c592b97dc2550469d9ba9b19a485cd2d41

- **Normalization of used equipment margins could reduce profitability:** Management notes that used equipment recovery rates are normalizing from prior extraordinary levels, declining from **74% in 2022** to **66% in 2023**, and expecting **around 60%** in 2024, which may negatively impact margins.  **[URI_3394545_16]**
- **Elevated fleet age may lead to increased maintenance costs:** The average fleet age is over **51 months**, higher than pre-COVID levels, potentially leading to increased maintenance expenses or significant capital expenditures to update the fleet.  **[URI_3394545_18]**
- **Potential market weaknesses not fully reflected in guidance:** Despite negative data points around nonresidential construction and the industrial economy, and peers revising their outlooks downward, URI maintains its guidance, which may suggest the company is not fully accounting for potential market slowdowns.  **[URI_3394545_13]**

7366adec5f88323e2073b72b3ca1d6762deb203370ad68a7a380695b9bf331a6

- **The company's recent acquisition of Yak involves assets with shorter useful lives and higher depreciation compared to their base business, which could negatively impact returns unless they successfully extend asset lifespans.**  **[URI_3381027_11]**
- **Management acknowledges expected slower growth in their General Rental segment, focusing instead on specialty segments, which may indicate challenges in their core business.**  **[URI_3381027_9]**
- **The company lacks a defined plan or budget for M&A, potentially leading to uncertainties in strategic growth initiatives and capital deployment over the next 12-18 months.**  **[URI_3381027_10]**

a9c8eed2a07ab4f8149538da10e6fed71076b712b5e6dc9c0f5cb348749fc2d8

1. **CapEx Guidance and Yak Acquisition Impact**  
   **Q:** Any changes in CapEx plans due to Yak deal?  
   **A:** CapEx was in line with expectations and not designed to temper spending. They reaffirmed and even increased their guidance, adding **$100 million** for the Yak deal. There are no changes in CapEx thinking, and they don't feel at all like they're going to reduce CapEx plans.  **[URI_3381027_4]** 

2. **M&A Pipeline and Capital Deployment**  
   **Q:** What's the outlook for M&A spending ahead?  
   **A:** They don't set targets or budgets for M&A but are opportunistic with a robust pipeline. They lean towards opportunities like the Yak deal, aiming to add new products they can significantly grow within their network. While nothing is imminent, they continue to work the pipeline and will act when they find the right partner that meets their strategic and financial criteria.  **[URI_3381027_6]** 

3. **Yak Access Returns and Growth Plans**  
   **Q:** How will Yak reach URI-level returns?  
   **A:** After extensive modeling, they feel confident about the opportunity with Yak Access. There's potential to lengthen the asset life of mats, enhancing returns, but even without that, they comfortably clear their hurdle rates. They believe they can **double the size of the Yak business in the next five years**, similar to their success with the General Finance deal. Margins are strong, and the team is experienced.  **[URI_3381027_7]** 

4. **Expansion into New Categories**  
   **Q:** How much larger can category expansion get?  
   **A:** They view anything temporary on a project or plant as an opportunity and continue to expand offerings to solve customer needs. They've added new products across existing businesses, like more power in HVAC or spot coolers, and focus on their one-stop shop value proposition. While they don't publicly discuss potential new products for competitive reasons, they see significant opportunity to leverage their model and fuel growth.  **[URI_3381027_8]** **[URI_3381027_9]** 

5. **Fleet Productivity and Rate Environment**  
   **Q:** Were there big moves in fleet productivity drivers?  
   **A:** Fleet productivity played out as expected, with positive results each quarter. Time utilization was neutral and consistent with expectations. They see a constructive rate environment and industry discipline, with rate helping to overcome inflationary issues. A small improvement came from the Yak acquisition, which will contribute more as the year progresses.  **[URI_3381027_11]** 

6. **Growth in Power Generation Vertical**  
   **Q:** How is power generation business developing?  
   **A:** They've focused on the power generation vertical since 2016, and it's now over **10% of their business**. They engage in traditional power, alternative power, and data centers, anticipating ongoing growth driven by transmission work and grid expansion related to electrification, especially in the EV space. They believe this growth will extend well beyond 2024.  **[URI_3381027_5]** 

7. **GenRent Equipment Rental Moderation**  
   **Q:** Why did GenRent rental moderate this quarter?  
   **A:** Slower growth in GenRent was expected, as the specialty business has greater headroom and opportunities to cross-sell into large projects. They achieved double-digit growth in every specialty segment. In GenRent, there was more dispersal than historically, but they strategically placed fleet where opportunities were best, driven by large projects, contributing to good fleet productivity.  **[URI_3381027_12]** 

8. **Regional Impacts and Weather**  
   **Q:** Did weather impact regional performance?  
   **A:** While some markets were more impacted than others, there was nothing significant to call out. Diversification by product and geography mitigated any regional issues, and the year played out as expected with no weather constraints affecting performance.  **[URI_3381027_10]** 

ec0280de2517beecd151c58f30d5b30a99eaf2cdd15870cd76d18bb13dac7a69

1. **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.  **[URI_3394545_4]** 

2. **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.  **[URI_3394545_10]** 

3. **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.  **[URI_3394545_9]** 

4. **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.  **[URI_3394545_8]** ,  **[URI_3394545_15]** 

5. **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.  **[URI_3394545_16]** 

6. **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.  **[URI_3394545_21]** ,  **[URI_3394545_24]** 

7. **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.  **[URI_3394545_13]** ,  **[URI_3394545_14]** 

8. **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**.  **[URI_3394545_24]** 

9. **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.  **[URI_3394545_12]** 

10. **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.  **[URI_3394545_11]** 

11. **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.  **[URI_3394545_19]** 

12. **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.  **[URI_3394545_26]** 

b86a9101e1ec144a164498e7bd9d5cb70d2848f921c7053725fb795553dbd52c

- **United Rentals anticipates strong free cash flow generation of $2 billion to $2.2 billion in 2024**, demonstrating the company's ability to generate cash throughout the cycle and providing flexibility for growth investments and shareholder returns.  **[URI_3370906_12]**
- **The company plans to return over $1.9 billion to shareholders in 2024**, including a **10% increase in the quarterly dividend** to $1.63 per share, reflecting confidence in long-term earnings growth.  **[URI_3370906_8]**
- **Management is optimistic about growth in diverse end markets**, including manufacturing, power, infrastructure, healthcare, and education, supporting continued demand for rental equipment and positive rental rates.  **[URI_3370906_22]**

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- **Specialty rental segment is experiencing strong, broad-based organic growth of 18% year-over-year**, driven by cross-selling opportunities across all product offerings, including mobile storage, power, trench, and fluid businesses.  **[URI_3394545_11]**
- **The company is well-positioned to benefit from large, multiyear infrastructure projects**, seeing these as a multiyear tailwind that provides significant growth and visibility.  **[URI_3394545_21]**
- **Successful acquisition and integration of Yak Access**, with plans to **double the business over the next five years**, leveraging United Rentals' network and customer base.  **[URI_3394545_12]**

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- **Industry pricing pressures may challenge URI's ability to drive rental rates in a deflationary environment**, potentially impacting margins. As equipment pricing **softens**, it may be difficult to continue passing on **inflation-related costs** to customers.  **[URI_3403888_6]**
- **Normalization of the used equipment market is creating headwinds for adjusted EBITDA**, with used sales contributing a **$43 million decline** in EBITDA. **Adjusted EBITDA margin compressed by about 140 basis points** year-over-year, indicating pressure on profitability.  **[URI_3403888_2]**
- **Increased SG&A expenses**, including a **$40 million year-over-year increase** due to a larger business and discrete items, are contributing to **margin compression** and may impact future earnings growth.  **[URI_3403888_2]**

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- **Margins are expected to face pressure in 2024 due to the normalization of used equipment recovery rates**, with recovery rates decreasing from **$0.74 on the dollar in 2022** to an expected **$0.60 in 2024**, impacting EBITDA.  **[URI_3370906_25]**
- **Growth is slowing to mid-single-digit levels in 2024**, compared to the **23% growth in 2022 and 20% in 2021**, leading to **lower incremental margins** due to reduced fixed cost absorption.  **[URI_3370906_6]**
- **Limited incremental margin uplift from the Ahern acquisition in 2024**, as most synergies have already been realized, resulting in minimal carryover benefit to margins.  **[URI_3370906_9]**

1b7c6e073ff3c766e6ef54b437d5710d8634a832d542d627560c1d1ee150725a

United Rentals Inc (URI)

Financials