On July 24, 2024, United Rentals Inc (URI, Financial) released its 8-K filing announcing financial results for the second quarter of 2024. United Rentals is the world's largest equipment rental company, operating primarily in the United States and Canada, with a 15% market share in a highly fragmented market. The company serves general industrial, commercial construction, and residential construction markets.
Performance Overview
United Rentals Inc (URI, Financial) reported total revenue of $3.773 billion for Q2 2024, slightly below the analyst estimate of $3.774 billion. However, the company reported a GAAP diluted earnings per share (EPS) of $9.54, missing the analyst estimate of $9.57. Adjusted EPS stood at $10.70.
Net income for the quarter was $636 million, reflecting a 7.6% year-over-year increase, with a net income margin of 16.9%. Adjusted EBITDA was $1.769 billion, representing a 4.4% year-over-year increase, although the adjusted EBITDA margin decreased by 80 basis points to 46.9%.
Key Financial Achievements
United Rentals Inc (URI, Financial) achieved several significant financial milestones in Q2 2024:
- Rental revenue increased by 7.8% year-over-year to $3.215 billion.
- Fleet productivity increased by 4.6% year-over-year, including the impact of the Yak acquisition.
- Year-to-date net cash provided by operating activities was $2.294 billion, with free cash flow of $1.065 billion.
- Returned $969 million to shareholders through share repurchases and dividends.
- Net leverage ratio stood at 1.8x, with total liquidity of $3.267 billion as of June 30, 2024.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $3.773 billion | $3.554 billion |
| Net Income | $636 million | $591 million |
| GAAP Diluted EPS | $9.54 | $8.58 |
| Adjusted EPS | $10.70 | N/A |
| Adjusted EBITDA | $1.769 billion | $1.695 billion |
Balance Sheet and Cash Flow
As of June 30, 2024, United Rentals Inc (URI, Financial) reported total assets of $27.613 billion, up from $25.589 billion at the end of 2023. The company’s cash and cash equivalents increased to $467 million from $363 million. Year-to-date, the company repurchased $750 million of common stock and paid $219 million in dividends.
CEO Commentary
"We were pleased with our record second-quarter results across revenue, adjusted EBITDA, and EPS, as 2024 continues to play out as we expected. The integration of Yak remains on track. This acquisition builds upon our one-stop shop strategy of providing customers a best-in-class rental experience through our general rentals and specialty offerings," said Matthew Flannery, CEO of United Rentals.
Outlook
United Rentals Inc (URI, Financial) reaffirmed the mid-points of its 2024 outlook, narrowing the ranges for revenue and adjusted EBITDA. The company expects total revenue between $15.05 billion and $15.35 billion and adjusted EBITDA between $7.09 billion and $7.24 billion.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from United Rentals Inc for further details.
