United Rentals was a top performer across portfolios. Equipment rental sales growth accelerated to 9%, while adjusted margins stabilized, driving 10% growth in earnings per share. This acceleration was driven by strong nonresidential construction end markets, particularly data centers and power projects, and by continued growth in megaprojects.

United Rentals was a top performer across portfolios. Equipment rental sales growth accelerated to 9%, while adjusted margins stabilized, driving 10% growth in earnings per share. This acceleration was driven by strong nonresidential construction end markets, particularly data centers and power projects, and by continued growth in megaprojects.

United Rentals (NYSE: URI) is a compelling investment due to its dominant position in the fragmented North American equipment rental market, commanding approximately 16% market share. The company benefits from three durable structural tailwinds: industry consolidation, a multi-year infrastructure spending cycle exceeding $2 trillion, and a strategic pivot towards higher-margin Specialty rental. URI's dollar utilisation reached ~50% in 2025, significantly ahead of smaller peers, indicating operational efficiency. The Specialty segment has grown its revenue share from ~13.5% in 2015 to ~31.7% in 2025, compounding rental revenue at approximately 24% per annum, showcasing its potential for margin expansion and long-term growth.

The reasons for selling United Rentals were different. Nothing in our view of the company has changed. What had changed, however, was its share price. The price had risen so high that holding onto it would yield a low expected return both in absolute terms and in comparison with other stocks we are following. We therefore decided to realize a larger and quicker-than-expected profit and move that money into better opportunities.

United Rentals continues to show resilience with a revenue growth of +6%, driven by strong demand for mega-projects and infrastructure, alongside data center power buildouts. The company is actively investing in its fleet, particularly in new equipment, which positions it well for the anticipated recovery in broader construction activity. As leading indicators suggest a step-up in mega-projects over the next few years, we expect United Rentals to benefit significantly, leading to accelerating earnings growth in the near future.

United Rentals reached our estimate of fair value in September after a 36% increase year-to-date, and we sold it from the portfolio. Despite its strong performance, we believe it is now fairly valued and no longer presents an attractive investment opportunity. The stock contributed positively to our performance, but we are cautious about its future potential given the current valuation.

United Rentals was among the top-five contributors to the portfolio's returns in the quarter, indicating strong performance. The company benefits from a robust market position and is well-placed to capitalize on ongoing demand in the construction and industrial sectors. The manager believes that the growth narratives surrounding United Rentals are likely to continue, supporting its valuation and future performance.

We have now added United Rentals to our portfolio. When United Rentals’ share price was below $600 in March and April, it was significantly lower than our estimate of its intrinsic value. This illustrates how we make decisions about individual transactions, focusing on the ratio between their prices and values. We believe that the current market volatility provides us with opportunities to invest in high-quality companies like United Rentals, which possess the adaptability and resilience necessary to thrive in changing conditions.

We have now added United Rentals to our portfolio as its share price was below $600 in March and April, which was significantly lower than our estimate of its intrinsic value. This illustrates our approach to investing, where we take advantage of market volatility to acquire shares at attractive prices. We believe that the conditions for taking advantage of time arbitrage are improving, and United Rentals represents a high probability of attractive long-term returns despite the lack of hope for quick profits.

We have now added United Rentals to our portfolio as its share price was below $600 in March and April, which was significantly lower than our estimate of its intrinsic value. This illustrates our approach to investing, where we take advantage of market volatility to acquire shares at attractive prices. We believe that the conditions for long-term returns are improving, and United Rentals fits well within our strategy of focusing on companies with strong fundamentals that are undervalued by the market.