UNITED RENTALS, INC. Q1 FY2025 earnings call

• First quarter results showed solid growth across industrial and construction end markets, with demand for used equipment healthy. • Delivered first quarter records in revenue and adjusted EBITDA due to focus on operational excellence and innovation. • Specialty rental revenue grew 22% YOY, with 8 specialty cold starts opened in Q1 and expectation of at least 50 this year. • Sold over $740 million of OEC in Q1, on track to sell $2.8 billion of fleet this year. • Drove free cash flow of nearly $1.1 billion and returned nearly $370 million to shareholders via share buybacks and dividends. • Board approved a new $1.5 billion share repurchase program.

Total revenue grew 6.7% year over year to $3.7 billion. Rental revenue, a first quarter record, was $3.1 billion, up 7.4%. Used equipment sales were a first quarter record at over $740 million. Adjusted EBITDA reached a first quarter record of $1.7 billion, with a margin of nearly 45%. Specialty rental revenue grew 22% year over year and 15% pro forma for Yac.

• Reaffirmed full-year guidance based on first quarter records and momentum into the busy season. • First quarter rental revenue was a record $3.15 billion, up 7.4% year over year. • Adjusted EBITDA was a first quarter record at $1.67 billion, reiterating confidence in 2025's profitable growth.

• Business and operations subject to various risks and uncertainties beyond the company's control. • Non-GAAP terms such as free cash flow, adjusted EPS, EBITDA, and adjusted EBITDA used; need to refer to the company's SEC filings for a more complete description of risks.

Q: About implied revenue growth for the rest of the year and how tariffs impact conversations with customers.

A: Matt Flannery and Ted Grace discussed tariff impact, noting 2025 CapEx is mostly unaffected by tariffs, and revenue growth considerations.

Q: On margin drivers like fleet repositioning and mix.

A: Matthew Flannery and Ted Grace expanded on fleet repositioning due to broad-based growth and mix dynamics related to specialty and ancillary revenue.

Q: Regarding M&A and margin confidence.

A: Ted Grace and Matt Flannery talked about M&A pipeline, margin confidence through cycle, and M&A focus areas.

Q: On specialty growth and downturn catalysts.

A: Matthew Flannery discussed specialty growth drivers and cyclical considerations, with Ted Grace adding vertical perspective.

Q: About tariffs and used fleet value.

A: Matthew Flannery commented on used fleet value and tariff impact timeline.

Q: On local markets and ancillary pickup.

A: Matthew Flannery and Ted Grace addressed local market visibility and ancillary pickup drivers.

Q: On cross-selling and specialty growth.

A: Matthew Flannery spoke about cross-selling within specialty and ancillary service improvements.