United Rentals, Inc. Q1 FY2026 earnings call

Matt Flannery mentioned strong start to 2026 with first quarter records, momentum into busy season, and updated guidance. Team of 28,000 focused on customer service. Broad offering of gen rent and specialty products, investment in technology, and superior service. Ted Grace discussed first quarter numbers: rent revenue up 8.7% to over $3.4 billion, OER up 6.5%, ancillary and re-rent up nearly 18%. Used sales $680 million, EBITDA up excluding H&E benefit, SG&A had changes, cost controls with restructuring charges and variable cost controls. CapEx, returns, and balance sheet details.

Total revenue grew by 7% year-over-year to nearly $4 billion. Rental revenue grew by almost 9% to $3.4 billion, first quarter records. Fleet productivity of 2.3% contributed to OER growth of 6.5%. Adjusted EBITDA came in at $1.8 billion, margin of 44.1%, 60 basis point improvement year-over-year excluding H&E benefit. Adjusted EPS came in at $9.71, up 10% year-over-year. Specialty business grew 14% year-over-year, all lines of business grew, 17 cold starts opened. Used market: sold $680 million of OEC at 51% recovery rate, on track to sell ~$2.8 billion of fleet this year. Rental CapEx was $874 million, generated free cash flow of $1.1 billion. Returned $500 million to shareholders through buybacks and dividend. Net leverage 1.9x.

Total revenue expected in range of $16.9 billion to $17.4 billion. Adjusted EBITDA guidance raised to $7.625 billion to $7.875 billion. Gross CapEx guidance increased to $4.4 billion to $4.8 billion, net CapEx $2.95 billion to $3.35 billion. Free cash flow guidance $2.15 billion to $2.45 billion. Plan to repurchase $1.5 billion of shares in 2026, return ~$2 billion to shareholders.

Business and operations subject to variety of risks and uncertainties beyond control, actual results may differ materially from projections. Summary of uncertainties in safe harbor statement, detailed in annual report on Form 10-K and subsequent SEC filings.

Q: Focus on margins and cost saving initiatives vs fuel cost concerns, A: William Grace and Matthew Flannery discussed cost savings, delivery execution, and fleet productivity.

Q: Customer commentary on large projects and dirt equipment, A: Matthew Flannery talked about planning for large projects and dirt equipment as leading indicator.

Q: Ancillary costs, repositioning costs, A: William Grace discussed ancillary growth, repositioning costs, and fuel management.

Q: Rest of year margins, delivery focus, A: William Grace and Matthew Flannery talked about margin sustainability, delivery execution, and cost mitigations.

Q: Facility closures trade-offs, A: Matthew Flannery discussed branch closures with no revenue impact.

Q: Dollar utilization and fleet productivity cadence, A: Matthew Flannery and William Grace talked about fleet productivity and dollar utilization.

Q: Inflation and M&A pipeline, A: Matthew Flannery and William Grace discussed inflation impact and M&A pipeline.

Q: Local markets and OEM dealers, A: Matthew Flannery talked about local markets and OEM dealers.

Q: M&A details and demand in end markets, A: Matthew Flannery and William Grace discussed M&A and end market demand.

Q: World Cup impact and CapEx allocation, A: Matthew Flannery talked about World Cup and CapEx allocation.

Q: Delivery cost recovery and specialty segment, A: William Grace and Matthew Flannery discussed delivery cost recovery and specialty segment.

Q: Gen rent margins and project timing, A: William Grace and Matthew Flannery talked about gen rent margins and project timing.

Q: Time utilization drivers, A: Matthew Flannery talked about time utilization across portfolio.

Q: Branch closures strategy and small customers, A: Matthew Flannery talked about branch closures strategy and small customers' environment