United Rentals, Inc.

Company Overview

Business Model: United Rentals is the world's largest equipment rental company, operating an integrated network of 1,768 rental locations. The company's primary revenue generation mechanism is the rental of a diverse fleet of equipment on hourly, daily, weekly, or monthly bases. Supplemental revenue streams include sales of used rental equipment, new equipment, contractor supplies, and repair and maintenance services for customer-owned equipment. Equipment rental revenues constituted 86% of total revenues in 2025.

Market Position: As of December 31, 2025, United Rentals holds an estimated 15% market share in the North American equipment rental industry (excluding party and event rentals). The company's competitive advantages stem from its large and diverse fleet (total Original Equipment Cost (OEC) of $22.5 billion), significant purchasing power, a dedicated national account program, and operational efficiencies. These efficiencies are driven by equipment sharing among branches, a centralized Customer Care Center, and consolidated administrative functions. Proprietary information technology systems, including Total Control®, further enhance customer service and operational decision-making.

Recent Strategic Developments:

• Acquisitions: Expanded its specialty business through the acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, Yak) in March 2024, and other smaller acquisitions in Australia. This strategy aims to position United Rentals as a single-source provider of total jobsite solutions.
• Shareholder Returns: Authorized a $1.5 billion share repurchase program in April 2025, which was increased to $2.0 billion in July 2025. The company repurchased $1.65 billion under this program in 2025. A new $5.0 billion share repurchase program was authorized in January 2026, with $1.15 billion intended for repurchase in 2026. Quarterly dividends totaled $464 million ($7.16 per share) in 2025.
• Financial Flexibility: Amended its senior secured asset-based revolving credit facility (ABL facility) to increase its size from $4.25 billion to $4.50 billion and extend its maturity to July 2030. The senior secured term loan credit facility (term loan facility) was also amended to reduce the interest spread. Issued $1.5 billion principal amount of 5 3/8 percent Senior Notes due 2033, utilizing the proceeds to redeem $500 million of 5 1/2 percent Senior Notes due 2027 and reduce ABL facility drawings.
• H&E Merger Termination: Received a $64 million break-up fee in February 2025 following the termination of a merger agreement to acquire H&E Equipment Services, Inc. d/b/a H&E Rentals, resulting in a net $39 million merger termination benefit for the year.

Geographic Footprint: As of January 1, 2026, United Rentals operates 1,768 rental locations globally:

• United States: 1,494 locations (across 49 states and Puerto Rico)
• Canada: 169 locations (across every province)
• Europe: 41 locations (Belgium, France, Germany, Netherlands, United Kingdom)
• Australasia: 64 locations (Australia and New Zealand) Domestic (U.S.) operations accounted for 91% of total revenue in 2025, with foreign operations contributing 9%.

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 38.2%
• Operating Margin: 24.7%
• Net Margin: 15.5%

Investment in Growth (2025):

• Capital Expenditures: $4,568 million (gross payments for purchases of rental and non-rental equipment and intangible assets)
• Strategic Investments: $357 million (purchases of other companies, net of cash acquired)

Business Segment Analysis

General Rentals

Financial Performance (2025):

• Revenue: $11,001 million (+1.4% YoY)
• Equipment Rentals Revenue: $9,165 million (+2.5% YoY)
• Equipment Rentals Gross Margin: 35.2% (down 90 bps YoY)
• Key Growth Drivers: Equipment rentals increased 2.5% year-over-year. The decrease in gross margin was primarily due to the impact of inflation and normal cost variability, particularly in delivery and labor and benefits costs.

Product Portfolio:

• Major product lines and services within segment: General construction and industrial equipment (39% of equipment rental revenue), aerial work platforms (22%), and general tools and light equipment (9%).

Market Dynamics:

• Competitive positioning within segment: Serves a diverse customer base including construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.
• Key customer types and market trends: Focuses on large construction and industrial customers, as well as select local contractors.

Specialty

Financial Performance (2025):

• Revenue: $5,098 million (+13.3% YoY)
• Equipment Rentals Revenue: $4,641 million (+13.6% YoY; +12.2% YoY pro forma including pre-acquisition Yak results for 2024)
• Equipment Rentals Gross Margin: 43.6% (down 450 bps YoY)
• Key Growth Drivers: Equipment rentals increased 13.6% year-over-year, including the impact of the Yak acquisition, primarily due to increased average OEC. The decrease in gross margin was primarily due to increased depreciation expense (including the Yak acquisition and growth in acquired Yak locations), inflation and normal cost variability (particularly in delivery costs), and a higher proportion of 2025 revenue from ancillary revenues, which generate lower margins than owned equipment rentals.

Product Portfolio:

• Major product lines and services within segment: Trench safety equipment (5% of equipment rental revenue), power and HVAC equipment (11%), fluid solutions equipment (7%), mobile storage equipment and modular office space (3%), and surface protection mats (4%).
• New product launches or major updates: The acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC in March 2024 significantly expanded the surface protection mats offering.

Market Dynamics:

• Competitive positioning within segment: Customers include construction companies involved in infrastructure projects, municipalities, and industrial companies.
• Key customer types and market trends: Aims to provide "one-stop" shop solutions through expanded specialty and services products.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $1,969 million (including tax withholding) in 2025. $1.65 billion was repurchased under the $2.0 billion program authorized in April 2025 (increased from $1.5 billion in July 2025).
• Dividend Payments: $464 million ($7.16 per share) in 2025.
• Future Capital Return Commitments: A new $5.0 billion share repurchase program was authorized on January 28, 2026, expected to commence after the current program's completion in Q1 2026, with $1.15 billion intended for repurchase in 2026. A quarterly dividend of $1.97 per share was declared on January 28, 2026, payable February 25, 2026.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $459 million
• Total Debt: $14,229 million
• Net Cash Position: -$13,770 million
• Credit Rating: Moody’s: Ba1 (Stable), Standard & Poor’s: BB+ (Stable) as of January 26, 2026.
• Debt Maturity Profile (principal payments due):
  • 2026: $1,577 million
  • 2027: $851 million
  • 2028: $1,747 million
  • 2029: $1,537 million
  • 2030: $3,170 million
  • Thereafter: $5,420 million

Cash Flow Generation (2025):

• Operating Cash Flow: $5,190 million
• Free Cash Flow: $2,181 million (+6.0% YoY)

Operational Excellence

Production & Service Model: United Rentals employs a life-cycle approach to manage its rental fleet, focusing on optimizing utilization and satisfying customer demand. This involves closely monitoring repair and maintenance costs to determine the optimal time for asset disposal. The company emphasizes a consistently high standard of customer service, often through a single lead contact for key accounts, facilitating cross-selling across its extensive network.

Supply Chain Architecture: United Rentals maintains a strategic approach with its suppliers, aiming for a minimum number of vendors per equipment category to ensure competitive terms and consistent product availability. The company's vendor selection process considers product capabilities, industry standing, terms offered, product liability history, customer acceptance, and financial strength. United Rentals believes it has sufficient alternative sources of supply for its major equipment categories.

Key Suppliers & Partners:

• Equipment Suppliers: The largest supplier accounted for 11% of capital expenditures in 2025, and the top 10 suppliers accounted for 52%.
• Technology Partners: The proprietary Total Control® software application provides key customers with an in-house tool to monitor and manage their equipment needs, fostering strong, long-term relationships. The company also integrates AI solutions into its products, services, and features, and leverages AI in product development and operations.

Facility Network:

• Manufacturing: Not applicable; United Rentals is an equipment rental company.
• Research & Development: Supported by an in-house team of information technology specialists who develop and maintain systems to enhance operational efficiencies and customer service.
• Distribution: Operates 1,768 rental locations globally. 137 branch locations are owned, with the remainder leased. The company maintains a fleet of approximately 18,200 vehicles for delivery, maintenance, management, and sales functions (45% leased, balance owned). Equipment sharing among branches within a region is a key strategy to increase equipment utilization and optimize capital deployment.

Operational Metrics (2025):

• Fleet OEC: $22.48 billion
• Equipment units: 1,095,000
• Fleet age: 49.5 months
• Fleet productivity: +2.2% year-over-year (reflects combined impact of changes in rental rates, time utilization, and mix)

Market Access & Customer Relationships

Go-to-Market Strategy: United Rentals utilizes a multi-channel approach to market its products and services.

• Direct Sales: Sales representatives operate from branches and a centralized Customer Care Center, engaging with existing and potential customers to assist with equipment planning.
• Channel Partners: A dedicated national account sales force focuses on establishing and expanding relationships with large companies that have a national or multi-regional presence.
• Digital Platforms: Customers can access www.unitedrentals.com 24/7 to check equipment availability and pricing, and reserve equipment online. The proprietary Total Control® software platform offers key customers an in-house application to monitor and manage their equipment needs, integrating with their enterprise resource planning systems.

Customer Portfolio:

• Enterprise Customers: Key accounts, managed by a single point of contact, generated 69% of equipment rental revenue in 2025. National accounts are generally defined as customers with potential annual equipment rental spend of at least $500,000 or those operating in multiple states.
• Customer Concentration: The largest customer accounted for 1% of total revenues in 2025, and the top 10 customers accounted for 5% of total revenues, indicating a highly diversified customer base and low concentration risk.

Geographic Revenue Distribution (2025):

• United States: 91% of total revenue
• Foreign (Canada, Europe, Australia, New Zealand): 9% of total revenue

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The North American equipment rental industry is highly fragmented and competitive. United Rentals serves three primary end-markets: industrial and other non-construction (48% of rental revenue in 2025), commercial construction (48%), and residential construction (4%). The industry exhibits cyclicality, with demand for rental equipment typically lower during winter months.

Competitive Positioning Matrix (2025):

Direct Competitors

Primary Competitors: The competitive landscape includes numerous small, independent businesses with one or two rental locations, regional competitors operating in multiple states, national and global public companies or divisions, and equipment vendors and dealers who both sell and rent equipment directly to customers.

Competitive Response Strategy: United Rentals leverages its scale, extensive resources, and competitive advantages, such as greater purchasing power, a broader range of equipment and services, and flexibility in equipment transfer among locations, to maintain its market position. The company's strategic focus includes customer segmentation, customer service differentiation, rate management, fleet management, and operational efficiency.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Global Economic Conditions: Exposure to adverse impacts from inflation, interest rates, supply chain constraints, tariffs, trade wars, sanctions, and geopolitical risks (e.g., international conflicts). Declines in construction or industrial activity, or reduced government spending, could negatively affect revenues and profitability.
• Technology Disruption: Risks include interruptions to information technology systems, cybersecurity attacks, failure to protect personal information, and non-compliance with privacy and data protection laws. Inadequate response to technological changes, evolving customer demands, or challenges in managing AI use could adversely affect operations and reputation.
• Customer Concentration: Low concentration risk, with the largest customer accounting for 1% of total revenues and the top 10 customers for 5% in 2025.
• Oil and Natural Gas Prices: Demand for services is sensitive to the level of exploration, development, and production activity of oil and natural gas companies, which is directly affected by price volatility.
• Fuel Costs: Significant increases in fuel prices or limitations on fuel supplies could lead to higher transportation costs.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on a group of key suppliers for equipment and other supplies. Insolvency, financial difficulties, or consolidation among suppliers could disrupt supply or lead to unfavorable terms.
• Aging Fleet: An aging rental fleet could lead to increased maintenance costs and decreased residual values if not replaced optimally.
• Acquisition Integration: Risks associated with identifying suitable acquisition opportunities, integrating acquired businesses (e.g., undiscovered liabilities, unexpected costs, management strain, failure to realize anticipated benefits).
• Human Capital: Turnover in management, inability to attract and retain key personnel, labor shortages, and disputes could adversely affect business efficiency and growth.

Financial & Regulatory Risks

Market & Financial Risks:

• Indebtedness: Significant indebtedness ($14.2 billion at December 31, 2025) increases vulnerability to adverse economic conditions, limits financial flexibility, and requires substantial cash for debt service. Variable rate debt ($4.1 billion) exposes the company to interest rate increases.
• Refinancing Risk: Inability to refinance indebtedness on favorable terms could materially and adversely affect liquidity and ongoing results of operations.
• Covenant Compliance: Failure to satisfy financial covenants (e.g., fixed charge coverage ratio under the ABL facility if specified availability falls below 10%) or other restrictive covenants could result in accelerated debt repayment.
• Capital Access: Inability to obtain additional capital could hinder funding for capital outlays, growth plans, and refinancing.
• Residual Value Risk: The market value of used rental equipment upon disposition could be less than its depreciated value, negatively impacting operating results and cash flows.
• Foreign Exchange: Exposure to foreign currency fluctuations from operations in Canada, Europe, Australia, and New Zealand.
• Credit Risk: Inability to collect on contracts with customers could adversely affect operating results.

Regulatory & Compliance Risks:

• Environmental & Safety Regulation: Operations are subject to numerous laws governing environmental protection and occupational health and safety matters. Potential for liability for investigation and remediation costs, fines, and penalties. Stricter future regulations, including climate change, could increase compliance costs.
• Multi-jurisdictional Regulation: Operations across 49 U.S. states, Puerto Rico, and multiple foreign countries expose the company to diverse and potentially conflicting state, local, federal, and international laws and regulations.
• Data Privacy: Failure to comply with evolving data privacy and protection laws (e.g., GDPR, U.S. state laws) could lead to legal liability, regulatory enforcement actions, reputational harm, and increased compliance costs.
• Tax Law Changes: Changes to income tax laws or regulations in the U.S. and other jurisdictions could increase tax liability and adversely impact financial results.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: International operations are subject to risks normally associated with foreign jurisdictions, including currency exchange risk and compliance with foreign laws and regulations.
• Trade Relations: Impact of trade tensions and policy changes, including tariffs, on equipment costs and supply chains.
• Sanctions & Export Controls: Geopolitical conflicts and resultant sanctions are identified as a risk.
• Severe Weather Events & Natural Occurrences: Disruptions to operations, increased operational costs, reduced demand, and potential impacts on insurance availability or cost.
• Public Health Crises: Adverse impacts on the company, its customers, and its suppliers.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: United Rentals relies on continuous and uninterrupted performance of its information technology systems, some proprietary and some licensed, to monitor and control operations, adapt to market changes, implement strategic initiatives, and support its online ordering system. The company maintains an in-house IT security team. Innovation Pipeline: The company incorporates AI solutions into its products, services, and features, and leverages AI in product development and operations. It continuously develops and enhances controls, processes, and practices to protect its systems.

Intellectual Property Portfolio: Patent Strategy: While not explicitly detailed, the company's proprietary Total Control® software application indicates a focus on protecting unique technological offerings.

Technology Partnerships: United Rentals engages third-party vendors for certain IT systems and outsourced administrative functions. The Board of Directors periodically hosts experts for presentations on cybersecurity and data privacy.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company identifies "turnover in our management team and inability to attract and retain key personnel" as a risk factor, indicating an ongoing focus on talent management and succession planning.

Board Composition: The Board of Directors, Audit Committee, senior management, and the Enterprise Risk Management Council actively address cybersecurity and risk management. The Board receives quarterly cybersecurity reports and updates on the company’s Crisis Management Plan. The Audit Committee conducts an annual review of the cybersecurity program. The Board periodically hosts experts for presentations on cybersecurity and data privacy.

Human Capital Strategy

Workforce Composition (2025):

• Total Employees: 28,500 (+2.1% YoY from 27,900 in 2024)
• Hourly Employees: 20,300
• Salaried Employees: 8,200
• Geographic Distribution: Employees are located across the company's 1,768 rental locations in the U.S., Canada, Europe, Australia, and New Zealand.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Human resources programs are designed to attract and retain high-performing talent.
• Retention Metrics: Voluntary employee turnover was 10.8% in 2025, down from 11.9% in 2024 and 12.4% in 2023. The company monitors internal promotions and referrals.
• Employee Value Proposition: Offers competitive pay and benefit programs, including base salaries and various short-term, long-term, and commission-based incentive compensation. Comprehensive benefits include paid time off, retirement savings plans, medical, dental, and vision benefits, various insurance types, parental leave, legal coverage, auto/home insurance, identity theft insurance, and tuition assistance. Five company-wide stock grant programs have been conducted since 2014, with the most recent in 2024.

Diversity & Development:

• Diversity Metrics: Committed to supporting military veterans and prioritizing their fair inclusion.
• Development Programs: All new hires are encouraged to attend JumpSTART orientation, and applicable new hires attend Center of Excellence (job-related) training within 90 days. A wide array of training solutions (instructor-led, virtual, digital, hands-on, e-learning, experience maps) are offered. In 2025, employees completed approximately 1.1 million hours of training, covering safety, sales, leadership, and equipment-related topics. A company-wide mentorship program, UR Connections, was recently launched.
• Culture & Engagement: Fosters an inclusive culture through town hall meetings, quarterly all-employee conference calls, and a virtual collaboration platform. An annual employee experience survey is conducted. The United Compassion Fund, an employee-funded 501(c)(3) charity, provides financial assistance to employees in need; in 2025, employees donated $1.7 million, and 415 grants totaling $1.4 million were received.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: United Rentals has aspirational sustainability goals, including a greenhouse gas intensity reduction goal. The company is making efforts to provide more low- and zero-emissions equipment to customers and tools to monitor and manage their environmental impacts.

Social Impact Initiatives:

• Community Investment: The United Compassion Fund, an employee-funded 501(c)(3) charity, provides financial assistance to employees in need.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Demand for rental equipment typically experiences lower activity during the winter months.
• Economic Sensitivity: The business is significantly impacted by global economic conditions, including inflation, interest rates, supply chain constraints, and geopolitical risks. Declines in construction or industrial activity can adversely affect revenues and profitability.
• Industry Cycles: The equipment rental industry is inherently cyclical.

Planning & Forecasting: United Rentals continuously assesses the economic environment and adjusts its plans to address prevailing economic challenges. Fleet management strategies, including anticipating optimal asset disposal times, are integral to planning.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Environmental Protection & Occupational Health and Safety: Operations are subject to numerous laws and regulations governing environmental protection and occupational health and safety matters, including those related to wastewater, storm water, solid and hazardous wastes and materials, and air quality. The company may be liable for remediation costs, fines, and penalties.
• International Compliance: Operations in Canada, Europe, Australia, and New Zealand necessitate compliance with local foreign laws and regulations, in addition to applicable U.S. laws.
• Data Privacy & Protection: Compliance with evolving data privacy and protection laws and regulations, such as the European Union’s General Data Protection Regulation (GDPR) and various U.S. state laws, requires significant measures to safeguard information and may incur substantial compliance costs.

Trade & Export Controls: Geopolitical conflicts and resultant sanctions are identified as a risk factor that could impact operations.

Legal Proceedings: United Rentals is involved in various claims and proceedings arising in the ordinary course of business, including general liability, personal injury, product liability, property and automobile claims, indemnification, employee injuries, employment-related claims, self-insurance obligations, and contract and real estate matters. The company believes that the ultimate liabilities from these matters will not have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Tax Strategy & Considerations

Tax Profile (2025):

• Effective Tax Rate: 25.3% (compared to 24.0% in 2024).
• Geographic Tax Planning: In the fourth quarter of 2025, United Rentals identified $324 million of distributable foreign earnings that are no longer considered indefinitely reinvested. These earnings are expected to be remitted in 2026, with immaterial associated taxes recorded in 2025. Unremitted foreign earnings of $1.621 billion remain indefinitely reinvested.
• Tax Reform Impact: The enactment of new federal tax legislation (H.R.1) in July 2025 made 100% bonus depreciation permanent, restored immediate expensing of certain domestic research and experimental expenditures, and restored EBITDA-based interest deduction limitations. This legislation decreased cash income tax liability and increased deferred tax liability, without materially impacting the effective tax rate. The company is monitoring evolving international tax discussions, including the EU’s Pillar Two Directive and G-7 statements.

Insurance & Risk Transfer

Risk Management Framework: United Rentals' risk management department is responsible for procuring insurance, managing claims, and developing loss prevention programs focused on workplace, driver, and customer safety. The primary objective is to protect employees, assets, and the company from liability for accidental loss.

• Insurance Coverage: The company maintains a broad range of insurance for general liability, workers’ compensation, and automobile liability, subject to deductibles or self-insured retentions. It also self-insures for certain claims and group medical claims, with "stop loss" insurance for significant losses. United Rentals does not maintain company-wide stand-alone first-party environmental liability coverage (beyond legally required and third-party site pollution coverage) due to cost-benefit considerations.