United Q2 results reflect robust demand

United Rentals has released solid second quarter 2022 financials - including a strong result for specialty rentals - reflecting dynamic market activity, contractor backlogs, positive sentiment and rising prices.

United Rentals is investing $3 billion in fleet this year. (Photo: United Rentals.)

Total revenue for the period was $2.771 billion, including rental revenue of $2.462 billion - reflecting an increase of 26.2% year-over-year, described in United’s results statement as “establishing a second quarter record.”

Net income for the quarter increased 68.3% year-over-year to another quarterly record of $493 million, reflecting higher gross margins from rental revenue and used equipment sales.

Adjusted EBITDA was up 31.2% year-over-year to $1.311 billion.

Specialty rentals performed well, with revenue up 39.2% year-over-year, including the impact of the May 2021 acquisition of General Finance Corporation (“General Finance”), to $675 million. General rentals reported a 21.9% year-over-year increase in rental revenue to $1.787 billion.

The company reported an 11.3% boost in fleet productivity year on year, and is on track to invest, gross, between $2.9 and $3.1 billion in fleet in 2022.

United has updated its 2022 outlook for total revenue to $11.4 billion to $11.7 billion. (Photo: United Rentals.)

Used equipment sales in the quarter decreased 15.5% year-over-year. These generated $164 million of proceeds compared to $194 million for the same period last year.

On the back of the results, United has updated its 2022 outlook for total revenue to $11.4 billion to $11.7 billion - against $11.1 billion to $11.5 billion in the previous outlook; and EBITDA $5.4 billion to $5.55 billion against $5.2 billion to $5.4 billion in the previous outlook.

CEO Matthew Flannery said, “Our record second quarter results reflect our strong execution in a robust demand environment.

“Our higher 2022 outlook for total revenue, adjusted EBITDA and free cash flow reflects broad-based end-market activity, contractor backlogs, customer sentiment and our visibility through the balance of the year.

“The flexibility of our operating model puts us in a strong position to leverage any market environment.”

United Rentals’ second quarter results were released in the same week that the company released its 2021 Corporate Responsibility Report, outlining the company’s emissions reductions and new corporate responsbility goals.