United Rentals Inc. shares surged 22.9% on Thursday, closing at $986.77, after the equipment rental giant raised its full-year revenue and adjusted EBITDA guidance. The move came on the heels of a record-breaking first quarter, with total revenue reaching $3.985 billion. The company's performance offered investors a clearer-than-expected view of construction and industrial demand, driving a sharp rally in the stock.
First-quarter rental revenue rose 8.7% to $3.419 billion, while adjusted earnings per share came in at $9.71. The company increased its 2026 revenue forecast to a range of $16.9 billion to $17.4 billion, up from the prior $16.8 billion to $17.3 billion. Adjusted EBITDA guidance was also raised by $50 million on both ends, now standing at $7.625 billion to $7.875 billion.
CEO Matthew Flannery noted on the earnings call that “the year is playing out better than we expected,” citing strong demand from large projects, including healthcare, infrastructure, power, data centers, and industrial manufacturing. Fleet productivity, a key metric combining rental rates, equipment usage, and mix, increased 2.3% year-over-year. General rentals grew 6.2%, while specialty rentals jumped 13.8%.
The positive sentiment spilled over into the broader rental and machinery sector. Herc Holdings advanced 12.6%, and Caterpillar gained 3.2%, though United Rentals’ gains outpaced both, fueled squarely by its raised guidance. Flannery dismissed concerns about intensifying competition in general rentals, emphasizing the company’s “competitive moat” and favorable supply-demand dynamics that should sustain fleet productivity improvements.
However, the quarter also revealed some weaker areas. Used equipment sales fell 7.2%, and specialty rental gross margin contracted by 170 basis points, impacted by higher depreciation, elevated delivery costs, and an unfavorable revenue mix. Flannery described the revenue mix as “the wild card,” noting that even strong utilization and rate increases cannot compensate if business tilts toward less profitable jobs.
Fuel and delivery expenses remain a concern. CFO Ted Grace explained that while most fuel price fluctuations are passed on to customers or hedged, the cost of moving equipment is a challenge the company can “mitigate, but not eliminate,” especially as demand picks up.
United Rentals returned $500 million to shareholders during the quarter, comprising $375 million in share buybacks and $125 million in dividends. The board declared a quarterly dividend of $1.97 per share, payable May 27 to shareholders of record as of May 13. As of March, the company reported a net leverage ratio of 1.9 times and liquidity of $3.377 billion. The fleet’s total original cost stood at $22.59 billion. United Rentals operates 1,658 rental locations across North America, with a presence in Europe, Australia, and New Zealand.
